Paid Parental Leave income test and previous financial year income estimate 108-05030070

Customers must meet the PPL income test to be eligible for PPL. All customers claiming PPL must provide an estimate of their ATI for the financial year before the date of claim or the date the child was born or entered care, whichever is earlier.

For children born or adopted on or after 1 July 2023, a family income test applies, in addition to the individual income test. If the customer does not meet the individual income test, then the family income test limit is applied. This applies to both single and partnered customers. See Resources for details on when the individual or family income test will be applied and when evidence is required.

For children born or adopted before 1 July 2023, the PPL income test is based on the estimate of the customer’s income only and does not include their partner’s income estimate.

Secondary and tertiary claimants need to give an estimate when they claim PPL. For example, after the primary claimant returns to work, or after the death of the primary carer/claimant.

The customer's estimate must be considered reasonable for it to be used to assess their eligibility.

• For a pre-birth/adoption claim, an estimate is needed for the financial year before the date of the claim
• For a post-birth/adoption claim, an estimate is needed for the financial year before the date the child was born or entered their primary care

Pre and post birth PPL claims spanning financial years

Additional income details are not needed if a customer has lodged a pre-birth claim in a previous financial year (for example, 2023-24) and later lodged proof of birth in the following financial year (2024-25). The claim must be finalised using the income details provided with the pre-birth claim.

Customers can provide an estimate for their claim online or on the paper claim form, or by contacting by phone or in person.

If an estimate is not considered reasonable based on the financial circumstances for the financial year and evidence available, it cannot be used to assess eligibility.

Evidence may be required if the customer and/or partner’s adjusted taxable income is 90% or more of the relevant financial year income limit.

For children born or adopted on or after 1 July 2023

Partnered Customers

Where a customer’s estimate is between the individual evidence threshold and the individual income limit, they have the option to provide their partner’s estimate.

If the customer:

• provides their partner’s estimate and the combined estimate is below the family evidence threshold, evidence is not required. They will be assessed under the family income test.
• does not provide their partner’s income estimate, evidence is required. They will be assessed under the individual income test

If the:

• customer’s estimate is above the individual income limit, their partner’s estimate is mandatory. If their combined estimate is less than the family evidence threshold, evidence is not required.
• customer and partner’s combined estimate is above the family evidence threshold, evidence is required

Single Customers

Evidence is only required if the customer’s estimate is above the family evidence threshold.

See the Resources page for income evidence requirements for customers with children born or adopted on or after 1 July 2023.

Customers do not need to provide evidence if their actual adjusted taxable income (AATI) details for the relevant financial year have been transferred from the Australian Taxation Office (ATO) for Family Tax Benefit (FTB) and/or Child Care Subsidy (CCS).

Evidence may be requested if actual income details have not been transferred from the ATO.

When a customer provides an estimate, a superannuation withdrawal under the First Home Super Saver (FHSS) Scheme is not counted towards their taxable income. The Resources page has a link to the ATO for FHSS information.

• If the customer's pre-birth claim was rejected due to income and the child is born or enters care in the new financial year, they may wish to reclaim PPL and test their eligibility against income for the financial year before the child's birth or entry into care
• If a customer wants to revise their estimate for the same financial year, they should apply for a formal review of the decision to reject their PPL claim