Rates of Parenting Payment (PP) 007-02250000

This document outlines the factors that affect the rate of Parenting Payment (PP). PP is a fortnightly taxable income support payment paid to single and partnered customers caring for a dependent child.

Rate of payment

The rate of PP depends on whether the customer is partnered or single:

Parenting Payment Single (PPS) is subject to the PPS Income Test and the benefit/allowance assets test. The customer's income free area can vary as it depends on the number of dependent children in the customer's care
Parenting Payment Partnered (PPP) is paid at the benefit/allowance rate and is subject to the benefit/allowance income and assets tests. There are fixed personal and partner income free areas below which the incomes of the customer and their partner do not affect the rate of payment

PP is adjusted in line with the Consumer Price Index on the 20 March and 20 September. The PPS rate is also adjusted in line with the Male Total Average Weekly Earnings (MTAWE) figure.

The rate of PP is not affected by the customer's age.

PP cannot be made to customers through the tax system.

Partner imprisoned

If a customer's partner is imprisoned, the customer is paid the member of a couple (partner in gaol) rate, equivalent to the single with children rate of JobSeeker Payment (JSP). This is adjusted to the member of a couple rate from the date of their partner's release. While paid at the member of a couple (partner in gaol) rate, the customer will be subject to the partnered allowance income and assets test, and conditions of payment (not at the PPS rate, or conditions/concessions).

Illness separated or respite care couple

A PP customer may also be assessed as a member of an illness separated or respite care couple. In these cases, the customer is also paid a rate equivalent to the single with children rate of JSP as above.

Entitlements to eligible customers

PP customers may be entitled to a range of other additional products and services, including Pension Supplement for eligible customers over Age Pension age.

If the customer can undertake these activities as part of their Job Plan they may also be eligible for:

PP customers may be affected by compliance action if not complying with their Job Plan.

Working Credit

Working Credits may enable the customer to keep some of their income support payment while they are working. If the customer's and/or partner's income reduces their fortnightly rate to nil and some of that income is employment income, the customer's payment may remain current at nil rate for up to 12 fortnights and they may retain certain benefits.