Two tests — you only need to pass one
| Test | Limit for children born or adopted 1 Jul 2026 – 30 Jun 2027 | Income year checked |
|---|---|---|
| Individual | Adjusted taxable income ≤ $186,487 | The financial year before the birth/claim (2025-26) |
| Family (if the individual test is failed) | Your + your partner’s adjusted taxable income ≤ $386,525 | Same year |
The limits are indexed every 1 July. For births in 2025-26 they were $180,007 and $373,094 (on 2024-25 income).
The pre-filled example
The birth parent earned $190,000 in 2025-26 — over the individual limit. But the partner earned $120,000, so the family income is $310,000, under $386,525. Both parents qualify, and the family gets the full $26,122.20.
What is “adjusted taxable income”?
Taxable income plus reportable fringe benefits, reportable super contributions (including salary sacrifice), net investment losses, tax-free pensions and benefits, and foreign income, minus child support paid. Salary-sacrificed super and negative gearing losses are added back — so they don’t help you get under the limit.
Alternatives if you’re over both limits
Check whether the income year can change: you can choose to claim based on the year before your claim date if that is earlier than the birth. Otherwise, employer-paid parental leave is unaffected by the government income test.
The work test
You also need to have worked at least 10 of the 13 months before the birth (or the start of PPL), and at least 330 hours in those 10 months — about 1 day a week — with no gap of more than 12 weeks between two working days.
Checking your income before you claim
Find your adjusted taxable income components on your notice of assessment for 2025-26, and add any reportable fringe benefits and reportable super contributions shown on your income statement. If you haven’t lodged your 2025-26 return yet, do so before claiming — Services Australia uses ATO data. If you’re close to the limit, a registered tax agent can help you check what counts.
The income test looks back at one financial year, so a big pay rise or bonus after 30 June 2026 doesn’t affect a claim for a baby born in 2026-27.
Key Paid Parental Leave figures (checked 5 November 2026)
| Item | From 1 July 2026 |
|---|---|
| Daily rate | $200.94 ($1,004.70 a week) |
| Weeks per family | 26 (130 days) |
| Reserved per parent (couples) | 4 weeks |
| Super | 12% paid by the ATO |
| Income test | $186,487 individual / $386,525 family (2025-26 income) |
FAQ
What is the PPL income limit for 2026-27?
$186,487 of adjusted taxable income in 2025-26 for each parent, or $386,525 of combined family income.
Can I get PPL if I earn over $186,487?
Yes, if your family income (yours plus your partner’s) is $386,525 or less.
What does this example family receive?
$26,122.20 before tax: the birth parent passes the family test ($310,000 combined).
Sources (checked 5 November 2026): Services Australia “Paid Parental Leave scheme rate changes for the new financial year” (from 1 July 2026: $26.44 an hour, $200.94 a day, $1,004.70 a week, $26,122.20 for 26 weeks); Paid Parental Leave Act 2010 and Paid Parental Leave Amendment (Improvements for Families and Gender Equality) Act 2023 (26 weeks and reserved weeks from 1 July 2026); Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Act 2024 (12% super); Services Australia income test (2024-25 limits $180,007 / $373,094, indexed; 2025-26 limits $186,487 / $386,525 as published for 2026-27 claims); ATO 2026-27 tax rates.