New Baby Money Checklist for Australian Parents

Employer paid parental leave and the government Parental Leave Pay scheme are two separate things that can often run at the same time or back to back. Your enterprise agreement or contract sets the employer entitlement. Get it confirmed in writing now so you can plan your income across the full leave period without guessing.

You can claim Parental Leave Pay up to three months before your due date, and claiming early matters because Services Australia needs time to assess your claim. The scheme provides paid weeks at the national minimum wage rate. Check the current number of weeks and the income test threshold at Services Australia before you apply, as both are subject to change each financial year.

From 1 July 2025, superannuation contributions became payable on government Parental Leave Pay. This is a significant change that reduces the super gap for primary carers. Confirm the current rate and how it is paid by checking the Services Australia website, because the implementation details affect how you account for super during leave.

Fair Work requires you to give your employer written notice of parental leave at least ten weeks before you intend to start, and to confirm the dates at least four weeks out. Missing these windows does not remove your entitlement, but it can create friction around your start date and any flexible return arrangements you want to negotiate.

Most households underestimate the income drop because they add up the payments without subtracting tax, or they forget that some employer top-ups are not paid at the same time as government payments. Map out each month of leave, including which payment arrives when, so you know exactly when the lean months fall and how much buffer you need.

Most private health funds impose a twelve-month waiting period on obstetric services. If you have not yet served it, you will pay the full cost of a private birth out of pocket. This waiting period must be completed before conception to be useful, so if you are already pregnant and uninsured, check what your public hospital options are and what gap costs remain.

Most funds allow you to add a newborn without serving a waiting period, but only if you notify them within a set number of days of the birth, typically two to thirty days depending on the fund. Miss that window and your child may need to serve waiting periods for hospital cover. Check your fund's specific deadline now, before the birth.

A child changes your insurance needs immediately. The question is not whether you need cover but how much, because the cost of replacing your income for eighteen or more years is the figure that drives the calculation. If you have cover through super, check whether it is adequate for a household with a dependant and whether it pays out in the right circumstances.

Dying without a will when you have a child means the state decides how your estate is distributed and, in some circumstances, who cares for your child. A will is not expensive to prepare and the cost of not having one is measured in family conflict and legal fees. Update it as soon as possible, and again after the birth when you have a name to include.

Super does not automatically form part of your estate. Without a valid binding nomination, your fund's trustee decides who receives your super balance, and they may not choose your partner or child. A binding nomination directs the money where you intend. Check whether your existing nomination is still valid, as many lapse after three years.

You cannot claim Family Tax Benefit, Child Care Subsidy, or add your child to Medicare without a birth certificate or at least a registration reference number. Most states require registration within sixty days of the birth. Do this before any other government payment step because it unlocks everything else.

Family Tax Benefit Part A and Part B are income-tested payments available to most families with a child under the relevant age. The income thresholds and payment rates are indexed and set each financial year, so check the current figures at Services Australia or use the estimator tool. Claims can be backdated, but only to the start of the financial year, so do not delay past 30 June.

FTB is means-tested and the payment tapers as income rises. Many families assume they earn too much to qualify and never check, leaving money on the table. The Part B component has a separate threshold for the secondary earner. Run the numbers against your leave-period income, which may be lower than your usual income and could shift your entitlement.

These one-off and ongoing payments are available to families who are not receiving Parental Leave Pay from the government scheme. They are delivered through Family Tax Benefit Part A. If you are receiving government Parental Leave Pay, you will generally not also receive the Newborn Supplement, so check your eligibility at Services Australia to avoid a debt later.

Waitlists for long day care in most Australian cities run from six months to over a year. If you wait until you are ready to return to work, you may not have a place. Enrol early, even if you are not certain of your return date, and update the centre as your plans become clearer.

The Child Care Subsidy is income-tested and activity-tested. The subsidy percentage you receive depends on your combined family income, and the number of subsidised hours depends on the activity test, which measures your combined hours of work, study, or approved activity. Both tests have thresholds that change each financial year, so verify the current settings at Services Australia.

Claiming the Child Care Subsidy is a two-step process. You apply through myGov, and then the childcare centre submits an enrolment notice that you must confirm. If you do not confirm the enrolment, the subsidy is not applied and you pay full fees. This confirmation step catches many families off guard because it is easy to miss the notification.

Some employers, particularly in the public sector and not-for-profit sector, offer salary packaging arrangements that can reduce your childcare costs further. The interaction between salary packaging and the Child Care Subsidy is complex because reportable fringe benefits affect your adjusted taxable income, which in turn affects your CCS rate. Read the detail before assuming it saves you money.

Starting a savings habit for your child early, even with small amounts, lets compound interest do the work over a long time horizon. Be aware of the minor's tax rules: investment income earned by a child under eighteen is taxed at penalty rates above a low threshold, so the account structure matters. A savings account in a parent's name held for the child is one common approach.

A baby introduces new and unpredictable costs, from medical gaps to equipment replacements, at exactly the time your income is lower. An emergency fund sized to your leave-period expenses, not your normal expenses, is the right target. If you already have one, check whether the amount still reflects your new household costs.