What does it mean for parents?

Current Parenting Payment recipients will have access to their current payment protected, but will be required to seek part-time work once their youngest child is aged 7. New parents applying for welfare with a youngest child aged 6 and over will receive a payment and obligation that recognises their capacity to work part time.

Existing Parenting Payment recipients

Parents receiving Parenting Payment prior to 1 July 2006 will be able to remain on Parenting Payment under the current entitlement, that is, until their youngest child turns 16.

This group of parents will have a year to seek work voluntarily from the later of 1 July 2006 or when their youngest child turns 6. After that, they will become subject to an obligation, based on their capacity, to seek part-time work of at least 15 hours per week.

This applies to both partnered and single Parenting Payment recipients.

New Parenting Payment recipients

Parents applying for Parenting Payment on or after 1 July 2006 will receive Parenting Payment while their youngest child is less than 6 years old. When their youngest child turns 6, this group of parents will receive enhanced Newstart and be subject to an obligation, based on their capacity, to seek part-time work of at least 15 hours per week.

Single parents on Newstart with a youngest child aged 6-15 will receive a Pensioner Concession Card and Pharmaceutical Allowance.

Partnered parents on Newstart will continue to receive the Health Care Card.

Income support recipient		Obligation	Payment
Parent, youngest child aged under 6	Existing recipient (on 30 June 2006)	None	Parenting Payment (single or partnered)
	New applicant(a) (from 1 July 2006)	None	Parenting Payment (single or partnered)
Parent, youngest child aged 6 or over	Existing recipient (on 30 June 2006)	Part‑time(b)	Parenting Payment (single or partnered)
	New applicant (from 1 July 2006)	Part‑time	Enhanced Newstart Allowance

 

1. When the youngest child turns 6, a part-time obligation is applied and enhanced Newstart Allowance is payable.
2. Existing recipients of Parenting Payment have a 12 month grace period before new obligations commence. This means their obligations commence from the later of 1 July 2007 or their youngest child’s 7th birthday.

New obligation and payment arrangements for parents

4 2005-06 Budget