If you’ve spotted the figure $998.20 and wondered what it means in the world of Australian welfare payments — you’re on the right page. This article walks you through what the number stands for, who qualifies, what the conditions are, and how it fits into family budgeting. Let’s dive in like we’re having a chat over coffee.
What is the Parenting Payment?
The Basics
The Parenting Payment is a fortnightly income support payment provided by Services Australia to people who are the principal carer of a young child, and who meet income and asset test requirements.
Why it exists
Think of it as a helping-hand for those parents who are responsible for caring for children full-time (or mainly full-time) and may not be working or only working limited hours because of that commitment. It’s part of Australia’s social safety net.
Who can get it (in broad terms)
- You must meet the principal carer rules — for example, you’re the main person responsible for a child under a certain age.
- You must meet residence, income and assets tests.
- If partnered, there are extra rules for the youngest child’s age and your partner’s circumstances.
The $998.20 figure – what does it mean?
The single rate as of 20 September 2025
From 20 September 2025 the maximum fortnightly payment for a single parent receiving Parenting Payment is $998.20, plus a pension supplement of $29.50.
So:
- Single parent (maximum rate) → $998.20 per fortnight + pension supplement ($29.50)
- Partnered parent (maximum rate) → $726.50 per fortnight.
Why this “maximum” wording
The figure is the maximum you could receive if you satisfy the income and asset tests (and other eligibility criteria). If you earn or have assets above certain thresholds, your rate may be reduced or you may be ineligible.
How often the rate is reviewed
The rates are updated twice a year, on 20 March and 20 September, to reflect indexation (inflation, wage growth, etc).
What affects how much you actually receive
Income test
If you earn income (or your partner earns income, in the partnered rate), then your payment may be reduced according to specific rules. For a single parent, for example, the payment reduces by 40 c for each $1 you earn above the income-free area.
For partnered parents, the rules differ (your and your partner’s income is assessed) and reduction rates differ.
Assets test
Your assets (and your partner’s, if you have one) are assessed. If the value of your assets is too high, you might not be eligible for the payment.
Age of the youngest child and mutual obligations
- If you’re single and your youngest child is under 14, you may not have to meet workforce participation (mutual obligation) requirements. If the child is older, different rules apply. Services Australia
- If you’re partnered, generally the child must be under 6 years (in many cases) for you to qualify for the partnered rate.
Other supports attached
Receiving Parenting Payment might also make you eligible for other benefits: the Energy Supplement, Rent Assistance, etc.
So what does $998.20 really feel like in your pocket?
Fortnightly vs weekly
$998.20 every two weeks works out to roughly $499.10 per week before supplement. Compare that to living costs — rent, food, childcare (if any), transport. It gives you a rough budget framework.
Supplement adds a little more
Don’t forget the pension supplement of $29.50 (for the maximum single rate) brings the total to about $1,027.70 per fortnight at the maximum threshold.
But many will receive less
Because of income/assets tests, you likely won’t get the full $998.20. So measure your budget accordingly, expecting it could be reduced.
Cost of living context
With inflation and rising costs, even the “maximum” payment might feel tighter than you’d hope. The Government’s indexation increases aim to help, but they don’t always keep pace with real-life expenses.
Key dates you should know
20 September 2025
This is when the latest rate (including the $998.20 figure) comes into effect. Services Australia
20 March each year
Another review point for indexation of Parenting Payment and other welfare payments.
Reporting obligations
If your income or assets change, you must notify Services Australia in accordance with rules (via your reporting day or within 14 days if required) so they can assess your payment correctly.
Who this payment suits (and who might miss out)
Suits single parents caring full-time
If you are a single parent whose youngest child is under the required age (under 14, in many cases) and you are the primary carer, this payment supports you.
Partnered parents with young children
If you have a partner and your youngest child is under the qualifying age (under 6 in many cases) and you meet income/assets tests, you could receive the partnered rate (less than the single rate).
May not suit those with higher earnings or assets
If your income or your partner’s income/assets are high, you may get a reduced rate or be ineligible.
Not the same as Parental Leave Pay
Don’t confuse Parenting Payment with Parental Leave Pay (which is paid to eligible parents after the birth/adoption of a child and is employer- or government-funded leave support). They have different eligibility and rules.
How to claim, next steps and tips
Claim via myGov / Services Australia
You can claim Parenting Payment online via your myGov account linked to Services Australia. Make sure all details are up-to-date.
Prepare necessary documents
You’ll likely need proof of age, proof of residence, proof of your child’s age/relationship, income statements, asset details, partner’s details (if applicable) etc.
Keep reporting obligations in mind
Once you receive payments, you’ll need to report income/assets as required. Failing to report can lead to overpayments and debts.
Budget using the “maximum” figure prudently
While $998.20 is the maximum, budgeting as though you get full may be risky if you get a lower amount. Plan conservatively.
Explore additional supports
Check whether you’re eligible for Rent Assistance, Energy Supplement, Child Care Subsidy, Family Tax Benefit etc. The Parenting Payment may open doors for other supports.
Common questions (answered simply)
“I’m single with two children — is the $998.20 rate for me?”
Potentially yes — if you meet all other eligibility rules and your income/assets are low enough to qualify for the maximum rate. The $998.20 figure is the maximum single rate from 20 Sep 2025.
“I have a partner. Why is my rate lower than for single parents?”
Because the partnered rate is different: from 20 Sep 2025, the maximum partnered rate is $726.50 per fortnight (if youngest child under 6, etc).
“If I work part-time, does that mean I’ll lose the whole payment?”
Not necessarily — part-time income may reduce the payment rather than eliminate it, depending on the thresholds and how much you earn. The income test applies.
“Does my child’s age affect eligibility?”
Yes. For single parents: youngest child under a certain age (commonly under 14) is required for unpaid work obligations exemption. For partnered parents: youngest child under 6 (in many cases) for the payment.
“Does this payment cover everything I need?”
Not necessarily — while helpful, the payment may not cover all expenses such as large rent, childcare, bills and so on. It is one part of a broader support system. You may need to combine with budgeting and other supports.
How the September 2025 increase fits the bigger picture
Indexation and small increases
In March 2025 there were indexation increases to Parenting Payment and other benefits. From September 2025 we see the latest rate update ($998.20 for single parents) as part of this cycle.
Cost-of-living pressures
Even with rates being reviewed, many parents say rising costs (rent, utilities, food) are still outpacing the relief. Advocates say what is offered is helpful but not always enough.
Monitoring your circumstances
Because income and asset thresholds can change, it’s good to keep an eye on your circumstances — working part-time, changes in your partner’s income, or child age moving beyond the cutoff can affect your payment.
Final thoughts before you act
This is one of those payments that can feel like a lifeline when you’re juggling parenting and finances. Having the figure $998.20 clearly in mind helps you map out your budget. But it comes with conditions and catches, so treat it with both optimism (yes, relief!) and realism (yes, some limits apply).
If you think you’re eligible, start the claim process early, gather your docs, and set aside time to do it properly. The sooner you get accurate information, the sooner you can plan your next steps.
Conclusion
The $998.20 rate for the Parenting Payment single parent from 20 September 2025 gives a tangible benchmark for those navigating the welfare system in Australia. It represents the maximum fortnightly payment for a single parent who meets all the eligibility criteria and tests. While it won’t solve every financial challenge, it’s a meaningful support. Knowing how income, assets, child age and partner status affect your payment puts you in the driver’s seat. If you find yourself eligible — apply, keep on top of your obligations, and budget ahead. And if not eligible — still explore what supports you are eligible for, because every bit helps in making ends meet.
FAQs
Q1: Can I receive the full $998.20 if I work part-time?
A1: Possibly — it depends on how much you earn and if you meet the income test thresholds. If your income is above the free area, your payment may be reduced.
Q2: When will the next rate change after September 2025 happen?
A2: The next review is expected around 20 March 2026 (since rates are updated twice yearly).
Q3: Does the $998.20 amount include Rent Assistance or the Energy Supplement?
A3: No — the $998.20 is the basic maximum rate. You might still be eligible for Rent Assistance and the Energy Supplement, which are additional supports and will vary.
Q4: If my partner stops working, will my rate increase?
A4: Possibly — your income test may change, but it depends on the full picture (your partner’s income, your assets, child age, etc). You should notify Services Australia of any change.
Q5: If my youngest child turns 14 (single parent scenario), what happens to my payment?
A5: If you are single and your youngest child turns 14, you may need to meet mutual obligation (work/activities) or may no longer be eligible depending on your circumstances. It’s vital to check the rules when that happens. S