The short answer
The work test
- You worked in 10 of the 13 months before the birth or adoption.
- At least 330 hours in those 10 months, around one day a week.
- No gap of more than 12 weeks between work days.
Hours you work in your business count if you are working for financial reward, even if the business made no profit. Keep a record of your hours; you may be asked for it.
The income test
Services Australia looks at your adjusted taxable income for the financial year before the birth or your claim, whichever comes first.
| Income year tested | Individual limit | Family limit |
|---|---|---|
| 2025-26 | $186,487 | $386,525 |
| 2024-25 | $180,007 | $373,094 |
You pass if you are under the individual limit, or if you and your partner together are under the family limit. Without a partner, the family limit applies to your income alone.
On your paid days, step away
On a Parental Leave Pay day you cannot actively run the business. Up to 1 hour of occasional tasks is fine. More than that, and the day needs to move. Plan your paid days around the business with the leave planner.
Verified 26 September 2026. This is general information based on published government rules, not legal advice. Your enterprise agreement or contract may give you more.