The Baby Bonus
It’s an interesting time for parents-to-be expecting a baby in 2011. For the first time, they have access to Paid Parental Leave (full details about the Paid Parental Leave Scheme are here (link to Huggies PPL), while the Baby Bonus, first introduced in the 2002 budget, is still available. Parents are able to access either Parental Leave Payments or the Baby Bonus – but not both.
To make a decision about which payment is best for you, you need to have all the facts at your fingertips. You’ll find full details of both payment schemes at the Family Assistance Office website (link to www.familyassist.gov.au), but to get you started we’ve answered some FAQs here.
Who gets the Baby Bonus?
The Baby Bonus is paid to families following the birth (including stillborn babies) or adoption of a child. To be eligible you must fit the following criteria:
- be the primary carer of a dependent child (or the partner of the primary carer)
- have care of the child within 26 weeks of the birth and be likely to continue as carer for at least 26 weeks
- not have received or be receiving Parental Paid Leave for the child
- meet Australian residency requirements
- earn less than or equal to $75,000 for the period of six months from the date of the birth, or six months prior to an adopted child entering into your care.
How much is the Baby Bonus?
As at 1 July 2010, the payment was $5,294, paid in 13 fortnightly installments. The Baby Bonus is indexed in July each year, and is not taxable or considered income for Family Assistance or Social Security purposes.
How do I claim the Baby Bonus?
You can make your claim online at the Family Assistance Office website, or by visiting your local Family Assistance Office. You can lodge your claim up to three months before the birth, and you must lodge it no later than 52 weeks from the day after the child’s birth.
How do I decide if I should choose the Baby Bonus?
If you are eligible for both Paid Parental Leave and the Baby Bonus, it’s best to visit Centrelink’s Paid Parental Leave Comparison Estimator to help you decide which is the best solution for your family. The estimator takes you through a series of questions about your family financial circumstances (including tax information, child support and care arrangements, number of children you have, any current Family Assistance payments you receive), and the date of the birth of your child (the results may vary depending on which part of the financial year your baby is born in).
The Family Assistance Office website states that most eligible families will be better off with Parental Leave Pay rather than the Baby Bonus.
