Baby Bonus -
How much is the baby bonus?
These figures are effective from 1 July 2009 to 30 June 2010.
Baby Bonus Date of effect Rate
1 July 2009 $5,185
Please Note: Baby Bonus is paid in 13 equal fortnightly payments for each child.
Family Income Limit for Baby Bonus Date of effect Rate
1 July 2009 $75,000 (6 months)
from 1 July 2010 = $150,000 (12 months) once income exceeds this level, no payment applicable
*Please Note: The income limit relates to family income received in the six month period following the child's birth or entry into care. You are not eligible for Baby Bonus if your family income is more than this amount for the six month period. This income limit will next be indexed on 1 July 2012.
Maternity Immunisation Allowance
IF you receive this you are not entitled to receive the baby bonus.
These figures are effective from 1 July 2009 to 30 June 2010.
Maternity Immunisation Allowance Date of effect Rate Half-amount
20 March 2009 $245.50 $122.75
Please Note: Maternity Immunisation Allowance is paid as two separate amounts of $122.75, per child.
Note: The Maternity Immunisation Allowance is a payment that is usually paid as two separate amounts when the child is appropriately immunised and aged between 18-24 months and between four to five years. The full MIA rate is $245.50 and the MIA half amount is $122.75. Each amount needs to be qualified for separately. Only one person can be eligible for an amount of Maternity Immunisation Allowance, unless care of the child is shared between two or more carers (you must have care of the child for 35 per cent of the time or more).
BABY BONUS INFORMATION – FROM FAMILY ASSISTANCE OFFICE http://www.familyassist.gov.au/Payme...s/default.aspx
What is the Baby Bonus?
Baby Bonus is paid to families following the birth (including stillborn babies) or adoption of a child. It recognises the extra costs incurred at the time of a new birth or adoption.
Please Note: This payment replaced the Maternity Allowance and Baby Bonus (administered by the Australian Taxation Office) from 1 July 2004.
How much is the Baby Bonus?
Baby Bonus is paid in 13 equal fortnightly instalments. Baby Bonus is payable for each child in a multiple birth.
For current rates of payment for the Baby Bonus, go to Family Assistance Payment Rates.
If there is a change in care during the 26 week eligibility period following the birth, the payment may be apportioned between two carers.
Please Note: Baby Bonus is indexed in July of each year. Baby Bonus is not taxable income and it is not considered income for Family Assistance or Social Security purposes.
Can I get the Baby Bonus?
To be eligible for Baby Bonus you must:
• be the parent of a dependent child; or
• be a carer other than the parent of a newborn child within 26 weeks of the child's birth and be likely to continue to have the care of the child for no less than 26 weeks; or
• in the case of adoption the child must have come into your care before the child is sixteen years of age; and
• have adjusted taxable income of less than or equal to $75,000* for the period of 6 months from the date of birth of the child or six months from the date that the child entered into your care; and
• meet Australian residency requirements for family assistance purposes.
*Note: This income limit will next be subject to indexation on 1 July 2012
Budget announcement for Changes to family assistance
Parents are required to formally register the birth of their child as a condition of receiving the Baby Bonus. This requirement does not apply to parents whose child is stillborn, adopted or born outside Australia.
How do I get the Baby Bonus?
Your claim must be lodged within 52 weeks of the child's birth or, in the case of adoption, within 52 weeks of the adopted child coming into the adopting parent's care.
Claims for new babies can be lodged online or contact us to request a claim form if you were not issued with a form at the time of birth.
LATEST NEWS 2009 Updated 12 May 2009
BUDGET 2009 AND EFFECT ON BABY BONUS
Paid Parental Leave - $150,000 taxable income cap
Although announced just 2 days before the 2009-10 Federal Budget, the Budget papers gave some further details of the new Paid Parental Leave scheme. The Government said it will commit $731m over 5 years to Australia's first comprehensive, statutory, Paid Parental Leave scheme.
The Government scheme will be available to parents for births and adoptions that occur on or after 1 January 2011. Parents will be able to lodge claims from 1 October 2010.
The scheme will provide 18 weeks postnatal leave paid at the federal minimum wage (currently $543.78 per week). Around 148,000 mothers and primary carers will be eligible for the scheme each year.
To be eligible for the scheme, a parent in paid work:
- must have worked continuously with one or more employers for at least 10 of the 13 months before the expected date of birth or adoption;
- must have worked at least 330 hours in those 10 months (equivalent to around one full day of work each week); and
- must have an adjusted taxable income of $150,000 or less in the financial year prior to the date of birth or adoption of the child.
As part of the scheme, employers will act as "paymasters" for most employees. The Government said it will provide employers with funds in advance of the payments they make to employees. The Government said the Productivity Commission estimated that only around 4% of small businesses would make payments under the scheme in any given year.
Parents who are eligible for Paid Parental Leave will be able to continue to access employer-funded leave around the time of the birth or adoption of a child. This includes employer-provided maternity leave and recreation leave. Government-funded Paid Parental Leave can be taken in conjunction with, or in addition to, employer-provided paid leave.
Payments taxable
Payments made under the scheme will be taxable.
Parents who receive paid parental leave will not receive the Baby Bonus (except in the case of twins or multiple births), or Family Tax Benefit Part B during the 18 week Paid Parental Leave period.
Mothers and primary carers not in full-time paid work will continue to receive the current forms of family assistance (including the Baby Bonus), if they meet the relevant eligibility requirements.
The Government said that, in line with a recommendation of the Productivity Commission's final report,
superannuation payments will not initially be introduced for the Government's Paid Parental Leave. The Government said its introduction will be considered as part of a comprehensive review of scheme, within 3 years after the scheme's implementation. Due to the global economic downturn consideration of the recommended paternity leave has also been deferred to the review, the Government said.
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On 1 January 2009 a number of changes to the Baby Bonus came into effect. These changes apply to children who are born or who enter care on or after 1 January 2009. Changes relate to:
Family Income Test
From 1 January 2009 a family income test will apply to the Baby Bonus if your child was born or entered your care on or after 1 January 2009. To be eligible for the Baby Bonus, your family must have a combined Adjusted Taxable Income of $75,000 or less in the six months following the birth of your child or the child entering your care.
The following types of income need to be included in your income estimate for the six month period following the birth of your child or the child entering your care:
To claim the Baby Bonus you will need to advise us of your estimated Adjusted Taxable Income for the six month period after the birth of your child or the child entering your care. You may be asked for evidence when you claim such as:
- payslips
- a statement of leave arrangements and/or entitlements
- a letter from an employer on letterhead
- a recent tax return.
If you are already receiving payments, you may have your estimate checked against existing information, such as your Family Tax Benefit estimate or income support information.
Applying for the Baby Bonus
Another change that will apply for children born or who enter care from 1 January 2009 is that you will have 52 weeks to lodge a claim from the date of birth of your child or, in the case of adoptions, from the date the child enters your care.
The extension of the claim period, from 26 weeks to 52 weeks, will give you time to determine a reasonable income estimate for the six months following the birth of your child or the child entering your care. If you are uncertain about your income, the extended claim period will also give you time to test or re-test your eligibility.
For example, if you lodged an estimate of income shortly after your child's birth for more than $75,000 (over the six month period after the birth) and your income turned out to be less than you estimated, you could reapply at a later time during the 52 week claim period.
Period of care
If you are a non-parent carer, you must have taken care of the child within 26 weeks from the date of birth and be likely to continue to have the care of the child for no less than 26 weeks. This has changed from 13 weeks and applies to children who enter your care on or after 1 January 2009.
Instalment Payments
Another change is the way the Baby Bonus is paid. Currently, the Baby Bonus may be paid as a lump sum. To assist parents and carers with the ongoing costs of a new child over a six month period the Baby Bonus will be paid in 13 fortnightly instalments for children who are born or enter the care of an adoptive parent on or after 1 January 2009.
Where the care of the child has changed during the 26 week period after the child's birth and you are entitled to a portion of the Baby Bonus, you may receive your portion of the Baby Bonus in fewer than 13 instalments.
Adoption
From 1 January 2009, eligibility for the Baby Bonus will be extended to parents who adopt children under 16 years of age. This will apply to children who enter your care on or after 1 January 2009.
Increasing the age limit of the Baby Bonus for adoptive children will assist parents with the cost of adopting a child and recognise that an adoptive parent may need to spend time out of the workforce to welcome and settle their child. This change also recognises that a large number of adopted children are aged over two years when they enter the care of their adoptive parents.
More Information
Contact Family Assistance Office for more information about these changes.
Fact Sheet as provided by Family Assistance Office
Purpose of Baby Bonus
Baby Bonus recognises the extra costs associated with the birth or adoption of a baby. Baby Bonus is not income-tested.
Baby Bonus is intended to benefit the primary carer. A natural parent, an adoptive parent, a long-term foster carer, a family carer or in some cases more than one of these could qualify in respect of the one baby. Baby Bonus is not payable to an institution or a hospital.
Eligibility for Baby Bonus
Baby Bonus is payable to:
- A parent of a baby if the parent meets all other eligibility criteria at any time within 13 weeks of the baby's birth; or
- A parent of a stillborn baby if the parent would have met all the other criteria if the baby had not been stillborn; or
- An adoptive parent if the child is adopted under two years of age and in the case of overseas adoption, enter Australia before turning two years of age; or
- A claimant who is entrusted with the care of a newborn baby if the claimant meets all other eligibility criteria within 13 weeks of the baby's birth and if the claimant is likely to continue to have care of the child for no less than 13 weeks; or
- A claimant who, before a baby is 26 weeks of age, has the baby entrusted to their care because the claimant will be adopting the baby, provided the claimant meets all other eligibility criteria within 13 weeks of the baby coming into the care of the claimant.
The other eligibility criteria for Baby Bonus are generally that:
- the claimant and the baby must meet Australian residency requirements(1)
- the claimant must be legally responsible, either alone or with another adult, for the day-to-day care, welfare and development of the baby(2); and
- the claimant must satisfy tax file number requirements(3); and
- the claimant must lodge an effective claim within 26 weeks of the baby's birth or, in the case of adoption in Australia, within 26 weeks of the baby coming into the adopting parents' care. In the case of overseas adoption, the claimant must lodge an effective claim within 26 weeks of the child arriving in Australia where the child's arrival is part of the adoption process, or within 26 weeks of the child coming into the adopting parents' care where the child does not arrive in Australia as part of the adoption process.
Parents are required to formally register the birth of their child as a condition of receiving the Baby Bonusfor births on or after 1 July 2007. This requirement does not apply to parents whose child is stillborn, adopted or born outside Australia.
Apportioning Baby Bonus
Baby Bonus in the main is payable to one eligible claimant, with the default payee being the mother. However, in some cases (mainly if there is a change of care), the Secretary has the discretion to split the payment between two or more eligible individuals by determining a percentage for each person. In determining the percentages to be paid in respect of a particular baby, the total amount of Baby Bonus for one baby is not to be exceeded. Baby Bonus cannot be apportioned between two members of the same couple.
Change of Care
The need to apportion Baby Bonus arises mainly where there is a change of care. Other than in the case of adoption, apportioning is generally only intended if there is supporting evidence that the baby is in medium to longer term care with someone other than the mother (for a minimum period of 13 weeks) and the carer is not providing interim care as part of an adoption process. For example, apportionment is not intended if the baby is temporarily in another individual's care while the mother recuperates or receives support with the intention that the baby will be returned to the mother's care.
To assess whether a determination of apportionment is required, the claimant will need to provide some evidence that they are likely to have care of the baby for at least 13 weeks.
Shared Care
Where there is shared care of a baby within the first 13 weeks of the child's life, the intention is that Baby Bonus remains a payment to the mother. However, in unusual circumstances such as where the mother did not have ongoing primary responsibility for a baby for this period, the payment may be paid to the other carer (or apportioned between both carers in a shared care arrangement).
Extended Family Care
It is anticipated that where there is extended family care in Indigenous communities, and in families with diverse cultural and linguistic backgrounds, the Baby Bonus will generally go to the primary carer (usually the mother) even if other people participate in caring for the child.
Death of a Parent
If an eligible parent dies before they have been paid Baby Bonus and another person claims because the eligible parent died, then that person may be eligible for Baby Bonus. The claim must be made within 26 weeks of the eligible parent's death.
Abductions and Disputed Care Arrangements
In cases where an otherwise eligible claimant alleges that the baby has been abducted, and the eligible claimant provides evidence that they are actively seeking the return of the baby, the eligible claimant would still normally be eligible for Baby Bonus.
Considerations
In determining whether Baby Bonus should be paid to an individual other than the parent, consideration should specifically be given to:
- who has legal responsibility; and
- whether the child is being considered for adoption.
When a child is being considered for adoption, the child can be placed in pre-adoptive foster care. Where foster carers receive reimbursement for costs from their State/Territory Government (whether directly or through an agent for the State/Territory Government), the pre-adoptive foster carer would not normally be eligible for Baby Bonus. This type of foster care involves a temporary change of care while adoption arrangements are established; whereas Baby Bonus is intended for the primary carer, whether this is the natural parent or the adoptive parent or a longer term foster carer, or in some cases more than one of these.
Retrospective apportioning
Baby Bonus can be apportioned retrospectively in circumstances such as where the mother claimed the payment as though she had ongoing care of the child, received the full Baby Bonus, and later an eligible foster carer claims. A debt can be raised for the portion of the mother's overpayment and a payment made to the eligible foster carer.
If someone other than the mother or adoptive parent makes a claim for Baby Bonus but does not have evidence that the care is likely to be for 13 weeks or more, the claim should not be processed until the evidence is provided.
Time limits for claiming
Claims for Baby Bonus for babies born on or after 1 July 2004 must generally be lodged within the first 26 weeks of the baby's birth.
However, in the case of adoption in Australia adoptive parents must lodge a claim within the first 26 weeks of the baby coming into their care, provided the baby came into their care on or after 1 July 2004, and before the baby was two years old.
In the case of overseas adoption, adoptive parents must lodge a claim within 26 weeks of the child arriving in Australia where the child's arrival is part of the adoption process, or within 26 weeks of the child coming into the adoptive parents' care where the child does not arrive in Australia as part of the adoption process.
Determining Percentage of Payment- Payment for one child, regardless of the number of eligible carers, can never exceed 100% of Baby Bonus.
- If the birth mother is the only claimant, then 100% of Baby Bonus is paid to the birth mother.
- If there is more than one eligible claimant and one is the birth mother, then the birth mother should receive, at a minimum, a base rate of 20% of Baby Bonus regardless of the length of time the baby is in her care. Only the remaining 80% of Baby Bonus should then be apportioned on a pro rata basis according to the proportion of eligible care for the baby, calculated on a daily basis (see example below).
- If the birth mother does not claim before the child is 26 weeks old, 100% of Baby Bonus can be paid to the other eligible claimant (or apportioned between two or more other eligible claimants).
- When a child is placed with an adoptive parent within the first 26 weeks of the child's life, only the mother and the adoptive parents would normally be eligible for a proportion of the payment (see the paragraph headed "Considerations" above).
Example of determining apportionment percentages
An example of how to determine percentages of Baby Bonus for eligible claimants is below.
If:
- A mother gives birth and has care of the baby for the first 21 days of the baby's life and
- A short term foster carer then has care of the baby for the following 28 days (until the baby is 7 weeks old) and
- A longer term foster carer then assumes care of the baby for longer than 13 weeks
Then, assuming all other eligibility criteria are met:
- 20% of the payment ($1,000.00) should be quarantined for the birth mother.
- The short-term foster carer has care of the child for less than 13 weeks so is not eligible.
- The remaining $4,000.00 is divided between the birth mother and the long-term foster carer according to the length of the time they were caring for the baby before the baby is 13 weeks old:
- The mother is eligible for 21 days, and the long-term foster carer is eligible for 42 days, making a total of 63 days.
- The mother's proportion of the eligible time is 33.33% (because she has the child for 21 days out of the 63 days), so the mother would receive $1,986.95 made up of:
- $1,000.00 (being 20% of $5,000) plus
- $1,333.20 (being 33.33% of $4,000.00).
- The long-term foster carer's proportion of the eligible time is 66.66% (because the long-term foster carer has care of the child for 42 days out of the 63 days), so the long-term foster carer would receive $2,666.40 in Baby Bonus, which is 66.66% of $4,000.00.
Paying Baby Bonus by Instalments
Baby Bonus is payable to new mothers as a lump sum. However, in some circumstances, it may be more appropriate to pay Baby Bonus in equal fortnightly instalments. All applicants 17 years or under are paid in 13 equal fortnightly instalments.
Claimants experiencing any of the following issues may be assessed to determine the most beneficial payment option for the customer (i.e. lump sum or instalment):
- History of experiencing domestic or family violence;
- Substance addiction;
- Intellectual disability;
- Gambling problem;
- Mental illness;
- Homeless or at risk of becoming homeless;
- Previously had or currently has a child subject to child protection;
- History of difficulties managing competing financial requirements;
or
- Situations where a customer may be vulnerable to exploitation
If a Centrelink officer becomes aware that a pregnant customer is experiencing any of the issues outlined above and/or where concerns are raised about the vulnerability of the customer in receiving a large lump sum; then the Centrelink officer should refer the customer for a professional assessment when the customer claims Baby Bonus.
When the customer makes a claim for Baby Bonus, they will be invited to discuss their options with a Centrelink social worker or appropriate specialist officer (such as the Indigenous Customer Service Officer or Multicultural Service Officer). All claimants for Baby Bonus who are aged 17 years or under are contacted. The assessment process must commence within a week of the Baby Bonus claim being made, and the interview must occur within two weeks of the claim, except in extraordinary circumstances. The interview may be in person, by telephone, or by some other appropriate avenue.
The primary purpose of this professional assessment is to determine whether the customer needs additional support including referral to other organisations, as well as to assess whether it would be beneficial for the customer to receive Baby Bonus by instalment, rather than as a lump sum.
Customers may decide of their own accord that fortnightly instalments would be more practical for them. However, if this is not the case, and the social worker or other appropriate specialist officer believes that, given the customer's circumstances, a lump sum payment would be inappropriate, the social worker can make a discretionary decision that the customer should be paid by instalments. The outcome of the assessment may alternatively be that it would be beneficial for the customer to receive Baby Bonus as a lump sum. It is expected that close liaison will occur between the social worker and other specialist officers where the assessment process results in a decision that payment should be by instalments
If the customer is not willing to discuss their situation with a social worker or appropriate specialist officer, the customer should receive Baby Bonus by fortnightly instalments, rather than as a lump sum. This would only occur after several attempts to contact the customer.
Baby Bonus can also be made by instalments at the claimant's request.
Footnotes
(1) A claimant meets the Australian residency requirements if the claimant has legal residence status and is living in Australia on a permanent basis. Eligibility may be maintained during a temporary absence from Australia for up to three years.
To have legal residence status for the purposes of Family Assistance payments you must be:
- an Australian citizen; or
- the holder of a permanent visa; or
- a New Zealand citizen who arrived on a New Zealand passport; or
- the holder of one of the following visas:
- subclass 070 Bridging (Removal Pending)
- subclass 309 Spouse (Provisional)
- subclass 310 Interdependency (Provisional)
- subclass 447 Secondary Movement Offshore Entry
- subclass 451 Secondary Movement Relocation
- subclass 695 Return Pending Visa
- subclass 820 Spouse (Provisional)
- subclass 826 Interdependency (Provisional)
- subclass 785 Temporary Protection
- subclass 786 Temporary (Humanitarian Concern)
- subclass 787 Temporary Witness Protection (Trafficking)
- Criminal Justice Stay Visa issued under subsection 155(2) of the Migration Act 1958
(2) The claimant may be eligible if the baby is supposed to live with or have contact with the claimant under a family law order or a registered parenting plan.
(3) The claimant must provide:
- their tax file number; or
a statement authorising the Commissioner of Taxation to notify the Secretary of the claimant's tax file number.
Related information
Australian Baby Bonus Fact Sheet 2008
10-03-2008, 04:42 PM
Australian Baby Bonus Fact Sheet 2009
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