2012 Australian Baby Bonus News Site.

Are you better receiving the Australian Baby Bonus or do you get a better financial result with the Paid Parental Scheme. It can be complicated, see below for details.

How is the Baby Bonus paid?

The baby bonus will be cut from $5400 to $5000 from September 2012, and frozen at that level for a further three years, until then the Baby Bonus is paid per eligible child in 13 fortnightly instalments. From 1 July 2011, customers eligible to receive Baby Bonus will get a higher first instalment of $879.77 and 12 fortnightly instalments of approximately $379.77. The higher first instalment of Baby Bonus will assist with the upfront costs of having a new child.

Australian Baby Bonus

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Old 20-03-2011, 11:04 AM
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Default Baby Bonus 2011 update 20 March 2011

Payment rates

These payment rates of Baby Bonus are effective from 20 March 2011.

  • You can be paid $5,294 per eligible child in 13 fortnightly instalments, or
  • if your baby has died or was stillborn, you may ask for your Baby Bonus to be paid in a lump sum instead of fortnightly instalments
  • Baby Bonus is an income tested payment.


Baby Bonus is not taxable.

You are paid Baby Bonus for each child - for example, if you have twins you can get 2 Baby Bonus payments. If you are eligible for Parental Leave Pay[1], you may choose to get Baby Bonus for 1 child and Parental Leave Pay for the other.


Payment adjustments and reviews

Baby Bonus is adjusted on 1 July each year in line with the Consumer Price Index.

Baby Bonus may be reviewed to ensure you are paid correctly. This may include your residence status at the time you claimed, or if the child leaves your care.

Eligibility

Baby Bonus may be paid to families following the birth (including stillbirth) or adoption of a child if you:
  • are eligible for Family Tax Benefit for the child (disregarding the FTB income test) within 26 weeks of the child's birth or adopted child aged under 16 years being entrusted to your care, or
  • if you are claiming for a child other than your own, you started caring for the child within 26 weeks of the child's birth and you are likely to continue caring for the child for at least 26 weeks, and
  • have care of the child for at least 35% of the time or more, and
  • meet the residence requirements[1],
  • meet the Baby Bonus income test[2],
  • are not receiving Parental Leave Pay[3] for the child, and
  • make your claim no later than 52 weeks after the birth of the child or adopted child entering your care.
Baby Bonus and Parental Leave Pay cannot be paid for the same child. If you think you are eligible for both payments you should check the Paid Parental Leave Comparison Estimator[4] to help you decide which payment will be best for your family.


Registering the birth
  • If you are the parent of a newborn child, you must register the child's birth as required by the Births, Deaths and Marriages registry in your State or Territory to be eligible for Baby Bonus.
  • This requirement does not apply if your child is stillborn, adopted or born outside Australia.
ncome test
To qualify for Baby Bonus, you and your partner (if you have one) must have a taxable family income of $75,000 or less for the 6 month period following the birth of your baby or the date that the child enters your care.
Note: You have up to 52 weeks from the birth of your baby to claim Baby Bonus and provide your income estimate. If your income is initially too high and then your circumstances change, you can tell us within 52 weeks of your assessment and we can reassess your claim.
Example scenario

Mary and Geoff have baby Rory on 5 June 2009.
Geoff has some paid leave after the birth and Mary is planning to take 12 weeks of paid maternity leave followed by 2 weeks of paid holiday leave. After that Mary will have 6 to 12 months of unpaid leave before she goes back to work.
Annual income
  • Mary has an annual income from work of $40,000
  • Geoff has an annual income from work of $42,000
  • Mary and Geoff also have investment income from shares and property that totals $12,000 per year
Income for the 6 month period following the birth

The 6 month period following the birth is 5 June 2009 to 5 December 2009.
For this period, Mary and Geoff’s estimated income is:
Mary's income
  • 14 weeks of paid leave ($40,000 ÷ 52 weeks = $769.23 per week) $769.23 × 14 weeks = $10,769.22
  • Unpaid leave = $0
  • Investment income = $12,000 ÷ 2 (6 months) = $6,000. Half of which belongs to Mary = $3,000
Mary: $13,769


Geoff’s income
  • Geoff will get paid for the whole 6 month period, that is $42,000 ÷ 2 (6 months) = $21,000
  • Geoff will also have the other half of their 6 monthly investment income = $3,000
Geoff: $24,000


Taxable family income
Mary and Geoff’s taxable family income is estimated to be $37,769 for the 6 month period following Rory’s birth. This amount is under the $75,000 limit and makes them eligible for Baby Bonus.

Residence requirements

To be eligible for Baby Bonus you must be an Australian resident.
This means you have been living in Australia on a permanent basis and you are either:
  • an Australian citizen, or
  • the holder of a permanent resident visa, or
  • the holder of a special category visa - that is you arrived on a New Zealand passport, or
  • the holder of a particular temporary visa - either a 'partner provisional,' 'interdependency' or 'temporary protection' visa.
Your child must meet the above requirements or must be living with you.
Note: If you have recently arrived in Australia or are temporarily residing overseas you may need to provide evidence to support your intention to live in Australia permanently.
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.
Can I get the Baby Bonus?

To be eligible for Baby Bonus you must:
  • be the primary carer of a dependent child or the partner of the primary carer
  • have the care of the child within 26 weeks of the child's birth and be likely to continue for at least 26 weeks
  • in the case of adoption, have the child come into your care as part of the adoption process before the child is sixteen years of age
  • not have received or be receiving Parental Leave Pay[1] for the child
  • have adjusted taxable income[2] 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 an adopted child entered into your care as part of the adoption process, and
  • meet Australian residency requirements[3] for family assistance purposes.
*Note: This income limit will next be subject to indexation on 1 July 2012
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 is the Baby Bonus paid?

Baby Bonus is paid per eligible child in 13 equal fortnightly instalments.
You cannot receive Parental Leave Pay[4] and a Baby Bonus payment for the same child. If you are eligible for both Parental Leave Pay and the Baby Bonus, you can access the Paid Parental Leave Comparison Estimator[5] to help you make an informed decision about which payment to claim.
If you have twins, you could receive a Baby Bonus payment for each child. If you have twins and are eligible for Parental Leave Pay, you could receive Parental Leave Pay for one child and Baby Bonus for the other.
When can I claim the Baby Bonus?

You can claim the Baby Bonus (and other payments such as Family Tax Benefit and Parental Leave Pay) up to three months before the birth of a child or an adopted child entering your care as part of the adoption process.
Your claim must be lodged no later than 52 weeks from the day after the child's birth or, in the case of adoption, no later than 52 weeks from the day after the adopted child comes into the adopting parent's care.
How do I claim the Baby Bonus?

You can make a claim for the Baby Bonus using Online Services. You will need to register to use Online Services[6].
You can call 13 6150 for assistance in completing your online claim or to request a hard copy form. You can also download the claim form[7] or visit the Family Assistance Office located in Medicare offices and Centrelink Customer Service Centres to collect a hard copy.
Where do I go for more information?
  • Call the Family Assistance Office on 13 6150 between 8:00AM and 8:00PM (local time), Monday to Friday.
  • Visit the nearest Family Assistance Office[8] located in all Centrelink Customer Service Centres and Medicare offices.
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