2012 Australian Baby Bonus News Site.

The following is an extract from www.familyassist.gov.au.
The information contained on this site should not be relied upon. For specific information that for your circumstance you must contact the Family Assitance Office direct 13 61 50.


In Summary:
The Paid Parental Leave scheme:

• is government funded
• is for eligible working parents of children born or adopted on or after 1 January 2011
• can be transferred to the other parent
• is paid at the National Minimum Wage - currently $570 a week before tax*
• is for up to 18 weeks
• can be taken any time within the first year after birth

Am I eligible?

You may be eligible for Parental Leave Pay if you:

• are the primary carer of a newborn child or recently adopted child
• are an Australian resident[1]
• have met the Paid Parental Leave scheme work test before the birth or adoption occurs,
• have received an individual adjusted taxable income[2] of $150,000 or less in the previous financial year, and
• are on leave or not working from the time you become the child’s primary carer.

The birth mother or the initial primary carer of an adopted child must make the claim for Parental Leave Pay, unless there are exceptional circumstances.
Who is a child's primary carer?

A child’s primary carer is the person who is most meeting the child’s physical needs. This will usually be the mother of a newborn child or the initial primary carer of an adopted child.
A person may still be eligible for Parental Leave Pay in the event of a stillbirth or infant death.
If you are a birth mother, there are some circumstances in which you can receive Parental Leave Pay for up to 18 weeks after the birth even if you are not the primary carer of your child. This may occur if you are unable to care for your child due to illness, or you may be a birth mother in an adoption or surrogacy arrangement.
The Paid Parental Leave scheme work test

To meet the Paid Parental Leave scheme work test you must have:

• worked for at least 10 of the 13 months prior to the birth or adoption of your child, and
• worked for at least 330 hours in that 10 month period (just over one day a week), with no more than an eight week gap between two consecutive working days.

A working day is a day you have worked for at least one hour.
There are some exceptions to the work test if you cannot meet it due to pregnancy complications and/or premature birth.
You do not need to be working full-time to be eligible for Parental Leave Pay. You may meet the work test even if you:

• are a part-time, casual or seasonal worker
• are a contractor or self-employed
• work in a family business such as a farm
• have multiple employers, or
• have recently changed jobs.

If you work for a family business (such as a farm), you can include your hours of work even if the business is not generating any income, providing you are undertaking the work for financial gain or benefit.

Can I work while receiving Parental Leave Pay?

If you return to work, your Parental Leave Pay will stop. If you decide to return to work before the end of your 18 week Paid Parental Leave period you will need to notify us.

The unused part of your Parental Leave Pay may be transferred to your partner if they meet the eligibility criteria and claim your unused Parental Leave Pay. The unused Parental Leave Pay may also be transferred to a separated father or their new partner, if eligible.

You can ‘keep in touch’ with your workplace. This means you can participate in activities at the workplace for up to 10 days from the birth or adoption of your child until the end of your Paid Parental Leave period without losing your entitlement. For example, your employer may have scheduled a short training course that you want to attend. This must be a voluntary agreement between you and your employer. Your employer cannot make this a compulsory requirement for you.

The days you are allowed to attend work for the purposes of ‘keeping in touch’ can not be within the first two weeks after the birth of your child.
These days do not need to be used all at once and you must be paid your usual wages or salary in addition to your Parental Leave Pay for the time you attend work.

If you are self-employed, you will be able to keep an eye on your business without being regarded as having returned to work. You will be able to oversee the business’ operations and perform the occasional administrative task, such as organising a repair or paying an account.

Will the Paid Parental Leave scheme affect existing leave entitlements offered by my employer?

The Paid Parental Leave scheme provides you with Parental Leave Pay but does not give you an entitlement to leave. The scheme does not change any of your existing leave entitlements.

If you are eligible for the Paid Parental Leave scheme, you will be able to access up to 18 weeks of government-funded Parental Leave Pay, as well as any of your existing employer-provided paid or unpaid leave. You can take your Parental Leave Pay before, during or after any paid maternity or parental leave, or other employer-funded leave entitlements (such as annual leave or long service leave).

If your employer currently provides paid maternity or parental leave through an industrial agreement, they cannot withdraw the entitlement for the life of that agreement.

Under the National Employment Standards[3] in the Fair Work Act 2009, if you have been employed by your employer for 12 months or more prior to the birth or adoption, you may be entitled to access up to 12 months unpaid parental leave associated with the birth or adoption of your child. You can also request an additional 12 months unpaid leave on top of this.
If you are unsure what your leave entitlements are, visit www.fairwork.gov.au[4] or call 13 1394.

What should I do before my child arrives?

If you think you are eligible for Parental Leave Pay there are a number of things you should do before your child arrives.

1. Plan your caring role and work leave arrangements.
   • Consider what paid and unpaid leave you might take from work, when you would like your Parental Leave Pay to start, and when you might want to return to work.
   Use the Paid Parental Leave Comparison Estimator
   • Parental Leave Pay and the Baby Bonus cannot be paid for the same child. If you meet the eligibility criteria for both payments, you can choose which payment is the best financial decision for your family.
   • Most eligible families will be better off receiving Parental Leave Pay rather than Baby Bonus. You should check the Paid Parental Leave Comparison Estimator[1] to work out which payment is best for your family.
2. Talk to your employer.
   • Organise your leave from work. You should try to do this at least 10 weeks before you intend to take leave.
   • If you have worked for 12 months or more for the same employer you are entitled to up to 12 months unpaid parental leave. For more information on your employment entitlements visit www.fairwork.gov.au[2].

How will I be paid?

Parental Leave Pay will be provided to you by either your employer in your usual pay cycle or by the Family Assistance Office in fortnightly payments.,
From 1 January 2011, you and your employer can agree that your employer will provide your Parental Leave Pay. Your employer will be funded by the Australian Government to do this if you are eligible. If either you or your employer do not agree, you will receive your Parental Leave Pay from the Family Assistance Office.

From 1 July 2011, your employer must provide your Parental Leave Pay if you have worked with them for at least 12 months prior to the expected date of birth or adoption of your child and you will be receiving at least eight weeks of Parental Leave Pay. If this does not apply to your situation, you and your employer can still agree that your employer will provide your Parental Leave Pay after 1 July 2011, provided you are eligible.

How much will I be paid?

Eligible working parents will receive Parental Leave Pay at $570 a week for a maximum period of 18 weeks. This pay is taxable.
If your employer is providing your Parental Leave Pay:

• You will be able to access other paid leave such as maternity leave, however this may mean you will be taxed at a higher rate.
• They can deduct child support from your Parental Leave Pay if they are required to do so.
• You may arrange for other deductions to be made from your Parental Leave Pay.
• You may salary sacrifice some or all of your Parental Leave Pay. For example, you may make voluntary contributions to superannuation. You must agree these arrangements with your employer as you do with wages.
• Your employer will not be required to make superannuation contributions on your Parental Leave Pay.

If we provide your Parental Leave Pay:

• We will withhold PAYG at the rate of 15 per cent unless you request another rate.
• You will not be able to salary sacrifice Parental Leave Pay that is provided directly by us.
• You can voluntarily request a Family Assistance and/or Centrelink debt to be deducted.

What else do I need to know about Parental Leave Pay?

Parental Leave Pay and the Baby Bonus cannot be paid for the same child. If you meet the eligibility criteria for both payments, you can choose which payment is the best financial decision for your family.

If you have a multiple birth (for example, twins or triplets), you can receive Parental Leave Pay for the first child and, if you are eligible, the Baby Bonus for a second or additional child in a multiple birth.

Parental Leave Pay will count as taxable income for Family Tax Benefit and child support purposes in the financial year in which the Parental Leave Pay is received. Use the Paid Parental Leave Comparison Estimator[1] to find out how Parental Leave Pay may affect your existing family assistance payments and/or child support assessment/s.

You and your partner cannot receive Family Tax Benefit Part B, the dependant spouse, child housekeeper and housekeeper tax offsets during the Paid Parental Leave period. These may be paid after the end of the Paid Parental Leave peiod.

When can I claim Parental Leave Pay?

Lodge your claim before your child arrives
If you think you are eligible for Parental Leave Pay you should lodge your claim before the birth or adoption of your child. Lodging a claim for Parental Leave Pay before your child is born or adopted will help prevent any delay in providing Parental Leave Pay.

You can lodge a claim up to three months before the expected date of birth or adoption of your child.

The birth mother or the initial primary carer of an adopted child must claim for Parental Leave Pay, unless there are exceptional circumstances, for example where the mother is unable to care for the child.

You can tell the Family Assistance Office the date you would like your Parental Leave Pay to start when you lodge your claim.
Your Parental Leave Pay can start from the day your child is born or adopted, or a later date. It must be fully paid within 52 weeks from the date of birth or adoption.

To receive the full 18 weeks of Parental Leave Pay, your nominated start date for Parental Leave Pay needs to be within 34 weeks of the birth or adoption of your child.

After 34 weeks following the birth or adoption, the number of weeks you will be eligible to receive Parental Leave Pay will reduce. The table below explains how this will occur.
Claim before the end ofReceive Parental Leave Pay for the period of35 weeks *17 weeks36 weeks *16 weeks37 weeks *15 weeks38 weeks *14 weeks39 weeks *13 weeks40 weeks *12 weeks41 weeks *11 weeks42 weeks *10 weeks43 weeks *9 weeks44 weeks *8 weeks45 weeks *7 weeks46 weeks *6 weeks47 weeks *5 weeks48 weeks *4 weeks49 weeks *3 weeks50 weeks *2 weeks51 weeks *1 week
* after birth or adoption of your child

How do I claim Parental Leave Pay?

You can make a claim for Parental Leave Pay using Online Services[3]. You will need to register to use Online Services. If you have already registered you can log on.
If you would like to find out more about registering for Online Services you can:

• view a demonstration of how to register for Online Services[4], or
• view the online and phone services frequently asked questions[5].

You can call 13 6150 for assistance in completing your online claim or to request a hard copy form. Alternatively you can visit the Family Assistance Office located in Medicare offices and Centrelink Customer Service Centres.
What should I do after my child arrives?

If you lodged your claim early and your circumstances or your caring plans have changed, you should check the Paid Parental Leave Comparison Estimator[2] to make sure you are still better off receiving Parental Leave Pay rather than Baby Bonus.

You can change to the Baby Bonus up until the start date of your Paid Parental Leave period.

A Proof of Birth form will be given to you at the hospital or by the midwife. You should lodge this with the Family Assistance Office as soon as possible, as your Parental Leave Pay cannot start until you have lodged your claim and Proof of Birth form.
After the birth of your child, you will need to register the birth with the Births, Deaths and Marriages Registry in your state or territory.
You and/or your partner cannot receive Family Tax Benefit Part B during the Paid Parental Leave period. Family Tax Benefit Part B may be paid after the end of the Paid Parental Leave period.