Rear-facing is safer as long as the baby still fits in the seat in that position, so you turn as late as you can, only when the car seat is outgrown in the RF position.
Signs that it is outgrown are either 1. you reach the weight limit on using it RF (which is 9 or 12kg depending on seat) or 2. the child is too tall for it. Too tall for RF is when there is less than 2.5cm of hard shell ABOVE the baby's head.
I turned mine around when DD was about 8 1/2 - 9 months. I don't drive very often as everything is within walking distance from our house, so I figure the risk of having an accident, whilst it's still there everytime I do drive, is probably not as great as someone that drives every day. I did it just before a trip to Wagga (an hour away) and it was so much easier because she was a lot happier being able to see me and look around.
I'm aware it's not as safe as rear facing and drive like a grandma, but for us I think it was the right decision to turn it when we did. She probably wouldn't be able to remain rear facing for much longer anyway as the weight limit I think is 12kg, and she's probably already over 10kg.
If your bub has good neck control, then do whatever you feel is right for you.
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