Baby Bonus V Maternity Leave

[~TT40~]

I had a friend who took BB because she worked 'too much' to earn any significant amount out of PPL. Her and her husband were only in the annual bracket of $70K combined but because she did so many hours per week up until bub was born (may baby), it meant that she was going to get less for the PPL than she would if she took BB. Worked out really stupid for her. So i'd ring up and talk to someone. I think if you work roughly 5-10hours a week normally that PPL works out great and more money for you. If you earn any more or any less you end up not 'qualifying' for the whole amount.

but the PPL isn't means teasted. its just 4 1/2 ish months on minimal wage isn't it? so your income shouldn't affect it? (unless by the end of the financial year you go up an extra tax bracket)

[Miss E]

but the PPL isn't means teasted. its just 4 1/2 ish months on minimal wage isn't it? so your income shouldn't affect it? (unless by the end of the financial year you go up an extra tax bracket)

Nope, not means tested and your income doesn't affect the pre-tax full amount, that is the same for everyone. Your income determines how much tax you pay on the full amount. If you have to pay a higher tax rate you could be better off with the BB. That is why the time of year that you take it can affect what works best for you - if you are taking it towards the end of the financial year, chances are your total income will be at a higher level because you have already worked (and earned an income for most of the year). If you are taking it earlier in the financial year and don't intend to return to work until much later in that year or the following year, your earnings for the full year will be lower and as a result the amount of tax you pay of the PPL will be lower.

[surprised]

Thanks so much everyone... glad to see I'm not the only one who is confused! BB is looking much simpler right now!

[briggsy's girl]

sorry to upset - but there are some income tests applied to PPL - can't recall exactly off the top of my head, but your previous financial year income needs to be included on application because there is a limit to who it is is paid for.

[~TT40~]

sorry to upset - but there are some income tests applied to PPL - can't recall exactly off the top of my head, but your previous financial year income needs to be included on application because there is a limit to who it is is paid for.

I think I remember reading that, but it was so ridiculously high for us that DH and I would never earn that much in our lives that I ignored it =P

[briggsy's girl]

yeah it is probably irrelevant to most average joes like us - but there is an income limit so you need to be aware of it

[LuluHB]

Sorry to hijack, but BG I was told that the baby bonus is now income tested and the cutoff is a combined $75K pa. Is that right?

[briggsy's girl]

no, it's 75k in the six months immediately following the birth of the baby - so if mum is on unpaid mat leave and dad is on less than 150k pa, all good. if mum is on paid mat leave, then they'd have to make sure that dad's income was a bit less kwim?