Baby Bonus V's Paid Maternity

[briggsy's girl]

LSK - up until Jan 1, 2009, baby bonus is paid in a lump sum unless you're under 18, or you choose to have installments. from Jan 1, it will be paid in 13 equal installments


BABY BONUS is not an entitlement - it was a bonus created to help in population growth - the goverment realised that, once the baby boomer generation entered aged pension age, we'd have a massive reduction in skilled workers in the country, a massive reduction in the number of tax payers, and the pension/welfare system would be under a massive amount of strain. by encouraging people now to have children, 20 years from now, they would be entering the work force and helping to support those baby boomers entering the age pension age. it was always a BONUS, no matter what name it was given - hence the reason it was given to everyone

from this year, with the Labour government taking over, the population growth wasn't seen as such an issue, so the baby BONUS was no longer a bonus for everyone, it became part of the welfare system and, as such, is only available to those considered to be on lower incomes (less than $75k in the six months after bub is born). as a result, not everyone is now "entitled" to the payment - you have to meet the eligibility criteria just like you do for every other welfare payment on offer

personally, i don't believe that receiving additional payments over a period of 13 weeks is enough to help a new parent - ideally, i would like to see a PROPER federally funded maternity scheme that takes into account the income of the SAHP and pays appropriately for a period of at least 6 months - if you're a FT SAHP, then minimum wage, but if you're someone that has a higher paying job, then you should be able to get a percentage of that, to a maximum amount (so as not to be excessive). supplement wages by more than the pitiful amount of FTB you get if you return to PT work when you were full time before bubs etc. it should be your choice as to whether you or your partner stay home - but ultimately, until something like this comes in, there is nothing the goverment, or anyone else, can do. trading off child care entitlement for baby bonus/maternity payment/whatever title we want to use, just isn't appropriate.

ideal world - federally funded maternity scheme, not a pitiful baby "bonus"
ideal world - goverment regulated child care - make sure there are enough places, and cap on fees to stop profiteering

just wish i knew how to make the idea world come visiting AU!

[satya]

I'm in two minds about the fortnightly baby bonus payments.

I liked getting it in a lump sum like I did and would've been really annoyed if they'd changed it so that I had to have it doled out to me like I couldn't be trusted with what is after all my own money.

I do see why the government felt they had to change it so it's fortnightly. Although not everyone does it we all know people who have bought big ticket items for their homes or paid off debt with the baby bonus. I guess they still thought they were doing the right thing for their bubs.

I got 6 weeks paid maternity leave (which my company has just changed to 12 weeks, damn) so I don't see baby bonus as anything to do with being a maternity payment.

Australia is certainly behind most western countries when it comes to paid maternity leave and I'd like to see the day come when all working women are entitled to at least 3 months maternity leave as well as the baby bonus being available to all who earn under $100k a year.

I don't believe that the fortnightly payments will make any difference to BF - you don't give it up for financial reasons and you can still do it when you return to work.

A fortnightly payment of baby bonus wont allow women to stay home longer - you are getting the same amount of money so it goes just as far regardless of how often you are paid it.

Maybe if it was $380 per fortnight until the child was 18 it might be a different story but this is not what is happening.

What you need to remember with the $380 fortnightly payment is that it only goes til you reach whatever the amount is for the baby bonus at the time of the birth. After that you will get nothing from the government unless you are entitled to one of the other payments they now have. Originally I was told that we'd be getting a health care card and I can't remember exactly how much money but I think it was $200 or $250 per fortnight because my DF's income was below whatever threshold (I'm the main breadwinner in our household). This was because the stupid centrelink person presumed that because I was on maternity leave I woudn't be earning any money in the next year. When the figure was corrected because I am actually getting paid for much of my 8 months off (annual leave x 7 weeks, long service leave 8 weeks, 6 weeks maternity leave) we weren't entitled to either. We just get part of the benefit part A which is only something like $20-30 per fortnight. It sure doesn't pay to plan ahead for your pregnancy. If I wasn't getting any money from my workplace I could've got the benefit part B & the health care card til I returned to work. It makes absolutely no sense. When I go back to work I will still be better off financially once I pay for child care. I wish this wasn't the case cos I don't want to go back, but I have to.

[Nai]

To be honest the fortnightly payment disadvantages me over the lump sum. Last time that lump sum went to pay for my OB, paediatritian and all the other expenses that come with having an unplanned c/s and jaundiced baby in a private hospital. Of course you get some money back from health insurance and medicare but we were still thousands out of pocket.

However I would definitely prefer a Paid Maternity leave system to a Baby Bonus. To afford to have babies we have really had to save every penny and put it away so that we can afford to pay the mortgage while I'm not working. It can be really stressful and I'm sure there are many people who can't afford to save enough from their day to day expenses to even do this. It is particularly hard when the person staying home is the main income earner.

[Heaven]

I hate that they're changing it to fortnightly payments I would have liked to use it to buy all the new stuff I will need for a new baby, or even a homebirth seeing as they won't pay for that. I agree with satya, feeling like they think I can't be trusted with the lump sum.

[Sair]

Me-thinks castor oil will be getting ingested sometime after x-mas so I can afford to pay my doula and get a pram for the 2 bubs asap. Lump sum is definitly prefered this time around. Maybe next time when I don't have big ticket things to pay for and maybe some savings I will appeciate a fortnightly payment. It is hard when you only bring in a single income big enough to pay the bills and get some groceries and not much is left over to put into savings.

[Pretty Butterfly]

Wow, I guess the fortnightly payments are only useful if your already at home like me, with all the baby things you need. (sitting on my ar$e and being broke finally has an advantage! )

It doesn't seem to help too much to all you other ladies. I'm glad I started this thread, its opened my eyes a lot ladies. Thank you!!!

[briggsy's girl]

i'm in two minds in regard to the lump sum vs fortnightly payments - i guess there needs to be a firm line in the sand - midnight new years eve, the baby bonus $5000 ceases to exist. that's it - Howards bonus ends there and then. on January 1, 2009, a new payment to help with the additional cost of having a child is being introduced. it will be paid for the first 13 fortnights (so six months) of your childs life. for some people, receiving the payment in a lump sum would be helpful - getting all the big ticket items at once is great. BUT, how many of those big ticket items are essential within a month after birthing your baby? and how many of them can't be purchased before bub's is born? most places that sell baby items will allow layby - even if you dont' find out (or accept) that you're pregnant even til 13 weeks, that's 27 weeks to buy the essentials - and most people know before 13 weeks that they're pregnant, so can start saving straight away

for me, the payments over six months will be more beneficial. we're going through hell to get a child, we're used to scrimping by on, essentially, less than one income for the times i've not been well enough to go to work, and using my income as well as some of DH's, to pay for IVF as we went. so supplementing our income over that six months means that DH can be home more with his child when it is born. we will layby what we need, and pay it off over a period of time. we'll prioritise what we NEED when bub's is born, and those things that can wait a while, we'll pick up later on with the payments we receive. everyone is going to have a different POV on what is most beneficial for them, but the government of the day have worked out what is most financially viable for the CHILDREN of most families. not everyone does the right thing, not everyone does the wrong thing - the government had to do what they believed to be the best thing on balance as these payments are ultimately for the costs associated with bringing up your children

[Pretty Butterfly]

I agree with what most are saying.

I would love Maternity leave for all, and BG, your idea of how to make it work sounds great!!

But in the meantime, as a starter, the BB is something we didn't have many years ago, we got nothing. And although 3 months off work isnt ideal, a few years ago you didn't even get that, so to me, its a bonus.

When I had my first 3 kids it was just a family allowance, nothing more, no bonus.

Nai, actually the lump sum also was better for me with Kane, with medical trips and costs too!!

But this time round, as an already SAHM, it supplements a "wage" in this house. And I guess that it only works that way if your already at home anyway.



For those mums earning a good wage, the BB would be a massive drop in income. And thats a shame that hard working Aussies, who contribute so much, aren't looked after unless their particular boss has maternity leave.

I too was self employed, and recieved nothing while not at work. It was EXTREMELY hard.


ETA...SJ, for first time parents, with all the start up costs, is does seem so unfair hon. That a few people who abused the bonus have ruined it for others. I would be mad too!! I'm just lucky I guess, I dont have start up cost, just week to week costs.