Means tested Baby Bonus

[Mother Goose]

Hi,

Just trying to seek clarification on the new Baby Bonus/Maternity Payment arrangement. * Please note that I am not asking because this payment is the only reason for wanting a baby - I am not even planning a baby right now - I'm just seeking clarification about something I'm confused about after a conversation with a friend today*

Ok, so I notice on the Centrelink website, it says that you are entitled to this payment if your combined income in the 6 months after the birth of the baby is $75,000 or less. So, does that mean if DH earnt $100K before tax per annum (for the sake of an easily dividable round number), he would earn $50K in the 6 months post baby (splitting pay in two) and if I earnt $42K per year but was on maternity leave and brought home about $6000 during that 6 months (bringing our combined income to $56K in that 6 month period)... we would be entitled to the baby bonus?

And, is it a case of if you earn less than the prescribed amount that you get the full amount of the baby bonus or is it graded like other Centrelink entitlments?


TIA

MG

[Bumperstump Cummerbund]

That seems about right MG! Wait for Briggsy's Girl to come online - she'll know for sure

[Rommy'sMummy]

I think you might be right! I had read it initially as anyone earning over $75k was not eligible. I have copied this from the website;

From 1 January 2009, a Baby Bonus income test will be introduced.

The income test will only apply to customers claiming for a child born or entering care from 1 January 2009.

The Baby Bonus income test is based on your family income in the six months following the birth of your child, or the date the child entered your care.

Families with an adjusted taxable income over the Baby Bonus income limit for the six months following the birth will not be eligible for payment. You will have 52 weeks from the birth of your baby to claim Baby Bonus and provide an 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 your payment can be reassessed.

As at 1 January 2009, the income limit for the six months following the birth of the child is $75,000.

[briggsy's girl]

it's an all or nothing situation - so if your estimate for the first six months is under 75k combined (as your example is) you'd get it at the approx $385 a fortnight for 13 fortnights. if it's over that amount, you don't get it.

if your partner is in seasonal work and has high estimated earnings for the year, but in the six months following birth he will still come in under that limit, you will get the payment

i'm not sure exactly how they are working out the cut off for people in seasonal work, but hope to find out - will email the girls tomorrow if i remember. i'm still not back at work (anyone want to take the ms from me and let me get back to work???)

[echidna]

Makes sense to me. In that first six months, $75000 is your limit. If yours is $56000, you qualify.

[Mother Goose]

Thanks girls - glad to hear I got it right - shall report back to friend who I was debating with

BG - I wonder if it is something like the FTB where you can claim at tax time for those who don't have "set" incomes such as shift workers?

Thanks Girls

MG

[briggsy's girl]

i honestly don't know MG - you do have up to a year to claim, so i'm guessing they'd look at it in arrears and see if you did go over in that six months post birth - i just haven't been at work to know for sure