How is paid parental leave working

[DANNIIM]

Hi i know this may sound really dumb but how does it work? Is it government funded or does the employer have to contribute? How long does it go for? If it's a percentage whats the percentage? How do i apply and when does it start getting paid?

Also whats the cut off for the baby bonus, i got in last time just before they started means testing it and paid it as a lump sum.

TIA

[briggsy's girl]

cut off for baby bonus is 75k in the six months immediately following birth, non taxable, paid for 26 weeks (13 fortnights)

paid parental leave is a set amount $570 per week. it is taxable, paid for 18 weeks. you can't receive ftbb while receiving it. it is government funded, but honestly not sure how it is all worked out as i'm not trained fully. the aim is to have it paid by your employer, but some people will have it paid by the government directly (a lot of people who have had babies this year are paid by the government - there are changes happening in july i believe to enable more to be paid by employers).

there are specifically trained staff who can answer your questions on this one if you call FAO 136150 (personally, i'd avoid mondays for a general enquiry cos they waits are usually very long lol)

there are estimators online taht will help you decide which option is better for you and your circumstances. make sure you take everything into account (the estimator doesn't) - including the impact on childcare of adding 10k on to your annual income etc

[sconeonamission]

Oh man I'm so confused!! I'll be one of those Monday callers though...

[briggsy's girl]

you're welcome to call - just be prepared to wait lol
make a cuppa first
maybe two... lol

[megs]

It can be quite confusing. Have a go at the on line estimator, it will give you a bit of an indication of whether you are better off financialy to go with Paid Parental Leave or the Baby Bonus. Like BG said though consider you Child Care etc if that is applicable.

At present it is being paid by Centrelink, as of 1st July I believe they are phasing it in so that it will be paid via employers.

From looking at your Due Date I'd be calling straight away, you would rather get it sorted before bubs is born if possible.

[DANNIIM]

Thanks everyone i think i might end up called them about this. I don't have to worry about the childcare rebates at the moment etc. so that wouldn't come into it.

[sarahrach]

How is that going to work if you are self employed I wonder?? (which is me btw :-)

[peanutter]

can the parents share the PPL?

ie: can I take 12 weeks, and DH take 6?

[briggsy's girl]

there are limited circumstances in which PPL can be shared - you are best to call FAO and discuss your circumstances and what you are thinking so that the consultant can look at your specific circumstances

[peanutter]

Thanks

[emc2]

It bugs me the govt made a big hoo haa about it, but on low incomes some are better to take baby bonus.

PPL is taxable; BB is not taxable to my knowledge.

[briggsy's girl]

That's why there is a comparison estimator available on the centrelink website. So people can make the decision most appropriate for them. For us, due to DH being sahp, bb would probably be the more viable option. Each family is unique and needs to decide for themselves though...

[thirdtimelucky77]

Hey guys,

Really dumb question - and yes I will ring the FAO on Monday - but in the meantime I'm curious - DH and I have never qualified for any of these payments since means testing came in - however in regards to the Baby Bonus - I get the bit where you need to have taxable income of less than $75k in the six months after the birth of the baby (or in this case babies) - what I want to know is - is the $75k just my income alone for the 6 months post birth - or is eligibility calculated based on both mine and DH combined income in the 6 months post birth?

Eg - I won't earn anything (so less than $75k) in the 6 months post birth (except for 4 weeks paid mat leave from my employer) - however my DH will earn more than $75k during the 6 months post birth - am I eligible for the BB based on my personal income alone or is DH income and mine combined to assess BB eligibility?

Thanks in advance for any assistance you can offer! the ATO website is not very clear about Individual income vs combined income

X

[e_p]

the baby bonus income test is combined income...so $75,000 in the first 6 months post birth between you and your DH. Have you checked whether you might be eligible for Paid Parental Leave?

[thirdtimelucky77]

Thanks Eutra,

Unfortunately we won't qualify for either. I'm assuming paid parental leave is also calculated on both incomes for the 12 months?

They should double the threshold for twins I reckon because it's 2 babies!!

X

[FabFiona]

Thanks Eutra,

Unfortunately we won't qualify for either. I'm assuming paid parental leave is also calculated on both incomes for the 12 months?

They should double the threshold for twins I reckon because it's 2 babies!!

X

Nope. Parental leave is only based on the mothers income. But you need to have been working for a period of time. Check the website for how long.

[thirdtimelucky77]

Thanks FabFiona!

Unfortunately I still won't qualify including super I would just Evers the 150k a year - although I will satisfy how long you need to have been working. I went back to work when DS was 8 months old.

Oh well it was a nice thought, it wouldn't be such a big deal with one - but two it could have made a big difference.

X

[briggsy's girl]

if it's standard employer super and doesn't appear on your tax return, then it shouldn't impact your entitlement. you may get ppl for one baby, but no bby bonus for the other