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.
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
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.
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.
Until June 30 this year, your employer has the choice as to whether they will pay the parental leave ($570/week) and get reimbursed by the government or whether the government will pay it directly to you. After July 1 if you are currently employed when you claim the paid leave the employer must pay you and get reimbursed by the government.
If you are self employed or have ceased working prior to applying for the leave and are still eligible the government will pay you directly through centrelink. You can lodge your claim for eligibility at any time up until the baby is one but payments will stop once the child turns one, regardless of how many weeks you have claimed. For example, if you start getting the PPL when your child is 50 week, you will only get two weeks of payments. If you claim when the child is three weeks, you will be able to get the full 18 weeks.
The amount is based on current minimum wages and is subject to tax. However, you do not receive superannuation payments on it. You can transfer it between parents. For example, if I were to claim it for the child first ten weeks and then return to work while my husband stays home with bub as primary caregiver, he can claim the remaining 8 weeks.
Also, if your employer already pays a level of parental leave it is in addition to the government PPL. The Government PPL does not replace what an employer has. Check the policy though because an employer may have worded the policy that govt PPL makes up part of the payment they are making to you.
My friend got PPL and she was paid directly by the government. You can't receive baby bonus and PPL, you can only have one. Also I think you need to have proof of employment for 10 months prior to giving birth.
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
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...
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
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?
How is paid parental leave working
Reply With Quote
Bookmarks