Commission proposes $12,000 parent leave

[Toomanytoomany]

Yay!

Although, just like the baby bonus, it will come in a couple of months *after* I'm able to take advantage of it!

[briggsy's girl]

there is a LOT in this that isn't fully "qualified" or is spun to look better than it may be

it doesn't state whether this money is taxable - so it doesn't qualify whether you will actually receive that income. if it IS taxable, it's likely to impact on other eligibility for payments (ftb and ccb for other children etc). it also states what i personally believe - if employers are expected to foot superannuation for the time the person is on maternity leave, they're going to be more "picky" about employment of females of child bearing age. it will lead to covert discrimination simply cos small businesses can't afford to both replace the employee AND foot the bill for the employees super.

New mums who are not in the workforce would receive a payment called the maternity allowance, worth - when combined with family tax benefits - up to $6,800 pre-tax.

this bit here sort of backs up what i said - it will be taxable! if the person is on max rate ftba and b, they're getting about 280 a fortnight (rounded figures) so over the 18 weeks they're talking, of this 6800, they're receiving 2500 (ballpark) in FTB - which leaves 4300 of TAXABLE income over 18 weeks - an amount, before tax, of only 477 per fortnight. if this is then taxed, you're marginally better off than the current baby bonus scheme (385 per fn from jan!)!!! and given that you'll have 4300 in taxable income, you're likely to be close to the thresholds to start reducing your FTBB AND if you're on a low income (parenting partnered), your income support counts as a taxable income, so it's added to this and you're getting even LESS FTBB!

and hey, if you look at it - that 4300 is LESS than the current baby bonus!


gotta love all the fancy schmancy wording of the proposal, but it's not really benefitting people the way this smart marketing will have us believe!

[Diamond Girl]

BG - Just so you know FTB payments are not included in your tax return as income, and since the tax free threshold is currently $6,000 the remaining baby bonus of $5k would not attract any tax. Currently the baby bonus is exempt income therefore is also not included in the tax return, but when they use the words 'pre-tax' it may suggest that this may change in the future.

Another thing that annoys me is that SAHMs always get less than working mums, but that is a totally different matter altogether.

[briggsy's girl]

DG - if you noticed, i took the FTB OUT of the taxable income equation! if you read my post, i said IF it were taxable, as it reads to me, the BALANCE would be taxable - if you then ADD that to any other income for a SAHP (ie, parenting payment) it WILL reduce FTBB entitlement. the $4300 amount also takes you bloody close to the threshold to start reducing FTBB entitlement anyway... for a working parent, there is a very real chance that the payment would negate their FTBB entitlement, so over a period of 18 weeks they're taken care of, but take any longer off work, and sorry, do it on your own.

theoretically, it's a good idea - but the impact on existing entitlements could be more than people realise. offering a taxable alternative to a payment that isn't currently taxable needs a LOT of consideration.

[Nixon]

I think this new scheme would not be means tested - which would differ to the current baby bonus scheme. I think it's a good thing - shows the government is finally trying to appreciate the improtance of mother and baby bonding in the early stages.

I hope financially it works out, but by the sounds of BG's post it may not add up.

[Ozziehoffy]

I don't think it's completely fair to be honest. Like Diamond Girl said... SAHM are getting ripped off with this proposal! It really gets me cranky how just because we stay at home we get less. With this proposal they will still be getting the baby bonus as well. Stupid govt!!