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.