Paid Parental Leave and Baby Bonus
The impending arrival of a new baby means making decisions about eligibility for payments. As well as family tax benefit (I will do a separate thread), you have to decide if you apply for Government Paid Parental Leave (PPL) or Baby Bonus (BBY), and then work out how to apply. This thread will give links to the information you’ll need to make decisions about which payment is most appropriate for your family, and whether you will qualify for the most appropriate payment for you.
Paid Parental Leave Scheme
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The Paid Parental Leave scheme is a government-funded entitlement for working parents who meet the eligibility criteria. If eligible, you may receive up to 18 weeks of Parental Leave Pay at the National Minimum Wage. It is, as most pay is, taxable.
Baby Bonus
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Baby Bonus is paid in 13 fortnightly instalments. It is paid to eligible families following the birth (including stillbirth) of a child. You can also claim it for adopted children who enter your care before they turn 16 years old
You cannot receive both Parental Leave Pay and Baby Bonus for the same child.
In a multiple birth, you may receive PPL for one child and BBY for additional child/ren. If you do not meet the qualification for PPL, you may receive BBY for all children in the birth
As PPL is taxable, you need to keep in mind that 18 weeks of payment will impact your taxable income for the year, as well as your FTB entitlement and any CCB entitlements. When making any decision about whether to claim PPL, you need to factor these things in yourself. It can be difficult to decide which payment is more appropriate for your family. There is a fact sheet and PPL/BBY estimator that will help you decide. Make sure you put in as much information as you can when completing the estimator so that you get the most accurate information possible. The estimator will not tell you which payment to apply for, it will simply say that, based on the information you have provided, you will end up with x amount more money in your hand if you take one option over the other. It is important to be as accurate as possible when running the estimator so that you know you are getting the most relevant information
Claiming parental leave or baby bonus choosing PPL or BBY factsheet
https://www.centrelink.gov.au/RateEs...mbinedStart.do estimator
The first thing to do, if you think you may qualify for PPL, is to check whether you meet the eligibility criteria, and then run the estimator via the link above.
Eligibility for the Paid Parental Leave Scheme
It is important to make sure you meet the work test, and it seems to be the bit that catches most people out.
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Work test
To meet the Paid Parental Leave work test you must have:
• worked for at least 10 of the 13 months before the birth or adoption of your child and
• worked for at least 330 hours in that 10-month period (just over one day a week), with no more than an eight-week gap between any two consecutive working days.
A working day is a day on which you have worked for at least one hour.
If pregnancy complications and/or a premature birth have prevented you from meeting the work test, just let us know. There are some exceptions.
You do not need to be working full time in order to be eligible for Parental Leave Pay. You may meet the work test even if you:
• are a part-time, casual, or seasonal worker or
• are a contractor or self-employed or
• work in a family business (such as a farm) or
• have multiple employers or
• have recently changed jobs.
If you work for a family business (such as a farm), you can include your hours of work even if the business is not generating any income, providing that you are doing the work for financial gain or benefit.
It is important to note that you have to meet ALL the criteria. Working 330 hours in a ten month period does not allow you to have a period of three months off prior to the birth of the child and still meet the criteria. You must have worked 10 of the 13 months before estimated due date (EDD) AND not have had a period of more than 8 weeks between any day of work. If you are looking at your period of leave immediately preceding the birth of the child, it cannot exceed 8 weeks (and you will then have had to work 10 of the 11 months prior to the date you start your leave) - if you have your baby after EDD (which is very common) this would be taken into account - you may need to provide documentation from the doctor regarding EDD vs actual date of birth due to going past EDD if it's a significant time frame
If there are exceptional circumstances (premature birth, complications of pregnancy that prevent you working but you WOULD have met the criteria had this not arisen) it can be looked at on a case by case basis.
PPL is the equivalent of minimum wage each week for an 18 week period. If you return to work before the 18 week period has expired you will lose eligibility for the payment. You can nominate any start date you like but you must have received your entire 18 weeks payment before the childs first birthday so the latest you can start is when your child is 34 weeks old, otherwise you’ll miss out on some of the payment.
PPL may have an impact on other payments/entitlements, beyond those mentioned here. Below is a link that will give you further information
Effect on existing payments and support
If you don’t qualify for PPL, you may qualify for Baby Bonus
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Baby Bonus is payable if your family's estimated combined adjusted taxable income is $75 000 or less in the six months after your child is born or enters your care.
You have up to one year from the birth of your baby or from the time a child enters your care, to claim Baby Bonus and provide your income estimate. If your income is initially too high or your circumstances change, you should tell us immediately and we can reassess your claim.
Baby bonus is not a taxable payment, so does not impact ftb entitlement or taxable incomes at all. It is paid over a period of 26 weeks – a first instalment that is higher (approx. $875 at the moment) and then 12 fortnightly instalments of approx. $375 each. If you have a multiple birth, you can receive baby bonus for all children, or you may qualify for PPL for one child and BBY for each subsequent child in the same birth. BBY must be claimed by the childs first birthday.
How is it paid?
Payment of BBY is direct from the Family Assistance Office to your nominated account. The first payment is received within a couple of days of the claim being finalised, and the remaining instalments are fortnightly from this date. You cannot choose what day you receive payment
Payment of PPL is generally through your employers payroll. There are circumstances in which FAO will make the payment direct to your bank account, but generally it is expected that your payment is made via your employer. When your PPL is processed, your employer is contacted. Payment is sent to the employer, and from the employer, it is delivered to you to fit with their normal pay cycle (weekly/fortnightly/monthly). Sometimes there is a delay between FAO processing and approving your claim, and the employer accepting the payment and starting to pay into your account. If you need to confirm payment dates, you will need to check with your employer.
Making a claim
The claim process varies for PPL and BBY depending on what your current circumstances are and which payment you are claiming.
If you are already in receipt of Family Tax Benefit (FTB), and you’re intending to claim BBY for your new baby, you don’t need to do anything before the baby arrives. You will be given a form in hospital when your baby arrives, which has proof of birth on the back. Complete the form, stating you wish to claim BBY (and FTB if that is the case) and post it in the replied paid envelope. You will need to provide an estimate of family income for the six months immediately after the baby is born – if your estimate as a family for those six months exceeds $60000, you will be asked to provide evidence that confirms it does not exceed the $75000 limit. If you’re lodging a claim this way, it’s probably a good idea to lodge the evidence at the same time so that your claim is not delayed
If you are claiming BBY and not receiving FTB for other children, you can lodge a pre-claim up to three months before your EDD. To do this, you will need to use online services on the Human Services website. If you’re not already registered, there is an option there to register yourself. When the claim is lodged online before the EDD of your baby, it is sent to FAO, and eligibility assessed. If any further information is required to assess your claim, it can be requested before your baby arrives so that you don’t end up having to chase extra information after giving birth. At the end of the claim process, you will be asked to provide any extra information – make sure you get that information into FAO within 14 days so your claim can be completed. When your baby arrives, you will follow the same process as above, providing the proof of birth for your baby as supplied by the hospital.
If you are claiming PPL, you will need to do an online claim. This can be done up to 3 months before EDD
Lodging a Parental Leave Pay claim
In the same way as the BBY can be pre-assessed, so can PPL. Your eligibility can be confirmed, and required evidence can be obtained. Contact can be made with your employer so that they can register ready to pay when your claim is processed.
After the birth off your baby, you will complete the paperwork from the hospital, nominating PPL, FTB (if claiming) and completing the required questions. The form can be posted to FAO in the replied paid envelope. When your claim is processed, notification is sent to your employer asking them to accept the payment, then payments are sent to them, and they deliver to you through your payroll. If you have nominated a later start date, the same process is followed, link established with employer, and payments start being delivered ready to start your payments on your nominated start date. You can alter your start date at any time online – moving it later, or sooner (but not before the date you make contact) depending on what works for your family
Both BBY and PPL claims can take several weeks to process, depending on the number of claims coming in at the time.
Paid Parental Leave and Baby Bonus
I just called up Centrelink and it was done over the phone no probs
Paid Parental Leave and Baby Bonus
Thanks :) I'll tackle next week when I'm on leave. Can't believe i stuffed that up!
PPL income test on previous or current financial year?
Hi BG,
Thanks for the wealth of information! I have a question that stems from the utter confusion that is Centrelink!.. I know the PPL income test says it is based on the previous year's income, but when I did the calculator to determine whether I'd be better off with BB or PPL it asked for my current FY 12/13 income (which will be under $150k because i'll be on mat leave for 3mths of this FY). So this is what led me to think they actually meant the current year (not previous year). But when I filled out the online form to apply for PPL it asks for the previous year's income FY11/12, as I worked the whole of the previous FY, I will above the $150k limit, but since the calculator used the FY12/13 income I am now very confused which I should apply for!!! :wall:
If I get rejected for PPL do they automatically process my application for BB? or can I apply for both simultaneously? or do I have to wait to be rejected for PPL to lodge an application for BB?
Thanks for your help!
Beck
