Baby Bonus Help

[rufalina]

DH and I are trying to work out our budget for my Mat leave, and so I went looking at the centrelink website last night, and I think I might qualify to get the baby bonus. Would be close to the threshold...

Obviously I would like to apply for it asap, and get the money coming in asap, but what if i apply straight away and say I am eligible, and then we get some additional income, what would happen then? Does it just stop? or would I have to pay back what I got??? Would I be better off just managing with what we have and getting it after 6 months when I can know for sure what our circumstances are?

TIA

[Neoma]

If you did get additional income you would have to pay it back. If you are unsure on your income I would wait until you are certain.

[briggsy's girl]

yeah, what Kylie said - if you're income is going to be close to that threshold, you're best to hold off and apply after the 6 months as the last thing you want is to get the money in then have to pay it all back

[ss_storm]

I'm not sure but I think you only have a certain timeframe in which to lodge a claim for the baby bonus, so I'd check about that before you possibly decide to wait and see. I know we only had a certain amount of time to get them a letter from our accountant estimating how much we earn (DF is self-employed), before they wouldn't accept our application at all.

[~ Zarava Flutterby ~]

This actually reads quite confusingly:
Quoted from Centrelink website:
Baby Bonus Income Test:
From 1 January 2009, a Baby Bonus income test will be introduced.
The income test will only apply to customers claiming for a child born or entering care from 1 January 2009.
The Baby Bonus income test is based on your family income in the six months following the birth of your child, or the date the child entered your care.
Families with an adjusted taxable income over the Baby Bonus income limit for the six months following the birth will not be eligible for payment. You will have 52 weeks from the birth of your baby to claim Baby Bonus and provide an income estimate. If your income is initially too high and then your circumstances change, you can tell us within 52 weeks of your assessment and your payment can be reassessed.
As at 1 January 2009, the income limit for the six months following the birth of the child is $75,000.

Reading this to me aslong as you don't earn OVER $75,000 IN THE 1ST 6 MONTHS of the babies life your eligible.. is this correct?
BG WHERE ARE YOU!

It's so confusing!

[briggsy's girl]

i is here and already replied AM! lol

if you're going to be close to the cut off (75k combined) in the six months immediately following the baby's birth, you're best to hold off until either your income is more certain and you know it will be under, or until after the 6 months where you can confirm (via payslips etc) what your income has been.

you have up until your baby's first birthday to claim (previously it was only 26 weeks, but due to the income limits now being in play, they have to give you the additional time in case you need to get taxes done to confirm your income was less (self employed people etc)
HTH's

[~ Zarava Flutterby ~]

You must have typed at the same time as me

I was going to ask questions about this aswell so thanks for the thread Rufalina.

[HotI]

Would things like inheritance affect the 'income' you declare?

Or is it just amounts through employment, shares etc? (regular payments)

If you sold a house, and got a profit, would this be included in income?

thanks

[Queen]

Yes you'd have to pay it back if it went over.
I am not sure about other sources of income.

[rufalina]

Cool. Thanks for the confirmation guys. I thought that would be the case. I think I will hold off then, and apply after I know for sure that I am eligible. There would be nothing worse that getting the money, then have to pay it back. xo

[briggsy's girl]

you need to check with the ATO what is classified as income when it comes to inheritance, capital gains etc.

i "think" the only thing that happens is, if you invest, the income from interest (with inheritance or sale of a house more htan a year old) - but capital gains makes it all different. unfortunately we just have to run with what ATO says is income and we dont get a lot more training than that (nor do we really want it! too much info to know as it is!)

[Cherished]

Is the $75,000 cut off gross or net? I was just looking up on the gov website and saw that if you earn over $75,000 for the 6 months after bubs is born you are not eligible for the baby bonus and my heart sank! We are already so stretched as it is and will need to make more money if I am to get 'any' time off work I am so upset about it! Our only hope will be if the $75,000 is net not gross... Can anyone tell me which one it is?
OH and is that $75000 in a 6 month period or $75,000 in a 12 month period? If it's 6 months I will be ok... why on Earth is all the government stuff so hard to understand!!!??
Or do I just have baby brain and it's really clear and easy... Sorry if I sound like a loony! lol

[HotI]

OH and is that $75000 in a 6 month period or $75,000 in a 12 month period?

It's $75,000 in the 6 month period after bub is born.

Quoted from Centrelink website:
Baby Bonus Income Test:
The Baby Bonus income test is based on your family income in the six months s following the birth of your child, or the date the child entered your care.

As at 1 January 2009, the income limit for the six months following the birth of the child is $75,000.

if you're going to be close to the cut off (75k combined) in the six months immediately following the baby's birth...

[Jas]

not sure on net or gros but it is over a 6month period so its if you earn over $75,000 in the 6months forrlowing your babies birth yu won't get the bonus, over 75k in the 12months is fine you will still get it

[Neoma]

The income test is for your actual taxable income. Taxable income is your assessable income for tax purposes minus all deductions allowed.