Govt Paid Matt Leave V's Baby Bonus?

[Jakabella]

Ok so DH and I will be trying for number 2 this year, but as money is tight and I had to go back to work PT to make ends meet.
So the plan was to wait till mid year and TTC as then bub woould be born in 2011 and the Govt Paid Matt leave would be in - seeing as I work for a private company there is no paid leave and I used all my AL up when Bella was born so little leave to take.

But as I am imaptient I was thinking what are the main differences with the Paid Matt Leave and the Baby Bonus??

I have heard the paid leave is alot more $$ than the BB - is that the case??

(I feel terrible admitting that we may have to put off having a bub to get the paid leave - makes me sound like im a money hungry gold digger - but im not! I just want to be able to provide for my family!!

Kate

[Jakabella]

[Cupcake]

Im interested in hearing this one too! Not that it will effect me (govt paid mat leave)

Dont feel bad or feel like you are 'money hungry' we are the same in that i have no idea how we will go financially when i stop work, DPs wage covers rent & bills just need to figure out the rest hehe.

[whoops]

I was told that paid maternity leave is minimum wage of around $500 ish a week compared to $300 and something a fortnight baby bonus.

[*Ali*]

Here is a link to the booklet about the scheme

http://home.deewr.gov.au/Budget/docu...PPLBooklet.pdf

I hear ya on the impatient to start, we have to wait as well, not for the paid parental leave scheme to kick in, but for me to finish my contract at work so I can get my permenancy. It just so happens for me the 2 coincide. I know the exact date that we can start TTC

[Muppity]

'Realistically there is going to be very little difference between the two payments once everything is taken into account.

The differences will be that the maternity leave payments will count as income for every purpose so you will pay tax on them and they will be counted when calculating all the Centrelink benefits like FTB Parts A and B. The Baby Bonus (or Maternity allowance or whatever it is called these days) doesn't get counted towads any of these things.

It is really just a nice way for Uncle Kev to make some headlines and feel good without actually costing the governtment any real money.

[Jakabella]

Thanks ladies - I read the PDF link and I think that we will be better off using the PPL rather than the Baby bonus - still confusing though!!

Kate

[briggsy's girl]

i think it will come down to when in the financial year you have your baby - if oyu have it early in the financial year, you're bette off going baby bonus as you'll get the higher level of ftbb for longer (as you'll have minimal income to reduce it) - if you have it late in the financial, you'll already have income, so ftbb will be reduced already, so you may be better off with the PPL. if we have another kidlet, i will have to seriously consider, based on EDD, what option is better for us. when DD was born last year) we would have been significantly better off the way we were (baby bonus) rather than PPL as i am getting max rate ftbb until i return to work...

[Jakabella]

Thanks BG - is there anyone that I can go to that can explain it all to me (im a bit dumb!!) and we can then work out which would be better??
Would my accountant know about it?? I get very little from CL but that was becasue I had been working full time and DH is on an ok wage (well Ok by cl standards) and I was also getting AL leave paid to me so I was getting an income - but for this bub I will be getting zilch and I have no AL and it will just be DH's wage.
So maybe I woould be getting more payments from CL as I would not be earning anything then?

I dunno - its all so confusing!! All I know is I wanna another bub NOW! LOL

Kate

[briggsy's girl]

ping me on fb one day hun and i'll go through it with you if you like (i'm happy to give you my opinion on where you're at if that helps)

will you have been back working for at least 10 months (isn't that the criteria - working 10 months in the 13monts before baby arrives?)

[SuperstarMumsy]

I believe you will get more from Centrelink as if your family only has one income you can earn $150k a year before you get none, however if you are a 2 income family you can only earn $80k before you get none, but this would depend on the EDD I assume. I have looked into it but found we will not be eligible for FTB A or B based on our income and because both myself and DP will need to work in the financial year. Doesnt seem fair that 1 income family can earn more than a 2 income family. Should be at least equal in my opinion...guess you are better off if one of you earns a good wage rather than two of you on an average wage.

I am an accountant and it can still get confusing for me which is better. It really depends on your EDD, as if you are planning on having 12 months off and bub is due in say July the Paid Maternity would be your only income so you wouldnt pay much tax given the first $6,000 if income in a financial year is tax free. However if you are due in say February and you have earned say $40,000 prior to maternity leave your taxable income for the year would be around $48,000 and you would be taxed at somewhere between 20-30% (cant be bothered working it out at the moment). So you would be losing more in tax.

In my personal circumstances, I was only going to be better off by approx $1,000 which was not enough to delay our TTC for a year. Maybe even less when I consider that I will be getting no taxable income when I start maternity leave so I will have a reduced taxable income this financial year...therefore a refund of some of the tax I have paid. I actually think I will make up the shortfall (or come within a couple of hundred dollars) in additional tax refund as my baby bonus is tax free. There are so many things to consider, sorry if I am being too "accountant" - it really depends on so many factors.

Not sure if this helps though. At the end of the day the difference is a maximum of probably $2,500. So you would need to weigh up the pros and cons of what was best for your family and your personal figures.