Paid Parental Leave vs Baby Bonus - which one for me?

[CKJ]

I have phoned Centrelink for assistance, and even asked in the branch, but they won't give me a straightforward answer and help me with what is better (they just refer me to the estimator which doesn't help!)

Currently I am receiving:

Parenting Payment Single (I declare my work income fortnightly)
Family Tax Benefit A
Family Tax Benefit B
Rent Assistance
Carer Allowance (for DD)
Parenting Education Supplement (as I'm studying Law at Uni)

I know I am entitled to claim the Paid Parental Leave, but will this affect my Parenting Payment?

I am due the 30th July and intend on finishing work on the 20th. At this stage I won't be returning as I am only a temp on maternity leave cover (and the previous person will be back in October, so by the time I may be ready to go back she will be!) If she wants part time, then we will job share but at this stage I'm planning on not returning at all.

The online estimate has said I will receive a whopping $2991 more if I claim the Paid Parental Leave, but I'm presuming this doesn't actually take into account my Parenting Payment and what I could potentially lose there? (As the PPL is deemed income?)

I'm not sure if I have worked out the following correctly, but this is roughly what I have found out through doing a few online estimations:

PAID PARENTAL LEAVE OPTION (18 weeks of this?)
Parenting Payment $256
Paid Parental Leave $1178
FTB A $263
FTB B $140
Rent $100
Less TAX - $1729 per fortnight (plus child support)
TOTAL received over 18 weeks is $15561

BABY BONUS OPTION (24 weeks?)
Parenting Payment $648
FTB A $263
FTB B $140
Rent $100
Baby Bonus $380
Less TAX - $1531 per fortnight (plus child support)
TOTAL received over 18 weeks is $13779 (plus the $800 one off)

Difference over 18 weeks is $1782

HELP!!!! I am at a complete loss as to what to do (and I know I have time to sort it out, but I don't want to risk struggling financially when he is here to meet everyday bills)

[peanutter]

isn't baby bonus a tax free lump sum (a bit over $5K) ... ? so you get the lot no matter how much or how little you work?

also, I thought you don't Fam Tax B if you claim baby bonus ... but that might be wrong ...

so I would have thought that you were better off with the baby bonus, but perhaps someone with more specific knowledge can give you some more clarity

[CKJ]

isn't baby bonus a tax free lump sum (a bit over $5K) ... ? so you get the lot no matter how much or how little you work?

also, I thought you don't Fam Tax B if you claim baby bonus ... but that might be wrong ...

From what I read online the baby bonus is now paid fortnightly and doesn't affect FTB B, but I'm so confused with it all!

[leckert]

Baby bonus is now paid fortnightly.
I have to ring c/link this week to check too which one will suit us better as I'm looking at DH possibly taking some of the ppl if possible and seeing if we're better off that way or taking baby bonus. Online estimator doesn't let you swap the main carer for child so can't figure that out yet.


Sent from my iPhone using Tapatalk so sorry if I'm confusing you

[peanutter]

yes, paid fortnightly but everyone gets 13 fortnightly instalments.

there's an online calculator that shows you a direct comparison of PPL -v- BB

try it: How the Paid Parental Leave Estimator works

[CKJ]

Baby bonus is now paid fortnightly.
I have to ring c/link this week to check too which one will suit us better as I'm looking at DH possibly taking some of the ppl if possible and seeing if we're better off that way or taking baby bonus. Online estimator doesn't let you swap the main carer for child so can't figure that out yet.


Sent from my iPhone using Tapatalk so sorry if I'm confusing you

That's my issue - kinda. I've used the online estimator and it says to take PPL but I don't think it takes into account that I receive parenting payment, and surely that would be deemed income therefore reducing my fortnightly payments.

My sister had done the estimate as well, doesn't make sense to her - I put in my estimated income (which is parenting payment) for the 2012/201: year but still too confusing. I've called 4 times and gone in and I'm just told to use the estimator, which honestly isn't that clear

[briggsy's girl]

Ppl is not counted as income for pps purposes. So you will get 2991 extra cash in your hand taking ppl over baby bonus

Staff at the call centre cannot advise you which option to take. They are not allowed to. You will always be referred to the estimator, exactly as you have been. They can explain the pros and cons of each choice, talk to you about other factors which may tip the scales one way or the other if there is minimal difference with the estimator but they can't say "you should take this one"

[peanutter]

there you go

[CKJ]

Thanks briggsys girl! Now I know which one to take!!!

[briggsy's girl]

BABY BONUS OPTION (24 weeks?)
Parenting Payment $648
FTB A $263
FTB B $140
Rent $100
Baby Bonus $380
Less TAX - $1531 per fortnight (plus child support)
TOTAL received over 18 weeks is $13779 (plus the $800 one off)

just want to correct this - the extra "one off" is 500 with your first baby bonus installment. you get 880 (near enough) first installment, then 380 a fortnight for another 12 installments