Paid Parental Leave or Baby Bonus

[Starfish]

I have read that you can claim either the PPL, or the baby bonus but not both? Is this right?
If so, how do you determine which to choose?
Can you do any kind of casual work (either from your usual employer, or for yourself, or for another employer) while receiving the PPL?
I am assuming that if you choose to take the baby bonus, then you can do whatever work you want?
What about the Parenting Payment? Would you receive this if you take the baby bonus, but are not working?

[Indadhanu]

Have you done the comparison tool on the Centrelink website? That helped me decide which was the best for our family.
It's a lot more complicated than just PPL vs BB:
- the PPL is a higher payment, but because it is considered a 'taxed income' it can impact on the FTB, and it also impacts on the PP because it's a reportable income, so for some people it can work out worse off even though the PPL is a higher payment.
- the BB is a lower payment BUT it doesn't impact on the FTB because it isn't a 'taxed income' and also doesn't impact on your rate of PP. So some people prefer the BB over the PPL because they might be eligible for PP and a higher rate of FTB.
If you do decide on the PPL, remember to include it in your family annual income estimate or you may be overpaid FTB.
https://www.centrelink.gov.au/RateEs...mbinedStart.do

As for working, I *think* that the rules are that you cannot return to work while you get the PPL, but I don't *think* that you have to pay back the money received BEFORE you go back to work, but if you return to work before to 18 weeks is up, you just tell them, and then you stop getting paid the PPL from when you return to work. You DO have to repay money if you return to work and don't tell them. I don't believe that the BB has any work restrictions.

[jellybean88]

Ppl is double the bb I think but u don't get ftb while on it it still worked out better for me to do ppl but whatever works for u

I don't think u can work and get ppl I think it stops as soon as u return to work but I think u can work with bb

[e_p]

PPL does NOT impact on your rate of Parenting Payment. Anything you receive in PPL must be included in your FTB estimate as taxable income, but it is not classed as income for income support (pensions & allowances) purposes.

If you opt to receive PPL, you are not entitled to FTB part B for the period you are receiving PPL.

You cannot work and receive PPL at the same time but if you are eligible for PPL and do return to work, there are some circumstances where you can transfer the remainder of the PPL payments to the other parent, so long as they meet the eligibility criteria.

[Starfish]

Thanks for that.
Why would you not get FTB if you get the PPL? I mean, I am assuming that the PPL is lower to what I am currently earning, and I currently get some FTB (not the full rate, but part of it). I have estimated my 2012-13 earnings as if I am going to work the whole year, so that should avoid any overpayments, yes?
This is doing my head in.

[MummyDuck]

For us PPL and BB were very on par..... However our decision to take BB came from the fact that our annual income would be higher so CCB/R would be dropped and we would be paying extortionist amounts for the half year I am working.

I will receive all my tax back (as ill come in under $18000).

I was also happier to have smaller payments over an extended period along with ftb b - minus what we pay for child care we currently live just above the combined amount so in the end we lose around $1200 taking the bb but I'm happier in the long run not being stung in the short term.

With any luck we may get a hcc once the new bub is here too which is a relief!!!


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[briggsy's girl]

Have a read of this thread. Hopefully it will answer your questions

https://www.bellybelly.com.au/forums...and-Baby-Bonus

[Indadhanu]

PPL does NOT impact on your rate of Parenting Payment. Anything you receive in PPL must be included in your FTB estimate as taxable income, but it is not classed as income for income support (pensions & allowances) purposes.

Really?? When I rang Centrelink they told me it would impact on parenting payment as I had to report it as income!!! Grrr, now I am going to have to call them *again*.

[briggsy's girl]

http://www.humanservices.gov.au/cust...ts-and-support
these are the payments that are impacted by ppl
the previous link has all that info in it and then some - give it a read

[Indadhanu]

It's good though, although it ends up working out the same for me anyway because what I gain on PPP I lose on FTB because it pushes my taxable income up.

[Frangipani Lou]

We went with the PPL- $1000 better off for us.
PPL is taxed and Baby bonus is tax free.
When you are ready to apply, make sure you give yourself lots of time. It took me over 3 hours and I had to split it over 2 sessions because the process wasn't as straight forward as I thought it should be.
PPL has enabled me to plan for more maternity leave so the stress of the application process although it was pain is going to be worth it.

Good luck!