When your baby is born you may exist on only one income or you may decide to go back to work part-time.
A reduced income can make it difficult to pay for all the costs involved in raising your family. The Federal Government has recognised this and helps out with a number of different financial compensations. There’s more than one baby bonus on offer so we’ve created this post to make you aware of the different subsidies available. Check them out and see what you’re eligible for.
Newborn Upfront Payment and Newborn Supplement
The Newborn Upfront Payment is a baby bonus that gives you a tax-free lump sum of $560, while the Newborn Supplement is an increase to your Family Tax Benefit Part A payment. It depends on how many children you have and your family’s income.
If eligible, you can receive the Newborn Supplement for 13 weeks. The maximum amount is $1,679.86 for your first child and $560.56 for subsequent children. Like the upfront payment the supplement is tax-free.
Read more about the Newborn Upfront Payment and Newborn Supplement.
Parental Leave Pay
This is a short term payment you can receive for up to 18 weeks following the birth or adoption of a child. To be eligible you must have individually earned less than $150,000 in the last financial year. The pay rate is currently $740.60 per week, and it is a taxable payment.
Read more about Parental Leave Pay.
Dad and Partner Pay
This is a two week baby bonus for dads and partners paid at the rate of $740.60 per week. It’s typically paid as a lump sum into your bank account after your claim is accepted.
Read more about Dad and Partner Pay.
Family Tax Benefit
This is an ongoing payment is to help with the cost of raising children and has two parts, Family Tax Benefit Part A and Part B.
Family Tax Benefit Part A:
- family annual income must be less than $80,000
- paid for each child you have and how old they are.
Family Tax Benefit Part B:
- an extra payment for single parents, non-parent carers and couples with one main income
- income tested
- can’t receive Part B if getting Parental Leave Pay.
Read more about the Family Tax Benefit.
Child Care Subsidy
This subsidy will help you out with a percentage of the cost of an approved child care centre. Families earning less than $68,163 are eligible for the full 85%. The percentage goes down by 1% for every $3,000 of income your family earns.
Read more about the Child Care Subsidy.
This is an income support payment for parents or guardians to help with the cost of raising children. The amount you can get depends on your, and your partner’s, income and assets. If eligible, single parents can currently receive $780.70 per fortnight and couples $504.70 per fortnight.
Qualifying for the parenting payment may entitle you to other payments and services, such as:
- Clean Energy Advance
- Energy Supplement
- Health Care Card
- Helping Young Parents
- Jobs, Education and Training Child Care Fee Assistance
- Telephone Allowance
Read more about the Parenting Payment.
Receiving entitlements is fantastic but it’s important to be financially savvy across the board in the lead up to and after your baby is born.
Consider just how much a really great value nappy range like Little One’s will save you over the course of your baby’s life. The money you save here could be invested each week and become quite a lovely little nest egg for your child later in life.
Did you know about all these financial pay outs? Tell us in the comments below.
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