parental leave and redundency

[kirstyandmick]

Hi, have been trying to get on to someone at FAO all day but ridiculous hold times so i give up. Hoping someone here might have an idea.

We are due to have our first child in dec 2011, my husband is due to get a redundencu package in june so this will affect his 2010/2011 income. Will this affect if we can get the paid parental leave money as this money, plus his normal income for 2010/2011, plus my income for the same period will make it look as if we earnt over $150, 000 which i think i read someone was the max to be eligible for the paid parental leave.

Or will it be counted differently? Or is it only looking at my income from the previous tax year when i apply?

Just trying to get things sorted.

Thanks in advance for anyone who might be able to help.

Kirsty

[del79]

Hi, have been trying to get on to someone at FAO all day but ridiculous hold times so i give up. Hoping someone here might have an idea.

We are due to have our first child in dec 2011, my husband is due to get a redundencu package in june so this will affect his 2010/2011 income. Will this affect if we can get the paid parental leave money as this money, plus his normal income for 2010/2011, plus my income for the same period will make it look as if we earnt over $150, 000 which i think i read someone was the max to be eligible for the paid parental leave.

Or will it be counted differently? Or is it only looking at my income from the previous tax year when i apply?

Just trying to get things sorted.

Thanks in advance for anyone who might be able to help.

Kirsty

I hate the waiting time on the phone as well. Try filling up the form only to request for a call back or go to centrelink to use the phone there ( which directly connects to Family Assist Office.)

I am interested to know the answer as well.

I know that the redundancy payment (Lump Sum payment) will definately affect tax so the PPL might end up not as good as Baby Bonus, which is tax exempted.

[Juzz]

Does PPL work the same as the Baby Bonus from a means testing perspective? If so, it's your income in the 6 months after the baby is born that counts (not your annual income). So if his pay out is June, and bubs isnt due til Dec, I'd think you're ok (although I'm no expert!)

Good luck with your pregnancy

[punky]

I'm pretty sure the paid parental leave is means tested but on YOUR income only whereas the baby bonus goes on combined income. So I don't think your partners payout would affect the PPL.

[mariansm]

Hi Kirsty, my name's Marian and I work at Centrelink in a team answering questions posted in online forums, and through social media.

To be eligible for Paid Parental Leave, you need to meet the income test. Your Adjusted Taxable Income (ATI) must be $150 000 or less in the financial year prior to the date of claim or birth of your child, whichever is earlier. If your baby is due in December 2011, the tax year income used will be 2010/2011.

If you're not eligible for Paid Parental Leave you may be eligible for the Baby Bonus.

Eligibility for Baby Bonus is based on your estimated adjusted taxable income for the six month period following your child's date of birth. This amount must be below the Baby Bonus income limit, which is currently $75,000. This amount includes both members of a couple's income if they were partnered on the date they claimed.

There is a handy calculator on the Centrelink website here; http://bit.ly/e3Fne0 (http://bit.ly/e3Fne0) If you put in your details it will let you know which payment is best for your family.

Termination payments from employers are seen as taxable income. If you're unsure if any income is taxable, or need advice about other income such as fringe benefits, you should consult the ATO on 13 2861.

Hope that helps.