+ Reply to Thread
Page 1 of 3 123 LastLast
Results 1 to 10 of 21
  1. #1
    Join Date
    Sep 2011
    Location
    WA
    Posts
    782
    Thanks
    128
    Thanked
    33
    Reviews
    2
    Achievements:Topaz Star - 500 posts

    Red face Help?? Baby bonus versus paid parental leave

    Am trying to work out whether I am better off opting for the baby bonus or the paid parental leave...the comparison tool tells me the baby bonus

    For the tax year 2010-11 my taxable income was $24479 and DH was $16605 so a total of $41084.

    We don't receive any fortnightly benefit from Centrelink (have to look into if we are eligible and if I should have been lodging something each year, silly me assumed my accountant did this )

    The only thing I can think of is that the parental leave is classed as part of your taxable income so this may affect something??

    The baby bonus is $5,294 per eligible child whereas the parental leave is for a maximum period of 18 weeks. This is $589.40 a week, so a total of $10609.20.
    Naturally I would have opted for the parental leave as it is a larger sum.
    Can anyone shed light on this for me? Thanks!

  2. #2
    Join Date
    Mar 2010
    Posts
    605
    Thanks
    0
    Thanked
    82
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    I THINK it has to do with the fact it's classed as taxable income. Someone mentioned that to me awhile back, the parental leave pushed them into the next tax bracket so for them it was better to get the baby bonus... But don't quote me on it

  3. #3
    Join Date
    Sep 2011
    Location
    WA
    Posts
    782
    Thanks
    128
    Thanked
    33
    Reviews
    2
    Achievements:Topaz Star - 500 posts
    Ok so the parental leave would take my taxable income to $35088 and together with DH our taxable income would be $51693 together.

    But what is that going to affect? Obviously my tax rate but I trade as a Director of a Company so assumed tax rate was at 30cents?
    Does the baby bonus not count on your taxable income?

  4. #4
    Join Date
    Sep 2011
    Location
    WA
    Posts
    782
    Thanks
    128
    Thanked
    33
    Reviews
    2
    Achievements:Topaz Star - 500 posts
    Quote Originally Posted by SugarplumMummy View Post
    Ok so the parental leave would take my taxable income to $35088 and together with DH our taxable income would be $51693 together.

    But what is that going to affect? Obviously my tax rate but I trade as a Director of a Company so assumed tax rate was at 30cents?
    Does the baby bonus not count on your taxable income?
    Have figured out the baby bonus is not classed as taxable income but my question is how will adding to our combined taxable income affect us?

  5. #5
    Join Date
    Sep 2009
    Posts
    899
    Thanks
    297
    Thanked
    112
    Reviews
    1
    Achievements:Topaz Star - 500 posts
    Parental Leave adds to your income so not only will you pay tax on it, it could also reduce your FTB A and FTB B and CCB. Most mothers are better off with the PL payments but if you are the main income earner then make sure you use the calculators to assess your situation accurately.

  6. #6
    Join Date
    Sep 2011
    Location
    WA
    Posts
    782
    Thanks
    128
    Thanked
    33
    Reviews
    2
    Achievements:Topaz Star - 500 posts
    Quote Originally Posted by Cat21 View Post
    Parental Leave adds to your income so not only will you pay tax on it, it could also reduce your FTB A and FTB B and CCB. Most mothers are better off with the PL payments but if you are the main income earner then make sure you use the calculators to assess your situation accurately.
    Oh thanks for that info I guessed as much - I am not the main income earner though but we usually distribute our drawings 50/50 between DH and I if that makes sense. So it is based on my individual income not our combined income?

  7. #7
    Join Date
    Jun 2010
    Location
    Launceston, Tasmania
    Posts
    617
    Thanks
    230
    Thanked
    75
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Another thing to consider is that the financial year starting 1 July sees the tax free threshold go up to $18k. I'd probably wait until this comes into effect and the use the centrelink calculators again as it may significantly change the picture for you.

  8. #8
    Join Date
    Apr 2006
    Location
    Melbourne
    Posts
    6,213
    Thanks
    387
    Thanked
    594
    Reviews
    3
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    You probably would qualify for family tax benefits/etc for the last year or two if you have children already (not sure if you do), but as today is the last working day of the financial year it might be worth trying to lodge a claim today as it might be your last day to do so for the 09/10 financial year.

    The paid parental leave is considered income. BUT, will your income remain the same in the financial year when you have your bub? You are not allowed to work during the 18 weeks of paid parental leave, apart from keeping in touch with your business if you are self-employed (eg. doing a BAS statement, paying employees). So, if you plan to keep working in that time, then you can't take the PPL and have to go for the baby bonus.

    I suspect that you will be much better off taking the paid parental leave rather than the baby bonus.

  9. #9
    Join Date
    Sep 2011
    Location
    WA
    Posts
    782
    Thanks
    128
    Thanked
    33
    Reviews
    2
    Achievements:Topaz Star - 500 posts
    Ok so I spoke with the Family assist office who reassure me because I have nominated to receive FTB as a lump sum it will be actioned as soon as they see our notice of assessments lodged with the ATO. It will then take up to 28 days to be paid.
    She said the cutoff to be eligible for FTB is 98k so we are well under the cutoff for 2010-11, good news! I did try to calculate the amount we would be entitled to and it said 520/fn consisting of FTBa and FTBb and rent assistance.

    So she only mentioned we would be entitled to FTBa not FTBb? And how do I apply for rent assistance?

  10. #10
    Join Date
    Jan 2009
    Posts
    10,611
    Thanks
    404
    Thanked
    1,918
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 posts
    I am doing the same calculations:

    http://www.bubhub.com.au/community/f...e-calculations

    the centrelink online comparison tool is hopeless.

    I found the only way to to it was compare by income for the financial year I have the baby from my job versus the income for the financial year I have the baby from my job plus paid parental leave.

    I compared the difference on tax, family tax benefit and child care benefit. You would probably also have to compare the impact on parenting payment, as I assume you would be eligible for a part payment given your income.

    The online estimator told me to take the baby bonus, but I have decided to apply for paid parental leave.

  11. The Following User Says Thank You to MsMummy For This Useful Post:

    SugarplumMummy  (29-06-2012)


 

Similar Threads

  1. Paid Parental Leave vs Baby Bonus
    By Cricket29 in forum Family Finances
    Replies: 3
    Last Post: 18-08-2012, 18:40
  2. Replies: 28
    Last Post: 30-06-2012, 02:57
  3. Paid Parental Leave or Baby Bonus
    By Doc in forum Family Finances
    Replies: 6
    Last Post: 10-03-2012, 17:04

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Pyjamas.com.au
With so many gorgeous brands and styles for every season, our pyjamas, nighties, robes, sleepsuits and sleeping bags are lovely for lights out and perfect for lazy days. Get 10% off first order using code bubhub. Be quick offer ends 31/12/16.
sales & new stuffsee all
Pea Pods
Buy 2 Award Winning Pea Pods Reusable One Size Nappies for only $38 (in your choice of colours) and receive a FREE roll of Bamboo Liners. Don't miss out, we don't usually have discounts on the nappies, so grab this special offer!
Special Offer! Save $12
featured supporter
Sudocrem / Infacol
Sudocrem® Healing Cream is a soothing emollient cream which aids and assists in the management of nappy rash, eczema, abrasions, wounds and minor skin irritations. Infacol Wind Drops are an effective method of treating wind in infants.
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!