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!
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28-06-2012 21:50 #1
Help?? Baby bonus versus paid parental leave
28-06-2012 21:55 #2
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
28-06-2012 22:09 #3
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?
28-06-2012 22:52 #4
28-06-2012 23:01 #5
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.
28-06-2012 23:41 #6
28-06-2012 23:44 #7Senior Member
- Join Date
- Jun 2010
- Launceston, Tasmania
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.
29-06-2012 04:44 #8
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.
29-06-2012 15:12 #9
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?
29-06-2012 15:18 #10Senior Member
- Join Date
- Jan 2009
I am doing the same 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.
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