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Baby bonus assists families with the extra costs associated with a new born or recently adopted child. Baby bonus is also paid where a child is stillborn or dies shortly after birth.
An individual may be eligible for baby bonus if they have:
For more details on the eligibility for baby bonus see 2.4.1.
The individual must claim baby bonus no later than 52 weeks from the day of birth (or stillbirth) of the child or no later than 52 weeks from the day the child becomes entrusted into the individual's care by an authorised party as part of the adoption process (if adopted, the child must have become entrusted into the individual's care before the child's 16th birthday).
Note: For children born or entrusted to care as part of an adoption process on or after 1 March 2014, the baby bonus will no longer be available. From 1 March 2014 the NBS, which is an additional component of FTB Part A, will be available for eligible individuals for a period of up to 13 weeks (91 days) to assist with the upfront costs of a new child. The NBS will replace the baby bonus to provide assistance to those families not eligible for or not receiving PLP. For children born or entrusted to care as part of an adoption process on or after 1 March 2014, an individual and/or their partner generally cannot receive PLP and NBS for the same child.
Act reference: FAAct section 36 When an individual is eligible for baby bonus in normal circumstances, section 37 Generally only one individual is eligible for baby bonus in respect of a child
Policy reference: FA Guide 1.2.18 Newborn Supplement (NBS) - Description, 2.1.1 FTB Child & Regular Care Child, 188.8.131.52 Residence Requirements, 2.4.1 Eligibility for Baby Bonus, 2.4.2 Apportioning of Baby Bonus
The baby bonus is paid in 13 fortnightly instalments. For the current rate of baby bonus, see 3.3.
For individuals who were eligible before 1 July 2011, baby bonus was payable in 13 equal fortnightly instalments following the birth of a child or a child being entrusted to their care.
For individuals who were eligible between 1 July 2011 to 31 August 2012, baby bonus was payable in 13 fortnightly instalments, with a larger first instalment paid upfront consisting of 16.18% of the full rate. The remaining amount of baby bonus was equally divided among the remaining 12 instalments.
For individuals who were eligible between 1 September 2012 and 30 June 2013, baby bonus was payable in 13 fortnightly instalments, with a larger first instalment paid upfront consisting of 16.92% of the full rate. The remaining amount of baby bonus was equally divided among the remaining 12 instalments.
For individuals who are eligible between 1 July 2013 and 28 February 2014, baby bonus is payable in 13 fortnightly instalments, with a larger first instalment paid upfront. The remaining amount of baby bonus is equally divided among the remaining 12 instalments.
The instalments are paid from the date the claim is granted.
MAT and MIA were announced as part of the A New Tax System (Family Assistance) Act 1999 that came into effect on 1 July 2000. At that time they were repealed from Social Security Law. In addition, from 1 July 2001 a baby bonus was available from the ATO.
From 1 July 2004, MPY replaced both the MAT and the baby bonus that was available through the ATO. Although the MAT was income-tested the MPY was not. Generally, the last claims for MAT were made by 29 December 2004, as this was 26 weeks after the birth of a child born on 30 June 2004. Claims for the baby bonus through the tax system can be made in tax returns until 2014.
On 1 July 2007, MPY was re-named baby bonus. Payments granted on or after 1 July 2007 were grants of baby bonus rather than MPY. The name change was introduced to avoid confusion as the payment was commonly known as the baby bonus in the community.
From 1 January 2009 an income test was applied to baby bonus and the baby bonus was paid in mandatory fortnightly instalments for most individuals, rather than as a lump sum. Also from 1 January 2009, the baby bonus became available for parents who adopt a child under the age of 16. Previously it was only available for parents who adopted a child under the age of 2 years.
From 1 January 2011, an individual or their partner must be the primary carer of a child in order to be eligible for baby bonus.
Also, from 1 January 2011, PLP became available for working parents. PLP does not replace baby bonus, but parents are only able to receive baby bonus or PLP for a child, not both.
From 1 July 2011, a greater proportion of the baby bonus was payable upfront in the first fortnightly instalment, to recognise the initial extra costs that parents and carers face when they take on the care of a newborn child, or when they are adopting a child.
From 1 July 2012, indexation of the baby bonus payment rate was paused until 1 July 2015.
From 1 September 2012, the rate of baby bonus was reset to $5,000.
From 1 July 2013, a new rate of baby bonus was introduced for second and subsequent children. The rate of baby bonus for an individual's first child (and each child born as part of a multiple birth or multiple adoptions or entrustments to care) remains at $5,000. The rate of baby bonus for second and subsequent children is $3,000.
From 1 March 2014, the baby bonus will no longer be available.
PPL Guide 1.2 PPL Scheme - Description
Last reviewed: 11 November 2013