2.4.1 Eligibility for Baby Bonus

Summary

Baby bonus is paid to eligible families in respect of children born or adopted on or after 1 July 2004. It replaced MAT and the baby bonus delivered by the ATO. Between July 2004 and June 2007 it was called MPY, which was renamed baby bonus on 1 July 2007.

 

This section covers the following:

• who can claim baby bonus,
• eligibility for baby bonus,
• baby bonus income test,
• parent of a child,
• child entrusted to care,
• stillborn child,
• adoption,
• more than one individual can be eligible for baby bonus,
• death of a child before payment is made,
• death of an eligible person before payment is made, and
• abduction.

 

Who can claim baby bonus?

Only an individual (1.1.I.90) can claim baby bonus for a child. An ACO (1.1.A.80) cannot claim the baby bonus.

Example: ACOs include:

• a foster care agency, or
• a charitable institution that arranges pre-adoptive care.

 

Act reference: FAAct section 37 Generally only one individual eligible for baby bonus in respect of a child

 

Eligibility for baby bonus

An individual is eligible for baby bonus if the following criteria are met. The second column indicates where more details about the criterion can be found.

Criterion	More detail
All of the following:
The child must be an FTB child of the individual, and	FA Guide 2.1.1.10 FTB Child and this topic
The individual or their partner must be the primary carer of the child at the relevant time, and	1.1.P.120 Primary carer (FTB, baby bonus) and this topic
The individual and the child must satisfy residence requirements, and	2.1.2.10 Residence Requirements
The individual must satisfy the baby bonus income test, and	This topic
Neither the individual nor their partner is receiving or has received parental leave pay for the child, and the former partner of the individual or of the individual's partner, while they were in a relationship with the individual or the individual's partner did not start receiving parental leave pay for the child, and	PPL Guide 4.1.9 Claims for PLP & Baby Bonus for the Same Child
One of the following:
The individual is a parent of the child and has notified Centrelink that they have applied to register the birth of the child, (the requirement to register the birth of a child does not apply to stillbirths, adoptions or to parents whose child is born outside of Australia), or	This topic
The individual is not a parent of the child and, within 26 weeks of the child's birth, the child has been entrusted to their or their partner's primary care, and is likely to continue in such care for at least 26 weeks, or	This topic
The child was stillborn, or	This topic
The individual has had a child entrusted into their care as part of an adoption process by an authorised party.	This topic

 

Act reference: FAAct section 3(1)-'stillborn child', section 36 When an individual is eligible for baby bonus in normal circumstances

 

Baby bonus income test

An individual meets the baby bonus income test if the combined estimate of:

• the individual's ATI for the relevant 6 month period described in this topic, and
• the ATI of the individual's partner for the same period (where the individual is a member of a couple on the day the claim is made)

is less than or equal to $75,000 and accepted as reasonable.

 

Note: The baby bonus income limit will be maintained at its current level until 30 June 2014 and will continue to be payable to eligible families with an ATI of $75,000 or less for the assessable 6 month period.

 

Act reference: FAAct section 36(2)(d) ...the claim for payment of baby bonus contains an estimate of the sum of:..., section 36(2)(e) ...that estimate is less than or equal to $75,000 ..., section 36(3)(e) ...the claim for payment of baby bonus contains an estimate of the sum of:..., section 36(3)(f) ...that estimate is less than or equal to $75,000..., section 36(4)(c) ...the claim for payment of baby bonus contains an estimate of the sum of:..., section 36(4)(d) ...that estimate is less than or equal to $75,000..., section 36(5)(d) ...the claim for payment of baby bonus contains an estimate of the sum of:..., section 36(5)(e) ...that estimate is less than or equal to $75,000..., section 36(6) Estimate of adjusted taxable income

Policy reference: FA Guide 3.2 Adjusted Taxable Income, 3.2.8 Reasonable Estimate of Income

 

Parent of a child

An individual is eligible for baby bonus if:

• they are a parent of the child, and
• the child is an FTB child of the individual and the individual is eligible for FTB in respect of the child at any time within 26 weeks of the child's birth, or would be so eligible except their rate is nil, and
• where the child is born on or after 1 January 2011, the individual or the individual's partner is the primary carer of the child at any time within 26 weeks from the day of the child's birth (see note below), and
• where the individual or the individual's partner is eligible for parental leave pay in respect of the child, the PPL period applying to the individual or their partner has not started, and
• where a former partner of the individual, or of the individual's partner, is eligible for parental leave pay for the child, the PPL period applying to the former partner has not started or did not start while the former partner was in a relationship with the individual or the individual's partner, and
• at the time of the claim, the child's birth has been registered or the parent/s have applied to register the birth of the child, or Centrelink has been advised no later than 52 weeks starting from the day after the child's birth that the application to register has been lodged, and
• where the child is born on or after 1 January 2011, the individual satisfies the baby bonus income test for the 6 month period beginning on the day the individual or their partner becomes the primary carer of the child (in other cases, such as where the child is born before 1 January 2011, the individual satisfies the baby bonus income test for the 6 month period beginning on the day of the child's birth).

 

Note: For an individual to be eligible on the basis that their partner is the primary carer of the child, the individual and the partner must be a couple at the time the partner is the primary carer of the child, and this must be within 26 weeks of the child's birth.

 

Act reference: FAAct section 36(2) Parent of child

Policy reference: FA Guide 1.1.P.120 Primary carer (FTB, baby bonus), 2.1.1.10 FTB Child

 

Child entrusted to care

An individual is eligible for baby bonus if:

• they are not the parent of the child, and
• the child has been entrusted to their care or their partner's care within 26 weeks of the child's birth, and
• the child is an FTB child of the individual and the individual is eligible for FTB in respect of the child at any time within 26 weeks of the child's birth or would be eligible except their rate is nil, and
• where the child is entrusted to care on or after 1 January 2011, the individual or the individual's partner, is the primary carer of the child within 26 weeks of the child's birth (see note below), and
• the period of care will continue, or is likely to continue, for at least 26 weeks from the date the child was entrusted to care, and
• where the individual or the individual's partner is eligible for parental leave pay in respect of the child, the PPL period applying to the individual or their partner has not started, and
• where a former partner of the individual, or of the individual's partner, is eligible for parental leave pay for the child, the PPL period applying to the former partner has not started or did not start while the former partner was in a relationship with the individual or the individual's partner, and
• where the child is entrusted to care on or after 1 January 2011, the individual satisfies the baby bonus income test for the 6 month period beginning on the day the individual or their partner becomes the primary carer for the child (in other cases, such as where the child is born before 1 January 2011, the individual satisfies the baby bonus income test for the 6 month period beginning on the day the child is entrusted to their care).

 

Note: For an individual to be eligible on the basis that their partner is the primary carer of the child, the individual and the partner must be a couple at the time the partner is the primary carer of the child within 26 weeks of the child's birth.

 

Act reference: FAAct section 36(3) Child entrusted to care of individual...

Policy reference: FA Guide 1.1.P.120 Primary carer (FTB, baby bonus), 2.1.1.10 FTB Child

 

Stillborn child

An individual is eligible for baby bonus if:

• the child is stillborn, and
• the child would otherwise have been an FTB child of the individual at birth, and
• the individual would have been eligible for FTB in respect of the child at any time within 26 weeks of the child's delivery or would have been eligible except their rate is nil, and
• where the child is delivered on or after 1 January 2011, the individual or the individual's partner, would otherwise have been the primary carer of the child at birth, and
• where the individual or the individual's partner is eligible for parental leave pay in respect of the child, the PPL period applying to the individual or their partner has not started, and
• where a former partner of the individual, or of the individual's partner, is eligible for parental leave pay for the child, the PPL period applying to the former partner has not started or did not start while the former partner was in a relationship with the individual or the individual's partner, and
• the individual satisfies the baby bonus income test for the 6 month period beginning on the day of the child's delivery.

 

Explanation: The above criterion refers to the assessment being based on an individual's eligibility for FTB and their likely primary care relationship to the child, according to the individual's current circumstances, except that there is no FTB child.

 

In order to be a 'stillborn child' the child must have been certified by a qualified medical practitioner as having been 'delivered'.

 

Act reference: FAAct section 3(1)-'stillborn child', section 36(4) Stillborn child

Policy reference: FA Guide 1.1.P.120 Primary carer (FTB, baby bonus), 2.1.1.10 FTB Child

 

Adoption

An individual is eligible for baby bonus if:

• they have been entrusted with the care of a child by an authorised party as part of the process of adoption, and
• the child is an FTB child of the individual and the individual is eligible for FTB in respect of the child at any time within 26 weeks of the child being entrusted to their care, or would be so eligible except their rate is nil, and
• the child was under 16 years of age at the time the child was entrusted to their care, and
• where the child is entrusted to care on or after 1 January 2011, the individual, or the individual's partner, is the primary carer of the child at any time within the period of 26 weeks starting from the day the child is entrusted to their care (see note below), and
• where the individual or the individual's partner is eligible for parental leave pay in respect of the child, the PPL period applying to the individual or their partner has not started, and
• where a former partner of the individual, or of the individual's partner, is eligible for parental leave pay for the child, the PPL period applying to the former partner has not started or did not start while the former partner was in a relationship with the individual or the individual's partner, and
• where the child is entrusted to care on or after 1 January 2011, the individual satisfies the baby bonus income test for the 6 month period beginning on the day the individual or their partner becomes the primary carer of the child (in other cases, such as where the child is born before 1 January 2011, the individual satisfies the baby bonus income test for the 6 month period beginning on the day the child is entrusted to care).

 

Note: For an individual to be eligible on the basis that their partner is the primary carer of the child, the individual and the partner must be a couple at the time the partner is the primary carer of the child within 26 weeks of when the child was entrusted to the care of the individual.

 

Explanation: Entrustment to care as part of an adoption process involves the physical placement of a child, by an authorised party, into the care of the adopting parent. An 'authorised party' is a person or agency that has authority to conduct negotiations or arrangements for the adoption of children. Physical placement by an authorised party needs to occur for eligibility to exist.

 

Example 1: Sam and Michael decide that they wish to become adoptive parents of an older child using an adoption agency within Australia. They commence the adoption process with the agency and after several months Amanda (aged 11 years) is matched with Sam and Michael and physically placed in their care by the adoption agency while awaiting the finalisation of her adoption. Sam and Michael lodge a claim for baby bonus within 52 weeks starting from the day after Amanda was entrusted into their care, and as they also meet the other eligibility criteria, they are eligible for baby bonus.

 

Explanation: Long term carers who subsequently adopt a child in their care have not had a child physically entrusted into their care as part of an adoption process and are therefore not eligible for baby bonus as an adoptive parent.

 

Example 2: Joe and Rachel are foster parents of Jane (aged 9) and have been her foster parents continuously for the past 5 years. Joe and Rachel decide that they now wish to adopt Jane into their family and commence the adoption. Joe and Rachel decide that Rachel will lodge a claim for baby bonus for Jane. As Jane was already in Joe and Rachel's care under a foster care arrangement, the adoption process is an 'in-care' adoption, which means that Jane was not physically placed into Joe and Rachel's care by an authorised party as part of the adoption process. Neither Joe nor Rachel is eligible to receive baby bonus for Jane.

 

The full amount of baby bonus can be paid to an adoptive parent even if baby bonus has already been paid to a parent or other primary carer in relation to the child.

 

Act reference: FAAct section 3(1)-'authorised party', section 36(5) Adoption, section 37(1) Generally only one individual is eligible for baby bonus in respect of a child

Policy reference: FA Guide 1.1.P.120 Primary carer (FTB, baby bonus), 2.1.1.10 FTB Child

 

More than one individual can be eligible for baby bonus

If more than one individual who is not an adoptive parent has claimed the baby bonus for the same child within 52 weeks starting from the day after the child's birth, then there may be more than one individual who is eligible for the baby bonus. This can occur where there is at least one change of care within the 26 week period from the birth of the child or of the child's entry into the care of a non-parent carer.

 

If an individual is eligible to receive baby bonus as a parent or non-parent carer and a change of care occurs within 26 weeks of the child's birth or of the child's entry into their care, the individual must advise Centrelink of the change in care.

 

After receiving the advice, Centrelink should attempt to contact the new carer/s and invite them to make a claim for baby bonus (where an individual or their partner is eligible for parental leave pay for the child, they could only be eligible for baby bonus if neither the individual nor their partner has received or is receiving parental leave pay).

 

Where all individuals who have claimed are eligible, the delegate can decide that:

• only one of the individuals is eligible, or
• all individuals are eligible and will be paid a percentage of the baby bonus.

 

Regardless of the number of eligible carers a child has, the total amount of baby bonus paid to all eligible carers cannot exceed 100% of the applicable baby bonus rate. However, the full amount of baby bonus can still be paid to an adoptive parent even if it has previously been paid in full or apportioned among other carers, including a birth parent.

 

Note: Where parental leave pay has been paid in relation to the child, an eligible person who subsequently claims baby bonus for the child may also have their baby bonus apportioned on the basis of the amount of time the child has spent in their care in the 26 week period from the birth of the child.

 

Act reference: FAAct section 37 Generally only one individual eligible for baby bonus in respect of a child, section 66A Amount of baby bonus to take into account parental leave pay of others

FA(Admin)Act section 47B Claimant for payment of baby bonus to notify changes in care of the child, section 47C Secretary's power to approve a manner of notification

Policy reference: FA Guide 2.4.2 Apportioning of Baby Bonus, 3.3 Baby Bonus Rate, 4.5.1 Claims for Baby Bonus & MIA

 

Death of child before the payment is made

The baby bonus can be paid to an individual whose child dies shortly after birth, provided the eligibility requirements for baby bonus are met. Parents are required to satisfy birth registration requirements for a child who dies shortly after birth in order to receive baby bonus for the child.

 

Death of an eligible person before payment is made

Another individual becomes eligible for baby bonus if the individual who was originally eligible dies:

• before being paid the baby bonus, or before being paid all the baby bonus instalments, and
• the other individual claims the baby bonus because the individual who was originally eligible died, and
• the delegate considers that the other individual should be eligible for the unpaid amount of the baby bonus.

 

The other individual must lodge a claim for the baby bonus no later than 52 weeks starting from the day after the death of the individual who was originally eligible. The time limit can be extended in special circumstances. (Special circumstances exist if the combination of reasons for not lodging a claim within the claim timeframe is unusual, uncommon or exceptional.)

 

It does not matter if the person who died had not lodged a claim for the baby bonus.

 

The other individual is not subject to the eligibility criteria under FAAct section 36 that applied to the individual who was originally eligible. For example, the baby bonus income test is the income test that applied to the individual who has died, not to the other individual.

 

Act reference: FAAct section 38 What happens if an individual eligible for baby bonus dies

 

Abduction

In cases of abduction the baby bonus arrangements are similar to FTB arrangements. An individual who alleges their child was abducted can be paid the baby bonus, provided they can show the return of their child is being actively sought.

 

Policy reference: FA Guide 2.1.1.90 Abducted, Absent or Missing Child

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Last reviewed: 13 May 2013