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This section explains apportioning of baby bonus where 2 or more eligible individuals have care of a child in the 26 weeks following the birth of the child.
It covers the following:
Generally the baby bonus is payable to only one individual (usually the birth parent). When 2 or more individuals are eligible, the delegate may determine that it is reasonable to pay each of the individuals a percentage of the payment. The payment should be apportioned on a daily rate basis, according to the length of time in the 26 week period after the birth that the child is in the primary care of each of the eligible individuals unless there is a period of care for which there is no eligible primary carer. In such a situation, the amount relating to this period should be apportioned to the individual gaining primary care of the child immediately following the period for which there is no eligible carer.
If the baby bonus is apportioned, the total percentage paid cannot exceed 100% (see 3.3). Baby bonus cannot be apportioned between 2 members of the same couple.
An individual who is eligible for baby bonus may receive less than 100% of the payment where parental leave pay has already been paid to a former primary carer of the child. The baby bonus payment should be apportioned to the individual on a daily rate basis, according to the length of time in the 26 week period after the birth that the child is in the primary care of the individual.
If there is more than one carer eligible for baby bonus following the carer who received parental leave pay, the apportioning rules for baby bonus would apply (see example 7 below).
Apportioning does not apply to adoptive parents. Eligible adoptive parents who are not receiving or have not received parental leave pay for the child can receive the full amount of baby bonus for a child even if a parent or other primary carer received the full amount of baby bonus or parental leave pay for the same child.
The following table explains to whom the baby bonus should generally be paid, depending on the care arrangements.
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If the child is likely to be under the primary care of... |
Then baby bonus is paid... |
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a parent of the child only (usually the birth mother), within 26 weeks of the child's birth and the parent has not received parental leave pay, |
to the parent (usually the birth mother). |
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a parent of the child, followed by a change of care whereby another parent of the child becomes the primary carer, where the parents separate before or after the birth of the child, and parental leave pay has not been received by either parent, |
where each parent claims baby bonus, - to the first parent for the period of primary care exercised within 26 weeks from birth, then, - the second parent for the remainder of the 26 weeks from birth. |
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the birth mother, followed by a change of care where an individual, other than a parent of the child is entrusted with the care of the child and becomes the primary carer within 26 weeks starting on the day of the child's birth and the individual is likely to continue to be the primary carer of the child for at least 26 weeks, and neither the birth mother nor the primary carer or their partner or former partner has received or is currently receiving parental leave pay, |
- to the birth mother for the period of care exercised within the 26 weeks from birth, then, - the primary carer for the remainder of the 26 weeks from birth. |
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the birth mother, followed by a change of care where an individual other than a parent of the child becomes the primary carer, and this individual is likely to have care of the child for a period that is less than 26 weeks, beginning within 26 weeks of the child's birth. |
- to the birth mother only for the full 26 weeks if neither she nor her partner or a former partner of each individual has not received parental leave pay.
Note: The short-term primary carer is not eligible. |
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the birth mother who has not received parental leave pay, followed by: - a change of care where an individual (the short-term primary carer) other than a parent of the child becomes the primary carer, and this individual is likely to have care of the child for a period that is less than 26 weeks, beginning within 26 weeks of the child's birth, then - a further change of care where an individual (the long-term primary carer), other than a parent of the child, is entrusted with care of the child and becomes the primary carer within the 26 week period starting on the day of the child's birth; and the individual is likely to continue to be the primary carer for at least 26 weeks, and neither the individual nor their partner or former partner has received parental leave pay for the child, |
- to the birth mother for the primary period of care exercised within the 26 weeks from birth, then, - the long-term primary carer for the remainder of the 26 weeks from birth, including the period the child was in short-term care.
Note: The long-term primary carer may not receive the portion of the baby bonus for the period the child was in short-term care if the long-term primary carer does not claim within a reasonable timeframe (see 'Retrospective apportioning'). |
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the birth mother for the first 26 weeks from birth, and then the child is entrusted to the care of an individual who is adopting the child before the child is 16 years of age, and neither the birth mother or adoptive parent has received parental leave pay, |
to the birth mother and the adoptive parent. They will both receive the full amount of baby bonus and there is no need for apportioning to occur. |
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the birth mother or eligible primary carer who has received a portion of parental leave pay, followed by: - a change of care to a new primary carer within the 26 week period, and - the new primary carer was not partnered to the birth mother or first primary carer at the time of the PPL period (PPL Guide 1.1.P.200), |
to the new primary carer for the remainder of the 26 week period.
Note: An individual who is receiving or who has received parental leave pay is not entitled to receive baby bonus. |
Act reference: FAAct section 22 When an individual is an FTB child of another individual, section 36 When an individual is eligible for baby bonus in normal circumstances, section 37 Generally only one individual eligible for baby bonus in respect of a child, section 36(5) Adoption, section 66A Amount of baby bonus to take into account parental leave pay of others
PPLAct section 11 The determination must specify the person's PPL period
Policy reference: FA Guide 2.1.1 FTB Child & Regular Care Child, 2.4.1 Eligibility for Baby Bonus, 2.4.3 Baby Bonus Instalments & Specialist Referrals
PPL Guide 2.2.9 Election to Receive Baby Bonus
There may be cases where it is not appropriate to apportion the baby bonus, even though there has been a change in primary care. This could be, for example, because it is intended that the change in primary care is temporary and it is intended that the child be returned to the mother. Matters to take into account include:
The baby bonus can be apportioned retrospectively in circumstances where a carer claimed baby bonus and received payment for a period for which they did not have care of the child and later another eligible carer claims. Where baby bonus has already been received by the first eligible carer, a debt can be raised for the period of the overpayment of baby bonus against the first eligible carer and a payment made to the second eligible carer. However, this should only occur where the second eligible carer claims baby bonus within a reasonable period of gaining care, or being invited to claim.
Explanation: Centrelink might become aware that the child has been placed in long-term foster care, after being in short-term care since leaving the care of the birth mother. Where Centrelink contacts the long-term foster carer and invites them to claim, but the long-term foster carer does not lodge a claim within 2 weeks from the invitation, the delegate may consider it appropriate to apportion the 2 week period of the baby bonus to the birth mother, rather than the long-term foster carer.
Apportioning of baby bonus may occur if there is a long-term change of care within 26 weeks of the birth of the child. If the new primary carer is not the child's parent, such carers need to provide proof that they are likely to have primary care of the child for at least 26 weeks, and that their care of the child commenced within 26 weeks of the child's birth.
Where circumstances have changed after the original decision to apportion the payment between 2 individuals, it may be appropriate to revisit the level of apportionment under A New Tax System (Family Assistance) Act 1999 section 37. For example where the actual care provided by a primary carer was originally likely to be at least 26 weeks, but later turns out to be less than 26 weeks because of a change in circumstances, and baby bonus has already been apportioned between the mother and the new primary carer, baby bonus should be reapportioned based on the actual care arrangements.
Note: 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 primary carer(s) and invite them to make a claim for either parental leave pay or baby bonus.
Act reference: FAAct section 36 When an individual is eligible for baby bonus in normal circumstances, section 37 Generally only one individual eligible for baby bonus in respect of a child
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 2.4.1 Eligibility for Baby Bonus, 4.5.1 Claims for Baby Bonus & MIA
In a shared care situation, the baby bonus is to be paid to the primary carer. Baby bonus cannot be apportioned in shared care situations.
Act reference: FAAct section 36(8) Primary carers in cases of shared care
Policy reference: FA Guide 1.1.P.120 Primary carer (FTB, baby bonus)
In an extended family care situation, baby bonus will be paid to the primary carer (1.1.P.120) (usually the mother), even if other people care for the child.
If there is only one individual who is eligible for baby bonus, and parental leave pay has not been, and is not being paid in relation to the child, the entire amount is paid to that individual.
If there is more than one individual who is eligible for baby bonus within 26 weeks of the birth of the child, parental leave pay has not been, nor is not being paid in relation to the child, and the delegate decides that baby bonus is to be apportioned, then the baby bonus is apportioned according to the length of care provided to the child by each of the eligible individuals within the 26 week period.
One hundred per cent of the baby bonus should be apportioned according to the rate at which each eligible applicant is entitled to be paid (see 3.3), even if there is a period that the child was not in the care of the eligible applicants.
For claimants who become eligible for baby bonus on or after 1 July 2011, the first instalment is paid as a larger upfront amount. This means the apportionment method for claimants who become eligible on or after 1 July 2011 will generally attribute a higher daily rate for the first 14 days of eligible care and a lower daily rate for the remaining days in the 26 week period. The higher daily rate is calculated by dividing the first instalment amount by 14. The lower daily rate is calculated by dividing the subsequent instalment amount by 14 (see 2.4.3 for instalment amounts).
In most circumstances the 14 days after the birth of the child will attract the higher daily rate. However, in circumstances where the child is not in the care of any eligible carer for some time after the birth, the 14 day period would commence from the day the child first enters into the care of an eligible carer for baby bonus purposes.
Example 1: The birth mother is unable to care for the child and the child is taken from the mother at birth and placed in short-term care for the first 4 weeks. A long-term foster carer takes care at week 5. In this case the 14 day period would start from week 5.
If baby bonus or parental leave pay has been paid to an eligible carer for the first 14 days of care, payment of baby bonus to any subsequent carer would be calculated at the lower daily rate. If less than 14 days of baby bonus or parental leave pay has been paid, baby bonus for the remaining days (up to 14) would be calculated at the higher daily rate.
Example 2: The birth mother has care of the child for the first 7 days from birth and receives parental leave pay for this period. The child is then placed with a long-term foster carer. The foster carer would be paid baby bonus for 7 days at the higher daily rate and 168 days at the lower daily rate.
The first eligible carer who is entitled to receive the higher daily rate of baby bonus is not necessarily the individual who claims first.
Example 3: A foster carer lodges a claim for baby bonus on 10 October 2011 for a child born on 1 August 2011. The birth mother who had care of the child from 1 August to 9 October subsequently lodges a claim for baby bonus on 1 November 2011. In this example, the birth mother as the first eligible carer would be entitled to the 14 days at the higher daily rate, even though she did not claim first.
Where an individual makes a claim for baby bonus and there has been a prior period where the child was cared for by someone else, Centrelink should take steps to ascertain who has had prior care of the child and invite that individual to lodge a claim.
Because there are different rules for the payment of baby bonus from 1 July 2011, in circumstances where baby bonus is apportioned, there are different outcomes depending on whether the individual becomes eligible for baby bonus before or after 1 July 2011. The following examples illustrate how these rules work.
Example 4: A mother has care of the baby for the first 21 days following the baby's birth. Then a long-term foster carer has care of the baby for more than 26 weeks. It is not expected that the baby will be returned to the care of the mother.
Assuming all the other eligibility criteria are met:
Example 5: A mother has primary care of the baby for the first 126 days following the baby's birth and is in receipt of parental leave pay. Then a long-term foster carer has primary care of the baby for more than 26 weeks and it is not expected that the baby will be returned to the care of the mother.
Assuming all other eligibility criteria are met:
Although baby bonus is usually apportioned according to the amount of care provided for a child in the 26 week period from the birth of the child, there are occasions where the delegate can decide to pay a greater amount of baby bonus to an eligible carer where there is a period for which there was care provided by a non-eligible carer.
Example 6: A mother has care of her baby until the baby is 4 weeks (28 days) old before deciding she is unable to care for her child. A short-term foster carer then has the baby for 3 weeks (21 days). At 7 weeks of age the baby is placed in long-term foster care.
Assuming all other eligibility criteria are met:
Note: The long-term foster carer may not receive the amount relating to the period of short-term foster care if the long-term foster carer does not claim within a reasonable period. In these circumstances, the delegate has discretion to apportion appropriately in the circumstances of the case (see 'Retrospective apportioning'). There are also situations where there may be one individual who receives parental leave pay for a child and there is more than one eligible applicant for baby bonus. In these situations, there would be a reduction in the amount of baby bonus payable to account for parental leave pay and apportioning of baby bonus between eligible carers.
Example 7: John and Amanda separated prior to the birth of their child. Amanda has primary care of the child from birth for 13 weeks and receives parental leave pay. John has primary care of the child for 7 weeks and is eligible for baby bonus. A foster carer, Susan, gains primary care indefinitely from the start of week 21 and is eligible for baby bonus. In the 26 week period, the mother has 91 days as primary carer, the father has 49 days, and the foster carer has 42 days.
Assuming all other eligibility criteria are met:
Where baby bonus is apportioned between a carer who becomes eligible for baby bonus before 1 July 2011, and a carer who becomes eligible after 1 July 2011, the payments will be apportioned and paid in instalments consistent with the arrangements that applied before 1 July 2011. This means that in these cases no distinction is made between a lower daily rate and a higher daily rate.
Example 8: A birth mother claims baby bonus on 1 June 2011 for a child born on 25 May 2011. A foster carer takes over primary care on 1 August 2011.
The rate of baby bonus was reset to $5,000 from 1 September 2012. In circumstances where baby bonus is apportioned, there are different outcomes depending on whether the individual becomes eligible for baby bonus before, or from 1 September 2012. The baby bonus rate is based on the rate applicable on the date the individual became eligible. The following examples illustrate how these rules work.
Example 9: A mother has care of the baby for the first 28 days following the baby's birth on 15 July 2012. Then a long-term foster carer has care of the baby for more than 26 weeks. It is not expected that the baby will be returned to the care of the mother. Assuming all the other eligibility criteria are met, the mother receives payment for 28 days of care and the long-term foster carer receives payment for 154 days of care. They will both receive baby bonus at the rate applicable on the day they became eligible ($5,437.00). The mother will receive $1,259.54 (the larger first instalment of $879.77 plus one fortnightly payment of $379.77). The foster carer will receive $4,177.47 (11 x fortnights of $379.77).
Example 10: A mother has care of the baby for the first 56 days following the baby's birth on 15 July 2012. Then a long-term foster carer has care of the baby for more than 26 weeks. It is not expected that the baby will be returned to the care of the mother. Assuming all the other eligibility criteria are met, the mother receives payment for 56 days of care and the long-term foster carer receives payment for 126 days of care. The mother will receive baby bonus of $2,019.08 - this is based on the rate applicable on the day she became eligible (the larger first instalment of $879.77 plus 3 fortnightly payment of $379.77 based on the 1 July 2012 rate of $5,437.00). The foster carer will receive baby bonus of $3,115.35 - this is based on the rate applicable on the day they became eligible (9 x fortnights of $346.15 at the 12 September 2012 rate of $5,000).
Act reference: FAAct section 37(3) ...if the Secretary is satisfied that it is reasonable that 2 or more of the individuals should be eligible..., section 66A Amount of baby bonus to take into account parental leave pay of others
Policy reference: FA Guide 2.4.3 Baby Bonus Instalments & Specialist Referrals, 3.3 Baby Bonus Rate
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Last reviewed: 13 May 2013
