This section explains the payment arrangements for baby bonus. It includes:
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.
Policy reference: FA Guide 1.2.18 Newborn Supplement (NBS) - Decsription
Eligible individuals are paid baby bonus in 13 fortnightly instalments. For individuals who become eligible before 1 July 2011, the baby bonus entitlement is equally divided among the 13 fortnightly instalments. For individuals who become eligible on or after 1 July 2011, the first instalment will be larger than the others (see 2.4.3). In cases such as a stillbirth or death of a child shortly after birth, payment by lump sum may be considered upon request from an individual. The delegate should be satisfied that there is no increased risk of misuse of the payment should it be paid as a lump sum.
If an instalment claim for FTB is made at the same time as a claim for baby bonus, the first baby bonus instalment is normally issued on the first FTB payment delivery day. If the individual does not make a claim for FTB at this time, the baby bonus claim is processed as soon as possible and payments are made to the individual's nominated bank account.
Baby bonus cannot be paid through the tax system.
Act reference: FA(Admin)Act section 47 Payment of baby bonus
If the individual has claimed instalments of FTB, payment of baby bonus is made to the account nominated for FTB. If the individual is not receiving, or claiming FTB instalments, they should nominate an account for payment. In some cases the individual may be paid by cheque.
The same policy requirements for direct credit of FTB are applied to baby bonus.
Act reference: FA(Admin)Act section 47(5) Payment of baby bonus-payment not to bank account
Policy reference: FA Guide 4.3.3 Instalments Paid by Direct Credit
Baby bonus can be paid for each child in a multiple birth or adoption. From 1 January 2011, PLP is also available for parents with newborn babies or adopted children, but only for one child in a multiple birth or adoption. As baby bonus is only payable for a child where neither the individual nor their partner has received or is receiving PLP for that child, individuals may elect to receive baby bonus for one child and PLP for the other child, if eligible, where multiple births or adoptions occur. If eligible, the individual would receive baby bonus and PLP instalment payments simultaneously.
Note: The term 'partner' in this context refers not only to the individual's partner, but also to a former partner of the individual, or the former partner's current partner. Further information on this can be found at 2.4.1.
Example: Amanda is pregnant and currently working and has lodged a pre-claim for both PLP and baby bonus for twins she is expecting within the next 3 months. After the birth of her twins, it is determined that PLP is payable to Amanda for one of her children. It is also determined that Amanda is entitled to be paid baby bonus for her other child. Amanda will receive baby bonus over 13 fortnightly instalments for one child and separately receive PLP for the other child.
Act reference: FAAct section 36 When an individual is eligible for baby bonus in normal circumstances
PPLAct section 20 Multiple births
Policy reference: FA Guide 1.2.2 Baby Bonus - Description
PPL Guide 18.104.22.168 When Payability Determination Cannot be Made
Last reviewed: 11 November 2013