The Baby Bonus in Australia was a federal government initiative consisting of a payment made to eligible new parents, for the birth or adoption of each baby or child. The baby bonus was scrapped in March 2014, and no longer exists. It has since been replaced with the Newborn Upfront Payment and the Newborn Supplement Payment1.
Eligibility requirements for the former Baby Bonus in Australia meant the recipient had to be the primary carer or parent of the primary carers of the newborn child. Family adjusted taxable income needed to be below $75,000 or less for the 6 month period following the birth of the baby, and the child needed to be in care of the parent for at least 35% of the time2.
There was no work test for the Baby Bonus which meant eligibility wasn’t affected by whether or not the parent worked prior to the birth or adoption. The Baby Bonus can no longer be claimed, however you may be eligible to receive Parental Leave Pay or Newborn Upfront Payment or Newborn Supplement instead.
Newborn Upfront Payment and Newborn Supplement instead of Baby Bonus
The eligibility criteria for the newborn payments are as follows:
- Have a baby or adopt a child on or after March 1, 2014
- Be eligible to receive Family Tax Benefit Part A
- Not be receiving Parental Leave Pay for the same child
- The maximum amount that will be paid is $2,091.84 for your first child and $1,046.25 of subsequent children. This amount is added to your payment of Family Tax Benefit Part A as a supplementary payment.
If you would like further information on Newborn Upfront Payment and Newborn Supplement, please click here.
If you would like further information about claiming a Family Tax Benefit, please click here.
Parental Leave Pay
Parental Leave Pay is an initiative introduced by the federal government in Australia in 2001. It provides financial support for parents, of up to 18 weeks of pay to help working parents care for a newborn or recently adopted child3. The maximum payment is $12,106.80 spread across the 18 week period. Parents may claim the newborn payment/s or parental leave pay, they cannot claim both.
Both the parental leave pay and newborn payment initiatives were introduced by the government to assist parents to stay at home and care for their new baby in the first few challenging months, during the time when babies need nurture and support from their parents, the most.
The information contained above is to be used as a guide, and of course we trust you understand that this information is regularly changing, and you will need to confirm that latest eligibility criteria and payment amounts yourself. If you are unsure about the type of payment/s you be eligible to receive, we recommend you speak to the Australian Government Department of Human Services. You can reach them on 136 150.