Baby Bonus is indexed in line with the consumer price index (CPI) in July each year.
Better targeting and delivery of Baby Bonus
Baby Bonus Indexation
Baby Bonus was increased to $5,000 on 1 July 2008 and will be indexed annually on 1 July. The new indexation arrangement will occur from 1 July 2009, and will apply to new customers who claim Baby Bonus.
Baby Bonus means test and payment by instalments
From 1 January 2009 Baby Bonus will only be payable to families whose estimated combined adjusted taxable income is $75,000 or less in the first 6 months following the birth or adoption of a child. Baby Bonus will also no longer be available as a lump sum payment and instead will be paid in 13 fortnightly instalments to all recipients.
All Baby Bonus customers with babies born on or after 1 January 2009 will be affected by this measure.
There will be changes to the claiming process, as you will need to detail your estimated family income for the 6 month period following the birth or adoption of a child.
Receiving Baby Bonus in instalments over 13 fortnights may help families to better manage their finances during the period immediately following the birth or adoption of a child.
Baby Bonus for adopted children
From 1 January 2009 the Government will extend the eligibility criteria for Baby Bonus so that parents who adopt a child under the age of 16 years will be eligible for payment.
Adoptive parents whose child has entered their care on or after 1 January 2009 will be affected by this measure.
From 1 January 2009, all Baby Bonus payments will be paid in 13 fortnightly instalments.
Baby Bonus - extended lodgement timeframe
Parents claiming for children who are born or adopted from 1 January 2009 onwards will now have 52 weeks, (previously 26 weeks) to lodge their claim for Baby Bonus.
To be eligible for Baby Bonus, the child must be an FTB child within 26 weeks of the child’s birth or in the case of adoption, within 26 weeks of the child entering care.
For non parent carers, the child must have also entered the claimants care before they were 26 weeks old and be expected to remain in care for at least 26 weeks to be eligible for payment.