Baby Bonus and Maternity Payment

Parents may be in for a pleasant surprise. The baby bonus was introduced by the Government to provide families with a bonus of up to $2,500 per year for five years. It is available to new parents and families who already have children. The bonus is paid for the first child born or adopted after 1 July 2001 and is payable until that child turns 5 years of age. 

It is designed to return some of the tax paid by the "primary person" (normally the mother) in the year prior to the baby's birth. 

To be eligible, the mother must be an Australian resident for tax purposes at the time the child is born or adopted and for the period the bonus is payable. As there is no maximum income threshold which precludes entitlement to the bonus it is available to high-income earners. 

How to get the maximum baby bonus 

As the amount of taxable income in the base year determines entitlement over the 5 year period, the amount of the bonus can be maximised by increasing taxable income in the base year by: 

  • increasing the number of hours worked; 
  • transferring income producing assets; 
  • claiming deductions in a year other than the base year; 
  • realising assets that incur a capital gain; and 
  • increasing distributions from private companies or trusts.

Maternity Allowance 

To be eligible you must be eligible for Family Tax Benefit Part A. Maternity Allowance is a one-off payment 

Maternity Immunisation Allowance 

To be eligible you must be eligible for Family Tax Benefit Part A and fully immunise your children. Maternity Immunisation Allowance is a one-off payment 

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