Baby Bonus to be alolished and replaced

27 May 13

31/05/13
Baby Bonus to be abolished and replaced

The Government announced that it would replace the Baby Bonus from 1 March 2014. Instead, it will increase Family Tax Benefit Part A (FTB Pat A) payments by $2,000 to be paid in the year following the birth or adoption of a first child or each child in multiple births, and $1,000 for second or subsequent children. The additional FTB Part A will be paid as an initial payment of $500, with the remainder to be paid in seven forthnightly instalments.  Parent who take up Paid parental leave (PPL), will not be eligible for the additional FTB Part A component, but will benefit from improved access to PPL as their family expands.  As part of this package, parents will be able to count time on Government PPL where it occurs in the work test period for a subsequent child, just like employer funded parental leave can be counted now.