Paid Parental Leave and Baby Bonus

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Many of our tax clients are asking about the new Paid Parental Leave allowance to commence on 1 January 2011.

The most common question is, if I receive the Paid Parental Leave, will I still be eligible for the Baby Bonus?

For details on how much is paid under the Paid Parental Leave scheme see this post ==> How much?

This is a good question. Providing you meet the eligibility tests (see our blog post on Paid Parental Leave - the income test for Paid Parental Leave if your combined Adjusted Taxable Income for the previous year was $150000 or less) there are a couple of scenarios:

  1. Yes. The Baby Bonus will be available for people who do not get Paid Parental Leave, subject to the usual income test.
  2. If you get Paid Parental Leave, you will not be able to get the Baby Bonus, unless you have twins or a multiple birth (e.g. triplets). In the case of twins or a multiple birth, you can get Paid Parental Leave for the first child plus the Baby Bonus for the second and subsequent children. 
You can also check this post ==> Paid Parental Leave section in our index of blog topics.
You can also check this post ==> How Much is Paid Parental Leave?
You can also check this post ==> Paid Parental Leave and Employer Provided Maternatiy Leave

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