How the Paid Parental Leave Comparison Estimator works

What is the Paid Parental Leave Comparison Estimator

The Paid Parental Leave Comparison Estimator is an online tool that helps you make an informed decision about claiming Parental Leave Pay or Baby Bonus.  It does not provide a rate of payment or assess your eligibility. The estimator will ask questions about your circumstances and provide a comparison between Parental Leave Pay and Baby Bonus.

If you think you are eligible for both payments, you should use the Paid Parental Leave Comparison Estimator to help you decide which payment is best for your family. If you do not meet the eligibility criteria for either payment you should not use this estimator.

The result may vary depending on the date you wish to start receiving Parental Leave Pay, therefore it is recommended that you try different dates to determine the best financial decision for your family. After 34 weeks following the birth or adoption, the number of weeks you will be eligible to receive Parental Leave Pay for will reduce.

When you have decided which payment is best for your family, you can lodge your claim up to three months prior to the expected date of birth or adoption of the child.

Start the Paid Parental Leave Comparison Estimator.

Information you will need before using the estimator

You will need the following information before using the Paid Parental Leave Comparison Estimator.

• expected date of birth or adoption of the child you wish to receive Parental Leave Pay for
• the number of dependent children you and/or your partner have including children from previous relationships
• care arrangements for each child (i.e. the number of nights in your care).
• child support you and/or your partner receive and/or pay
• date you cease work, or intend to cease work
• details of any passive employment income (other paid leave) you will receive when you stop work
• date you would like to start your Parental Leave Pay, and
• the number of weeks you want to receive Parental Leave Pay for.

You will also need to provide the following information for yourself and your partner.

• taxable income
• reportable fringe benefits
• reportable superannuation contributions
• total net investment losses
• tax-free pensions and benefits
• foreign income
• tax-exempt foreign income, and
• details of child support you pay.

What payments the Paid Parental Leave Comparison Estimator uses in its calculation

The Paid Parental Leave Comparison Estimator result will factor the following details into the calculation:

• Parental Leave Pay
• Baby Bonus
• Family Tax Benefit Part A
• Family Tax Benefit Part B
• Large Family Supplement (if applicable)
• Income Tax
• Low Income Tax Offset (LITO), and
• Medicare Levy.

The Paid Parental Leave Comparison Estimator calculates each of the above based on the information that you provide. 

It estimates how much tax you will pay on your Parental Leave Pay and the reductions in Family Tax Benefit due to receiving Parental Leave Pay.  It compares how much you would get if you take Paid Parental Leave with how much you would get if you take the Baby Bonus after these affects are taken into account. The end result is a dollar figure of how much better off you would be receiving Parental Leave Pay or Baby Bonus.

The Paid Parental Leave Comparison Estimator does not give you a rate of payment, or tell you which payment you should apply for.

How does the Paid Parental Leave Comparison Estimator calculate tax

The Paid Parental Leave Comparison Estimator may not accurately estimate the tax payable by you.

It estimates tax payable by multiplying your fortnightly income by 26 and calculating the tax liability on the basis of published tax rates.

Your income is both taxable Centrelink payments and earnings. The pensioner and beneficiary tax offsets are not taken into account.

The Paid Parental Leave Comparison Estimator also applies a 1.5% Medicare Levy when your income is greater than $18 488.  If your income is less than $18 488, the comparison estimator will not apply the Medicare Levy.

You must decide in your case how you will be affected by tax and consider the Medicare Levy category that you may belong to.  If you require further information, please visit the Australian Taxation Office website.

For more information about Income Tax, the Low Income Tax Offset (LITO) and the Medicare Levy please visit the Australian Tax Office website.

What the Paid Parental Leave Comparison estimator does not use as part of its calculation

The Paid Parental Leave Comparison Estimator does not estimate the effect of Parental Leave Pay on, or take into account:

• Child Care Benefit
• Child Support paid
• HECS liabilities
• Medicare Levy Surcharge
• Public housing rent
• Low Income or other Health Care Cards, or any other associated concessions
• Dependent Spouse, Housekeeper and Child-housekeeper tax offsets.

The Paid Parental Leave Comparison Estimator does not:

• test or confirm a person’s potential eligibility
• directly advise the potential recipient to take any particular option
• automatically calculate the most beneficial sequence of events for a recipient
• calculate the effect where PPL is transferred to another person, or
• calculate FTB rates in complex situations (for example changes in care arrangements, bereavement, ex-partners and any overseas scenarios).

In addition, the Paid Parental Leave Comparison Estimator does not take into account:

• Government rent
• Flood levy
• if you are repaying any money to Centrelink
• if you have had your  payment reduced
• changes to policy, the law, your circumstances and future events which may mean that the payment(s) you actually receive differs from the amount used in the estimator
• if your  Parental Leave Pay is transferred to another person, or
• complex situations such as shared care arrangements.
• This means the estimator will provide an indicative result but will not accurately reflect your circumstances.

Paid Parental Leave Comparison Estimator

Start the Paid Parental Leave Comparison Estimator.

For assistance with Centrelink Online Services you can contact the Online Services Support Hotline on 13 2307.