Income test
Baby Bonus is payable if your family's estimated combined adjusted taxable income is $75,000 or less in the 6 months following the birth of your child or the child coming into your primary care.
You have up to 52 weeks from the birth of your baby to claim Baby Bonus and provide your income estimate. If your income is initially too high and then your circumstances change, you can tell us within 52 weeks of your assessment and we can reassess your claim.
Example scenario
Mary and Geoff have baby Rory on 5 June 2009.
Geoff has some paid leave after the birth and Mary is planning to take 12 weeks of paid maternity leave followed by 2 weeks of paid holiday leave. After that Mary will have 6 to 12 months of unpaid leave before she goes back to work.
Annual income
- Mary has an annual income from work of $40,000
- Geoff has an annual income from work of $42,000
- Mary and Geoff also have investment income from shares and property that totals $12,000 per year
Income for the 6 month period following the birth
The 6 month period following the birth is 5 June 2009 to 5 December 2009.
For this period, Mary and Geoff’s estimated income is:
Mary's income
- 14 weeks of paid leave ($40,000 ÷ 52 weeks = $769.23 per week) $769.23 × 14 weeks = $10,769.22
- Unpaid leave = $0
- Investment income = $12,000 ÷ 2 (6 months) = $6,000. Half of which belongs to Mary = $3,000
Mary: $13,769
Geoff’s income
- Geoff will get paid for the whole 6 month period, that is $42,000 ÷ 2 (6 months) = $21,000
- Geoff will also have the other half of their 6 monthly investment income = $3,000
Geoff: $24,000
Taxable family income
Mary and Geoff’s taxable family income is estimated to be $37,769 for the 6 month period following Rory’s birth. This amount is under the $75,000 limit and makes them eligible for Baby Bonus.