Family Payments Reform - replacing the Baby Bonus

The Baby Bonus will be replaced from 1 March 2014 with a rate increase of Family Tax Benefit Part A for children aged under one who are born, placed for adoption, or taken into care for at least 13 weeks after 1 March 2014. The payment is $2000 for the first child and $1000 for the second and subsequent child or children.

Description of the measure

The Baby Bonus will be replaced from 1 March 2014 with a rate increase of Family Tax Benefit Part A for children who are born, taken into care for at least 13 weeks, or placed for adoption after 1 March 2014.

The extra Family Tax Benefit Part A payments for families will total $2,000 for their first child and $1,000 for subsequent children.  It will be paid as an initial instalment of $500, with the rest rolled into normal fortnightly payments over a three month period.

This measure will also amend the Paid Parental Leave work test. Families with children born or adopted within 13 months of each other will have their previous Paid Parental Leave period count towards the work test for their next child. This will allow families to more easily qualify for Parental Leave Pay for their second child.

Questions and answers

Who will be affected by this measure?

People who are caring for a child born or adopted after 1 March 2014.

Am I eligible for this measure?

People who are caring for a child born or adopted after 1 March 2014 will have access to the rate increase of Family Tax Benefit Part A for children aged under one who are born, placed for adoption, or taken into care for at least 13 weeks after 1 March 2014. 

People will not be eligible to receive both Parental Leave Pay and the rate increase of Family Tax Benefit Part A.

When will this measure start and finish?

This measure will start on 1 March 2014 and will be ongoing.

Page last updated: 9 March 2016

This information was printed Monday 5 December 2016 from humanservices.gov.au/corporate/budget/budget-2013-14/budget-measures/families/family-payments-reform-replacing-baby-bonus It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.