Family Assistance Office
Baby Bonus - Eligibility and Guidelines
Purpose of Baby Bonus
Baby Bonus recognises the extra costs associated with the birth or adoption of a baby. Baby Bonus is not income-tested.
Baby Bonus is intended to benefit the primary carer. A natural parent, an adoptive parent, a long-term foster carer, a family carer or in some cases more than one of these could qualify in respect of the one baby. Baby Bonus is not payable to an institution or a hospital.
Eligibility for Baby Bonus
Baby Bonus is payable to:
- A parent of a baby if the parent meets all other eligibility criteria at any time within 13 weeks of the baby's birth; or
- A parent of a stillborn baby if the parent would have met all the other criteria if the baby had not been stillborn; or
- An adoptive parent if the child is adopted under two years of age and in the case of overseas adoption, enter Australia before turning two years of age; or
- A claimant who is entrusted with the care of a newborn baby if the claimant meets all other eligibility criteria within 13 weeks of the baby's birth and if the claimant is likely to continue to have care of the child for no less than 13 weeks; or
- A claimant who, before a baby is 26 weeks of age, has the baby entrusted to their care because the claimant will be adopting the baby, provided the claimant meets all other eligibility criteria within 13 weeks of the baby coming into the care of the claimant.
The other eligibility criteria for Baby Bonus are generally that:
- the claimant and the baby must meet Australian residency requirements(1)
- the claimant must be legally responsible, either alone or with another adult, for the day-to-day care, welfare and development of the baby(2); and
- the claimant must satisfy tax file number requirements(3); and
- the claimant must lodge an effective claim within 26 weeks of the baby's birth or, in the case of adoption in Australia, within 26 weeks of the baby coming into the adopting parents' care. In the case of overseas adoption, the claimant must lodge an effective claim within 26 weeks of the child arriving in Australia where the child's arrival is part of the adoption process, or within 26 weeks of the child coming into the adopting parents' care where the child does not arrive in Australia as part of the adoption process.
Parents are required to formally register the birth of their child as a condition of receiving the Baby Bonusfor births on or after 1 July 2007. This requirement does not apply to parents whose child is stillborn, adopted or born outside Australia.
Apportioning Baby Bonus
Baby Bonus in the main is payable to one eligible claimant, with the default payee being the mother. However, in some cases (mainly if there is a change of care), the Secretary has the discretion to split the payment between two or more eligible individuals by determining a percentage for each person. In determining the percentages to be paid in respect of a particular baby, the total amount of Baby Bonus for one baby is not to be exceeded. Baby Bonus cannot be apportioned between two members of the same couple.
Change of Care
The need to apportion Baby Bonus arises mainly where there is a change of care. Other than in the case of adoption, apportioning is generally only intended if there is supporting evidence that the baby is in medium to longer term care with someone other than the mother (for a minimum period of 13 weeks) and the carer is not providing interim care as part of an adoption process. For example, apportionment is not intended if the baby is temporarily in another individual's care while the mother recuperates or receives support with the intention that the baby will be returned to the mother's care.
To assess whether a determination of apportionment is required, the claimant will need to provide some evidence that they are likely to have care of the baby for at least 13 weeks.
Shared Care
Where there is shared care of a baby within the first 13 weeks of the child's life, the intention is that Baby Bonus remains a payment to the mother. However, in unusual circumstances such as where the mother did not have ongoing primary responsibility for a baby for this period, the payment may be paid to the other carer (or apportioned between both carers in a shared care arrangement).
Extended Family Care
It is anticipated that where there is extended family care in Indigenous communities, and in families with diverse cultural and linguistic backgrounds, the Baby Bonus will generally go to the primary carer (usually the mother) even if other people participate in caring for the child.
Death of a Parent
If an eligible parent dies before they have been paid Baby Bonus and another person claims because the eligible parent died, then that person may be eligible for Baby Bonus. The claim must be made within 26 weeks of the eligible parent's death.
Abductions and Disputed Care Arrangements
In cases where an otherwise eligible claimant alleges that the baby has been abducted, and the eligible claimant provides evidence that they are actively seeking the return of the baby, the eligible claimant would still normally be eligible for Baby Bonus.
Considerations
In determining whether Baby Bonus should be paid to an individual other than the parent, consideration should specifically be given to:
- who has legal responsibility; and
- whether the child is being considered for adoption.
When a child is being considered for adoption, the child can be placed in pre-adoptive foster care. Where foster carers receive reimbursement for costs from their State/Territory Government (whether directly or through an agent for the State/Territory Government), the pre-adoptive foster carer would not normally be eligible for Baby Bonus. This type of foster care involves a temporary change of care while adoption arrangements are established; whereas Baby Bonus is intended for the primary carer, whether this is the natural parent or the adoptive parent or a longer term foster carer, or in some cases more than one of these.
Retrospective apportioning
Baby Bonus can be apportioned retrospectively in circumstances such as where the mother claimed the payment as though she had ongoing care of the child, received the full Baby Bonus, and later an eligible foster carer claims. A debt can be raised for the portion of the mother's overpayment and a payment made to the eligible foster carer.
If someone other than the mother or adoptive parent makes a claim for Baby Bonus but does not have evidence that the care is likely to be for 13 weeks or more, the claim should not be processed until the evidence is provided.
Time limits for claiming
Claims for Baby Bonus for babies born on or after 1 July 2004 must generally be lodged within the first 26 weeks of the baby's birth.
However, in the case of adoption in Australia adoptive parents must lodge a claim within the first 26 weeks of the baby coming into their care, provided the baby came into their care on or after 1 July 2004, and before the baby was two years old.
In the case of overseas adoption, adoptive parents must lodge a claim within 26 weeks of the child arriving in Australia where the child's arrival is part of the adoption process, or within 26 weeks of the child coming into the adoptive parents' care where the child does not arrive in Australia as part of the adoption process.
Determining Percentage of Payment
- Payment for one child, regardless of the number of eligible carers, can never exceed 100% of Baby Bonus.
- If the birth mother is the only claimant, then 100% of Baby Bonus is paid to the birth mother.
- If there is more than one eligible claimant and one is the birth mother, then the birth mother should receive, at a minimum, a base rate of 20% of Baby Bonus regardless of the length of time the baby is in her care. Only the remaining 80% of Baby Bonus should then be apportioned on a pro rata basis according to the proportion of eligible care for the baby, calculated on a daily basis (see example below).
- If the birth mother does not claim before the child is 26 weeks old, 100% of Baby Bonus can be paid to the other eligible claimant (or apportioned between two or more other eligible claimants).
- When a child is placed with an adoptive parent within the first 26 weeks of the child's life, only the mother and the adoptive parents would normally be eligible for a proportion of the payment (see the paragraph headed "Considerations" above).
Example of determining apportionment percentages
An example of how to determine percentages of Baby Bonus for eligible claimants is below.
If:
- A mother gives birth and has care of the baby for the first 21 days of the baby's life and
- A short term foster carer then has care of the baby for the following 28 days (until the baby is 7 weeks old) and
- A longer term foster carer then assumes care of the baby for longer than 13 weeks
Then, assuming all other eligibility criteria are met:
- 20% of the payment ($1,000.00) should be quarantined for the birth mother.
- The short-term foster carer has care of the child for less than 13 weeks so is not eligible.
- The remaining $4,000.00 is divided between the birth mother and the long-term foster carer according to the length of the time they were caring for the baby before the baby is 13 weeks old:
- The mother is eligible for 21 days, and the long-term foster carer is eligible for 42 days, making a total of 63 days.
- The mother's proportion of the eligible time is 33.33% (because she has the child for 21 days out of the 63 days), so the mother would receive $1,986.95 made up of:
- $1,000.00 (being 20% of $5,000) plus
- $1,333.20 (being 33.33% of $4,000.00).
- The long-term foster carer's proportion of the eligible time is 66.66% (because the long-term foster carer has care of the child for 42 days out of the 63 days), so the long-term foster carer would receive $2,666.40 in Baby Bonus, which is 66.66% of $4,000.00.
Paying Baby Bonus by Instalments
Baby Bonus is payable to new mothers as a lump sum. However, in some circumstances, it may be more appropriate to pay Baby Bonus in equal fortnightly instalments. All applicants 17 years or under are paid in 13 equal fortnightly instalments.
Claimants experiencing any of the following issues may be assessed to determine the most beneficial payment option for the customer (i.e. lump sum or instalment):
- History of experiencing domestic or family violence;
- Substance addiction;
- Intellectual disability;
- Gambling problem;
- Mental illness;
- Homeless or at risk of becoming homeless;
- Previously had or currently has a child subject to child protection;
- History of difficulties managing competing financial requirements;
or - Situations where a customer may be vulnerable to exploitation
If a Centrelink officer becomes aware that a pregnant customer is experiencing any of the issues outlined above and/or where concerns are raised about the vulnerability of the customer in receiving a large lump sum; then the Centrelink officer should refer the customer for a professional assessment when the customer claims Baby Bonus.
When the customer makes a claim for Baby Bonus, they will be invited to discuss their options with a Centrelink social worker or appropriate specialist officer (such as the Indigenous Customer Service Officer or Multicultural Service Officer). All claimants for Baby Bonus who are aged 17 years or under are contacted. The assessment process must commence within a week of the Baby Bonus claim being made, and the interview must occur within two weeks of the claim, except in extraordinary circumstances. The interview may be in person, by telephone, or by some other appropriate avenue.
The primary purpose of this professional assessment is to determine whether the customer needs additional support including referral to other organisations, as well as to assess whether it would be beneficial for the customer to receive Baby Bonus by instalment, rather than as a lump sum.
Customers may decide of their own accord that fortnightly instalments would be more practical for them. However, if this is not the case, and the social worker or other appropriate specialist officer believes that, given the customer's circumstances, a lump sum payment would be inappropriate, the social worker can make a discretionary decision that the customer should be paid by instalments. The outcome of the assessment may alternatively be that it would be beneficial for the customer to receive Baby Bonus as a lump sum. It is expected that close liaison will occur between the social worker and other specialist officers where the assessment process results in a decision that payment should be by instalments
If the customer is not willing to discuss their situation with a social worker or appropriate specialist officer, the customer should receive Baby Bonus by fortnightly instalments, rather than as a lump sum. This would only occur after several attempts to contact the customer.
Baby Bonus can also be made by instalments at the claimant's request.
Footnotes
(1) A claimant meets the Australian residency requirements if the claimant has legal residence status and is living in Australia on a permanent basis. Eligibility may be maintained during a temporary absence from Australia for up to three years.
To have legal residence status for the purposes of Family Assistance payments you must be:
- an Australian citizen; or
- the holder of a permanent visa; or
- a New Zealand citizen who arrived on a New Zealand passport; or
- the holder of one of the following visas:
- subclass 070 Bridging (Removal Pending)
- subclass 309 Spouse (Provisional)
- subclass 310 Interdependency (Provisional)
- subclass 447 Secondary Movement Offshore Entry
- subclass 451 Secondary Movement Relocation
- subclass 695 Return Pending Visa
- subclass 820 Spouse (Provisional)
- subclass 826 Interdependency (Provisional)
- subclass 785 Temporary Protection
- subclass 786 Temporary (Humanitarian Concern)
- subclass 787 Temporary Witness Protection (Trafficking)
- Criminal Justice Stay Visa issued under subsection 155(2) of the Migration Act 1958
(2) The claimant may be eligible if the baby is supposed to live with or have contact with the claimant under a family law order or a registered parenting plan.
(3) The claimant must provide:
- their tax file number; or
a statement authorising the Commissioner of Taxation to notify the Secretary of the claimant's tax file number.
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URL: http://www.familyassist.gov.au/content/publications-factsheets-maternity_payment_eligibility.htm
This page last modified on 01/07/2008.
This page accessed on 08/01/2009.
© Commonwealth of Australia 2008