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A Mum's Guide to the Federal Budget

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#26 Ange

Posted 25 May 2008 - 11:52 AM

Also, from 1 July 09 the FTB will only be paid and claimed through medicare & centrelink, not via the tax system.

Will you still beable to elect for your FTB to be paid in a 'lump sum' at the end of the financial year (now that it's not through the ATO)?? (I'd hate to have to start estimating income and putting forms etc in!!)

#27 bjb79

Posted 26 May 2008 - 04:18 PM

My thoughts exactly Ange. It was so much easier to do it once a year than to constantly muck around with Centrelink!!

#28 nicster07

Posted 26 May 2008 - 05:47 PM

Justine, have you heard or seen any info on how the income threshold for the new 6-month baby bonus means test would be calculated for mums involved in a business who don't necessarily earn a salary but receive profits from a sole trading business or an annual trust or partnership distribution? As an accountant, I can't see how it would be easy to implement this for the average "working family" business owner.

#29 daviesjv

Posted 27 May 2008 - 09:00 AM

Nicster, if you as an accountant are confused then the rest of us have no hope!! All I can say is that it is based on adjusted taxable income. Irrespective of whether you earn a straight salary or rely on other forms of income, at the end of financial year your accountant will arrive at an end figure which is your adjusted taxable income. I know that doesn't answer your query - perhaps check out the CPA Asutralia website, they often have good technical information - www.cpaaustralia.com.au. Otherwise, the ATO website www.ato.gov.au. Good luck!


#30 daviesjv

Posted 27 May 2008 - 10:22 AM

Ange, just to answer your query as well, you WILL still be able to claim FTB as a lump sum at the end of financial year.

#31 globetrotter

Posted 28 May 2008 - 03:07 PM

hi everyone,

I was wondering if anyone had any knowledge of how the quarterly CC Rebate will work in practice?  How are they going to work out the Rebate when the CCB is not known?  It won't be a big deal for us as our CCB will be 0%.  So will they just look at what I have paid for that quarter and give me 50%?


I have 2 kids in FT care.  I currently pay $610pw Full fees (OUCH!!)so for a quarter that is

$610 x13 = $7930 x 50% = $3965 rebate

or will they cap it at $1875 per child per quarter (ie $7500/4)

Also will we need to submit paperwork each quarter or will it run "automatically"?

#32 daviesjv

Posted 28 May 2008 - 03:51 PM

Hi Kerrie,

I reckon your best bet would be to contact family assistance and ask them - 13 61 50. Alternatively you can email family assistance via their website (www.familyassist.gov.au). To be honest they may well not know the answers themselves as yet - they may still be working all those issues out. My guess is that they will simply look at what your out of pocket expenses have been each quarter and pay 50% of that amount, until you have reached your maximum annual benefit. That's just a guess though ....


#33 Molondy

Posted 29 May 2008 - 08:28 AM

I'm also curious about the issue of salary sacrificing into super. My husband thinks he is doing this - he also has a few other things packaged. Would ALL his sacrificing be included in the "Reportable Fringe Benefits" part of his group certificate or would be super part be elsewhere? That change has already reduced our FTB by $100.00 per fortnight - I hope its not going to go down more? (although I have to keep telling myself "its a bonus its a bonus")

#34 daviesjv

Posted 29 May 2008 - 09:00 AM

Hi Molondy.

Not all of your husband's salary sacrificing will be included in reportable fringe benefits (salary sacrifice into super isn't a reportable fringe benefit) however it will be included in his adjusted taxable income, which is the figure that centrelink will use to determine eligibility for FTB, Baby Bonus and so forth.

I'd recommend you speak with a tax expert though - make a list of the things that your husband salary sacrifices and telephone the ATO information line on 13 28 61.


#35 liat

Posted 30 May 2008 - 01:27 PM

Ok so we no longer qualify for CCB now that it's means tested (it wasn't much at the mimimum anyway) but now I'm wondering about the 50% child care Tax Benefit?

Someone said it isn't means tested but is 'eligibility tested' - what does that mean i.e. how does one qualify for it?

ETA - I have seen on their website http://www.familyassist.gov.au/Internet/FA...care_rebate.htm they say the requirements are:
- Used approved child care during the year
- Have received Child Care Benefit
- worked or had work related commitments at some time during the period. Information on work related commitment is available at the Child Care Benefit work/training/study test.

So looks like at the moment we also qualify for the tax rebate.

But now if we receive the minimum CCB but the minimum now falls down to 0, do you think this means that we won't qualify for the new 50% quarterly tax rebate?? i.e. we would get absolutely nothing?

Edited by liat, 30 May 2008 - 01:42 PM.

#36 liat

Posted 30 May 2008 - 01:59 PM

Ok am going to answer my own question!

Found this http://www.oececc.gov.au/NR/rdonlyres/5EE3...reTaxRebate.pdf
which clearly states that the means testing for the CCB will not affect the elgibility for the CCTR  Yay yay yay biggrin.gif

#37 Teemoo

Posted 31 May 2008 - 02:29 PM

ok i have a question regarding the Baby Bonus being means tested based on the 6mth after the baby has been born. We are due on the 14.01.09 (yah!!!) and for the 6mth after birth I will definately be earning nadda. Just maternity leave if I am lucky (am casual and need to have contracts for the 40 weeks prior to due date).

Now DH is a doctor and is going to locum in the next 6mths in order to pay off our outstanding debts and get some cash together to cover us for sometime next year.

How do they means test you for the 6mth after BDD, is this based on income earnt in the previous 6mth? Or just base income...... do I make any sense ? I just don't want us to be penalised if DH works extra these next few months to get us ahead which will not be continued next year. Appreciate feedback.

#38 daviesjv

Posted 31 May 2008 - 04:45 PM

Wow - 14th Jan. It's almost worth considering a cesar at 38 weeks ...!!!

To answer your query, the new measure is that the baby bonus won’t be paid to families with an adjusted taxable income of $75,000 or more in the six month period AFTER the baby’s birth. So whatever you and your partner earn prior to the birth shouldnn't count. It will be whatever your combined adjusted taxable income is in those six months only.


#39 Teemoo

Posted 01 June 2008 - 11:27 AM

Thanks Justine and I just GOT what you meant. NY's Baby!

Now that would be an interesting NYE.

#40 daviesjv

Posted 01 June 2008 - 03:15 PM

That's right. With the changes to the Baby Bonus coming into effect from 1 Jan 2009, my guess is that the obstetricians are going to be extra busy in those last two weeks of December ...!!

#41 caitwill

Posted 03 June 2008 - 01:44 PM

Just a question regarding one of your comments re the income for the Baby Bonus. Saying if you commence Maternity leave earlier it may help eligibility.

I do not understand how that could be. Is that assuming paid maternity leave? Cause as I see it, if you go on leave earlier (assuming no paid mat leave), you are going to have to go back earlier, so are prob at higher risk of earning income at the end of the 6 months. Can you please explain this abit more.

I am also confused how the 6 months income will be calculated. Especially as it could be over 2 financial years. THis has been very poorly thought out. I tmay be possible for ordinary workers, but certainly, as PP mentioned, is very difficult for business people, especially farmers, who's income is very seasonal. As an accountant myself, I have no idea how this is going to be administered.

I wonder what substantiation of income is going to be required. Especially as you are receiving the payment in that same period.

Thanks for the summary though.

#42 daviesjv

Posted 03 June 2008 - 02:06 PM

Thanks Melissa for pointing that out! I must have had brain freeze when typing that bit. What I SHOULD have said, in relation to eligibility for the baby bonus was: "For those who may be close to the $75,000 limit, it could be worth doing your sums carefully before deciding when to FINISH your maternity leave. After all, if you earn $74,000 you will get the bonus; if you earn $76,000 you won't. So for some families it could make sense to extend maternity leave a few weeks longer than planned, if you are close to that magic number ..."

Sorry about that! Damn financial planners, can't get anything right!!

I'm with you on the confusion over the 6 months of income particularly, as you said, if it does span two financial years. It would be very interesting to find out down the track how much it ends up costing the government to administer the means testing, compared to how much they save by doing so ...!!


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