Friday, May 18, 2007

Understanding Benefits: Maternity Payment

This will be the first in a series of posts outlining the various Centrelink and Family Assistance payments.

What is the Maternity Payment?

Maternity Payment is a one-off amount paid to families following the birth (including stillborn) or adoption of a baby. The payment replaces the former Maternity Allowance and the ATO's Baby Bonus. The Maternity Payment is not income tested and is given to help out with those initial expenses after the addition of a new child.

How much is it?

Maternity Payment is a one-off payment of $4,133 for each child and is usually paid as a lump sum. If the recipient is under 17 years, the payment will probably be staggered over a period of 13 weeks. The amount is payable for each child in a multiple birth (that's $8,266 for twins). Changes in care during the 13 weeks eligibility period could result in the payment being apportioned between two carers.

Does it affect tax or benefits?

The good news is that Maternity Payment is not taxable income and it is not considered income for Family Assistance or Social Security purposes either.

How do I get it?

More than likely, the hospital will send you home with a claim form aswell as your new bundle of joy. If that is not the case, you can claim online using online services or call 13 6150 to have a claim form sent out to you.

You must apply for Maternity Payment within 26 weeks of the birth of your own child. Application requirements for adoptions can differ slightly so it is best to check this first with the Family Assistance Office.


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The comments provided in this blog are general in nature and not intended to be specific advice. Each situation is different. You should discuss your circumstances with Alan (or another tax agent) to obtain individual advice before acting on any information.