Child Care Budget Changes #1

According to the Family Assistance Office, a number of the 2007-08 budget initiatives will impact Centrelink and FAO customers.

Two significant changes have been announced in regard to child care. They are both good news for parents.

1. The rate of Child Care Benefit (CCB) will be increased by 10 per cent, on top of the normal CPI increase. As a result of these changes on 1 July 2007 families will receive a total CCB increase of more than 13%. What does that mean in your world? It means up to an extra $20.50 per child per week, for one child in full time care (5 days per week) for low income families.

Who will benefit?

All families who are currently receiving CCB and those who are eligible for CCB in the future will benefit from the additional financial support provided through the CCB changes.

How do I get it?

You don't need to do anything to receive the CCB increase. The Family Assistance Offcie will automatically adjust your entitlement. If you have chosen to receive your payment as a lump sum, it will be paid after you have complete your tax return at the end of the financial year.

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.