Understanding Benefits: Multiple Birth Allowance

Multiple Birth Allowance is an extra payment to help you if you have a multiple birth.

Who Qualifies?
You can get Multiple Birth Allowance if you have three or more children who are born during the same birth for whom you receive Family Tax Benefit.

How much is it?
The Allowance can be added to your Family Tax Benefit. The Australian Government has announced that from 1 January 2008, families will remain eligible until the children turn 16 years of age, or for fulltime students, until the end of the calendar year in which they turn 18.

Parents of triplets will receive an additional $3,179.15 extra per year ($121.94 fortnightly).

Parents of quads or more are entitled to an additional $4237.65 each year ($162.54 p.f).

How to apply?
You do not need to make a separate claim for Multiple Birth Allowance, as it will be paid as part of your FTB.

Understanding Benefits: Rent Assistance

What is it?

Rent Assistance gives extra help to you if you receive more than the base rate of Family Tax Benefit Part A, and pay rent to private landlords.

Who is eligible?

You may also be able to get help if you pay:

• lodging, or board and lodging;
• site fees (eg. caravan, mobile home);
• mooring fees for a boat or vessel that you live in.

Rent Assistance is generally not paid to people who pay rent to a government housing authority (such as a Housing Commission), own or are buying the home in which they live (except for mobile and relocatable homes), are getting Incentive Allowance, or pay less than the threshold amount of rent.

How much is it?

Rent Assistance is paid at the rate of 75 cents for each dollar of rent paid above the rent threshold, up to specified maximum rates. The rate of Rent Assistance depends on how many children you have, and whether you are partnered or single.

Maximum fortnightly payments range from $122.22 for a single person with one child up to $138.18 for a couple with 3 or more children. These rates are a guide only. For an estimate on how much you may be able to claim, use the online Family Assistance Estimator.

How do I get it?

Rent Assistance is paid along with your Family Tax Benefit. You can choose to get your Rent Assistance as fortnightly payments even if you choose to defer all of your Family Tax Benefit until after the end of the income (financial) year.

Rent Assistance cannot be paid through the tax system.

In order to claim rent assistance, you'll need to supply the Family Assistance Office with a copy of your current lease or tenancy agreement.

Source: Family Assistance Office

Understanding Benefits: Large Family Supplement

What is it?

Large Family Supplement is an extra payment to assist families with three or more children.

Who is eligible?

To be eligible for the Large Family Supplement you must have three or more children for whom you receive Family Tax Benefit.


How much is it?

You can receive a Large Family Supplement of $9.80 a fortnight (that's $255.50 per year) for each child after the second. This is paid on top of your Family Tax Benefit. Therefore four children equals an additional $19.60, five children $29.40, etc.


How do I apply?

You do not need to make a separate claim for Large Family Supplement, as it will be paid as part of your Family Tax Benefit. If you are eligible and are not already receiving Large Family Supplement as part of your Family Tax Benefit, you should contact the Family Assistance Office.





Source: Family Assistance Office

Low income households gain most from government benefits and taxes

I'm a bit of a statistics geek and today's release from the ABS made for some interesting reading. For fact collectors like myself, here's the latest from the Bureau:

Australia's low income households received more cash benefits from the government than higher income households, while indirect benefits (provided in kind) were more evenly distributed, according to an Australian Bureau of Statistics (ABS) study released today.

During 2003-04, more than a quarter (27%) of government benefits went to people in the 20% of households in the low income group. These people received over a third (36%) of government benefits in cash, and 22% of benefits in kind through government services.

In comparison, the 20% of households in the highest income group only received 4% of cash benefits and 16% of the benefits in kind.

People in the low income group paid 5% of all personal income taxes, and 17% of taxes on production such as the GST. People in the high income group paid 54% of personal income taxes and 26% of taxes on production.

The study also found that, on average:

• Households comprising couples under 35 without children paid $534 per week in taxes and received $109 per week in benefits.
• Couple households with dependent children paid $519 per week in taxes, and received $501 per week in benefits.
• Couples with one person aged 65 or over paid $148 per week in taxes and received $586 per week in benefits.
• Households in the ACT received the lowest benefits ($318 per week) and paid the highest taxes ($478).
• Households in Tasmania received the highest benefits ($398) and paid the lowest taxes ($278).

Source: Australian Bureau of Stataistics. Media Release 12/06/07

Understanding Benefits: Pensioner Education Supplement

The Pensioner Education Supplement is a fortnightly payment designed to assist people to improve their chances of finding a job through study.

Who can get it?

You may qualify for the Pensioner Education Supplement if you are studying and receiving a certain Centrelink payments such as parenting payment (single), carer payment, disability support pension, widow pension, or sole parent on special benefit.

How much study do I need to do?

To receive Pensioner Education Supplement, you must be enrolled in and undertaking an approved course of secondary or tertiary study.

To qualify for the part rate of payment (that is the payment you would receive if you were considered to be a part-time student) you must be undertaking at least 25 per cent of the normal full-time study load for your course.

To receive the full rate of payment (that is the payment you would receive if you were considered a full-time student) you must be studying full-time—that is, at least 75 per cent of the full-time study load or qualify for the 66 per cent study load concession.

How much is it?

Pensioner Education Supplement is paid at two rates. How much you receive depends on your study load and the payment you are on from Centrelink or Veterans Affairs. The maximum payment rate is $62.40 per fortnight or $31.20 at the part-time rate.

You may also be able to receive an Education Entry Payment. This is a one-off payment of $208 to help you with the up-front costs of taking up study.

Pensioner Education Supplement is NOT taxed and is paid over holidays so long as you continue with your studies.

How do I get it?

When you claim Pensioner Education Supplement, you will need to show Centrelink proof from the institution where you are going to study that you are enrolled as a student such as your student number, the name and details of your course, etc. Usually you will get paid when your studies start. Your claim must be lodged:

- before 31 March (for semester one) for full-year study, or
- before 31 July (for semester two) for full-year study, or
- within four weeks of either commencing study or otherwise becoming qualified for Pensioner Education Supplement.

To find out more or to apply for the Pensioner Education Supplement you should contact yor local Centrelink office. After you first contact Centrelink, you usually have 14 days to put in your claim.

Family Tax Benefit A Supplement

I've received a few queries recently about the Family Tax Benefit Supplement. It is coming to that time of year again when families begin to anticipate this payment and are wondering just how much it will be and when it will be paid.

What is it?
The Family Tax Benefit Part A Supplement is an increase in the annual rate of Family Tax Benefit Part A to be paid as a lump sum after the end of the financial year.

How much?
For the 2006-07 financial year, the payment will amount to $646.05 per child. If you have a child for part of the year or share care, the amount will be proportional to the period or percentage of care.

Who is eligible?
The Supplement is available to all Family Tax Benefit Part A eligible families. Please note that if an overpayment has occurred during the year, the Supplement will be used first to offset outstanding overpayments.

When will it be paid?
Families will be paid the Supplement after family tax returns have been lodged and FTB payments have been balanced for the for the financial year. If you or your partner are not required to lodge a tax return, be sure to notify the Family Assistance Office of this so as not to delay payment.

Understanding Benefits: Family Tax Benefit #1

The Understanding Benefits series will continue with a look at Family Tax Benefit (FTB). This can be a somewhat confusing payment, so I'll split this into several shorter posts.

What is Family Tax Benefit?

There is probably more confusion surrounding FTB than any other payment. Family Tax Benefit has two parts; Part A and Part B. You may be eligible for either one of Part A, Part B or both.

Part A is designed to help with the cost of raising kids and is paid for each dependent child you care for who is aged under 21 (or 21-25 years and still studying full-time).

Part B is designed to provide extra support to families with one main income earner, including sole parent families. Part B is a family payment and can be paid until the youngest child is 16 years (this can be extended to 18 years if the child remains in full-time study and does not receive a social security payment of their own).

Future posts will look at both Parts A and B and answer the questions of who qualifies, how to claim and how much it will be.

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.