• Important terms

    Australian resident

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Generally, the Tax Office considers you to be an Australian resident if:

    • you have always lived in Australia or you have come to Australia and live here or
    • you have actually been in Australia for more than half of the income year - unless your usual home is overseas and you do not intend to live in Australia.

    Base year

    A base year is the year which acts as a basis to compare taxable income in your claim year. This base year stays the same for all future claim years for an eligible child.

    An eligible person can choose either 2001 or 2002. If 2002 is chosen, make your claim after 30 June 2003.

    For a transferee the base year is 2001.

    For an eligible person who was not an Australian resident in the year immediately prior to the event year the base year is 2002. Make your claim after 30 June 2003.

    Once a base year has been chosen, it cannot be changed or revoked.

    Care

    For a child to be in your care, it is not a requirement for the child to be living with you on a daily basis. For example, parents who place their child in a creche or home based day-care would still be considered to care for the child. This is because the parents are ultimately responsible for making decisions in relation to that child and continue to make those decisions.

    A parent who has ceased to be involved in the child's daily life and has ceased to provide for the daily care, welfare and development of the child would not be considered to be caring for that child.

    Where parents share the legal responsibility for and care of a child (for example, where a child spends alternate weeks with their separated parents), the child is considered to be in the care of both parents at all times. Where there is 'shared care', a mother will generally be the eligible person (see Selection order).

    Claim period

    A claim period is the period within the claim year for which you are eligible to claim the baby bonus.

    Claim year

    A claim year is the year in which you make a claim. The claim year for this year is 2002. You may make a claim each year until your eligible child turns 5.

    Eligible child

    The eligible child is the child for whom you satisfy steps 2 and 3 under  Are you eligible for the baby bonus?. It is usually the first child you gave birth to or the first child who you gained legal responsibility for and care of, after 30 June 2001. It is not necessarily your oldest or first born child.

    Event year

    An event year is the first year in which you satisfy all of the points listed in step 2 under Are you eligible for the baby bonus?.

    Legal responsibility

    You have legal responsibility for a child if you are responsible (whether alone or with someone else) for the day-to-day care, welfare and development of the child and:

    • you are their birth parent or
    • you have a court order saying you are legally responsible for the child (for example, you are their adoptive parent).

    Spouse

    Your spouse is your husband or wife - either married or de facto.

    Taxable income

    Your taxable income can be found on your notice of assessment from the Tax Office or on your tax return. Taxable income is your assessable income - for example, salary or wages, most Centrelink payments, interest, dividends - less any allowable deductions that you have incurred in earning that income. If you are unsure of how to calculate your taxable income, more information can be found on the Tax Office website at www.ato.gov.au, in TaxPack 2002 or you can ring the Personal Tax Infoline on 13 28 61 press 4 and then press 2 to be directed to the appropriate area.

    Transferee

    A transferee is the spouse of an eligible person, and they have had the eligibility for the baby bonus transferred to them.

    Last modified: 22 Dec 2009QC 16563