• Baby bonus calculation

    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

    Online calculator

    You might find it easier to use the calculator on the Tax Office website at www.ato.gov.au

    The Tax Office will work out your baby bonus for you and the amount will be shown on your notice of assessment which we will post to you. If you would like to work it out yourself use the online calculator on the Tax Office website or the steps below. You may want to work through the calculation if:

    • you want to work out how much baby bonus you will get, or
    • you are considering transferring your eligibility for the baby bonus to your spouse. In this case, you will need to work through the steps for you and your spouse. This will show you who will get the higher baby bonus amount.

    Generally, if your taxable income is $25,000 or less for the year you claim (claim year) the baby bonus you will be entitled to $500 (calculated for the whole income year).

    Step 1

    Complete the following table.

    Base year taxable income

       $

    Base year gross tax

       $

    2003 claim year taxable income

       $

    Note

    Your base year gross tax is the tax calculated on your taxable income for your base year. If you have received a notice of assessment your base year gross tax is the amount shown as 'Tax on taxable income'. If you were not required to lodge a tax return for your base year, write '0' for your base year gross tax.

    Step 2

    Is your base year taxable income more than $25,000?

    No

    Go to step 5.

    Yes

    Go to step 3.

    Step 3

    Is your claim year taxable income less than your base year taxable income?

    No

    You are not entitled to any baby bonus. Do not continue working through the steps.

    Yes

    Go to step 4.

    Step 4

    Is your claim year taxable income more than $25,000?

    No

    Go to Calculation 1 and Calculation 3 to work out your baby bonus. Your bonus will be the higher total from these two calculations. Do not continue working through the steps.

    Yes

    Go to Calculation 1 to work out your baby bonus. Do not continue working through the steps.

    Step 5

    Is your claim year taxable income more than $25,000?

    No

    Go to step 6.

    Yes

    You are not entitled to any baby bonus. Do not continue working through the steps.

    Step 6

    Is your claim year taxable income zero or a loss?

    No

    Go to step 7.

    Yes

    Go to Calculation 2 and Calculation 3 to work out your baby bonus. Your baby bonus will be the higher total from these two calculations. Do not continue working through the steps.

    Step 7

    Is your claim year taxable income less than or the same as your base year taxable income?

    No

    Go to Calculation 3 to work out your baby bonus. Do not continue working through the steps.

    Yes

    Go to step 8.

    Step 8

    Is your base year gross tax more than $2,500?

    No

    Go to Calculation 3 to work out your baby bonus.

    Yes

    Go to Calculation 1 and Calculation 3 to work out your baby bonus. Your baby bonus will be the higher total from these two calculations.

    Footnotes:

    Check the footnotes where indicated as you work through the calculations.

    Calculation 1

    Claim year taxable income

      $

    A

     

    Base year taxable income

      $

    B

     

    Divide A by B

      

    C

    These amounts will be one or less than one.

    Take C away from 1.00

      

    D

    Base year gross tax*

      $

    E

     

    Divide E by 5

     

    F

     

    Number of days eligible **

     

    G

     

    Divide G by 365

     

    H

    This amount will be 1 or less than 1.

    Multiply D by F

     

    I

     

    Multiply I by H

      $

    Calculation 1 total***

    Calculation 2

    Base year gross tax*

      $

    J

     

    Divide J by 5

     

    K

     

    Number of days eligible **

     

    L

     

    Divide L by 365

     

    M

    This amount will be 1 or less than 1.

    Multiply K by M

      $

    Calculation 2 total***

    Calculation 3

    Number of days eligible **

     

    N

     

    Divide N by 365

     

    O

    This amount will be 1 or less than 1.

    Multiply O by $500

      $

    Calculation 3 total

    *

    If your base year gross tax was more than $12,500 - write '$12,500'.

    **

    Number of eligible days is the number of days you have written in box A in the Are you the eligible person for the baby bonus? section in these instructions, or if you have written a number of days at P on your claim it will be that number.

    ***

    The maximum amount that can be shown here is $2,500.

    Superannuation

    If you receive an amount of baby bonus you will be entitled to make a personal superannuation contribution of this or any other amount. You may already be eligible to make personal superannuation contributions if for example, you are employed. For full details on how to make a contribution, contact your superannuation fund or retirement savings account provider.

    Last modified: 17 Dec 2009QC 16835