• Should you transfer your eligibility this year?

    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

    You can transfer your eligibility for the baby bonus only to your spouse (your husband or wife - either married or de facto) who then becomes the 'transferee'. They must have been your spouse for the whole claim period and they must not be eligible for the baby bonus for another child.

    You would consider doing this if your spouse could get a higher baby bonus amount than you. If you did not have a spouse for the whole claim period, you cannot transfer your eligibility. Go to How to complete your baby bonus claim 2005.

    Your spouse may get a higher baby bonus amount than you if their taxable income is $25,000 or less and your taxable income is more than $25,000. They might also get a higher amount if their taxable income is more than $25,000 and significantly lower than their base year taxable income.

    To see who will get the higher baby bonus amount, you and your spouse should work through the bonus calculations. You transfer only the number of days you can claim the baby bonus - you do not transfer the amount that you can claim.

    Transferee's base year

    If this is the first time the transferee has claimed the baby bonus for the child, their base year is 2004. If the transferee has claimed for the same child before, their base year is on the notice they received from the Tax Office.

    Example

    Diane and Richard had baby Joe on 14 October 2003. Diane took paid leave around the time of Joe's birth and then returned to work. Richard then took leave without pay to stay at home to look after Joe. Diane's income for 2005 was $37,000 and her income has not reduced while Richard's has. Based on this, they know that if Diane claimed the baby bonus she would not get a payment - so she decided to transfer her eligibility to Richard.

    If you do not want to transfer your eligibility for the baby bonus, go to How to complete your baby bonus claim 2005. If you do want to transfer your eligibility, read on.

    How to transfer your eligibility for 2005

    Step 1

    If this is the first baby bonus claim, the eligible person may need to complete the Base year election on the previous page. This will be their base year for making a claim in the future.

    If they have previously claimed the baby bonus for this child they will have already made the base year election.

    Step 2

    The eligible person and the transferee must complete the agreement below. A baby bonus transfer agreement:

    • must be made before lodging a baby bonus claim
    • cannot be made for less than the claim period
    • is valid for only one income year and cannot be changed or revoked
    • must be cut out and kept by the transferee with their tax records for six years from the date of the agreement. Do not lodge it with the baby bonus claim.

    Baby bonus transfer agreement 2005

    I............................................................................................................

    (Eligible person's name)

    agree to transfer my eligibility for the baby bonus for 2005 to my spouse

    .............................................................................................................

    (Spouse's name)

    for my child............................................................................................

    (Child's name)

    The child's date of birth is.......... / .......... / ..........and

    the date I became legally responsible for the child is.......... / .......... / ..........

    Note

         You only need to complete this date if it is different from your child's date of birth.

    The total number of days I was eligible to claim the baby bonus was.............

    ..................................................................................

    (Signature of eligible person)

    I............................................................................................................

    (Transferee's name)

    was the spouse of the above named eligible person for the entire claim period.

    ...................................            .......... / .......... / ..........

    (Signature of transferee)            (Date)

    Last modified: 17 Dec 2009QC 27590