• 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

    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.

    Further Information

    If you would like to work it out yourself, use either:

    • the online calculator on our website, or
    • the steps below.
    End of further information

    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 (for the full year) is $500.

    Step 1

    Complete the following table.

    Base year taxable income

       $

    Base year gross tax

       $

    2005 claim year taxable income

       $

    Attention

    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.

    End of attention

    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.

    Worksheet: calculation 1

    Claim year taxable income

      $

    A

     

    Base year taxable income

      $

    B

     

    Divide A by B

      

    C

     

    Take C away from 1.00

      

    D

    These amounts will be one or less than one.

    Base year gross tax*

      $

    E

    Divide E by 5

     

    F

     

    Number of eligible days

     

    G

     

    Divide G by 365

     

    H

     

    Multiply D by F

    $

    I

     

    Multiply I by H

      $

    Calculation 1 total***

    Worksheet: calculation 2

    Base year gross tax*

      $

    J

     

    Divide J by 5

     

    K

     

    Number of eligible days**

     

    L

     

    Divide L by 365

     

    M

     

    Multiply K by M

      $

    Calculation 2 total***

    Worksheet: calculation 3

    Number of eligible days**

     

    N

     

    Divide N by 365

     

    O

     

    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 on page 1 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.

    Attention

    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.

    End of attention
    Last modified: 17 Dec 2009QC 27590