Navigating the Labyrinth: Centrelink for Families
By Bec Pauley & Darren Mills
There are many wonderful things about becoming parents for the first time. There are also some things that we would rather not do or would like to put off for a later date. Centrelink is probably one of these, so we have composed this article in the hope that it might make things a little quicker and easier to navigate, allowing you more time with the people who are truly important to you. Don’t worry, parents with older children have not been forgotten, we have included Youth Allowance too!
Parental Leave Pay
What is it?
The Australian Government’s Parental Leave Pay Scheme is for eligible employees who are the primary carer of a newborn or newly adopted child. They can receive up to 18 weeks' Parental Leave Pay, which is paid at the National Minimum Wage. From 1 July 2020, eligible employees can claim Parental Leave Pay for 1 set period and 1 flexible period.
Who can receive it?
The birth mother or primary carer of a newborn or newly adopted child.
Eligibility Requirements
To receive the parental leave pay, you must have an individual adjusted taxable income of either:
$150,000 or less in the 2019/2020 financial year.
$151,350 or less in the 2020/2021 financial year.
You also need to meet the work test. You need to have worked:
10 of the 13 months before the birth of your child; and
a minimum of 330 hours – around 1 day a week in a 10-month period.
You cannot have more than a 12-week gap between work days in that 10-month period.
If Coronavirus has affected your workplace you may be able to use an extended work test when you claim.
Some exceptions to the work test apply for pregnancy related illness, complications, and premature birth.
A working day is either a day when you have a worked for a least 1 hour or a day of paid leave. Unpaid leave is not included.
Self-employed parents may also meet the work test. Hours worked for financial reward or gain in your own business are used to determine whether the work test is met.
Application
Submit a claim through your mygov account either before the birth of your child or within the 40 weeks following the birth of your child. If you cannot complete online, you can submit the form at a service centre.
Provide proof of birth using the Newborn Child Declaration which will be signed by your doctor or midwife and provided to you in your parent pack when your child is born.
Register the birth of your child through the State Birth Registry using the registration form provided by your hospital or midwife.
Payment Rates
The payment is based on the weekly rate of the national minimum wage.
You can get the payment for up to 18 weeks, which is 90 payable days. This will include.
a continuous period of up to 12 weeks, which is 60 payable days; and
30 flexible days.
The payment is currently $772.55 per week or $154.51 per day Before Tax.
Note that superannuation is not applicable to parental leave pay.
You partner maybe eligible for Dad & Partner pay for a period of 2 weeks.
Family Tax Benefit Part A & Part B
What is it?
The Family Tax Benefit (FTB) is a payment provided to eligible families to assist with the costs associated with raising children. FTB Part A is paid per child and is based on the family’s circumstances. FTB Part B is paid per family and provides additional assistance to single parent families and families with one main income.
Who can receive it?
Parents or carers of dependent children or full-time secondary students aged 16 to 19 who don’t receive a pension, payment, or benefit such as Youth Allowance.
Eligibility Requirements
You must provide care for the child at least 35% of the time.
FTB PART A Income Test
There are two income tests for FTB Part A:
The first test reduces the maximum rate of FTB Part A by 20 cents for each dollar between $56,137 and $99,864 and 30 cents for each dollar above $99,864.
The second reduces the base rate of FTB Part A by 30 cents for each dollar above $96,864.
If under $56,137 receive full FTB part A.
You use the test that gives you the best payment.
FTB PART B Income Test
If you are a Single parent or carer family with an annual adjusted taxable income below $100,900 you will receive maximum rate of FTB Part B. If you receive over $100,900 you do not receive any FTB Part B.
If there are 2 parents or carers in the family and the primary earner’s adjusted taxable income is over $100,900 you do not receive any FTB Part B.
If the primary income earner is under $100,900 and the secondary earner income is under $5,840 then you receive full FTB Part B. Once the income of the lower earner is over $5,840, then FTB Part B is reduced by 20 cents for each dollar of incomed over $5,840.
Application
Submit a claim online through your mygov account or in person at a service centre.
Payment rates
The rates in the tables above include the year end supplement of $788.40
Child Care Subsidy
What is it?
The child care subsidy is a payment that is made directly to child care service providers to be passed on to families as a fee reduction.
Who can receive it?
Parents of a child aged 13 or under and not attending secondary school or children with a disability or medical condition in certain circumstances. There is also targeted additional fee assistance for vulnerable families through the Child Care Safety Net.
Eligibility Requirements
To be eligible for Child Care Subsidy families must meet the following requirements:
Immunisation requirements
Residency requirements
In addition:
Parents must be liable to pay for care provided
The care must be delivered in Australia by an approved child care provider, and not be part of a compulsory education program.
A family’s level of Child care subsidy is then determined by the following three factors:
Combined annual family income
Activity test – the activity level of both parents
Service type – type of childcare service and whether the child attends school
Application
Apply online through your mygov account or at a service centre.
Payment rates
* Subsidy reduces by 1% for each $3,000 of family income.
Youth Allowance
What is it?
Youth allowance is an income support payment for young job seekers and students.
Who can receive it?
Jobseekers between the ages of 16 and 24.
Eligibility Requirements
To be eligible to receive Youth allowance you must be in one of the following categories –
16 to 21 and looking for full time work; or
18 to 24 and studying full time; or
16 to 24 and doing a full time Australian Apprenticeship; or
16 to 17 and independent or needing to live away from home to study.
Application
Apply through your mygov account.
Payment rates
This information is intended as an overview of the myriad of family assistance payments available.
Please contact us on (08) 9841 1200 if you require more detailed information that is specific to your circumstances.
A Coffee With... Brooke Pearson
Brooke Pearson runs a small women’s only gym in Albany called Just Move. We sat down with Brooke to find out what makes this wonder woman tick and how she’s made Just Move such a special place to train.
Read more here.
Lincolns photo competition
Entries for our photo competition close on Friday 22 October.
The details are:
We want photos of you at work, the more creative the better! Send us a photo that depicts what you do or what you love most about your job!
Send your photos through to photos@lincolns.com.au
The winner is up to you! The top five photos will be posted on Facebook on the Monday after entries close and the most liked by you will win!
Voucher is from your choice of Dylan's on the Terrace, Handasyde's or Three Anchors!
T&Cs:
You must be happy for us to use your pic for our photo promotions, in doing so we will ensure to acknowledge you in our posts.
The businesses whose vouchers we are offering are not affiliated with the competition, and are only chosen as great local businesses.
Lincolns Podcast - our first ever episode!
We are super excited that our first “Tax & Stuff” Podcast episode has now been released.
Join Kym Arnold with special guest Rob Prior where they discuss those “down the pub” tax myths we are sure you have all heard.
Listen here.
