Have any Australian mums managed to claim the Australian government baby bonus for a baby born in HK? According to the Centrelink website it is possible to claim it so long as you are "temporarily" out of Australia and you haven't "permanently" moved overseas. Has anyone tested these rules? Many thanks.
Australian Baby Bonus
- Thread starter sherwes
- Start date
There's actually a difference between residency (i.e where you happen to live at any given time) and tax residency. I am a HK tax resident. I am no longer an Australian tax resident however I do submit an Australian tax return as I have Australian sourced income. Of course, as a HK tax resident, I have to submit a tax return for HK tax. It's pretty common for people with diverse sources of income to need to submit returns in different countries even if they have one "true" tax residence. It's a fine technical line and there are a number of complex tests to determine tax residency and domicle. In any case, I don't think that baby bonus relies upon tax residency but rather physical residency.
I am going to speak to Centrelink but I suspect that, as Spokey says, they will require me to have lived in Aust for at least 6 months of the year, regardless of tax residency.
I am going to speak to Centrelink but I suspect that, as Spokey says, they will require me to have lived in Aust for at least 6 months of the year, regardless of tax residency.
Sherwes, if you have any luck getting more info could you pls post it. I would be interested to know if you can get it if you plan on spending 6 or the following 12 months in Oz after the birth.
A friend of a friend claimed the bonus while in HK. I don't know the details unfortunately.
The amount of taxes we've paid while there, and still pay, I hope we can get it but given the attitude the current gov has to high income earners it's pretty doubtful!
A friend of a friend claimed the bonus while in HK. I don't know the details unfortunately.
The amount of taxes we've paid while there, and still pay, I hope we can get it but given the attitude the current gov has to high income earners it's pretty doubtful!
From the Family Assistance Office website (.gov.au)
this is the current line:
Family Income Test
Families with an adjusted taxable income (ATI) of more than $75,000 in the six month period following the birth of their child or the child's entry into their care, are not eligible for Baby Bonus. In assessing ATI, it is not the individual and/or partner's annual ATI which is taken into consideration, but rather ATI for the six-month period following the birth of the child. The estimate needs to be $75,000 or less for this period for payment to be made.
Components of ATI
The following types of income received in the six-month period following the birth of the child or the child's entry into care, need to be included as income in estimating income for that period:
* Taxable income - gross income less allowable deductions (if you receive/received a taxable government pension or benefit, this needs to be included in the taxable income estimate); and
* Employer provided or reportable fringe benefits; and
* The value of net rental property losses/gain; and
* The value of any tax free pensions or benefits; and
* Any target foreign income, LESS
* The full amount of any child support paid by you and/or your partner.
Estimate of income:
Claimants of Baby Bonus need to advise the Family Assistance Office (FAO) of their estimated ATI for the six-month period after the birth of the child or the child's entry into their care.
Evidence of Income:
Evidence such as payslips, a statement of leave arrangements/entitlements, a letter from an employer on letterhead or a recent tax return may be required as evidence of income. Claimants already receiving payments such as Family Tax Benefit (FTB) may have their estimate checked against existing information such as an FTB estimate or income support information.
Eligibility for Baby Bonus
Baby Bonus is payable to:
* A parent of a baby if the parent meets all other eligibility criteria at any time within 26 weeks of the baby's birth; or
* A parent of a stillborn baby if the parent would have met all the other criteria if the baby had not been stillborn; or
* An adoptive parent if the child is entrusted to the care of the adoptive parent under 16 years of age; or
* A claimant who is entrusted with the care of a newborn baby if the claimant meets all other eligibility criteria within 26 weeks of the baby's birth and if the claimant is likely to continue to have care of the child for no less than 26 weeks.
The other eligibility criteria for Baby Bonus are generally that:
* the claimant and the baby must meet Australian residency requirements(1)
* the claimant must be legally responsible, either alone or with another adult, for the day-to-day care, welfare and development of the baby(2); and
* the claimant must satisfy tax file number requirements(3); and
* the claimant must lodge an effective claim within 52 weeks of the baby's birth or, in the case of adoption, within 52 weeks of the baby coming into the adopting parent's care.
Parents are required to formally register the birth of their child as a condition of receiving the Baby Bonus for births on or after 1 July 2007. This requirement does not apply to parents whose child is stillborn, adopted or born outside Australia.
this is the current line:
Family Income Test
Families with an adjusted taxable income (ATI) of more than $75,000 in the six month period following the birth of their child or the child's entry into their care, are not eligible for Baby Bonus. In assessing ATI, it is not the individual and/or partner's annual ATI which is taken into consideration, but rather ATI for the six-month period following the birth of the child. The estimate needs to be $75,000 or less for this period for payment to be made.
Components of ATI
The following types of income received in the six-month period following the birth of the child or the child's entry into care, need to be included as income in estimating income for that period:
* Taxable income - gross income less allowable deductions (if you receive/received a taxable government pension or benefit, this needs to be included in the taxable income estimate); and
* Employer provided or reportable fringe benefits; and
* The value of net rental property losses/gain; and
* The value of any tax free pensions or benefits; and
* Any target foreign income, LESS
* The full amount of any child support paid by you and/or your partner.
Estimate of income:
Claimants of Baby Bonus need to advise the Family Assistance Office (FAO) of their estimated ATI for the six-month period after the birth of the child or the child's entry into their care.
Evidence of Income:
Evidence such as payslips, a statement of leave arrangements/entitlements, a letter from an employer on letterhead or a recent tax return may be required as evidence of income. Claimants already receiving payments such as Family Tax Benefit (FTB) may have their estimate checked against existing information such as an FTB estimate or income support information.
Eligibility for Baby Bonus
Baby Bonus is payable to:
* A parent of a baby if the parent meets all other eligibility criteria at any time within 26 weeks of the baby's birth; or
* A parent of a stillborn baby if the parent would have met all the other criteria if the baby had not been stillborn; or
* An adoptive parent if the child is entrusted to the care of the adoptive parent under 16 years of age; or
* A claimant who is entrusted with the care of a newborn baby if the claimant meets all other eligibility criteria within 26 weeks of the baby's birth and if the claimant is likely to continue to have care of the child for no less than 26 weeks.
The other eligibility criteria for Baby Bonus are generally that:
* the claimant and the baby must meet Australian residency requirements(1)
* the claimant must be legally responsible, either alone or with another adult, for the day-to-day care, welfare and development of the baby(2); and
* the claimant must satisfy tax file number requirements(3); and
* the claimant must lodge an effective claim within 52 weeks of the baby's birth or, in the case of adoption, within 52 weeks of the baby coming into the adopting parent's care.
Parents are required to formally register the birth of their child as a condition of receiving the Baby Bonus for births on or after 1 July 2007. This requirement does not apply to parents whose child is stillborn, adopted or born outside Australia.
Thanks very much Cesh. It looks like I have a really good chance of claiming the bonus (hooray!).
I have just posted below footnote (1) to the text as it didn't come through in your cut and paste.
"(1) A claimant meets the Australian residency requirements if the claimant has legal residence status and is living in Australia on a permanent basis. Eligibility may be maintained during a temporary absence from Australia for up to three years.
To have legal residence status for the purposes of Family Assistance payments you must be:
an Australian citizen; or
the holder of a permanent visa; or
a New Zealand citizen who arrived on a New Zealand passport; or
the holder of one of the following visas:
subclass 070 Bridging (Removal Pending)
subclass 309 Spouse (Provisional)
subclass 310 Interdependency (Provisional)
subclass 447 Secondary Movement Offshore Entry
subclass 451 Secondary Movement Relocation
subclass 695 Return Pending Visa
subclass 820 Spouse (Provisional)
subclass 826 Interdependency (Provisional)
subclass 785 Temporary Protection
subclass 786 Temporary (Humanitarian Concern)
subclass 787 Temporary Witness Protection (Trafficking)
Criminal Justice Stay Visa issued under subsection 155(2) of the Migration Act 1958"
Another lreated question is whether any Aussie mums have maanged to have the Childhood Immunisation Register updated for vaccinations given here in HK??
I have just posted below footnote (1) to the text as it didn't come through in your cut and paste.
"(1) A claimant meets the Australian residency requirements if the claimant has legal residence status and is living in Australia on a permanent basis. Eligibility may be maintained during a temporary absence from Australia for up to three years.
To have legal residence status for the purposes of Family Assistance payments you must be:
an Australian citizen; or
the holder of a permanent visa; or
a New Zealand citizen who arrived on a New Zealand passport; or
the holder of one of the following visas:
subclass 070 Bridging (Removal Pending)
subclass 309 Spouse (Provisional)
subclass 310 Interdependency (Provisional)
subclass 447 Secondary Movement Offshore Entry
subclass 451 Secondary Movement Relocation
subclass 695 Return Pending Visa
subclass 820 Spouse (Provisional)
subclass 826 Interdependency (Provisional)
subclass 785 Temporary Protection
subclass 786 Temporary (Humanitarian Concern)
subclass 787 Temporary Witness Protection (Trafficking)
Criminal Justice Stay Visa issued under subsection 155(2) of the Migration Act 1958"
Another lreated question is whether any Aussie mums have maanged to have the Childhood Immunisation Register updated for vaccinations given here in HK??
Like anything where you have to deal with government agencies it is not straight forward or sensible - ha ha!!! According to the government website there is no six month test (so either they have changed the rules since Spockey applied or the test still applies and they just don't bother to tell you about it until after you apply). I am actually a lawyer but I don't practice in this area of law so I am in the same boat as anyone else trying to work out what the entitlements are - i.e. confused but hopefull!!
According to the test on the government website, a claimant meets the Australian residency requirements if:
1. "the claimant has legal residence status" - i.e. has the right to reside in Aust as an Aussie passport holder or on the types of visa listed,
2. "is living in Australia on a permanent basis" -I think that given the 3 year temporary absence allowed (i.e. "eligibility may be maintained during a temporary absence from Australia for up to three years") this has to be interpreted as "intends" to live in Australia on a permanent basis. Otherwise why say that people who live outside of Australia for up to 3 years are still eligible??
So an expat, for the purposes of these specific rules, could claim that they intend to live in Australia on a permanent basis and that Australia is indeed their permanent home if they haven't been living out of Aust for 3 years. Of course this has to be a true reflection of the facts - i.e. you couldn't claim it if you intended to live in HK permanently.
Anyway, baby number 2 is due in 3 weeks so I'll apply as soon as I can after the birth and let you know how I go. Baby number 1 was born in Australia so there were no issues with obtaining the baby bonus for that one.
According to the test on the government website, a claimant meets the Australian residency requirements if:
1. "the claimant has legal residence status" - i.e. has the right to reside in Aust as an Aussie passport holder or on the types of visa listed,
2. "is living in Australia on a permanent basis" -I think that given the 3 year temporary absence allowed (i.e. "eligibility may be maintained during a temporary absence from Australia for up to three years") this has to be interpreted as "intends" to live in Australia on a permanent basis. Otherwise why say that people who live outside of Australia for up to 3 years are still eligible??
So an expat, for the purposes of these specific rules, could claim that they intend to live in Australia on a permanent basis and that Australia is indeed their permanent home if they haven't been living out of Aust for 3 years. Of course this has to be a true reflection of the facts - i.e. you couldn't claim it if you intended to live in HK permanently.
Anyway, baby number 2 is due in 3 weeks so I'll apply as soon as I can after the birth and let you know how I go. Baby number 1 was born in Australia so there were no issues with obtaining the baby bonus for that one.
Sorry ladies, but my husband spoke to Ernst and Young today (a specialist who looks after Aussie expats) and there is no way we can claim it. When we left Australia we declared on our first tax return that we were not 'residents for tax purposes' so we would not have to pay tax in Oz on any earnings abroad. This even though we have residential properties (in Oz) that earn income for us. They are taxed independently in Australia. If you have not made this declaration then technically the Aus government can tax you on your HK income so really not worth it for $5k!