FREE Baby Bonus or Paid Parental Leave Calculator
Baby Bonus or Paid Parental Leave which one is better?
This free Baby Bonus or Paid Parental Leave Calculator Excel spreadsheet is developed to assist parents to decide whether they should take the baby bonus or paid parental leave by examining the after tax family income of the two options.
Considering the following scenario: You are going to have a baby soon. Because you can only get either the Baby Bonus or Paid Parental Leave and if you take Paid Parental Leave then you cannot claim Family Tax Benefit B during the Paid Parental Leave, you wonder which one you should choose and if one works out better in the long run. As to which one will work out better for you, it’s going to depend largely on when you have your baby and when you will take the Paid Parental Leave - at the beginning of the financial year, halfway through, or towards the end. Because that’s going to affect how much you earn in that financial year (or even the next financial year) and hence what amount of Family Tax Benefit A and B you may be able to get.
This free Baby Bonus or Paid Parental Leave Calculator can help you to choose between the Baby Bonus and Paid Parental Leave. It accommodates variables such as when you want to take Paid Parental Leave, when your baby is due, your income, your partner's income, the employer's paid maternity leave, Family Tax Benefit A, Family Tax Benefit B, Income Tax, Medicare Levy, and Low Income Tax Offset.
This free Baby Bonus or Paid Parental Leave Calculator, for example, allows you to see the effects of just taking your employer provided maternity leave and claim the baby bonus, compared with taking paid parental leave. Also, there is an option to simulate that you want your spouse to take the PPL or splitting the PPL between you both.
From 1 January 2013, the Paid Parental Leave scheme will be expanded to include a new two week payment for working dads or partners, called Dad and Partner Pay. The latest Baby Bonus or Paid Parental Leave Calculator includes the Dad and Partner Pay.
Here is a screen shot that will give you a better idea that what you need to do and how this free Baby Bonus or Paid Parental Leave Calculator can help you.
This calculator is built in Microsoft Excel worksheet. You need to have Microsoft Excel 2000-2010 and Microsoft Windows to use it. You may be able to use the calculator with other applications that can open and read XLS spreadsheets, but this has not been tested.
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Although the Centrelink website has an online calculator (they call it "paid parental leave estimator"), that calculator doesn't give you a payment amount just tells you if you'd be better off with baby bonus or paid parental leave. While this free Baby Bonus or Paid Parental Leave Calculator gives you the amount and a chart will show you the difference.
A few important things you should be aware of:
(1) You will only be able to get Government Paid Parental Leave if your child is born or adopted on or after 1 January 2011.
(2) You CANNOT get paid parental leave and baby bonus together which means you can only get one of them (except in the case of twins or multiple births).
(3) You will NOT receive Family Tax Benefit Part B while you are getting Paid Parental Leave payments.
(4) Paid Parental Leave will be treated as taxable income and may affect entitlement to family assistance and child support.
(5) You will be able to get both employer-provided and Government Paid Parental Leave.
(6) Don't forget to check out the "Paid Parental Leave scheme - Questions and Answers for Working Parents" from Family Assistance Office.
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Disclaimer: The Baby Bonus or Paid Parental Leave Calculator is for educational and illustrative purposes only and should not be construed as financial advice. The results are only estimations. Please consult a qualified professional regarding financial decisions. In addition, you should always contact Centrelink, Family Assistance Office, or Australian Tax Office if you have any questions regarding your Centrelink payments or income taxes.