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4.5.3 Payment of Baby Bonus & MIA

Summary

This section explains the payment arrangements for baby bonus and MIA. It includes:

  • access to payment,
  • the account for payment, and
  • payment for multiple births.

 

Access to payment of baby bonus

Eligible individuals are paid baby bonus in 13 fortnightly instalments. For individuals who become eligible before 1 July 2011, the baby bonus entitlement is equally divided among the 13 fortnightly instalments. For individuals who become eligible on or after 1 July 2011, the first instalment will be larger than the others (see 2.4.3). In cases such as a stillbirth or death of a child shortly after birth, payment by lump sum may be considered upon request from an individual. The delegate should be satisfied that there is no increased risk of misuse of the payment should it be paid as a lump sum.

 

If an instalment claim for FTB is made at the same time as a claim for baby bonus, the first baby bonus instalment is normally issued on the first FTB payment delivery day. If the individual does not make a claim for FTB at this time, the baby bonus claim is processed as soon as possible and payments are made to the individual's nominated bank account.

 

Access to payment of MIA

MIA is generally paid as 2 separate amounts.

 

The first half-amount is paid when a child meets the immunisation requirements from 18 months and before 2 years of age. For most individuals, claims for the first half-amount must be lodged on or before the child turns 2 years of age.

 

The second half-amount is paid when a child meets the immunisation requirements between 4 and before 5 years of age. Claims for the second half-amount must be lodged on or before the child turns 5 years of age.

 

Adoptive parents can claim MIA for children adopted from outside Australia, who enter Australia before they turn 16 years of age.

 

For children who enter Australia on or before their third birthday, the first half-amount is paid when a child meets the immunisation requirements from 18 months and before 4 years of age. Claims for the first half-amount must be lodged on or before the child turns 4 years of age. For this group, the second half-amount is paid according to the same eligibility and claim requirements as other individuals.

 

For children who are adopted from outside Australia and who enter Australia after their third birthday, MIA is paid as one full-rate payment when a child meets the immunisation requirements from 18 months and before 2 years after the child entered Australia. Claims for the payment must be lodged on or before the date that is 2 years from the child's arrival in Australia.

 

For children who have died before the age of 5, for most children MIA is either paid as the second half-amount or a full-rate payment, depending on whether the first half-amount of MIA had already been paid in relation to the child. For children adopted from outside Australia who:

  • enter Australia after their third birthday and have died before 2 years from the date of their arrival, or
  • have died before the age of 16 after having been entrusted to the care of the adoptive parent, but have not entered Australia.

 

MIA is paid as one full-rate payment if it has not already been paid in relation to the child.

 

For all children, MIA can also be paid as one full-rate payment where the child is a stillborn child.

 

MIA can also be paid as a full-rate payment in circumstances where the first half-amount has not been paid in relation to a child, but the child meets the immunisation requirements before 5 years of age.

 

There are some exemptions from having to immunise a child for the purpose of paying MIA. Parents who are conscientious objectors or those with medical exemption should have an exemption form signed by both the parent and health care provider such as a medical practitioner (see 1.1.I.10).

 

Baby bonus and MIA cannot be paid through the tax system.

 

Act reference: FA(Admin)Act section 47 Payment of baby bonus, section 47AA Payment of maternity immunisation allowance

FAAct section 3(1)-'stillborn child'

Policy reference: FA Guide 1.2.2 Baby Bonus - Description, 1.2.3 MIA Description, 2.4.1 Eligibility for Baby Bonus, 2.5.1 MIA Eligibility

 

Bank account for baby bonus & MIA

If the individual has claimed instalments of FTB, payment of baby bonus and MIA is made to the account nominated for FTB. If the individual is not receiving, or claiming FTB instalments, they should nominate an account for payment. In some cases the individual may be paid by cheque.

 

The same policy requirements for direct credit of FTB are applied to baby bonus and MIA.

 

Act reference: FA(Admin)Act section 47(5) Payment of baby bonus-payment not to bank account, section 47AA(2) Payment of maternity immunisation allowance-alternative payment arrangements

Policy reference: FA Guide 4.3.3 Instalments Paid by Direct Credit

 

Multiple births

Baby bonus can be paid for each child in a multiple birth or adoption. From 1 January 2011, parental leave pay is also available for parents with newborn babies or adopted children, but only for one child in a multiple birth or adoption. As baby bonus is only payable for a child where neither the individual nor their partner has received or is receiving parental leave pay for that child, individuals may elect to receive baby bonus for one child and parental leave pay for the other child, if eligible, where multiple births or adoptions occur. If eligible, the individual would receive baby bonus and parental leave pay instalment payments simultaneously.

 

Note: The term 'partner' in this context refers not only to the individual's partner, but also to a former partner of the individual, or the former partner's current partner. Further information on this can be found at 2.4.1.

 

Example 1: Tracy has lodged a baby bonus claim for her newborn twins. She is paid 13 fortnightly instalments of 2 times the baby bonus rate.

  • If Tracy became eligible for baby bonus before 1 July 2011 she will receive 13 fortnightly instalments of approximately $814.45.
  • If Tracy became eligible for baby bonus on or after 1 July 2011, she will receive a first instalment of $1,759.54 (2 times the upfront part) and 12 fortnightly instalments of approximately $759.54.

 

Example 2: Amanda is pregnant and currently working and has lodged a pre-claim for both parental leave pay and baby bonus for twins she is expecting within the next 3 months. After the birth of her twins, it is determined that parental leave pay is payable to Amanda for one of her children. It is also determined that Amanda is entitled to be paid baby bonus for her other child. Amanda will receive baby bonus over 13 fortnightly instalments for one child and separately receive parental leave pay for the other child.

 

Act reference: FAAct section 36 When an individual is eligible for baby bonus in normal circumstances

PPLAct section 20 Multiple births

Policy reference: FA Guide 1.2.2 Baby Bonus - Description

PPL Guide 3.2.1.50 When Payability Determination Cannot be Made

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Last reviewed: 11 August 2011


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Last Edited: 06/02/2012 4:53:15 PM


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