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Family Assistance and Other Legislation Amendment Bill 2012

Schedule 2 Baby bonus

Part 1 Amendments

A New Tax System (Family Assistance) Act 1999

1  Subsection 66(1)

Repeal the subsection, substitute:

             (1)  The amount of baby bonus for an individual in respect of a child is $5,000.

2  At the end of clause 3 of Schedule 4

Add:

No indexation of baby bonus on 1 July 2012, 1 July 2013 and 1 July 2014

             (9)  Baby bonus is not to be indexed on 1 July 2012, 1 July 2013 and 1 July 2014.

Note:          Indexation of baby bonus resumes on 1 July 2015, based on a current figure of $5,000 (see item 6 of Schedule 2 to the Family Assistance and Other Legislation Amendment Act 2012 ).

A New Tax System (Family Assistance) (Administration) Act 1999

3  Paragraph 47(2A)(a)

Omit “in the 2011-2012 financial year”, substitute “between 1 July 2011 and 31 August 2012”.

4  Paragraph 47(2A)(b)

Repeal the paragraph, substitute:

                     (b)  if the claimant becomes eligible for baby bonus between 1 September 2012 and 30 June 2015—$846.15;

                     (c)  if the claimant becomes eligible for baby bonus on or after 1 July 2015—the amount worked out as follows:



Part 2 Application and transitional provisions

5  Application provision

The amendment made by item 1 applies in relation to individuals who become eligible for baby bonus on or after 1 September 2012.

6  Transitional provision

For the purposes of working out the indexed amount for baby bonus on 1 July 2015 under Schedule 4 to the A New Tax System (Family Assistance) Act 1999 , the current figure for baby bonus immediately before that day is taken to be $5,000.