AUSTRALIA 
Means testing for Baby Bonus
Tuesday, 13 May, 2008
The Baby Bonus has come under the spotlight in this year's Federal Budget. (AAP)
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About 16,000 high-income families are set to lose the baby bonus, with the federal government means testing the scheme from the beginning of 2009.
The baby bonus will rise to $5,000 a year from July 1, but from next January 1 it will only be available to families with a combined annual income of less than $150,000.
Source: SBS staff and agencies
The baby bonus will rise to $5,000 a year from July 1, but from next January 1 it will only be available to families with a combined annual income of less than $150,000.
The federal government said the changes to the scheme will lead to net savings of $355 million over four years.
From January the baby bonus will also be paid in 13 fortnightly instalments of about $385 instead as a lump sum.
The scheme will be extended to include families with newly-adopted children aged between two and 16 years.
The government said the changes to the baby bonus scheme are part of efforts to better target family assistance programs, which has also seen the Family Tax Benefit Part B rerouted to bypass high-income earners.
Households where the primary income earner receives $150,000 a year will be excluded.
The measure is expected to net a saving of $544 million over five years.
Source: SBS staff and agencies
