Debunking Centrelink Benefits for Families.
Are you struggling to understand Centrelink payments and what you’re entitled to or what you’re not? Well you are not alone!
It can be a very confusing topic and unless you speak the language it can be pretty hard to follow.
So we thought we would do the research for you to save the headache and confusion and debunk some of those Centrelink myths!
So what kind of support is available to you from Centrelink?
Family Tax payment: What is the family tax payment?
“Two-part payment that helps with the cost of raising children” www.humanservices.gov.au/customer/services/centrelink/family-tax-benefitov.au
This is probably the most common form of support for families, the payment does depend on your combined annual income as to how much your family will receive.
Refer to the Centrelink website for your individual outcome.
As many parents will tell you there is no way to be fully prepared for becoming parents! There are levels of sleep deprivation you have never known as well as the cost of everything baby needs.
So in an effort to support families the government has set up parenting payments, baby bonus’s and family tax benefits to help with what I like to call “baby shock”.
As new parents with your first child you can be eligible to receive payments of up to $2,000 depending on your eligibility.
How do you know if you are eligible for the Newborn upfront payment?
Newborn Upfront Payment is a lump sum of $532. This payment is paid for each child that comes into your care.
To be eligible for a newborn upfront payment you must be eligible for the Family tax benefit A and not be receiving parental leave pay for the same child.
Which in laymen’s terms means you cannot receive both the Parental leave and the Newborn upfront payment it needs to be one or the other.
“If you are eligible for the whole 13 weeks, you may receive a maximum of $1,595.23 for your first child or a maximum of $532.35 for other children.” www.humanservices.gov.au
Another option is the Parental leave payment.
If you choose to go with the parental leave payment instead of the newborn upfront payment you may be eligible to receive $657 per week for 18 weeks to help working parents care for their newborn.
The Dad or partner pay helps support dad’s or partners caring for new born or recently adopted children but is subject to a work and income test. If you are eligible then you may receive $657 per week for dads or partners caring for a newborn.
If you are under the age of 19 and meet the requirements you may be eligible for Centrelink’s Parents Next support. This targets and support those who are most vulnerable and in need to give them a hand up.
What benefits are available to those who aren’t new parents or families?
Are you unemployed or studying?
There are also some great benefits for those who are struggling to find work or studying to improve their chances of employment.
Centrelink is offering (to those who are eligible) a job commitment bonus.
This is a bonus (given to those who apply for it) after completing 12 months of continuous work and then a second payment (only if approved for the first payment) of $4,000 for completing 24 months of work.
That’s definitely a motivator!
Pensioners work bonus!
The available benefits don’t miss the pensioners either!
If you are a pensioner and you want to work to earn some extra cash there are plenty of work bonus’s for pensioners over 60 to remain in the workforce.
Head to the Centrelink website to check out if you are eligible for the work bonus.
The work bonus increases the amount of employable income you can earn before your pension is affected.
The first $250 of fortnightly income is not counted under the pension income test.
You can earn up to $6,500 a year without affecting your pension. If your job doesn’t require you to earn the same amount each week and you don’t earn your $250 a fortnight, then the balance is saved and added to your balance of available earnings for the year.
What if none of these payments apply to your situation?
If none of these payments apply to your situation, then you should head to the Department of Human Services payment finder page to get an individual assessment of your situation and the benefits available to you.
Make sure to check out our other centrelink tips!
Small Personal Loan
Up to 20% Establishment Fee
+ monthly fee up to 4%
Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.
Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.
Medium Personal Loan
Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.
This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.
Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51
Large Personal Loan
Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.
Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.
Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.