High income families to lose baby bonus, family tax benefit

The baby bonus and Family Tax Benefit Part B will no longer be paid to high income families as part of the Federal Government's attempt to better target the welfare system to families who need help the most.
From January 1 next year, a means test will apply to families with a combined income of $150,000 a year or more.

If the primary earner earns $150,000 then the family will lose Family Tax Benefit Part B, a change expected to affect about 40,000 families.

About 16,000 families are expected to no longer receive the $5000 baby bonus after a new means test is introduced.

On January 1 the means test will be based on the family's income in the six months following birth on a pro rata annual basis equivalent to $75,000 over that six-month period.

The Minister for Family and Community Services, Jenny Macklin, said the changes would make the family payments system "simpler and fairer".
(STEPHANIE PEATLING) http://esperance.yourguide.com.au