Children bring joy into our lives – and plenty of extra bills! So the arrival of a new baby calls for a review of your finances.
starting a family
For most parents, the arrival of a newborn means taking some time off work through maternity or paternity leave. This will likely mean a change in household income, something that can be more manageable by reviewing the family budget.
To help with family income, new parents can be eligible for Parental Leave Pay. It’s based on the weekly rate of the national minimum wage and can be available for up to 18 weeks1. Dads may be eligible for two weeks of Dad and Partner Pay, potentially giving families up to 20 weeks of income support.
Plan ahead for childcare
If you plan to return to work following the birth of your child, it’s worth organising child care early. Check if you’re eligible for the federal government’s Child Care Subsidy, which helps make the cost of care more affordable.
Update your will
The arrival of a baby is good time for both parents to update their Wills. This can be especially critical for blended families.
Your super can’t normally be passed on through a Will, so it’s important to update the binding nomination for your super. It lets us know who you’d like to inherit your super if you pass away.
Grow your spouse or partner’s super
When one parent stays at home to care for a child, or heads back to work part-time, there can be opportunities to help grow their super, while enjoying possible tax savings.
If your spouse/partner earns less than $37,000 annually, you may be eligible for a $540 tax offset when you contribute up to $3,000 to their super2. A partial offset can still be available if they earn up to $40,000 annually.
With money matters taken care of, you’re free to focus on enjoying your new baby!