CHILDREN BY CHOICE ASSOCIATION INCORPORATED

Finance Issues in Raising a Child

Work out a budget

It is important to think ahead about the costs associated with raising a child and how you can meet these costs. Having a new family member may impact on your income from work, such as: reduced working hours, managing child care, living on a single wage and superannuation. 

Your general day-to-day living expenses will also change, including food bills, clothing and education costs.  If you don't currently keep track of your dollars in and bills out, start writing these down and try mapping out a budget.  Understanding Money is a government website with lots of tips.

Child Support for separated parents

If you are not living with the man involved in the pregnancy, you are entitled to Child Support.  Child Support is a payment made to the parent who is responsible for the ongoing daily care of the child by the other parent. Many parents arrange how much is to be paid and when between themselves. 

If you wish to claim more than the base rate of Family Tax Benefit, you will need to work with the Child Support Agency for an income assessment.  To get an understanding of your entitlements or to discuss your situation, contact the Child Support Agency. 

Where paternity is being disputed, the Family Court can order DNA testing and make a declaration of parentage for child support purposes.

Government Assistance for Families

Centrelink provides payments to parents in many different circumstances for a variety to reasons. For more information on the assistance you may be entitled to, it is best to speak to someone from Centrelink's Family Assistance Office.

From 1 January 2011, 18 weeks Paid Parental Leave is available in Australia.  To be eligible, you must have worked 10/13 months prior to the birth for at least 330 hours.  Claims can be lodged up to three months prior to the birth.

If you have not been working, you may be eligible to receive the Baby Bonus.  This payment is made over 13 fortnightly installments.

You cannot claim both Paid Parental Leave and the Baby Bonus at the same time, except in the case of multiple births. 

Further support payments for children include: Family Tax Benefits A and B,  Immunisation Allowance, Parenting Payment and Child Care Benefit.  Austudy, Youth Allowance and Newstart Allowance all have higher rates for people with dependent children.

These payments are subject to residency requirements and income tests.

Further Assistance

Finally, if you think you could benefit from support or counselling to assist you with your finances, the following resources may assist you: 

Commonwealth Financial Counselling Program (directory of services throughout Australia)