Tax breaks for growing kids

The cost of raising your first child from birth to 18 years teeters around the $264,000 mark according to a 2007 study by the University of Queensland. And forget expensive private schools - that's only if you're leading a fairly modest lifestyle. So what tax benefits does the federal government offer for having kids so you can afford to have one for Mum, one for Dad and one for the country?

Maternity Payment
As soon as you bring a new baby into the world, the government will instantly reward you with a tax-free Maternity Payment. This payment has replaced the previous Baby Bonus and Maternity Allowance. It's not income tested and delivered in a lump sum payment of $4,133 for every child. It also applies if you're adopting a child aged under 2 years. You have 26 weeks after the birth or adoption to make the claim and an additional Maternity Immunisation Allowance is also available.

Family Tax Benefit Part A
This is an annual tax benefit designed to meet the costs of raising children. It applies if you have dependent children aged under 21, aged 21-24 if they're studying full time. Guardians including foster parents and grandparents are also eligible to receive this payment.

The amount you receive is income tested, and depends on how many children you have and how old they are.

It does not apply if a child is receiving youth allowance, if they are under 15 and not studying full time and earning over $11 548 per annum, aged 16-24 and earning over $11 548, or receiving a payment like Abstudy.

Family Tax Benefit Part 2
Families with only one income are eligible for this, whether they are a single parent family, or if one partner chooses to stay home or only work part time. The benefit is paid for children under 16 years, or full time students aged 16-18 years who do not receive a youth allowance or similar payment.

For two parent families with only one income, it is the income of the parent on the lower income who undergoes the income test.

Single parents are not income tested and receive the maximum rate.

Child Care Benefit
This benefit is designed to offset the cost of childcare. It applies if your child is attending an approved or registered child care centre, which includes most long day care, family day care, before and after school care, vacation care, some occasional care and some in-home care. Ask your provider if they are registered.

The amount you receive is calculated by looking at the number of hours your child is in care, your Child Care Benefit percentage (an income test), and whether your child is attending school or not.

All families who are eligible can receive benefits for up to 24 hours per child per week. Some families can receive over 50 hours if the sole parent or parents are unavailable for more than those 50 hours a week (including travel) because of work, study or training commitments.

Big families
If you have three or more kids, you're eligible for the Large Family Supplement. You receive $9.80 a fortnight for each child after the second child, which is paid on top of your Family Tax Benefit.

Triplets are eligible for a Multiple Birth Allowance.

COST OF HAVING KIDS AROUND AUSTRALIA
The aforementioned study conducted by Dr Paul Henman from the University of Queensland's School of Social Work and Applied Sciences and published in 2007 found these were the lifetime costs of raising a first child to 18 years. The estimated amounts vary throughout Australia's states and territories, and are representative of a modest but adequate lifestyle.

Sydney	Melbourne	Canberra	Brisbane	Adelaide	Darwin	Perth	Hobart
$215,798	$295,750	$267,443	$288,541	$245,112	$242,229	$286,932	$277,823

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