Cash Gift for children born on or after 26 August 2012
Parents will receive an enhanced cash gift of $6,000 (up from $4,000) each for their 1st and 2nd child, and $8,000 (up from $6,000) each for their 3rd and 4th child. The cash gift will be fully disbursed earlier, within 12 months of the child’s birth instead of the current 18 months.
Child Development Account (CDA) for children eligible for Baby Bonus
Savings to a child’s Child Development Account (CDA) are matched dollar-for-dollar by the Government for up to $6,000 each for the 1st and 2nd child, up to $12,000 each for the 3rd and 4th child, and up to $18,000 each from the 5th child onwards.
With effect from 1 January 2013, the CDA will be extended by 6 years. This means that children born on or after 1 January 2006 will continue to have their CDAs open until 31 December of the year they turn 12, instead of 31 December of the year they turn 6. Parents can continue to save into the CDA and use CDA funds for their children and their siblings until 31 December of the year they turn 12.
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