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Eligibility for Stillborn Baby Payment (SBP) 007-04060000



This document outlines the eligibility requirements for Stillborn Baby Payment (SBP). For a stillborn child, Parental Leave Pay (PPL) is the more beneficial payment and parents can return to work without it affecting their PPL eligibility. If a customer's PPL claim is rejected, they should still test their eligibility for SBP.

On this page:

Eligibility for SBP

General information about Stillborn Baby Payment (SBP)

Eligibility for SBP

Table 1

Step

Action

1

Check PPL eligibility + Read more ...

Customers may receive PPL or SBP for a stillborn child. PPL is the more beneficial payment and customers can return to work after a stillbirth without it affecting their PPL eligibility.

Multiple births

Although PPL is only paid for one child of a multiple birth, if there is a significant delay between the births of the children from the same pregnancy, for example twins delivered 5 days apart, the births may be considered separate birthing events and not part of a multiple birth. In these instances PPL may be payable for each child. In these cases advise the claimant they must provide a letter from the doctor/midwife who attended the births confirming the children were of the same pregnancy but born in separate birthing events.

  • The cases must be referred to the New Parent Programmes team with a letter from the doctor/midwife who attended the births confirming the children were of the same pregnancy but born in separate birthing events
  • Where a customer has only lodged 1 claim for 1 of the children of a multiple birth, the Families Bereavement and Double Orphan Pension (DOP) Processing team will contact the customer to confirm if there is any further entitlement to payments for the other child/ren prior to processing the submitted claim. This will ensure the processing sequence will not disadvantage the customer

Result of PPL eligibility assessment

If a customer claims SBP and it is identified they may be eligible for PPL based on information available/provided, the Families Bereavement and Double Orphan Pension (DOP) Processing Team will contact them to discuss their eligibility for PPL.

If a customer claims PPL but their claim is rejected, they should test their eligibility for SBP. The Families Bereavement and Double Orphan Pension (DOP) Processing Team will contact the customer.

2

SBP claim requirements + Read more ...

Customers should be encouraged to claim online or they can lodge a Claim for Bereavement Payment (FA008). This claim is issued by the hospital and contains a doctor/midwife declaration that is used as verification of the stillbirth.

Customers who have lost or who did not receive the FA008 from the hospital can lodge the Claim for Bereavement Payment (FA008M) downloaded from the website or issued by a Service Officer. Note: the FA008M does not contain the doctor or midwife declaration.

Verification of stillbirth

This is required before claims can be finalised. Verification of the delivery of a stillborn child can be provided via:

  • the doctor/midwife declaration on the FA008
  • other suitable verification of the stillbirth such as:
    • Hospital birth - a letter (on hospital letterhead) from the doctor or midwife who attended the birth or another appropriate hospital representative, confirming the name and qualifications of the doctor or midwife, with the details of the parent and child, and the date and place of the delivery, or
    • Home delivery - a letter from the doctor or midwife who attended the birth confirming their name, signature and qualifications with the details of the parent and child, and the date and place of the delivery. Note: where a child has been delivered by a midwife, the midwife's registration number is also required

Tax File Number requirements must be met. See Provision of Tax File Number (TFN) for family assistance and Paid Parental Leave scheme payments.

Timeframe for claims

Claims must be lodged within 52 weeks of the stillbirth. This period can be extended if:

  • the customer was unable to make a claim in this period due to a severe illness associated with the stillbirth (evidence such as a medical certificate is required), or
  • the customer or their partner claim PPL for the child and their claim is rejected (the 52 week period can be extended, up to 13 weeks after the rejection date)

Receipt of claim/documentation

Claims are processed by the Bereavement/Double Orphans Pension Helpdesk.

Has the customer lodged an effective claim?

All information needed to assess the claim must be provided as requested. Note: parents are not required to register the child's birth.

3

Primary carer? + Read more ...

If the child had been born alive,

  • would the child have been a Family Tax Benefit (FTB) child of the customer
  • would the customer or their partner have been the primary carer of the child, and
  • would the customer have been eligible for FTB at any time within 26 weeks of the delivery

The customer does not need to claim FTB as it is not payable for a stillborn child.

If an eligible customer dies before being paid SBP, another person may claim and receive the SBP.

  • Yes, go to Step 4
  • No, the customer is not eligible for SBP for the child. Check if another person is eligible. Procedure ends here

4

Check residency + Read more ...

See Residence assessment for customers claiming Family Tax Benefit (FTB) and Parental Leave Pay (PPL).

Payment of SBP when the customer is outside Australia is subject to the same portability rules as for FTB Part A base rate. See Family Tax Benefit (FTB), Child Care Subsidy (CCS) and Paid Parental Leave scheme customer/child going overseas.

Note: SBP is only payable to Norfolk Island residents for a child delivered on or after 1 July 2016, providing they meet the Australian residence requirements and other eligibility criteria. If the child was delivered before 1 July 2016, then SBP is not payable. Procedure ends here.

Does the customer meet Australian residence requirements within 26 weeks of the stillbirth?

  • Yes, go to Step 5
  • No:
    • Customers who return to Australia and meet Australian residence requirements within 52 weeks of the stillbirth may become eligible for SBP under the FTB Part A eligibility test. Go to Step 6
    • Otherwise the customer is not eligible for SBP. Check if another person is eligible, for example the claimant's partner. Procedure ends here

5

Stillborn baby income test met? + Read more ...

To be eligible for SBP, the customer's estimate of their (and their partner's) adjusted taxable income (ATI) for the 6 months beginning on the date of delivery must be considered to be reasonable and be equal to or less than the Stillborn Baby Payment income limit.

Note: the individual must include their partner's ATI for the same period only if they were partnered on the day the claim is made.

Evidence to support the estimate will need to be requested if the estimate is equal to the Stillborn Baby Payment income limit or if it is not considered reasonable.

If SBP is rejected due to the estimate being above the Stillborn Baby Payment income limit and the customer's circumstances (for example, financial or relationship) change during the 52 week claim period, the customer may provide a revised estimate and request a review of the decision.

Does the estimate meet the Stillborn Baby Payment income test?

6

FTB Part A eligibility test met? + Read more ...

Has the customer or their partner become eligible for FTB Part A for another child at a rate greater than nil within 52 weeks of the stillbirth (legislative rate of FTB Part A)?

If this customer has previously had an SBP claim rejected, a Manual Follow-Up (MFU) activity will be created so the original claim for SBP can be reassessed if they or their partner meet the FTB Part A eligibility test. They will not need to lodge a new SBP claim. The Resources page contains examples.

Note: if the customer has no other children, they can only qualify for SBP under the Stillborn Baby Payment income test.

  • Yes, go to Step 7
  • No, the customer is not eligible for SBP for the child. Procedure ends here

7

Customer is eligible for SBP + Read more ...

Referral to social worker

Young people aged 17 years or under who claim SBP must be referred to a social worker or specialist officer to discuss available services such as financial planning services, family assistance entitlements and bereavement support groups. Attendance at the referral session should be encouraged.

General information about Stillborn Baby Payment (SBP)

Table 2

Item

Description

1

Rates of SBP + Read more ...

Stillborn children delivered prior to 1 January 2021

For children delivered prior to 1 January 2021, here are 2 SBP rates. A

  • higher rate is paid for the customer's first stillborn child and for each stillborn child of a multiple birth
  • lower rate is paid for a second or subsequent stillbirth

Stillborn children delivered on or after 1 January 2021

From 1 January 2021 there is a single rate of SBP. The single rate is paid for each stillborn child delivered on or after 1 January 2021.

The new rate is equivalent to the:

  • higher rate of NBS/NBU, and
  • FTB Part A bereavement payment for 14 weeks at the FTB Part A under 13 maximum rate

2

Payment of SBP + Read more ...

SBP is paid as a lump sum. It is non-taxable and not assessed as income.

It cannot be issued as an urgent payment.

It is subject to income management.

3

Debt offsetting + Read more ...

SBP can be used to offset any automatically created SBP determined, undetermined and unrecovered (waived due to less than $50) debts and any existing family assistance debt unless there is a current recovery arrangement in place.

4

Reconciliation + Read more ...

If SBP is paid under the FTB Part A eligibility test, it is subject to the FTB reconciliation process after the end of the relevant financial year and non-lodger process after the end of the lodgement year. If the customer is not entitled to FTB Part A during the 52 weeks following the stillbirth, the SBP will be calculated as an overpayment.

If SBP is paid under the SBP income test then it is not subject to the reconciliation process.