Eligibility for Newborn Supplement (NBS) and Newborn Upfront Payment (NBU) 007-07040020

NBS eligibility is assessed as part of a customer's Family Tax Benefit (FTB) instalment or lump sum claim.

Example 1

Sally is eligible for NBS from the child's date of birth on 1 January 2024 and has chosen to receive nil rate FTB Part A. Sally will not receive the NBS fortnightly or the NBU payment. On 1 May 2024, Sally changes their payment choice to receive the full entitlement. As this can only be changed from date paid to + 1 and Sally's NBS period of 13 weeks (91 days) is passed, the NBS and NBU will be paid when reconciliation occurs at the end of the financial year.

If Sally had changed their payment choice anytime within the NBS period, any remaining NBS would be paid with the FTB Part A instalments, but the NBU would be paid at reconciliation.

Example 2

Nicole is receiving the full entitlement of FTB Part A, NBS for 13 weeks (91 days) and NBU from the child's date of birth. After 2 instalments (28 days) Nicole makes a payment choice of nil rate FTB Part A. Nicole has received the NBU payment. The remaining NBS (91 - 28 = 63 days) will be paid when reconciliation occurs at the end of the financial year.

Example 3

Maria is eligible for FTB Part A and NBS for 13 weeks (91 days) from the child's date of birth. Maria has chosen to receive nil rate FTB Part A and will not receive NBS fortnightly or the NBU payment. Four months later Maria wants to revoke the payment choice because the baby requires medical treatment. After careful consideration, it is determined that Maria would experience considerable financial hardship if arrears were not paid, to meet the medical expenses. Due to revoking the choice, Maria is paid FTB Part A arrears from the child's date of birth. As this is also the first day of eligibility for NBS, the full 91 days of NBS and NBU would be included in the arrears payment. See Family Tax Benefit (FTB) claim options and payment choices.

NBS paid for full 13 weeks

Jan has a baby on 30 May 2024. Jan is not eligible for FTB Part A in the 2023-24 financial year.

Jan becomes eligible for FTB Part A from 1 July 2024 and lodges a claim and is eligible for FTB Part A. Jan is also eligible for the NBU and the full 13 weeks of NBS as the child does not turn 1 until 30 May 2025.

NBS ceases when child turns one

Mary has a baby on 4 July 2023. Mary is not eligible for FTB Part A in the 2023-24 financial year.

Mary becomes eligible for FTB Part A from 1 July 2024. Mary is eligible for the NBU and 3 days of the NBS as the child turns 1 on 4 July 2024.

FTB claim lodged after child turns one

Jillian has a baby on 3 January 2023. Jillian is not eligible for FTB Part A in the 2022-23 financial year. On 1 October 2024 Jillian lodges an FTB Lump Sum claim for the 2023-24 financial year.

Jillian is eligible for FTB A for the entire 2023-24 financial year. Jillian receives NBU and the full 13 weeks of NBS in her Lump Sum Claim starting from 1 July 2023 as the child did not turn one until 3 January 2024.

NBS ceases at end of financial year

Deb has a baby on 30 May 2024. Deb is eligible for FTB Part A and NBS from the child's date of birth. The NBS period would be for 30 May to 28 August 2024 (91 days).

Deb receives the NBU and NBS commences from 30 May 2024. Deb ceases to be eligible for FTB Part A from 10 July 2024 due to an increased income estimate. NBS also ceases from 10 July 2024.

On 1 August 2024, Deb provides a new reduced income estimate and FTB is restored from that date. As Deb is eligible for FTB Part A and this is still within 52 weeks from the child's date of birth, and is within the 13 weeks from when Deb first became eligible for NBS (30 May 2024), Deb will receive NBS for the remaining days in the NBS period (1 August to 28 August 2024).

At reconciliation for 2024/2025, Deb was eligible for FTB Part A for the entire financial year. Deb will receive a top-up including NBS for the period 10 July to 31 July 2024.

The NBS period may be altered for the following reasons:

Eligibility start date is found to be an earlier date

Example: a child is born on 1 March 2023 and the customer claims NBS. Child is a subsequent child. The income estimate for the 2022/2023 period is above the income threshold, however income is below the threshold for the 2023/2024 financial year. The NBS start date is 1 July 2023 and the customer is paid the 23/24 rate for 91 days.

When 2022/2023 reconciliation is finalised, the income is found to be less than the estimate, and the customer meets the 2022/2023 FTB A income test. The NBS start date then moves back to the child’s DOB 1 March 2023. The NBS is now included in the 2022/2023 reconciliation assessment.

The amended NBS period falls into the 2022/2023 period.

The NBS rate is now paid at the 22/23 rate for 91 days.

• Example of NBS offsetting:
• 2022/2023 NBS adjustment: +596.05
• 2023/2024 NBS adjustment: -642.46
• Difference: -46.41

The above offsetting will occur within Period Rates Summary (RATS)/Period Rate Components (RAC) and the overall NBS result on AR will be an overpayment of -$46.41

Eligibility period is moved to a later date

Example: a child is born 15 February 2024 and the customer claims NBS. The 2023/2024 income estimate meets income test and NBS is paid from the child’s DOB 15 February 2016.

The NBS is paid at the 23/24 rate per day for 91 days.

When 2023/2024 reconciliation occurs, it is found that the actual income precludes entitlement, however the estimate in the following financial year meets the FTB A income test requirement and therefore the NBS start date is moved to the later date of 1 July 2024.

The NBS is now paid at the 24/25 rate per day for 91 days.

NBS offsetting

• 2023/2024 NBS adjustment: -642.46
• 2024/2025 NBS adjustment: +668.85
• Difference: +26.39

The above offsetting will occur within RATS/RAC and the overall NBS result on AR will be an arrears payment of $26.39.

One parent has received NBS for a child and the other parent is now claiming

Simone and Fred have a child Tommy born 1 August 2023 but are not partnered to each other. Simone has 100% care of Tommy. Simone has claimed FTB and received NBU and NBS for the full period of 91 days from Tommy's date of birth.

From 1 February 2024, Fred has 100% care of Tommy and is claiming FTB. As Fred and Simone were not a couple when Simone received the entitlement to NBU and NBS, Fred can be assessed for NBU and NBS for up to 91 days.

Customer's partner claims FTB during NBS period

Jenny and Steve are partnered. Jenny is receiving FTB and NBS for their child Billy. Jenny was paid the NBU and the NBS period was determined as 91 days.

Steve is now claiming FTB for Billy from day 45. From that day, Jenny's FTB and NBS cease, and Steve is entitled to FTB and NBS for 46 days (91 minus 45 days), which is the remainder of Jenny's original NBS period. Steve is not paid the NBU as it has been paid to Jenny.

Couple separate during NBS period, share care

Karen and Rob separate when Tommy is 45 days old. Karen and Rob have equal shared care of Tommy from the date of separation. Karen was paid the NBU and the NBS period was determined as 91 days, starting from Tommy's birth.

Rob claims the shared care rate of FTB for Tommy and is eligible for NBS. Rob's NBS period is determined as 46 days (91 minus 45 days while partnered to Karen). Rob is not paid the NBU as it was paid to Karen when they were partnered.

Karen also continues to be eligible for NBS for Tommy until the end of the NBS period. The NBS rate is not affected by the shared care percentage.

Couple separate during NBS period, new partner claims FTB

Jan and Tom have care of their son, Harry. Tom claims FTB and is paid the NBU and assessed for 91 days of NBS. Jan and Tom separate after Tom received 60 days of NBS.

Jan becomes partnered to James and Harry is now in shared care. James claims FTB Part A for stepchild Harry and is also eligible for NBS. NBS has already been paid to Tom for 60 days, so James will only be paid the remaining 31 days (91 minus 60 days). James is not entitled to the NBU as partner Jan has already benefited from the NBU while partnered to Tom. Tom will continue to be paid NBS for the full 91 days entitlement.

Couple separate after NBS period

Anne and Peter have separated after Anne received the NBU and 91 days of NBS for their son Joe.

Anne becomes partnered to John who is now claiming FTB Part A for stepchild Joe. John is not eligible for NBS for Joe because Anne has already received NBS for Joe for the maximum period of 91 days.

Change of care to a non-parent

Sasha has a child Jack born 1 August 2023 and has claimed FTB and received NBU and NBS for the full period of 91 days from Jack’s date of birth.

From 1 February 2024, Sasha’s sibling Evie will have care of Jack for more than 13 continuous weeks as Sasha is unable to care for Jack. Evie is eligible for FTB Part A for Jack and will be paid NBU and NBS for up to 91 days.

As Sasha was entitled to the NBS/NBU, there will not be any overpayment.

First newborn child

Mary gives birth to Josie on 4 April 2023. Josie is Mary's first child.

Mary claims and is eligible for FTB Part A for Josie. Mary is paid the NBU and the higher NBS rate for the full 91 days from Josie's date of birth.

Second newborn child

Kim and John have a child, Grace, born on 10 May 2023. They are also the natural parents of their child Alex who is almost 2 years old.

As Grace is Kim's second newborn child, Kim is paid the NBU and the lower NBS rate.

Second or subsequent child dies prior to first birthday

Kristine and Tom have a child, Bella, born on 10 January 2024. They are also the natural parents of their child Thomas who is 3 years old.

As Bella is Kristine's second newborn child, Kristine is paid the NBU and the lower NBS rate from Bella’s date of birth. Tragically, Bella passes away on 10 June 2024. As Bella has died prior to the first birthday, Kristine is eligible for a top-up of the difference between the lower and higher rate of NBS.

First newborn child, 1 child in care from previous relationship

Trish gives birth to first child, Kate, on 10 March 2023. Trish's partner Dave has a child from a previous relationship. Dave shares the care of Tommy with a previous partner.

As Kate is Trish's first newborn child, Trish is paid the NBU and the higher NBS rate.

Child entrusted to care of non-parent

Billy was born on 13 March 2023. Billy's parent, Carol, claimed and was eligible for FTB Part A for Billy. As Billy was Carol's second newborn child, NBU and the lower NBS rate for Billy was paid for the full 91 days from Billy's date of birth.

Billy is entrusted to the long term care of grandparents, Bob and Joan, from 15 August 2023. Bob and Joan have also been caring for their grandchild Clare from the age of 6 months. Clare is now 2 years old.

Joan claims FTB on 20 August 2023. Joan is eligible for FTB Part A for Billy and is paid the NBU and the lower NBS rate for the full 91 days from the date Billy was entrusted to Joan's care. The lower NBS rate is paid because Billy is the second child under 1 year of age entrusted to their care (Clare was 6 months old when entrusted to their care).

Adopted child

As part of an adoption process, Sam is entrusted to the care of Jim and Alice on 19 April 2023. Sam is 3 years old. Jim and Alice are currently receiving FTB for their child Anna.

Alice claims and is eligible for FTB Part A for Sam. Alice is paid the NBU and the higher NBS rate for Sam. The higher rate is paid because Sam is the first child Jim and Alice have adopted.

For further information (including examples) on adopted children, see the Resources page of Claiming payments for children entrusted to care as part of the process of adoption or a surrogacy arrangement.

Twins born

Mary gives birth to twins, Harry and Marcie, on 4 April 2024. Mary and partner Rick have 2 other children aged 3 and 5.

Mary claims and is eligible for FTB Part A for Harry and Marcie and is paid the NBU and the higher NBS rate for each child. The higher rate is paid for each child because they were born as part of a multiple birth.

Two children entrusted to care of non-parents at the same time, plus another child entrusted to care at a later date

Ben was born on 13 March 2024. Sally was born on 20 April 2024.

On 15 August 2024, both children are entrusted to the care in the same process to foster carers, David and Judith.

Judith claims FTB on 20 August 2024. Judith is eligible for FTB Part A and is paid the NBU and the higher NBS rate for the full 91 days for each child from the date they were entrusted to Judith's long term care. The higher NBS rate is paid because Ben and Sally were entrusted to care as part of the same process.

Judith also cares for another child, James. James has been entrusted to Judith's long term care from birth (on 1 November 2024). When Judith’s FTB Part A is reassessed, NBU and the lower NBS rate are paid for James as Judith has previously had a child aged under 1 entrusted to Judith's care (Ben and Sally).

Second newborn child - first newborn not eligible for NBS/NBU

Alannah gave birth to Toby on 7 March 2023. After Toby's birth, Alannah received Paid Parental Leave (PPL) and was not entitled to NBS or NBU. One year later, Alannah gave birth to her second child Seth. As Alannah has not met the PPL work test, she is not entitled to PPL for Seth.

As Seth is Alannah's second newborn child, Alannah is paid NBU and the lower NBS rate.

Example 1

Sarah's child is born on 1 April 2022 and Sarah is eligible for FTB Part A from 1 April to 30 June 2022. Sarah's NBU/NBS eligibility date is 1 April 2022.

In July 2023, Sarah is assessed as FTB potential non-lodger for the 2021/22 financial year. As Sarah received NBU/NBS, the NBS paid in that financial year will be included in the non-lodger debt. The NBU is raised as a separate qualification debt in July 2023 due to being assessed as a potential non-lodger.

If Sarah’s actual income details are later received, reconciliation will occur, and the reconciliation result will replace the non-lodger debt including the NBU debt.

Example 2

Sarah's child is born on 1 April 2022 and Sarah is not eligible for FTB Part A for the 2021/22 financial year.

Sarah becomes eligible for FTB Part A from 1 July 2022 and lodges a claim and is eligible for FTB Part A. Sarah is also eligible for the NBU and the full 13 weeks of NBS from 1 July 2022.

In July 2024, Sarah is assessed as FTB potential non-lodger for the 2022/23 financial year. As Sarah received NBU/NBS in the 2022/23 financial year, the NBS paid in that financial year will be included in the non-lodger debt. The NBU is raised as a separate qualification debt in July 2024 due to being assessed as a potential non-lodger.

If Sarah’s actual income details are later received, reconciliation will occur, and the reconciliation result will replace the non-lodger debt including the NBU debt.