Eligibility for Family Tax Benefit (FTB) for a child in foster care 007-07040040

If the foster carer makes a claim for FTB, the primary decision that must be made is whether the child is an FTB child.

To make this decision, it must be determined who has legal responsibility for the child and who has actual care of the child.

In the absence of any court orders in respect of a child, a parent generally has legal responsibility for the child.

If a court order exists, verification of who has legal responsibility may be obtained by contacting the relevant welfare authority.

Evidence of a change of care can include:

• court orders
• documentation from state welfare authorities
• documentation from recognised foster agencies
• for informal care, confirmation of the arrangements from the child's natural/adoptive parent(s) or previous carer requires evidence to support the change in care

Where the child is not known to Services Australia that is there is no child record, then additional proof of birth documents are also required.

If the child is away from the care of the person who has legal responsibility for the child for less than 4 weeks, this can be considered a temporary change of care, and the original carer can continue to be eligible for FTB. For example, a state agency facilitates the placement of a child but does not gain legal responsibility it is considered informal care. This occurs as parents are assisted to have respite or place their child in short-term care, and may include placements in the care of grandparents or relatives. This does not include legally authorised changes in care where a state authority has placed the child with a foster carer or other carer for short periods of time.

If the child is not to return to the care of the original carer, then a change of care could have occurred. If the foster care is informal, that is if a relative or friend assumes care of a child in a private arrangement, care should be taken to identify cases where the young person may be living with someone who is not a relative, or is at risk of harm.

For informal changes in care, evidence must be provided by the customer to support the change of care.

If the grandparent, other relative or non-parent carer is providing a co-signed FA012 for an informal change of care or the losing carer advised verbally, evidence must be provided before a claim can be assessed. The Service Officer needs to be satisfied the evidence provided is sufficient to make a determination before granting FTB. See the Resources page for examples.

Formal care is where the change of care is legally authorised and involves a change in legal responsibility (whether day-to-day and/or long term). It needs to be supported by documentation from a state/territory child welfare authority or a court from another jurisdiction (for example, family law court from the federal jurisdiction). These documents from the state authority or the court order will determine who has the legal right to care for the child.

In formal care situations, FTB is payable to the new carer from the date the child enters foster care, for the relevant dates provided in the supporting documentation. If the child moves from 1 formal carer to another (for example, another foster carer), the FTB will follow the child and be paid to the new carer from that point in time.

Formal foster carers completing an online claim for Family Tax Benefit (FTB) are required to provide the previous carer’s details within the claim. New formal foster carers who do not know the previous carer’s details can insert these responses:

• Previous carers given name, key Child
• Previous carers middle name, leave blank
• Previous carers surname, key Protection
• Previous carers contact address, key their own address
• What are the previous carers contact number, key their own contact number

Encourage formal foster carers to provide a letter from the foster child’s case worker as evidence to support the change in care and avoid processing delays.

Note: only provide this information to customers caring for a child under formal foster care arrangements.

Substantial delays can occur in claim processing for informal foster carers who do not provide details of the previous carer.

If there is a disagreement over care arrangements between the foster carer and the previous carer, a determination has to be made as to who is qualified for FTB. In reaching a decision, consideration must be given to all the circumstances of each case, and particular to the following points:

• legal responsibility for the child
• care of the child and the duration of care
• shared care
• contrived arrangements, and
• child at risk of harm

Appropriately skilled staff within the Child Support Smart Centre Division manage all disagreed care cases. The Resources page contains examples of foster care and eligibility for FTB.

A foster care claimant may also be eligible for a Health Care Card (HCC) for a foster child if they are not eligible for an auto HCC through their entitlement to FTB.

Parental Leave Pay (PPL) is not payable for a formal foster care arrangement.

PPL may be payable in an informal foster care relationship where exceptional circumstances exist or where the child becomes entrusted to the customer's care as part of the process of adoption.