Family Tax Benefit (FTB) child of a person 007-07040050

Item

Example

1

Disqualifying payment

Allison claims Family Tax Benefit (FTB) for biological children, Simon (10), Alice (14) and Will (18). Allison is partnered.

Allison states that Simon and Alice are full time secondary students. Will is a full time student at a TAFE college studying towards Year 12 and is entitled to Youth Allowance (YA), although this is paid directly to Allison.

Will is not an FTB child as Allison receives YA for Will. Will is entitled to receive YA because of being over the age of 18 even though Will is living at home. A quick check reveals that Will's YA rate is higher than the FTB rate Allison would receive for Will (if the YA rate were lower, there is nothing preventing Will from stopping YA payments to be then treated as an FTB child).

2

Person caring for child in a group home

Mary is an employee at the Felicity Home for Children. Mary asks about eligibility for FTB for children Mary cares for in the group home.

In this case, because the group home is taken to be legally responsible for the day-to-day care, welfare and development of the child, Mary would not be entitled to FTB for the children living in the group home.

However, as the group home is an Approved Care Organisation, the group home may be eligible for FTB for the children.

3

Foster carer caring for child in home rented by state authority

A foster carer cannot accommodate any more children in their own home and the relevant state authority rents accommodation for the family in a larger house, that is, carer lives rent free in a house provided by them for as long as they continue as a foster carer. It is possible the foster carer would maintain their former residence.

The foster carer would not satisfy the following family assistance law in relation to care of the FTB child:

• the adult is legally responsible (whether alone or jointly with someone else) for the day-to-day care, welfare and development of the child
• a family law order or registered parenting plan is in force in relation to the child and under the order or plan, the adult is someone with whom the child is supposed to live or have contact, or
• the child is in the adult's care and the child is not in the care of anyone with the legal responsibility for the day-to-day care, welfare and development of the child

Rather, the carer would be looking after the children as an agent or employee of the body responsible for the children and provision of the home. It would be the body responsible for the children that has the legal responsibility for the child, via some form of order or administrative arrangement. It is of no consequence that various state laws distinguish between custody and guardianship orders.

The family assistance law draws on the Federal Family Law regime, which is based on notions of legal responsibility and does not distinguish between custody and guardianship.

4

Prescribed Education Scheme payments

Andrew lodges a claim for Family Tax Benefit (FTB) for sons Mark (15) and Josh (17). Both children are students and both receive ABSTUDY.

Prescribed Education Scheme payments, including ABSTUDY, are not disqualifying payments for FTB for children under 16 years of age. If eligibility conditions are satisfied for both payments, FTB and ABSTUDY can both be paid at the same time for a child under 16 years. This means that Andrew can receive FTB for Mark.

However, the payment options should be assessed for Josh.

Customers can use an Online estimator to help them work out the best payment option for them.

From 1 January 2020, the following is not considered a disqualifying payment for FTB for children over 16 years of age if Josh is:

• receiving a means tested ABSTUDY payment (Living Allowance or School Fees Allowance (Group 2))
• approved to live away from home to study, and
• boarding

If Josh is living at home to study, FTB cannot be paid because the Prescribed Education Scheme payment (means tested ABSTUDY payment), is considered a disqualifying payment for FTB for children over 16 years of age.

Prescribed Education Scheme payments include:

• the means tested components of ABSTUDY (that is, Living Allowance or the additional amount of Group 2 School Fees Allowance that is subject to the Parental Income Test)
• Veterans' Children Education Scheme
• Military Rehabilitation and Compensation Act payments made by the Department of Veterans' Affairs

5

Legal responsibility: Separated under section 24 of the Social Security Act 1991

Jane is partnered to Bob, but is assessed as being single under section 24 of the Social Security Act (1991) as Bob is not residentially qualified for any payments.

Jane currently receives Family Tax Benefit (FTB) for children Simon (10) and Alice (12) and has also claimed FTB for Bob's child Rose (6) from a previous relationship who is in Bob's care.

While Rose is residing with both Jane and Bob, Jane, who is being assessed as single under section 24 does not have any legal responsibility (biological, adoptive, court order or parenting plan) for Rose.

Bob is Rose's biological father and has legal responsibility for Rose. Accordingly Rose is not an FTB child of Jane. Therefore Jane's FTB claim for Rose is rejected.

6

Grandparents and non-parent carers - informal care arrangements

Kylie's children Imogen and Bailey are living with Kylie's sibling Cassie for at least the next 6 months while Kylie is in a rehabilitation centre. As there are no court orders or legal documents in place, this is an informal care arrangement. Although this is an informal arrangement, a change of care has occurred and Cassie will be eligible for family assistance.

Four months into the informal arrangement Kylie moves in with Cassie as Kylie has legal responsibility for the children. Kylie now has eligibility for family assistance and not Cassie.

7

Grandparents and non-parent carers - formal care arrangements

James and Matthew have been removed from their parent's care (Michelle) and placed into the care of Michelle's parent Rose (grandparent) by Child Services. This is considered a formal change in care and Rose now has care of James and Matthew. Rose is eligible for family assistance.

To support Michelle so that James and Matthew can see them, Rose allows Michelle to move in with them. As the change in care was formal and Rose has legal responsibility for the children, Rose will continue to be eligible for family assistance while living in the same house as Michelle.

8

FTB child has newborn child and claims FTB for this child

Deborah receives FTB for child Britney (18). Britney is in full-time secondary study and is expected to complete Year 12 in November 2022.

Britney gave birth to a newborn child (Matilda) on 5 March 2022 and lodged a claim for FTB for Matilda on 20 May 2022. Britney advised in the claim that Britney is not partnered and is residing at the same address as Deborah. Britney is not in receipt of a precluding/disqualifying payment (e.g. PPS) and has continued to be in full-time secondary study after the birth of Matilda.

Both Britney and Deborah are eligible for FTB.

Deborah can continue to receive FTB for Britney up until 31 December 2022 as Britney continues to be an FTB child, until completing full-time secondary study.

Britney is eligible for FTB from 5^th March 2022 for Matilda as Matilda is an FTB child of Britney.

Britney should be advised to claim Parenting Payment Single (PPS) in their own right. If Britney is granted PPS, Deborah’s FTB for Britney will cancel from date of grant. However if Britney is not granted PPS and remains an FTB child, Deborah can continue to receive FTB for Britney.