Family Tax Benefit (FTB) and child support for children born as a result of a surrogacy arrangement or via artificial conception procedure (including children of same-sex couples) 277-51070040

Has the customer provided a court order recognising the Surrogacy Arrangement and transferring parentage to the parent(s) under Section 60HB of the Family Law Act?

• Yes, go to Step 4
• No, go to Step 2

If there is doubt over whether the court order is recognised under Section 60HB of the Family Law Act, refer cases to the Families and Childcare Level 2 helpdesk via the Online Query Form. Referrals must include Customer Reference Numbers (CRN) of the customer and child as well as the court order. Procedure ends here.

Where parentage has not been transferred by a court order under a prescribed State/Territory law to the parent(s) of a child born under a surrogacy arrangement (that is, no court order is recognised under Section 60HB of the Family Law Act):

• the parents are exempt from the Maintenance Action Test (MAT) because it would be unreasonable for them to obtain child support from the surrogate. An in-vitro fertilisation (IVF) exemption should be applied
• where only 1 parent is named on the Birth Certificate, that is, 1 parent is named and the other is recorded as 'surrogate', the IVF exemption should also be applied
• if an individual had a partner at the time they first claimed FTB for a child born under a surrogacy arrangement and the individual's relationship with the partner ends, the individual is not required to obtain child support from the partner. This is because, under child support legislation, child support can only be sought from a legal parent of the child and neither the individual nor their former partner is the child's legal parent without a recognised court order

Note: an exemption from obtaining child support for a child who has entered the care of a single person via a surrogacy arrangement can be assessed by a Service Officer.

Where the court order is not recognised under section 60HB of the Family Law Act, place the child in a non-biological group and update the child's MAT code to exempt the child:

From the Maintenance Entitlement Group Summary (MNGS) screen

• code 'Y' in Create new group field
• enter 'ENB' in the Group type: field
• enter Source: and DOR: fields and press [Enter]
• move the child/ren into the new group by coding 'M' next to the child/ren and 'M' next to the new group (if required, scroll to the next page to see the new group)
• press [Enter]

After placing the child in the non-biological group, update the child's MAT code to exempt the child:

• on the Maintenance Entitlement Group Summary (MNGS) screen, 'S'elect the relevant child/ren, complete Source: field and DOR: fields, and press [Enter]
• on the Maint Child Details Summary (MNCD) screen, 'S'elect the Maintenance Action: field and press [Enter]
• on the Maintenance Action Result (MNMR) screen, code 'Y' in the Go to Maintenance Input: field and press [Enter]
• on the Maintenance Action Input (MNMA) screen, code the date the exemption was granted in the Event Date: field and 'IVF' in the Maintenance Action Input: field
• record details on a DOC, including why MAT code IVF was used
• check the results of the activity are correct before finalising on the Assessment Results (AR) screen
• record details on a DOC and finalise activity on AR

Procedure ends here.

Section 60HB of the Family Law Act states that if a court has made an order under a prescribed law of a state or territory to the effect that:

• a child is the child of 1 or more persons, or
• each of 1 or more persons is a parent of a child

Then, for the purposes of that Act, the child is the child of each of those persons.

For the purposes of the Maintenance Action Test (MAT), the parent/s of a child born under a surrogacy arrangement are recognised where parentage has been transferred by a court order under a prescribed State/Territory law.

Member of a couple

The parent(s) of the child are those people listed in the court order, for example, the customer and their partner.

In the circumstance where the parents (as listed in the court order) separate they are not exempt from the MAT (as distinct from surrogacy cases not recognised under the Family Law Act outlined above). As a result, the FTB customer is required to take reasonable action to obtain child support from the child's other parent. See Maintenance Action Test (MAT) for Family Tax Benefit (FTB) customers.

Single customer

Where a child has entered the care of a single person via a surrogacy arrangement and that individual is listed in the court order as the sole parent of the child, the in-vitro fertilisation (IVF) MAT exemption should be applied. This is because in this circumstance there is no other legal parent of the child.

• If the child is a child of a previous relationship or the customer was single (or the partner did not consent) at the time of conception, go to Step 2
• If the child is of the current relationship, go to Step 3
• If the customer is in a current same-sex relationship that commenced prior to 1 July 2009, go to Step 4

Where the customer indicates that the child was conceived via an ACP and advises that:

• the child is not of their current relationship, or
• they were single at the time of conception (or the partner did not consent),

A Service Officer can generally determine if the customer needs to obtain child support to satisfy the Maintenance Action Test (MAT).

Some cases may need to be referred to a Social Worker for assessment of a MAT exemption (other than 'parentage unknown'). For example, customer at risk of violence or a harmful or disruptive effect may occur if Child Support investigations were to commence (such as attempting to contact the sperm donor). Consider the following scenarios in determining whether the customer is required to meet the requirements of the MAT for the child, or whether a parentage unknown exemption is appropriate:

Where the ACP was:

• administered through a medical clinic or medical professional (mother was a member of a couple at the time the child was conceived and the partner consented to the procedure). See Scenario 1 in the Applying the MAT in ACP cases table on the Resources page. For these cases, refer the customer to Child Support to apply for an assessment. The child should be included in an entitlement group. Procedure ends here
• administered through a medical clinic or medical professional (mother was single at the time the child was conceived or the partner did not consent to the procedure). See Scenario 2 in the Applying the MAT in ACP cases table on the Resources page. If there is:
• no other parent named on the birth certificate, see Step 2 in the Assess evidence and code - children conceived via ACP table
• another parent named on the birth certificate the customer should be referred to Child Support for a decision on who the parent is for child support purposes. If Child Support determines the donor is:
• not a parent for their purposes (that is, reject the application), the mother will not be required to obtain child support, see Step 5 in the Assess evidence and code - children conceived via ACP table
• a parent for child support purposes the customer must obtain child support to meet the MAT requirements. The child should be included in an entitlement group. Procedure ends here
• Self-administered - anonymous donor (mother was single or partner did not consent). See Scenario 3 in the Applying the MAT in ACP cases table on the Resources page. Customer may apply for an exemption from obtaining child support due to parentage unknown. Procedure ends here
• Self-administered - known donor (mother was single or partner did not consent). See Scenario 4 in the Applying the MAT in ACP cases table on the Resources page. The parent should be referred to Child Support for a decision on whether the donor is a parent for child support purposes. If Child Support determines the donor:
• is not a parent for their purposes (that is, reject the application), the mother will not be required to obtain child support to meet the MAT, see Step 5 in the Assess evidence and code - children conceived via ACP table
• is a parent for child support purposes, the customer must obtain child support in order to meet the MAT. The child should be included in an entitlement group. Procedure ends here
• Self-administered - known or anonymous donor (mother was a member of a couple at the time the child was conceived and the partner consented to the procedure). See Scenario 5 in the Applying the MAT in ACP cases table on the Resources page. For these cases, refer the customer to Child Support to apply for an assessment. The child should be included in an entitlement group. Procedure ends here

Where the child is of the current relationship and the partner consented to the ACP, the child should be placed in a current relationship group.

The child is placed in a current relationship group because the partner consented to the ACP and is therefore considered to be the other parent of the child. If they later separate, either parent is entitled to lodge an application for child support.

If:

• a current IVF exemption is recorded, the exemption may no longer apply. If the child is a child of the current relationship, action to obtain child support is not applicable. Go to Step 5
• no IVF exemption is recorded, the FTB customer or their partner may be required to take reasonable action to obtain child support, depending on the family circumstances of the child from the same-sex relationship. See Step 1 In the Assess evidence and code - children conceived via ACP table

• On to the Maintenance Entitlement Group Summary (MNGS) screen, code 'Y' in Create New Group?: field, 'ENT' in Group Type: field, complete Source: field and DOR: fields, and press [Enter]
• Code 'M' next to the child/ren of the previous same-sex relationship and 'M' in next to the Active Group: field. Press [Enter]. The child/ren should now display in the newly created active group
• 'S'elect the relevant child/ren and press [Enter]
• On the Maintenance Child Details Summary (MNCD) screen 'S'elect the Maintenance Action: field line and press [Enter]
• Note any Event Dates on the Maintenance Action Result (MNMR) screen
• Code 'Y' in the Go to Maintenance Input: field and press [Enter]
• On the Maintenance Action Input (MNMA) screen, code the Event Dates previously noted and 'MWP' in the Maintenance Action Input: field, then press [Enter]. Repeat for all Event Dates previously noted
• Code new lines with the following Event Dates:
• 1 July 2009 and recode 'MWP', press [Enter]
• date of receipt and code 'APP', press [Enter]

Go to Step 6.

• Go to the Assessment Results (AR) screen
• Check the results. There should not be any MAT related debts or arrears for the exemption period. However, there may be a MAT related debt if the customer is contacting after 30 September 2009 as their DMA (deciding maintenance action for a stage 2 child) period will have expired and they are required to have taken reasonable steps to obtain child support
• Record details on a DOC, including why the MAT code MWP was used
• Finalise the activity on the AR screen

If there is a risk of violence or other unusual circumstances that may warrant an exemption from obtaining child support, refer customer to a social worker.

Was the artificial conception procedure either:

• through a medical clinic or medical professional and:
• the mother was single at the time of conception or
• the partner did not consent to the procedure?

or,

• self-administered and:
• the donor was known to the mother, and
• the mother was single at the time of conception (or the partner did not consent to the procedure), and
• Child Support have determined the donor is not a parent for child support purposes?
• Yes, Go to Step 2
• No, the customer is required to take maintenance action. Ensure the child is in an entitlement (ENT) group. See How to group children on a customer's Family Tax Benefit record. Go to Step 6

If the customer can provide the evidence required to support their application for an exemption from obtaining child support, they will meet the requirements of the Maintenance Action Test (MAT).

If the child's birth certificate has already been received and another parent is listed and Child Support:

• have not made a determination about whether the person on the birth certificate is a parent, go to Step 3
• have made a determination that the other parent:
• is not a parent for Child Support purposes, go to Step 5
• is a parent for Child Support purposes, go to Step 6

If no other parent is listed on the birth certificate and:

• the ACP was performed by a medical clinic or medical professional, has the customer provided a receipt or document from the medical clinic or medical professional confirming the artificial conception procedure?
• Yes, Service Officer to code an exemption from seeking child support, go to Step 5
• No, go to Step 3
  
  Note: if the customer was partnered at the time of conception, documentation must also confirm that the partner did not consent to the procedure before an exemption can be applied. If advice is required in a case of this kind, consult the National Families and Child Care Level 2 Policy Help Desk via the online enquiry form. See the Resources page for a link to the online referral form

OR

No other parent is listed on the birth certificate and:

• the ACP is self-administered and the donor is known, has Child Support confirmed that the donor is not a parent for child support purposes, that is, the customer is the only legal parent?
• Yes, Service Officer to code an exemption from seeking child support, go to Step 5
• No, go to Step 3

OR

No other parent is listed on the birth certificate and:

• the ACP was self-administered and the donor was anonymous, has the donor anonymity been substantiated? (Supporting evidence could include: documents from a third party organisation confirming they facilitated the anonymous transfer of donor material.)
• Yes, where it is substantiated that the donor was anonymous, an exemption from seeking child support on the basis of 'parent unknown' is appropriate. Procedure ends here
• No, go to Step 3

If the customer states they can provide the required evidence confirming either:

• the procedure was performed by a medical clinic or medical professional, and no other parent is listed on the birth certificate, and it is confirmed that their partner did not consent to the procedure (where the customer had a partner when the child was conceived).
  Note: if advice is required in a case of this kind, consult the National Families and Child Care Level 2 Policy Help Desk via the online enquiry form. See the Resources page for a link to the online referral form
• the procedure was self-administered ACP and the donor was anonymous, and no other parent is listed on the birth certificate. For example documents from a third party organisation confirm they facilitated the anonymous transfer of donor material, or
• the procedure was self-administered ACP and the donor was known and Child Support has determined that the donor is not a parent for child support purposes

Ensure the child in is an entitlement group and update the record to reflect that an exemption from the MAT has been requested:

• On the MNGS screen, 'S'elect the relevant child and press [Enter]
• On the Maintenance Action Input (MNMA) screen and 'MXR' (Maintenance exemption requested) from today's date in the Maintenance Action Input: field, then press [Enter]. ('MXR' can only be coded once per child)
• Check the results of the activity are correct then finalise the activity on the Assessment Results (AR) screen
• Create a Fast Note - select Auto text, use Families > Update > 'Maintenance assessment - IVF' noting the exemption decision is 'pending'
• Advise the customer to provide the required evidence and encourage the customer to use Upload documents online
• In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: FTB
• Review Reason: OTH (Other)
• Due Date: 14 days from today's date
• Source: INT
• Date of Receipt: today's date
• Notes: 'Customer advised to provide evidence of conception via ACP. Check response and return to OB 277-51070040 to action.'
• Keywords: MATREV
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action

Note: although the customer has up to 60 days to provide evidence, it is expected the documents would generally be lodged within the first 14 days, therefore the review for 14 days is to check the record and action accordingly. The review must be coded.

When the review matures or the customer provides evidence, go to Step 4.

Evidence is not provided:

Close the review without further action. If evidence is not provided within 60 days, the maintenance action code will automatically update to NMA (no maintenance action). The rate of FTB Part A for the child will reduce to the base rate (unless at the end of the 60 days the child is still within a Deciding Maintenance Action (DMA) period, in which case the remainder of the DMA period will continue to apply). End of process

Evidence is provided or evidence provided at a later date:

Does the evidence confirm?

• no other parent is listed on the birth certificate, and
• that their partner did not consent to the procedure (if applicable) and:
• the procedure was through a medical clinic or medical professional
• that the procedure was self-administered, donor known, and the donor is not a parent for child support purposes, or
• that the procedure was self-administered, donor unknown, and documents from a third party organisation confirm they facilitated the anonymous transfer of donor material?
• Yes, annotate the DOC to confirm that the evidence was received and the customer is not required to obtain child support. Go to Step 5
• No, go to Step 6

As the customer is not required to obtain child support, move the child to an ENB group. See How to group children on a customer's Family Tax Benefit record.

Note: moving the child to an ENB group will result in the MAT code 'OCX' (other carer exemption) backdating to the later of the child’s DOB or the date the child entered care.

IVF to be coded - customer not required to obtain child support

Once the determination has been made that the customer is not required to obtain child support, 'IVF' (non-biological parent) is the appropriate MAT code.

• On the Maintenance Entitlement Group Summary (MNGS) screen 'S'elect the relevant child/ren and complete Source: and DOR: fields, then press [Enter]
• On the Maint Child Details Summary (MNCD) screen 'S'elect the Maintenance Action: field and press [Enter]
• On the Maintenance Action Result (MNMR) screen code 'Y' in the Go to Maintenance Input: field and press [Enter]
• On the Maintenance Action Input (MNMA) screen code the relevant date in the Event Date: field. The maintenance action assessment can be backdated to 1 July of the previous financial year or the child's date of birth, whichever is the later. 'IVF' should be coded in the Maintenance Action Input: field
• Create a Fast Note - select Auto text, use Families > Update > 'Maintenance assessment - IVF'
• Check the results of the activity are correct before finalising on the Assessment Results (AR) screen.

For decisions about Family Tax Benefit (FTB) arrears, the date of effect can be no earlier than 1 July of the financial year prior to the financial year in which the favourable determination is made. See Payment of arrears after reassessment and stopping a payment.

Any FTB arrears which require adjusting/zeroing within a period of reconciliation and/or re-reconciliation must be referred to MIV for FRMA coding. See Reconciliation of Family Tax Benefit (FTB).

Procedure ends here.

Where it is determined the customer must obtain child support to meet the requirements of the MAT (as evidence did not support the application):

• If the customer is available, refer the customer to Child Support to make an application for an assessment. See Step 4 in Applications for child support assessment through Centrelink for more information. Procedure ends here
• If the customer is not available, issue a Q999 to advise the customer the request has been denied. See the Resources page for approved Q999 text. The letter and the following coding must be completed on the same day:
• On the Maintenance Entitlement Group Summary (MNGS) screen 'S'elect the relevant child/ren and complete Source: field and DOR: fields and press [Enter]
• Ensure the child is in an entitlement (ENT) group
• On the Maint Child Details Summary (MNCD) screen 'S'elect the Maintenance Action: field and press [Enter]
• On the Maintenance Action Result (MNMR) screen code 'Y' in the Go to Maintenance Input: field and press [Enter]
• On the Maintenance Action Input (MNMA) screen code the date the customer is advised in the Event Date: field and the appropriate maintenance action code MXD (maintenance exemption request denied) in the Maintenance Action Input: field
• Record details using the relevant Fast Note including why the request has been denied (or annotate the DOC from the first contact)
• Check the results of the activity are correct before finalising on the Assessments Results (AR) screen