Approved Care Organisations (ACO) 007-01060000

Subject to its approval by the ACO Smart Centre Processing Manager or delegate at the APS6 level a charitable or religious institution or an organisation is eligible to receive Family Tax Benefit (FTB) for any or all children who are living in that ACO provided no individual is eligible to be paid for that child.

A charitable institution or organisation maintained by the Commonwealth or a State or the Northern Territory may be approved.

A psychiatric hospital maintained by, or mainly dependent on, financial assistance from the Commonwealth or a State or the Northern Territory may not be approved.

In addition to FTB Part A, an ACO may receive Energy Supplement Part A and payment of DOP where applicable for children in the care of the ACO.

To attract FTB, a child in an ACO must be an Australian resident.

An ACO may decide whether or not to claim FTB or DOP for a child. Generally, most organisations/ institutions will claim FTB for all resident children, but some may not wish to claim for short term placements or for children who board at the ACO during the week and return home at weekends.

Where appropriate, priority should be given to paying FTB to the parents of the child.

If a parent or guardian does not claim FTB for a particular child, the ACO may claim. Similarly, an ACO may claim DOP if the guardian does not wish to do so. The guardian may not however, claim DOP only.

An ACO is not eligible to receive payment of CA, advances of FTB or bereavement payments.

FTB or DOP is not payable to an ACO for a child who is receiving a pension, benefit or allowance in his or her own right.

An ACO cannot be issued a HCC for a foster child in their care.

However, a Low Income Health Care Card (LIC) may be granted to the child where FTB for the child is not being paid to an individual. Because ACOs are not individual persons, a child in an ACO can obtain a low income HCC where the ACO receives FTB for the child, or FTB is not paid for the child, see Low Income Health Care Card (LIC).

The only exception to this is where a child residing in an ACO is an FTB child of a person but that person is not being paid FTB due to the application of the FTB income test. The child could not be granted a LIC in this case.