Study requirements for Family Tax Benefit (FTB) children aged 16 years or over 007-07040060

State/Territory

Description

ACT

Australian Capital Territory

NSW

New South Wales

NT

Northern Territory

QLD

Queensland

SA

South Australia

TAS

Tasmania

VIC

Victoria

WA

Western Australia

Item

Description

1

Temporary exemption

Peter is 17 years old and has not completed the year 12 qualification, but is studying full-time in an approved Vocational course at a registered training organisation.

Peter is involved in a motor vehicle accident. As a result of this injury, Peter is incapacitated and has a medical certificate from the doctor advising that Peter will not be able to resume studies for 6 months.

Peter is granted a temporary MEDical exemption from the Family Tax Benefit (FTB) study requirements for 6 months. Peter's circumstances will be reviewed at the end of the 6 month exemption period.

2

Permanent exemption

Mary's child, Judy, has a severe permanent intellectual disability that means Judy does not have the capacity to undertake any form of study. Judy is about to turn 16 years of age.

Judy is granted a permanent DISability exemption from the education/study requirements.

Note: the customer should be invited to lodge a child Disability Support Pension claim.

3

Start date of study

Example 1

Sara is aged 16, and is a current Family Tax Benefit (FTB) child. Sara is currently studying year 10 and on 16 October 2015, enrols for Certificate II studies starting in February 2016.

Sara would continue to meet FTB activity test requirements up to the end of the calendar year in which the Certificate II course ends (or 28 days after the course end date if it ends before November).

Example 2

Jane is aged 18, and is not a current FTB child. Jane decides to return to school to obtain a year 12 equivalent qualification and on 16 October 2015, enrols in a Certificate II course which starts in February 2016.

Jane's parents lodge an FTB claim for Jane in November using the enrolment date of 16 October 2015 with a February 2016 start date.

As Jane was not a current FTB child, the enrolment date is not enough to meet the FTB Activity Test. Jane will meet the FTB activity test requirements from February 2016 when the Certificate II course starts, unless there is evidence to state otherwise.

4

Continuing study

Billy is currently in year 10 at Blue State High School, and in the next school period will start year 11 at Pink High College.

Billy is considered a continuing student so the start date for Pink High College should be the day after Billy ends at Blue State High School (end date +1). This will ensure FTB eligibility correctly continues for the customer.

Note: if a child is enrolled in a course, FTB eligibility continues through holiday periods (Christmas, Easter, mid-semester, etc.).

5

FTB child has completed equivalent qualification and then decides to complete Year 12

Emily is 17 and has completed an equivalent qualification, Emily completed a Certificate II.

Emily then decides to complete Year 12.

As Emily has already obtained an equivalent qualification to Year 12, Emily cannot be considered to be in full-time secondary study, and FTB cannot be paid for her.

6

FTB child aged 16 years or over passes away

Ben's son, Joshua, passes away on 26 October 2015 at age 18 years.

Ben was receiving the maximum rate of FTB Part A and also receiving FTB Part B for Joshua at the time of death.

Joshua's course end date is 14 December 2015.

Ben will continue to receive the maximum rate of FTB Part A and Part B from 26 October until 31 December and then FTB will cease.

Item

Description

1

Question: Do the study requirements apply to regular care children?

Answer: Yes. For a customer to continue receiving ancillary benefits, the child must satisfy the study requirements.

2

Do the study requirements apply to shared care arrangements?

Answer: Yes.

3

What is a school-based apprenticeship?

Answer: A school-based apprenticeship or traineeship allows the student to gain a vocational/technical qualification while completing secondary studies.

The child is considered a secondary student, so the school details must be recorded. (The secondary school organises and coordinates the vocational/technical training and regards the child's school enrolment as full-time.)

Part-time: If the child is a part-time secondary student and enrolled part-time in vocation/technical training, they do not satisfy the FTB study requirements, because there is no umbrella institution.

4

What happens if the child does not satisfy the study requirements?

Answer:

For new Family Tax Benefit (FTB) claimants

FTB for the child will not be granted. The letter sent to the customer advising the claim outcome will include advice that the child may contact Services Australia to register as a jobseeker.

For current customers (including add child)

If the 16-19 year old is not currently studying full-time toward year 12 or equivalent qualification and does not have a valid reason that would justify granting an exemption or adjusted study load, then the child is not an FTB eligible child.

If details are being updated with a Service Officer and FTB is cancelled, a warm transfer to Employment Services should be offered if the child is available and wants to register as a jobseeker. If the child is not available they will need to recontact when convenient.

See Registering a customer as a job seeker and Initial contact with students or Australian Apprentices claiming Youth Allowance (YA) for more information.

A customer can re-claim FTB for the child once the child satisfies the study requirements.

5

Does the customer need to provide evidence of study enrolment?

Answer: This is a discretionary decision. The customer is not required to provide evidence of enrolment for FTB purposes. However, the Secretary may request evidence if they feel there is sufficient grounds to do so.

6

Can customer apply for a formal review of decision?

Answer: Yes. If the customer applies for a formal review of a decision, run the Internal Review/Explanation script to record the details.

Study requirements review

If a customer can provide evidence that the child has met study requirements during a cancellation period they can apply for a formal review, which is to be recorded using the reason code 'PET' (FTB child stops to meet study requirements) with the date of effect no earlier than 1 January 2010.

7

Will the child's circumstances be reviewed?

Answer: Yes. See Family Tax Benefit (FTB) for children aged 16-19 years.