Eligibility for Family Tax Benefit (FTB) for grandparent carers 007-07040110

This document explains the eligibility criteria for grandparent carers to receive Family Tax Benefit (FTB). There are general eligibility criteria for FTB, and separate eligibility criteria and income tests that apply for the various FTB components that can be paid depending on the grandparent’s circumstances.

Grandparents and Family Tax Benefit (FTB)

Family Tax Benefit (FTB) is not payable to grandparents who are caring for a child in a child care capacity, for example child attending child care (either child care centre/family day care or care by a relative/friend) or staying overnight with a grandparent, other relative or family friend. If the customer is the grandparent, other relative, or non-parent carer of the child, a determination should be made whether the care is a change in care or child care while the parents are working, studying or away.

A determination should be made whether the care is a change in care (either formal or informal) or not. If a decision cannot be made based on the information supplied by the customer then evidence may be required to make the determination. For informal changes in care, evidence of the care arrangements will be required.

Grandparents and non-parent carers will not generally be eligible for family assistance if the parent of the child also lives in the same household. This is unless the grandparent or non-parent carer:

has legal responsibility of the child, either through:

a court order, or
a formal foster care arrangement

where the child is placed into the care of the grandparent

If the customer is a non-parent carer but not a grandparent (example, other relative or foster carer), see Eligibility for Family Tax Benefit (FTB) for a child in foster care.

Eligibility for FTB Part B for grandparent carers

From 1 July 2016, if a grandparent carer of an FTB child meets the general eligibility criteria for FTB and satisfies the income test for FTB Part B, they continue to be entitled to payment of FTB Part B up to the end of the calendar year the child turns 18 years of age (if in full-time secondary study). This recognises the important role grandparents play by taking on the parenting role when parents are unable to care for their children.

Grandparent carers

For FTB Part B purposes, a grandparent of a child is the:

natural, adoptive or step-grandparent of the child
natural, adoptive or step-great-grandparent of the child, or
parent or grandparent of a relationship parent of the child

Grandparent also includes the current or former partner of a natural, adoptive or relationship grandparent or great-grandparent (it does not include former partners of step-grandparents and step-great-grandparents).

In order to work out who is a grandparent of a child, a determination of who is the parent of the child must first be made.

A parent is the natural, adoptive, step or relationship parent of a child.

A relationship parent is a person who is legally responsible for a child born as a result of artificial conception procedures or born under a surrogacy arrangement.

A step-parent is a person who is not a natural, adoptive or relationship parent, but is the partner or former partner of a natural, adoptive or relationship parent.

Note: the assessment will only look at the customer/child relationship, it will not take into account the partner/child relationship. For examples of eligible grandparent carers see the Resources page of Additional Child Care Subsidy (ACCS) (grandparent) eligibility and applications.

Verification of care arrangements (including care arrangements for grandparents)

If a grandparent or non-parent carer contacts to advise they have gained care of a child and the following conditions are met:

the losing carer is the parent of the child, and
there are no Court Orders or Child Protection orders in place for the care of the child

Request further information, including the following questions to help make a change of care decision:

What is the reason for the change of care?
Is the child going into the care of a grandparent or non-parent care? If so, do they live in the same residence as the parent?
What involvement will the parent continue to have with their child/ren whilst in the grandparent or non-parent's care?
Is the reason for the change of care due to work-related reasons and/or study?
Who will be providing financially for the child whilst in the grandparent or non-parent's care?
Is the child listed on your Medicare card?
Who will be making the major decisions for the child regarding health, education and discipline?

Details of your child's care arrangements (FA012)

If the grandparent carer is providing a co-signed FA012, or the parent has advised verbally of the change in care, 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.

Note: if additional evidence is not provided, the claim should be rejected.

Any evidence relevant to the decision must be documented and scanned to the record. For grandparent carers, see also Additional Child Care Subsidy (ACCS) (grandparent).

Note: if the Service Officer requires assistance in determining eligibility where there has been a change of care of a child from the parent to the grandparent carer, get help from Local Peer Support (LPS) or a Service Support Officer (SSO) using standard escalation protocols.

Grandparent, Foster and Kinship Carer Advisers

Non parent carers who have taken on parental responsibilities for a child may benefit from the services of a Grandparent, Foster and Kinship Carer Adviser.

The Resources page has links to:

the intranet
Services Australia website for online estimators
information about Grandparent, Foster and Kinship Carer Advisers and information for families

It also contains examples of when additional evidence is required to support a change in care.