Assessing independence when a customer has, or has had, a dependent child 001-04060030

This document outlines how a Disability Support Pension (DSP) or Youth Allowance (YA) customer may be considered independent if they have, or have had, a dependent child. This determines the correct rate of payment to be paid.

Verification of dependent child

A customer is considered independent if they have, or at some time have had, a natural, legally adopted or relationship child and the child is/was wholly or substantially dependent on the customer or the customer's partner.

Verification of parenthood or adoption is not sufficient in its own right to grant independence under this criteria. The customer must also demonstrate that the child has been wholly or substantially dependent on the customer or the customer's partner.

For the purpose of establishing independence, a natural child also includes a:

child who was adopted out
child that died immediately after birth, or
stillborn child for whom Newborn Supplement (NBS), Newborn Upfront Payment (NBU), Stillborn Baby Payment (SBP) or Parental Leave Pay (PPL) was paid, in which case a death certificate is sufficient evidence.

Customers will be required to provide evidence of the child's birth or adoption in the form of a birth certificate, adoption papers or a previous Family Tax Benefit (FTB) record. Note: a person may have received FTB payments for a child who was temporarily in their care, this does not make them automatically independent.

For the purposes of establishing independence for YA, a step parent is excluded from gaining independence due to having/have had a dependent child, unless they adopt the child. The Resources page contains examples.

Automatic assessments of independence

Certain YA customers, under 22 years of age, may have their independence automatically assessed within their online claim.

Where information already available recorded on the customer's file indicates the customer is independent due to having, or having had a dependent child in their care, the appropriate coding will be pre-populated when processing their claim.

In these situations, the customer is not required to supply further information and the Parental Income Details (MOD JY) will not be requested at the Next Steps page.

Parental Means Test

If a YA customer is considered independent, they are not subject to the Parental Means Tests.

Disadvantaged independent students

Some independent students, who are disadvantaged by personal circumstances, may also be qualified to receive Relocation Scholarship (RS). The Relocation Scholarship (RS) eligibility procedure explains additional coding requirements for independent students, who are disadvantaged by personal circumstances to pay Relocation Scholarship correctly.

Unfavourable decision

When making an unfavourable decision, speak to the customer:

explain the decision
give them a chance to provide more information, and
advise their review and appeal rights

The Resources page contains an example and links to forms.