Customer advises a change to their level of care of a child 102-05050050

If 2 or more people share the care of a child, they may each be eligible for a percentage of Family Tax Benefit (FTB), Double Orphan Pension (DOP) and/or Carer Allowance (CA) in relation to the child. The level of actual care must be assessed to determine the customer's entitlement to these payments. In most cases a customer is eligible for Child Care Subsidy (CCS) if they:

• have physical care of the child 14% or more, and
• are liable for the child care fees

The level of actual care must also be assessed to determine the customer's entitlement to income support payments and ancillary benefits.

The Newborn Upfront Payment (NBU) and Newborn Supplement Payment (NBS) are not affected by the shared care percentage. Customers with at least 35% care of a child may be eligible for these payments if they receive FTB Part A.

Unlike FTB, Parental Leave Pay (PPL) cannot be paid based on a percentage of shared care. Generally for PPL, the customer needs to be the carer of the child.

Income Support customers who are not assessed as a principal carer may be eligible for a with child rate of payment.

The 'with child' rate of benefit is available to single customers in receipt of a social security benefit. The following payments have a higher rate of basic benefit available where a customer has a dependent child, including shared care of a dependent child:

• Austudy
• JobSeeker Payment (JSP)
• Special Benefit (SpB)
• Youth Allowance (YA)
• Farm Household Allowance (FHA)

A shared care assessment is appropriate where there is a pattern of care over a certain period (for example, the child stays with the other parent every second week, or on weekends or during school holidays). A shared care arrangement should not be confused with a change of care. A change of care occurs when the full caring responsibility for the child passes to another person.

In all cases, an attempt should be made to contact the other carer to confirm the care arrangements, even if they are not currently receiving payments for the child.

See Notification and assessment of shared care arrangements for Family Tax Benefit (FTB).

If a customer advises that a child has left their care for an indefinite period (there is no ongoing pattern of shared care), their payments may need to be stopped. Customers may remain entitled to payments for a child if the child is temporarily absent from the customer's care or if the child has been abducted or left the customer's care without their consent. A separate procedure explains how to assess continuing eligibility if a child leaves a customer's care.

In certain circumstances, PPL may still be payable when a child leaves a customer's care.

If a customer advises that a child has entered their care for an indefinite period (there is no ongoing pattern of shared care), they may be eligible for a payment. Customers may not be eligible for a payment if the child is only in their care temporarily. A separate procedure explains how to assess eligibility to a payment if a Child enters customer's care/custody.

Since 1 July 2010, a mutual customer for both family assistance payments and Child Support can notify either agency of changes to their care arrangements. Both agencies will use the same rules to make a care determination. The agency receiving the information will make the care determination and the care information will be automatically transferred to the other agency to assess family assistance and child support entitlements.

If the customer or other carer is also in receipt of an income support payment, for example, Parenting Payment (PP), a separate principal carer determination may also be required.

For children born or entering care before 1 July 2023, if the customer is receiving PPL, a primary carer determination may be needed.

For children born or entering care on or after 1 July 2023, a Primary carer determination will only be required where a customer claims PPL in exceptional circumstances.

If an FTB, DOP or CA customer's level of actual care of a child has changed as a result of a change in the pattern of care, details of the new shared care arrangement need to be obtained. A Details of your child's care arrangements (FA012) should be issued if the details have not already been provided, and the customer should provide any evidence they have of the care arrangements.

When a customer advises of a reduction in their actual care, this should be recorded immediately to avoid a risk of overpayment. A reduction in care may cause the cancellation of the income support payment. Where this occurs, the customer should be advised to claim an alternate payment and a claim contact should be recorded. An increase should only be recorded once details are confirmed with the other person caring for the child.

For PPL, it needs to be confirmed that the customer is still the primary carer of the child and/or that PPL is still payable. There are certain circumstances when these payments can continue to be payable when the child has left their care.

Except in cases of adoption or foster care, an attempt should be made to contact the other carer to confirm the care arrangements, even if they are not currently receiving payments for the child.

Separate procedures cover the assessment of shared care, depending on the payments the customer is claiming or receiving. Separate determinations may apply under family assistance law and social security law.

• If making a care determination for Family Tax Benefit (and social security payments) see Notification and assessment of shared care arrangements for Family Tax Benefit (FTB)
• If making a care determination for social security payments only see Shared care for social security payments

Family assistance

To qualify for FTB, DOP, NBS and NBU for a child, the child must be in the actual care of a person for at least 35% of the time. Customers who have actual care of a child for more than 65% of the time will be entitled to 100% of family assistance for that child.

Customers with a Regular Care Child are not eligible for FTB for the child but may be eligible for ancillary benefits.

To qualify for CCS, the child must be in the actual care of a person for at least 14% of the time. In shared care arrangements, this can mean that each parent may be liable for different sessions of child care, in the same week or different weeks. Both parents need to claim for CCS and enter into a Complying Written Agreement (CWA) with the child care provider.

Note: from 27 June 2022, where a CCS customer is partnered, and does not meet care requirements, the system will automatically check if their current partner has the child/ren coded in their care (ICC) with 14% care or more.

For children born or entering care on or after 1 July 2023

PPL can be paid for up to

• 20 weeks (100 days) for children born or adopted between 1 July 2023 and 30 June 2024
• 22 weeks (110 days) for children born or adopted on or after 1 July 2024

In normal circumstances, PPL can be paid to the below, if they have care of a child:

• birth mother
• adoptive parent of the child
• the other parent of the child
• the partner of the birth mother
• the partner of the other parent
• the partner of the adoptive parent
• a person claiming in exceptional circumstances
• the partner of a person claiming in exceptional circumstances

If there is a change in the customer's care arrangements and they no longer have care of the child on their nominated PPL days, their PPL eligibility will need to be re-assessed. This may result in the rejection or withdrawal of PPL days.

In certain circumstances when a child leaves the birth mother's care, they may remain payable to PPL for up to:

• 20 weeks after the birth of the child (for children born between 1 July 2023 and 30 June 2024
• 22 weeks after the birth of the child (for children born on or after 1 July 2024)

For children born or entering care before 1 July 2023

PPL can be paid to the primary carer for up to 18 weeks. If there is a change in the level of primary care PPL eligibility may be re-assessed. This may result in the:

• transfer of some or all of the PPL period to an eligible secondary claimant
• rejection or cancellation of Flexible PPL days

For example, if a PPL customer returns to work before the end of their PPL period:

• the PPL period: will end, and
• some or all of their PPL period can be transferred to another person taking over primary care responsibilities of the child

The new carer will need to claim and be eligible for PPL. If the child is born on or after 1 July 2020:

• the original carer can retain their Flexible PPL days for a later time that they are eligible for PPL, or
• they can give permission for another person to claim these days

In certain circumstances when a child leaves the birth mother's care, she may remain payable to PPL for up to 18 weeks after the birth of the child.

Changes in care and shared care can impact both family assistance payments and some income support payments. Customers may receive both payments or just one. All changes in care and shared care must be actioned by staff taking into consideration both payment types. The incorrect coding or not coding of care screens may result in a customer receiving incorrect entitlements.

A change in the level of actual carer of a child may mean a change to the customer's principal carer status. This can affect eligibility for Parenting Payment (PP), rate of payment for Youth Allowance (YA), Austudy, Special Benefit (SpB) and JobSeeker Payment (JSP). It will also affect their mutual obligation requirements and eligibility to concessions.

Qualification for PP depends on having at least one eligible PP child in care. Generally, the person with the greater level of actual care is considered the principal carer of the child. If care is considered equal (the difference in the shared care percentage is within 10%), a principal carer determination is required.

Single JSP, YA (job seeker) and SpB customers who are considered the principal carer of a child may be paid the 'with child' rate and Pharmaceutical Allowance.

YA and Austudy customers who are partnered with dependents also receive a 'with child' rate.

Principal carers are subject to part-time mutual obligation requirements except where an exemption is applied. Single principal carers of a dependent child who are granted an exemption for foster caring, home schooling, distance education, large family or caring for a child under a Family Law Court Order are eligible for the 'higher rate' of payment, equivalent to the Parenting Payment Single (PPS) rate.

A 'with child' rate of JSP, YA and SpB may be paid to single customers who share the care of a child even though they are not considered the principal carer of the child as long as the child is a dependent or a 'regular care' child (if the child is in their care for more than 14% of the time).

Customers claiming or receiving Carer Payment (CP) for a child under 16 years of age and who start a shared care arrangement for that child will need to have their claim/payment assessment referred to the Level 2 Service Desk.

CA may be shared by 2 people who care for the same child if both qualify for CA, and both are providing care and attention because of the child's disability. If only one carer claims CA or only one qualifies for CA, that person is paid the full rate of CA.

Customers who qualify for CA because of the combined Child Disability Assessment Tool (CDAT) scores of 2 children can share CA if they share the care of both children. If care of only one of the children is shared, the customer with care of both children will receive CA at the full rate.

Using the correct DOR when applying care decisions is required to ensure the correct information is transferred between Centrelink and Child Support under the alignment of care data exchange.