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Maintenance income: health expenses 277-51100030



For Families and Child Care Smart Centre Processing staff only.

This document outlines how the value of private health insurance and other medical expenses, when provided as child support or spousal maintenance, may be assessed as maintenance income which can affect the rate of Family Tax Benefit (FTB) Part A.

Assess health expenses for maintenance income

This table describes the process to follow when a customer or their partner receives child support or spousal maintenance as payment of health expenses.

Step

Action

1

FTB customer or their partner receives child support or spousal maintenance as payment of health expenses + Read more ...

For action at initial contact, or to determine if a manual assessment is required, see Non-cash maintenance income

2

Other medical expenses + Read more ...

Can the payer claim back any amount from Medicare or from private health insurance?

3

Private health insurance + Read more ...

Is the paying parent and/or their new family also covered by the private health insurance?

4

Assess the full health insurance premium paid + Read more ...

Note: check that 30% government rebate has already been taken off the premium for health insurance. Procedure ends here.

Record the full amount paid as maintenance income.

5

Assess medical expenses + Read more ...

  • Deduct the amount the payer would claim back from their health fund from the full amount paid
  • Staff may need to contact the health insurance provider to find out how much will be refunded
  • Record private maintenance income
  • Procedure end here

6

Assess portion of health insurance premium paid + Read more ...

  • Deduct the amount the payer would normally pay to cover their new family
  • Assess the total amount paid, less the amount the payer would pay to cover themselves, their new partner and any children of the new relationship. (Make sure the 30% government rebate is taken off the premium)
  • Staff may need to contact the health insurance provider to find out how much the paying parent would need to pay to only cover themselves (and their new family)
  • If the payer does not need to pay any more to cover the children from the previous relationship, there is no amount to assess as child support
  • Record private maintenance income