1.2.18 Newborn Supplement (NBS) - Description
This section includes information on:
- NBS objectives,
- NBS and NBU eligibility,
- claiming NBS and NBU,
- birth registration,
- NBS and NBU rate,
- how NBS and NBU are paid, and
- background to NBS.
From 1 March 2014, the NBS, which is an add-on component of FTB Part A, will be included in the FTB rate for eligible individuals for a period of up to 13 weeks (or 91 days) to assist with the upfront costs of a newborn child, a child aged under one year who becomes entrusted (1.1.B.17) to the individual's care, or a child who becomes entrusted to the individual's care as part of an adoption process. The NBS replaces the baby bonus to provide assistance to those families not eligible for PPL (PPL Guide 2.2).
If an individual is eligible for at least one day of NBS and is not excluded under the legislative instrument (see below), NBU is also paid. An individual is not eligible for NBU for a child if they or their partner have previously received NBU in relation to that child. See 2.2.3 for further detail on NBU eligibility criteria.
An individual may be eligible for NBS for a day where the individual meets FTB eligibility criteria (2.2.1) for an FTB child born or entrusted to care as part of an adoption process on or after 1 March 2014 and meets additional conditions under one of the following 3 categories:
- parent of a child, or
- child entrusted to care of an individual or their partner, or
The rules for ensuring that individuals cannot receive a duplicate payment of NBS or NBU for a child are described in the legislative instrument.
See 2.2.3 for further detail on NBS and NBU eligibility criteria.
Claiming NBS & NBU
Eligibility for NBS and NBU is assessed as part of an individual's FTB claim (4.2). A separate claim is not required for NBS or NBU.
Where an individual has claimed FTB for a child and they or their partner have either claimed or expressed an intention to claim PLP for that child and it is determined that the individual is eligible for FTB but the PLP claim has not been made or determined, the FTB claim may be paid without the inclusion of NBS or NBU. If it is later determined that PLP is not payable for that child or the individual indicates that there is no longer an intention to claim PLP, the individual's eligibility for NBS and NBU will be assessed.
Where an individual or their partner is a parent of the child and are responsible for registering the birth of the child in accordance with a relevant state or territory law, the NBS birth registration requirement must also be met.
See 2.2.3 for further details on the birth registration requirements for NBS.
NBS & NBU rate
The NBS is an add-on component of the individual's FTB Part A rate for a period of 13 weeks (91 days). For more information on FTB Part A rates see 220.127.116.11.
In addition, where an individual is eligible for NBS for one day, NBU is payable in respect of the first day of NBS eligibility. The NBU is a separate amount to the NBS and is not included in calculating an eligible individual's FTB Part A rate.
For more information on NBS and NBU rates see 3.11.
NBS and NBU are also indexed annually. For more information on the indexation of NBS and NBU, see 18.104.22.168.
How NBS & NBU are paid
NBS is paid as part of an individual's regular FTB Part A payment for a period of up to 13 weeks (91 days). NBU is paid as a single lump sum in respect of the first day of NBS eligibility.
NBS and NBU may also be paid as part of an individual's past period claim for FTB (1.1.P.60).
Background to NBS
Prior to 1 March 2014, baby bonus was available for newborn children, children entrusted to care within 26 weeks of birth, children aged under 16 who were entrusted to care as part of an adoption process and stillborn children. Baby bonus was abolished on 1 March 2014, and was replaced by NBS and SBP.
Act reference: FAAct Schedule 1 clause 35A Eligibility for NBS, Schedule 1 clause 35B Annualised rate of NBS, section 58AA NBU of FTB if NBS added into Part A rate
FA(Admin)Act section 5 Need for a claim, section 24A Other payments of FTB
PPL Guide 2.2.1 PLP Eligibility Overview