2.10.1 SKB Eligibility Criteria

Cessation of SKB

The final instalment of SKB (in respect of the 30 June 2016 bonus test date) was paid in July 2016. For individuals who claim their FTB Part A via a lump sum for the 2015-16 income year, SKB will be paid with their FTB Part A entitlement if eligible.

The following information is relevant to the 2012-13 to 2015-16 income years only.

Introduction

SKB can be paid to an individual in respect of children in their care, or it can be paid to a student in their own right.

Basic eligibility

From 1 January 2015, individuals will only be eligible for SKB on a bonus test day if, in relation to that day, their annual adjusted taxable income is $100,000 or less.

An individual is eligible for SKB if on the bonus test days of 1 January and/or 30 June they received any of the following payments:

  • FTB Part A,
  • youth allowance,
  • ABSTUDY (living allowance),
  • disability support pension,
  • carer payment,
  • parenting payment,
  • special benefit,
  • an education allowance under the Veterans' Children Education Scheme or the Military Rehabilitation and Compensation Act Education and Training Scheme.

The individual must also have an eligible child who is:

  • undertaking primary education, secondary study (must be full-time secondary study unless PES or ABSTUDY PES is paid for the child) or an eligible activity, and
  • aged under 19 or has turned 19 in the calendar year in which the bonus test day occurs.

Individual students can be eligible for SKB in their own right if they are receiving one of the qualifying payments for themselves and meet the age and study requirements outlined in this topic.

Where the qualifying payment is ABSTUDY living allowance, the child must be at least 16 years of age to be an eligible child. If the student is aged under 16 and receiving ABSTUDY living allowance, the student must have independent status under the ABSTUDY scheme to be eligible for SKB.

Example: On 1 January 2013 David is 17 and participating in full-time secondary study. David receives YA because his parents have consented to the payment being paid directly to him. As such, David is entitled to an instalment of SKB in his own right.

In order to attract SKB the child or student must have undertaken or will undertake primary or secondary study or an eligible activity on at least one day in the current education period (1.1.C.57). For all payments, except FTB Part A and SpB, the student must be undertaking study on the bonus test day.

Example: On 1 January 2013, John received FTB Part A for his son, Kaiden, who will be in year 5 that year. As Kaiden will participate in primary study on at least one day in the current education period, John will be entitled to SKB in respect of Kaiden.

It is important to note that where a parent is eligible for SKB for a child entitled to certain income support payments, it is the child who must be legislatively entitled to the income support payment, not the parent.

Example: Ashley is 15, in secondary school and is entitled to carer payment because she cares for her chronically ill mother, Miranda who is entitled to DSP. Miranda is the payment nominee and Ashley's CP is paid into Miranda's bank account. This means that Miranda is entitled to SKB in respect of Ashley, as Miranda is the individual receiving the CP instalments on behalf of her daughter. Miranda's SKB entitlement does not arise based on her entitlement to DSP.

For FTB Part A children under 16 years, once they have attracted an SKB instalment, they will continue to attract subsequent instalments for each test date until they turn 16. Once an FTB Part A child turns 16, they are subject to study reporting requirements associated with the activity test.

If an individual does not meet all of the eligibility criteria on the bonus test day, they will not be entitled to the SKB instalment associated with the bonus test day. Some students may not meet all the eligibility criteria on the bonus test date due to the fact that they may be finishing secondary school. In these cases, SKB can be paid via a school leaver payment (2.10.3).

An SKB payment can be paid for a deceased child in circumstances where a bereavement period crosses a bonus test day.

ACOs are not eligible for SKB.

Exclusions

If an instalment of SKB is paid to an individual in respect of an eligible child, it cannot also be paid to the eligible child or another individual. Similarly, if an instalment of SKB is paid directly to a child, it cannot also be paid to an individual.

Act reference: FAAct section 35UA When an individual is eligible for SKB in respect of a child-general, section 35UB Relevant SKB child, section 35UD Children in respect of whom SKB is payable, section 35UE When an individual is eligible for SKB-general, section 35UH General rules

Policy reference: FA Guide 1.2.14 Schoolkids Bonus (SKB) - Description, 2.10.3 School Leaver's Payment, 2.10.4 Eligible Activities (SKB)

Last reviewed: 15 August 2016