2.2.3 NBS & NBU Eligibility for Individuals

Summary

This topic describes the following:

  • eligibility for NBU,
  • eligibility for NBS,
  • exceptions,
  • avoiding duplicate payments, and
  • birth registration.

Eligibility for NBU

If an individual (1.1.I.90) is eligible for at least one day of NBS and is not excluded (see 'Avoiding duplicate payments' 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.

Eligibility for NBS

An individual may be eligible for NBS for a day where the individual meets FTB eligibility criteria (2.2.1) for an FTB child (2.1.1.10) born or entrusted to care as part of an adoption process on or after 1 March 2014 and meets the conditions under one of the following 3 categories:

Category Detail
1. Parent of child

An individual may be eligible for NBS under this category if:

  • the individual or their partner is a parent of the child, and
  • the child is aged less than one on that day, and
  • with NBS included, the individual's FTB Part A rate (disregarding any reductions for FTB advances (1.2.8) and any election to receive ES quarterly (1.2.10)) would be greater than nil on that day, and
  • that day occurs in the period of 13 weeks beginning on the day that the conditions above are satisfied, and
  • the birth registration requirement is met (see below).
2. Child entrusted to care of an individual or their partner

An individual may be eligible for NBS under this category if:

  • neither the individual nor their partner is a parent of the child, and
  • on or before that day, the child became entrusted to the care of the individual or their partner, and
  • the child is aged less than one on that day, and
  • with NBS included, the individual's FTB Part A rate (disregarding any reductions for FTB advances (1.2.8) and any election to receive ES quarterly (1.2.10)) would be greater than nil on that day, and
  • that day occurs in the period of 13 weeks beginning on the day that the conditions above are satisfied.

However, an individual is not eligible for NBS under this category if the child is not an FTB child of the individual for a continuous period of 13 weeks beginning on the first day that the first 4 criteria above are satisfied.

3. Adoption

An individual may be eligible for NBS under this category if:

  • on or before that day, the child became entrusted to the care of the individual or their partner, and
  • it is an authorised party that entrusts the child to the care of the individual or their partner, and
  • the authorised party does so as part of the process for the adoption of the child by the individual or their partner, and
  • with NBS included, the individual's FTB Part A rate (disregarding any reductions for FTB advances (1.2.8) and any election to receive ES quarterly (1.2.10)) would be greater than nil on that day, and
  • that day occurs in the period of 13 weeks beginning on the day that the conditions above are satisfied, and
  • that day occurs before the end of the period of 12 months beginning on the day the child became entrusted to the care of the individual or their partner.

Exceptions

If an individual is a member of a couple and their partner is eligible for PLP for a child, the individual is not eligible for NBS or NBU for that child if:

  • their partner's PPL period is 13 weeks or more and they are partnered for at least 13 weeks of that PPL period, or
  • their partner's PPL period is less than 13 weeks and they are partnered for the entire PPL period.

If an amount of NBS is added in relation to an individual and an FTB child of the individual for a period of 13 weeks and the individual is a member of a couple for that entire 13 week period, then the individual's partner is not eligible for NBS for that child.

An individual is not eligible for NBS for a day in the circumstances prescribed under the relevant legislative instrument -
Family Tax Benefit (Entitlement Exclusion - Newborn Upfront Payment and Newborn Supplement) Determination 2014 (No. 1).

Avoiding duplicate payments

An individual cannot receive a duplicate benefit of NBS or NBU for the same child.

In considering whether or not NBS should be paid for a child, it should be taken into account whether an individual has benefited, either directly or indirectly, from an NBS, NBU or PLP payment received by another individual for that child.

The instrument covers the following circumstances in relation to the individual and the FTB child of the individual:

  • the payability of PLP to another individual for that child,
  • the payability of NBS in relation to another individual for that child, and
  • the payability of NBU in relation to another individual for that child.

Potentially, duplication payments could occur where NBS, NBU or PLP has been paid to the partner or former partner of the individual or the former partner of the individual's current partner.

If no exclusion rules apply, the individual is eligible for payment until the end of their NBS period (1.1.N.10).

Example 1: Sophie has received 50 days of NBS for her daughter Amelia. On 1 January 2015, Sophie reunites with Amelia's father Ben and Ben claims FTB for Amelia.

On 1 March 2015, Sophie and Ben separate.

Ben's eligibility for NBS is assessed to ensure that Sophie does not receive a duplicate benefit of NBS while they are members of the same couple. The assessment recognises that Sophie has not received the full benefit of the maximum 13 weeks (91 days) NBS period.

For the period that Ben and Sophie are members of a couple (day 1 to day 59 of Ben's NBS period), Ben is eligible for NBS for the following number of days (Rule 2 applies):
91 - the number of days Sophie was eligible for NBS while they were a couple = 91-50 = 41 days

Therefore, while Ben is a member of a couple with Sophie, he can receive the NBS for 41 days. NBS is not added to Ben's rate of FTB Part A from day 42 to day 59 of Ben's NBS period. This ensures that Sophie does not receive (through payment to Ben) more than 13 weeks (91 days) of NBS.

For the period that Ben and Sophie are not members of the same couple (day 60 to day 91 of Ben's NBS period), no exclusions apply to Ben and NBS is added to Ben's FTB Part A rate for the rest of his NBS period. Ben is also eligible for NBU on day 60 as he is no longer a member of a couple with Sophie and he was not a member of a couple with Sophie during her NBS period.

Example 2: Emily receives NBS and NBU with her FTB for her son Noah. Before the end of her NBS period, Emily partners with Noah's father Chris.

Emily and Chris later separate and both have shared care of Noah. Chris claims FTB for Noah and his eligibility for NBS and NBU is assessed. As Chris was partnered with Emily during her NBS period he is not entitled to receive NBU and his NBS period is reduced by the number of days he was a member of a couple with Emily during her NBS period.

Birth registration

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. To meet the birth registration requirement, the individual or their partner must have either registered the birth of the child, or applied to register the birth of their child. In addition, the Secretary must be notified, or become aware, that this requirement has been met by the end of the first income year following the income year (the relevant year) in which the last day of the NBS period falls, or if the Secretary has granted an extension on the time period for lodging an FTB claim under FA(Admin)Act paragraph 10(2)(b) due to special circumstances and that claim is for a period falling within the relevant year, by the end of the period that the Secretary has allowed.

Act reference: FAAct section 35A Determination of percentage of care-child is not in the adult's care

FA(Admin)Act section 10(2)(b)(ii) Claim must relate to one income year and not be made after the end of the next income year

Policy reference: FA Guide 1.1.I.90 Individual, 1.2.8 FTB Advance - Description, 1.2.10 Energy Supplement (ES) - Description, 2.2.1 FTB Eligibility Criteria for Individuals, 2.1.1.10 FTB Child

In this section

This section contains the following topics:
Last reviewed: 2 January 2015