3.11 NBS Rate

Introduction

There are 2 rates of payment for NBS - a higher rate and a lower rate.

The higher rate of NBS is $1,618.89.

The lower rate of NBS is $540.54.

For the purposes of FTB Part A rate calculation, the NBS rate is annualised as follows:

NBS rate = (Higher or Lower NBS rate) × 365 ÷ 91

NBS is included in an individual's annual FTB Part A rate for a period of up to 91 days where eligibility criteria are met.

If an individual is eligible for at least one day of NBS and is not excluded under the legislative instrument, a NBU amount of $540.00 is also paid in respect of the first day of NBS eligibility.

Entitlement to NBS is assessed as part of an individual's FTB Part A claim. NBS is not payable to an individual where that individual receives PPL for the same child, see 1.2.18.

NBS is payable under 3 categories:

  • parent,
  • entrusted to care, and
  • adoption.

A child will attract the higher rate of NBS if the child is:

  • Parent category:
    • the first child born alive to the birth mother, and/or
    • born during a multiple birth.
  • Entrustment to care category:
    • the first child aged under one year that becomes entrusted to the care of the individual or their partner, and/or
    • a child aged under one year who is entrusted to the care of the individual or their partner as part of a multiple entrustment to care (i.e. where 2 or more children aged under one year are entrusted to the care of the individual or their partner as part of the same process).
  • Adoption category:
    • the first child that becomes entrusted to the care of the individual or their partner as part of an adoption process, and/or
    • entrusted to the care of the individual or their partner as part of a multiple adoption process (i.e. where 2 or more children aged under one year are entrusted to the care of the individual or their partner as part of the same adoption process).

Otherwise, a child will attract the lower rate of payment.

The table below shows the applicable rate of NBS for children in each of the 3 categories above:

Other children either currently in care or previously in care Rate of NBS per child for claims with eligibility date on or after 1/3/2014
clause 35A(2)

Live birth (not part of a multiple birth) - birth mother

clause 35A(5)

Child aged under one entrusted to care

clause 35A(7)

Child adopted*

clause 35A(2)

Multiple birth (including stillbirths) - birth mother

clause 35A(5)

Multiple children aged under one year entrusted to care as part of the same process

clause 35A(7)

Multiple children adopted* as part of the same adoption process

None Higher Higher Higher Higher Higher Higher
clause 35A(2)

Live birth - same birth mother

Lower Higher Higher Higher Higher Higher
clause 35A(5)

Child aged under one year entrusted to care

Higher Lower Higher Higher Higher Higher
clause 35A(7)

Child adopted*

Higher Higher Lower Higher Higher Higher
clause 35A(2)

Multiple birth - same birth mother

Lower Higher Higher Higher Higher Higher
clause 35A(5)

Multiple children aged under one year entrusted to care as part of the same process

Higher Lower Higher Higher Higher Higher
clause 35A(7)

Multiple children adopted* as part of the same adoption process

Higher Higher Lower Higher Higher Higher

* This refers to a child who becomes entrusted (1.1.B.17) to care as part of an adoption process, not the finalisation of the adoption process.

See 3.1.3 for an example of an FTB Part A calculation with NBS included.

Act reference: FAAct section 58AA NBU of FTB…, Schedule 1 clause 35A Eligibility for NBS, Schedule 1 clause 35B Annualised rate of NBS

Policy reference: FA Guide 1.2.18 Newborn Supplement (NBS) - Description

Last reviewed: 3 July 2017