4.15.3 Payment of SBP

Introduction

This section explains the payment arrangements for SBP. It includes:

  • access to payment,
  • bank account for payment, and
  • payment for multiple births.

Access to payment

Eligible individuals are paid SBP in a single lump sum. Payment is made on the earliest day practicable.

SBP cannot be paid through the tax system, but the payment can be remitted to the ATO to offset outstanding ATO debts.

Act reference: FA(Admin)Act section 47 Payment of SBP

Policy reference: FA Guide 1.2.19 Stillborn Baby Payment (SBP) - Description, 2.12 SBP Eligibility

Bank account for payment

If the individual has claimed instalments of FTB, payment of SBP is made to the account nominated for FTB. If the individual is not receiving or claiming FTB instalments, they should nominate an account for payment. In some cases the individual may be paid by other means. Payment should generally be made into an account nominated and maintained by the individual, but can also be paid to the individual's payment nominee.

Act reference: FA(Admin)Act section 47 Payment of SBP

Policy reference: FA Guide 4.3.3 Instalments Paid by Direct Credit

SS Guide 8.5.1 Payment Nominee

Payment for multiple births

SBP can be paid for each stillborn child in a multiple birth. As SBP is only payable for a child where neither the individual nor their partner has received or is receiving PLP for that child, individuals may elect to receive SBP for one child and PLP for other child/ren, if eligible, where multiple births occur. If eligible, the individual would receive SBP as a lump sum and PLP instalment payments.

Example: Amanda is pregnant and currently working and has lodged a pre-claim for both PLP and FA for twins she is expecting within the next 3 months. On delivery, one child is stillborn. After the birth, it is determined that PLP is payable to Amanda for her live child. It is also determined that Amanda is entitled to be paid SBP for her stillborn child. Amanda will receive SBP for the stillborn child and separately receive PLP for the live child.

Act reference: FAAct section 36 When an individual is eligible for SBP in normal circumstances

PPLAct section 20 Multiple births

Policy reference: FA Guide 1.2.19 Stillborn Baby Payment (SBP) - Description

Last reviewed: 4 January 2016