4.2.3.20 Determining an FTB Claim

Summary

Once it has been established that the FTB claim is effective (1.1.E.10), and there are no restrictions on determining the claim, the claim must be determined. Eligibility for FTB must be assessed, and a decision made that either the individual is entitled or not entitled to FTB.

This topic provides information about the effect of each of these types of determination.

Types of claim determination

An FTB claim is determined according to the type of claim or combination of types. There are 3 types of entitlement determinations:

  • instalment claim (1.1.I.100), including when an FTB or regular care child has died since the claim was lodged,
  • past period claim (1.1.P.60), including when an FTB or regular care child has died during the claim period, and
  • bereavement claim (1.1.B.20) lodged by an individual (1.1.I.90) in substitution for a deceased individual who was eligible for FTB.

If the individual (1.1.A.72) is not eligible for FTB, a determination is made to the effect that the individual is not entitled to the relevant part of FTB.

Act reference: FA(Admin)Act section 16 Determination of instalment entitlement claim, see also sections 17 - 21

Policy reference: FA Guide 4.2.1 Summary of the FTB Claim Process, 4.2.2.10 Common FTB Claim Requirements, 4.2.3.30 Giving the Individual Notice of the Determination

Combination of claim types

The claim for FTB may include a combination of past period, instalment or bereavement claims. While each part of the claim is determined under different sections of the FA(Admin)Act, from the individual's viewpoint there is nominally one claim for FTB, and one net result.

Determining an instalment claim

If an individual makes an instalment claim, and they are eligible for FTB, the claim must be determined that they are entitled to be paid from the day the claim is determined. An arrears amount is also paid for the number of days for which the individual is eligible from the date the claim is lodged to the date of the entitlement determination.

An individual is paid the daily rate calculated under the FTB income test using their and, where applicable, their partner's ATI (1.1.A.20) and personal circumstances. An ACO (1.1.A.80) individual is not income tested.

The instalment period and payment delivery day (1.1.P.73) is worked out based on the day the claim was lodged. Payment is made by Centrelink.

Act reference: FAAct section 58 Rate of FTB

FA(Admin)Act section 16(2) Determination of instalment entitlement claim

Policy reference: FA Guide 4.3.2 Payment Cycles for FTB Instalments, 4.3.3 Instalments Paid by Direct Credit, 3.1 FTB Rate Calculation

Determining an instalment claim when an FTB or regular care child has died

If an individual's FTB or regular care child has died since the instalment claim was lodged, but before the claim is determined, the bereavement amount for the child must be paid as part of the instalment claim determination. If the individual has no ongoing entitlement, they are paid arrears of FTB for the period after the claim was lodged to the date that the child died, and a bereavement amount from the date the child died.

Act reference: FAAct section 31 Continued eligibility for FTB if an FTB or regular care child dies

FA(Admin)Act section 16(4) Additional entitlement in subsection (2) cases, section 16(5) Instalments where bereavement eligibility - remaining FTB or regular care children

Policy reference: FA Guide 2.1.1.110 Death of an FTB or Regular Care Child

Determining a past period claim, including when an FTB or regular care child has died

If an individual makes a past period claim, it must be determined that they are entitled to be paid for the past period, and they must be:

  • eligible for FTB for the whole period, or
  • eligible for FTB for part of the period and eligible for a bereavement amount for the remainder of the period because their FTB or regular care child died.

FTB for a past period is paid as a lump sum through Centrelink.

Act reference: FAAct section 31 Continued eligibility for FTB if an FTB or regular care child dies

FA(Admin)Act section 17 Determination of past period entitlement claim

Policy reference: FA Guide 2.1.1.110 Death of an FTB or Regular Care Child, 4.3.5 Lump Sum Payment through Centrelink

Determining a bereavement claim

If an individual makes a bereavement claim because another individual has died, it must be determined that they are entitled to be paid: if:

  • the person who died would have been eligible for FTB, and
  • the individual is an appropriate person to make the claim.

The amount of FTB can include a bereavement payment for the death of an FTB or regular care child, if the child died before the person died.

Act reference: FAAct section 33 Eligibility for FTB if an eligible individual dies

FA(Admin)Act section 18 Determination of bereavement entitlement claim

Policy reference: FA Guide 2.2.2 Death of Individual Eligible for FTB, 4.3.5 Lump Sum Payment through Centrelink

Determination that there is no entitlement

If the individual claims FTB, it must be determined there is no entitlement to FTB if:

  • they have made an effective claim for FTB, and
  • there are no restrictions on determining the claim, and
  • the individual is not eligible for FTB.
Examples: They may be ineligible if:
  • their income is too high, or
  • they are not an Australian resident (1.1.A.130).

Act reference: FA(Admin)Act section 19 Determination that no entitlement

Reclaiming FTB where initial claim rejected due to income

Where a claim for FTB has been determined as ineligible because the estimate of income is too high, the individual may lodge a second FTB claim, if their circumstances have changed, with a revised estimate of income.

For this second claim, it may be determined that the person is entitled to FTB by instalment from the date of lodgement of the claim if:

  • based on the revised estimate, the person is eligible for payment, and
  • the revised estimate is accepted as being reasonable.

For this second claim, the claim for FTB for the past period (period of eligibility prior to date of second claim) is not effective as a claim for this period has already been made. An application for review of the decision not to pay arrears for this past period can be made after the end of the income year when actual ATI is available.

Act reference: FA(Admin)Act section 20 Determination of rate may be based on estimate, indexed estimate or indexed actual income, section 10(1) Restriction where previous claim or instalment determination, section 108(3) Decisions that may be reviewed under s109A

Policy reference: FA Guide 3.2.8.10 Initial Estimate When Making a Claim, 3.2.8.30 Revised Estimates, 4.2.2.20 Specific Requirements for Past Period Claim, 6.2 Internal Reviews

Continuing effect of a determination

Once a determination has been made, it remains in force at all times afterwards unless it is replaced by another determination. The individual can also advise the Secretary that they wish a determination that the individual is entitled to FTB by instalment to cease, subject to certain conditions being met. The determination ceases in accordance with that advice.

Explanation: In some circumstances another determination may be made to replace the original determination. This will normally be because the individual's circumstances have changed.

The individual must be notified of the determination to either grant or reject their FTB claim.

Determining an FTB claim with NBS/NBU

If an individual lodges an effective FTB claim and they are also eligible for NBS and do not intend to claim PLP, a determination is made that the FTB claim is granted with NBS included in the individual's FTB Part A rate. Where NBS is included in an individual's FTB Part A rate, NBU may also be payable.

If an individual lodges an effective FTB claim and is also eligible for NBS but has claimed, or indicates they intend to claim PLP, the FTB claim is determined and granted without NBS included in the individual's FTB Part A rate. If the individual later changes their decision to claim PLP or, their PLP claim is rejected, a determination is then made to include NBS in the individual's FTB Part A rate. In these circumstances, an arrears payment of NBS may occur.

Act reference: FA(Admin)Act section 21 When determination is in force, section 21(3) Request for cessation of instalment determination

Policy reference: FA Guide 4.4 Variations to FTB Entitlement, 4.2.3.30 Giving the Individual Notice of the Determination, 2.2.3 NBS & NBU Eligibility for Individuals

Last reviewed: 3 July 2017