The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

2.1.1.110 Death of an FTB or regular care child

Summary

This topic provides information about bereavement assistance for an individual when an FTB or regular care child dies. The topic covers the following issues:

  • eligibility continues for 14 weeks when FTB child dies
  • where the individual has been charged with murder or manslaughter
  • accepting notice of death for an individual who received instalments
  • accepting notice of death for a past period claim
  • shared care of FTB child, and
  • calculating FTB bereavement amount.

An ACO (1.1.A.80) is not eligible to receive a bereavement payment if an FTB child in the care of the ACO dies.

Eligibility continues for 14 weeks when FTB child dies

If an individual is eligible for FTB for a child, and the child dies, they remain eligible for FTB for that child for a 14-week period beginning on the day the child died. This is known as the bereavement period.

If an individual receives FTB by instalments, they can choose to be paid either a lump sum or ongoing instalments for 14 weeks after the child died. This also applies to an individual receiving the RA component of FTB by instalments for a regular care child. If an individual claims FTB for a past period, they will receive a lump sum. If the individual was entitled to the lower rate of NBS for the child who died and the child died before their first birthday, they are entitled to the higher rate of NBS (subject to the income test) for that child and can be paid a top-up amount of NBS.

Act reference: FAAct section 31 Continued eligibility for FTB if an FTB or regular care child dies, section 32 Eligibility for a single amount of FTB if an FTB or regular care child dies, section 64 Calculation of rate of FTB for death of FTB or regular care child, section 65 Calculation of single amount for death of FTB or regular care child

Policy reference: FA Guide 3.11 NBS rate, 3.6.1 FTB Part A - historical rates, 3.1.1.40 Calculating FTB bereavement payment

Where the individual is charged with murder or manslaughter

Where the individual has been charged with murder or manslaughter of the deceased FTB child/ren, Centrelink may direct the FTB bereavement payments to a payment nominee. Centrelink must obtain written consent from the person being appointed as a nominee (4.1.3). While Centrelink must consider the wishes of the individual in deciding whether to appoint a payment nominee (other than in relation to a security notice), the wishes of the individual are not the only factor that is considered, and Centrelink may still appoint a payment nominee irrespective of the individual’s wishes if considered appropriate in the circumstances.

If the individual is subsequently convicted, the bereavement payment received by the payment nominee may be raised as a debt to the Commonwealth. Specific advice should be sought from DSS if this is being considered.

If all or some of the bereavement period has already been paid or was paid to the individual before they were charged, and the individual is subsequently convicted, the bereavement payment received is a recoverable debt to the Commonwealth.

In all instances, Centrelink must make the usual considerations in relation to whether a debt should be recovered, waived, or written off, taking into account the applicable circumstances.

Act reference: FA(Admin)Act section 71 Debts in respect of family assistance other than CCS, ACCS and FTB advance, section 101 Waiver in special circumstances, section 219TB Appointment of payment nominee, section 219TD Provisions relating to appointments, section 219TE Suspension and cancellation of nominee appointments

Policy reference: FA Guide 4.1.3.10 Payment nominees

Accepting notice of death - individual claims FTB by instalments

Notification that an FTB child has died can be accepted from the individual receiving FTB, a family member or close friend. The following details must be obtained before action is taken to reassess the individual's FTB entitlement:

  • full name and address and contact number of the person notifying the death
  • full name and address of the individual receiving FTB
  • full name, DOB and date of death of the FTB child, and
  • name of the funeral director or hospital.

The funeral director or hospital should be contacted by phone to confirm the details. Centrelink must be certain of the information before taking action.

Accepting notice of death - individual claims for a past period

An individual making a past period claim is not required to provide evidence of the child's death when lodging the claim. However, they should keep a copy of any documents relating to the death with their copy of the claim.

Shared care of FTB child

Where the care of the FTB child was shared and a determination under FAAct section 59 was in place for the child, the amount of the bereavement payment is worked out according to the percentage of FTB for which each individual was eligible.

Each individual is paid the bereavement amount according to their own circumstances.

Calculating FTB bereavement amount

The amount of FTB paid as a lump sum or as ongoing instalments for 14 weeks following the death of the child is calculated on the assumption that the child did not die, and would have remained an FTB child during the bereavement period. The period of payment does not include any day on which the child would have been aged 16 and over if they were not a senior secondary school child (1.1.S.27). The amount of FTB paid during the bereavement period can be affected by the MAT and maintenance income test which apply during the bereavement period where a relevant period exists (3.1.7.15).

Detailed information regarding calculating FTB bereavement payment is covered in topic 3.1.1.40.

Act reference: FAAct section 31(3) 14 weeks reduced in certain circumstances

Policy reference: FA Guide 3.1.1.40 Calculating FTB bereavement payment

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