2.1.2.40 FTB portability

Summary

This topic provides information about the payability of FTB when an individual or their FTB child or regular care child leaves Australia and covers the following:

• eligibility & entitlement
• overview
• Australian residence
• absences from Australia
• effect of prior absence overseas on FTB
• RA during overseas absence
• effect of certain temporary visa categories on temporary absences
• extensions to the 6 week portability period
• child born overseas
• individual and FTB child both overseas
• when is an absence temporary?
• absence is not temporary
• temporary absence becomes permanent
• individuals employed overseas, and
• international social security agreements.

Eligibility & entitlement

The specific distinction between 'eligibility' (1.1.E.17) and 'entitlement' (1.1.E.30) in relation to temporary absence from Australia is that:

• eligibility refers to the 6-week absence from Australia (1.1.A.10) period (after which time an individual is no longer eligible for FTB), and
• entitlement refers to the rates payable during a temporary absence.

Overview

FTB Part A and Part B are generally payable overseas for up to 6 weeks (portability). If the individual or FTB child is overseas for more than 6 weeks, FTB will be stopped. If the individual or FTB child return to Australia within 13 weeks of their payment being stopped, their payment can be recommenced without the need for a new claim. They will not be entitled to be paid for any days they are absent in excess of the allowable portability period.

However, if the person or FTB child remains overseas and does not return within 13 weeks of their payments being stopped, then their FTB payments will be cancelled and they will need to reapply on return to Australia.

Note: CCS eligibility is linked with FTB eligibility and therefore the same temporary absence from Australia provisions apply. Entitlement to CCS may continue for any temporary absence, for up to 6 weeks, however, the child care must be provided in Australia.

In certain circumstances, the FTB 6 week portability period can be extended for up to 3 years for a temporary absence from Australia. Extensions in certain circumstances also apply to CCS. If the individual was receiving RA this may also be paid under this extension.

ES Part A and Part B can only be paid overseas for up to 6 weeks.

Individuals receiving FTB by instalments must notify Centrelink if they, and/or their child/ren intend to leave Australia, if this might affect their entitlement. They must also notify Centrelink upon their return to Australia. Details of the trip must be obtained by Centrelink to assess ongoing eligibility.

Australian residence

The individual must continue to be an Australian resident during any absence overseas to remain eligible for FTB. To remain an FTB child or regular care child, a child who leaves Australia must continue to:

• be an Australian resident (1.1.A.130), or
• live with the individual.

For the individual and/or the FTB child/ren or regular care child/ren to be considered to be Australian residents for FTB purposes, the absence overseas must be temporary, and there must be a clear intention to return to Australia.

For children born overseas refer to 'Child born overseas' for more details.

Absences from Australia

FTB may continue to be paid where the FTB child, regular care child and/or the individual are temporarily absent from Australia for up to 6 weeks. In certain circumstances, individuals can apply for an extension to the 6-week period for up to 3 years.

The following table explains the effect on FTB eligibility of certain absences of an FTB child, regular care child or individual.

Effect of prior absence overseas on FTB

The following table explains the FTB portability rules that apply for a prior overseas absence.

RA during overseas absence

If FTB is paid during an individual's temporary absence from Australia for up to 6 weeks, (or for an approved extension), then RA may still be paid with FTB.

RA is only payable for accommodation:

• rented in Australia before departure, and
• continuing to be rented by the individual while overseas.

If FTB is paid during a child's temporary absence from Australia for up to 6 weeks, (or for an approved extension), then the child is still a RA child in calculating the amount of RA payable.

Effect of certain temporary visa categories on temporary absences

An individual who has qualified for FTB due to satisfying the SpB eligibility criteria because they are the holder of an eligible temporary visa made under SSAct section 729(2)(f)(v) can only be paid FTB for up to 6 weeks of any temporary absence, and only if the absence is for:

• an acute family crisis (for example, to visit an immediate family member who is critically ill)
• for humanitarian reasons (for example, to adopt a child or attend custody proceedings), or
• eligible medical treatment that is not available in Australia.

The individual must provide evidence of the need to travel overseas.

Extensions to the 6 week portability period

The Secretary may grant an extension to the 6 week portability period, up to a period of no more than 3 years in certain circumstances. FTB payments may be paid overseas for more than 6 weeks in the following circumstances:

Child born overseas

An individual can claim FTB for a child who is born overseas while they are outside Australia, subject to other eligibility criteria. The claim must however be lodged within the allowable claim period. The residence requirements for FTB may be satisfied if at least one parent is an Australian resident who is temporarily absent from Australia.

If an individual returns to Australia without the child, they may still be eligible for a payment if the child is still considered to be in their care. They may also be entitled to FTB if the child is an Australian resident or SCV holder residing in Australia as long as the child is still in their care. For more detail about FTB residency, see 2.1.2.10.

Individual & FTB child both overseas

Where the individual and the FTB or regular care child are both overseas, the restrictions on portability in respect of the individual and the child as described in the table above need to be considered together. If the individual and child have the same departure date, the 6-week period expires simultaneously. Where the individual and the child have different departure dates, the 6-week period expires at different times.

If the child leaves Australia temporarily for up to 6 weeks or less, CCS may continue to be payable until the child returns noting that CCS is only payable for child care provided in Australia.

When is an absence temporary?

The individual must intend that they or their FTB child or regular care child will return to Australia for the absence to be regarded as temporary. Whether an absence will be temporary may be apparent from the purpose of the overseas absence. The reason for the absence should be consistent with the intended duration.

The following factors should also be considered:

• commitment to any overseas home, and
• evidence of continuing ties with Australia such as
  • retaining a home, bank account or employment in Australia
  • whether the person has immediate or extended family still living in Australia, and
  • the length of residence in Australia before departure.

Absence is not temporary

FTB payments cease if an individual or FTB child leaves Australia permanently, as they are no longer considered Australian residents for FTB purposes.

If the absence is permanent, eligibility does not continue. If the individual is going overseas permanently, FTB is cancelled from the date of departure. If the FTB or regular care child is going overseas permanently, they cease to be an FTB or regular care child from the date of departure and the individual's FTB must be reassessed.

Temporary absence becomes permanent

If the absence is initially regarded as temporary, but the individual advises that the absence has become permanent, FTB must be reassessed from the date the individual becomes aware that the absence is permanent.

Policy reference: FA Guide 2.1.2.10 Residence requirements

Individuals employed overseas

The same provisions apply to all individuals, including those who are:

• missionaries
• foreign aid projects personnel
• members of the defence forces who are posted overseas, and
• Australian Government employees who are posted overseas.

If a person travels to Australia to train as a missionary before being posted overseas, payment of FTB during their posting can only be granted if:

• the residence requirements have been met, and
• Centrelink is satisfied that the person intends to return to Australia rather than their country of origin.

This may be determined by:

• the nature of property and assets held in Australia and/or the country of origin, and
• establishing to which country the person has the greater commitment.

While members of the defence forces and Australian Federal Police are generally subject to these provisions, some members may be able eligible for an extension to the 6 week portability period.

International social security agreements

FTB is not included under international social security agreements. Instead, from 1 July 2000, 'additional child amount' is in the portability (1.1.P.90) rate calculator of the SSAct.

The additional child amount is a fixed amount based on the family allowance and guardian allowance rates applicable at 30 June 2000. The payment is indexed in January each year according to the family allowance indexation rules. These indexation rules continue to apply after 1 July 2000 and only apply to this payment.