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.

2.2.3 NBS & NBU eligibility for individuals

Summary

This topic describes the following:

  • eligibility for NBU
  • eligibility for NBS
  • exceptions
  • avoiding duplicate payments, and
  • birth registration.

Eligibility for NBU

If an individual (1.1.I.90) is eligible for at least one day of NBS and is not excluded under the legislative instrument (see 'Avoiding duplicate payments' below), NBU is also paid. An individual is not eligible for NBU for a child if they or their partner have previously received NBU in relation to that child.

Eligibility for NBS

An individual may be eligible for NBS for a day where the individual meets FTB eligibility criteria (2.2.1) for an FTB child (2.1.1.10) born or entrusted to care as part of an adoption process and meets the conditions under one of the following 3 categories:

Category Detail
1. Parent of child An individual may be eligible for NBS under this category if:
  • the individual or their partner is a parent of the child
  • the child is aged less than one on that day
  • with NBS included, the individual's FTB Part A rate (disregarding any reductions for FTB advances (1.2.8) and any election to receive ES quarterly (1.2.10)) would be greater than nil on that day
  • that day occurs in the period of 13 weeks beginning on the day that the conditions above are satisfied, and
  • the birth registration requirement is met (see below).
2. Child entrusted to care of an individual or their partner An individual may be eligible for NBS under this category if:
  • neither the individual nor their partner is a parent of the child
  • on or before that day, the child became entrusted to the care of the individual or their partner
  • the child is aged less than one on that day
  • with NBS included, the individual's FTB Part A rate (disregarding any reductions for FTB advances (1.2.8) and any election to receive ES quarterly (1.2.10)) would be greater than nil on that day, and
  • that day occurs in the period of 13 weeks beginning on the day that the conditions above are satisfied.

However, an individual is not eligible for NBS under this category if the child is not an FTB child of the individual for a continuous period of 13 weeks beginning on the first day that the first 4 criteria above are satisfied.
3. Adoption An individual may be eligible for NBS under this category if:
  • on or before that day, the child became entrusted to the care of the individual or their partner
  • it is an authorised party (1.1.A.135) that entrusts the child to the care of the individual or their partner
  • the authorised party does so as part of the process for the adoption of the child by the individual or their partner
  • with NBS included, the individual's FTB Part A rate (disregarding any reductions for FTB advances (1.2.8) and any election to receive ES quarterly (1.2.10)) would be greater than nil on that day
  • that day occurs in the period of 13 weeks beginning on the day that the conditions above are satisfied, and
  • that day occurs before the end of the period of 12 months beginning on the day the child became entrusted to the care of the individual or their partner.

Exceptions

If an individual is a member of a couple and their partner is eligible for PLP for a child, the individual is not eligible for NBS or NBU for that child. If an individual’s former partner is eligible for PLP for a child for a day in which they were a member of a couple, the individual is not eligible for NBS or NBU for that child.

If an amount of NBS is added in relation to an individual and an FTB child of the individual for a period of 13 weeks and the individual is a member of a couple for that entire 13-week period, then the individual's partner is not eligible for NBS for that child.

An individual is not eligible for NBS for a day in the circumstances prescribed under the relevant legislative instrument -
A New Tax System (Family Assistance) (Newborn Upfront Payment and Newborn Supplement - Entitlement Exclusion) Determination 2024.

Act reference: FAAct Schedule 1 clause 35A Eligibility for NBS

Avoiding duplicate payments

An individual cannot receive a duplicate benefit of NBS or NBU for the same child.

In considering whether or not NBS should be paid for a child, it should be taken into account whether an individual has benefited, either directly or indirectly, from an NBS or NBU payment received by another individual for that child.

Potentially, duplication payments could occur where NBS or NBU has been paid to the partner or former partner of the individual or the former partner of the individual's current partner.

If no exclusion rules apply, the individual is eligible for payment until the end of their NBS period (1.1.N.10).

Example: Sophie has received 50 days of NBS for her daughter Amelia. On 1 January 2018, Sophie reunites with Amelia's father Ben and Ben claims FTB for Amelia.

On 1 March 2018, Sophie and Ben separate.

Ben's eligibility for NBS is assessed to ensure that Sophie does not receive a duplicate benefit of NBS while they are members of the same couple. The assessment recognises that Sophie has not received the full benefit of the maximum 13 weeks (91 days) NBS period.

For the period that Ben and Sophie are members of a couple (day one to day 59 of Ben's NBS period), Ben is eligible for NBS for the following number of days (Rule 2 applies):

  • 91 − the number of days Sophie was eligible for NBS while they were a couple = 91 − 50 = 41 days

Therefore, while Ben is a member of a couple with Sophie, he can receive the NBS for 41 days. NBS is not added to Ben's rate of FTB Part A from day 42 to day 59 of Ben's NBS period. This ensures that Sophie does not receive (through payment to Ben) more than 13 weeks (91 days) of NBS.

For the period that Ben and Sophie are not members of the same couple (day 60 to day 91 of Ben's NBS period), no exclusions apply to Ben and NBS is added to Ben's FTB Part A rate for the rest of his NBS period. Ben is also eligible for NBU on day 60 as he is no longer a member of a couple with Sophie and he was not a member of a couple with Sophie during her NBS period.

Example: Emily receives NBS and NBU with her FTB for her son Noah. Before the end of her NBS period, Emily partners with Noah's father Chris.

Emily and Chris later separate and both have shared care of Noah. Chris claims FTB for Noah and his eligibility for NBS and NBU is assessed. As Chris was partnered with Emily during her NBS period he is not entitled to receive NBU and his NBS period is reduced by the number of days he was a member of a couple with Emily during her NBS period.

Act reference: A New Tax System (Family Assistance) (Newborn Upfront Payment and Newborn Supplement - Entitlement Exclusion) Determination 2024

Policy reference: FA Guide 1.1.N.10 NBS period

Birth registration

Where an individual or their partner is a parent of the child and are responsible for registering the birth of the child in accordance with a relevant state or territory law, the NBS birth registration requirement must also be met. To meet the birth registration requirement, the individual or their partner must have either registered the birth of the child, or applied to register the birth of their child. In addition, the Secretary must be notified, or become aware, that this requirement has been met by the end of the first income year following the income year (the relevant year) in which the last day of the NBS period falls, or if the Secretary has granted an extension on the time period for lodging an FTB claim under FA(Admin)Act paragraph 10(2)(b) due to special circumstances and that claim is for a period falling within the relevant year, by the end of the period that the Secretary has allowed.

Act reference: FAAct Schedule 1 clause 35A Eligibility for NBS

FA(Admin)Act section 10(2)(b)(ii) Claim must relate to one income year and be made within a certain period

Policy reference: FA Guide 1.1.I.90 Individual, 1.2.8 FTB advance - description, 1.2.10 Energy supplement (ES) - description, 2.2.1 FTB eligibility criteria for individuals, 2.1.1.10 FTB child

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