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.

3.1.7.12 Exempt maintenance income

Summary

In some situations, maintenance (1.1.M.10) income received for an FTB child (2.1.1.10) is not assessed under the maintenance income test for FTB Part A. This topic provides information about exempt maintenance income where the individual:

  • receives maintenance for a child who does not attract more than the base rate (1.1.B.10) of FTB Part A
  • or their partner is permanently blind
  • receives maintenance specifically for their child's disability expenses, or
  • receives maintenance from the estate of a deceased payer (1.1.P.72).

Child does not attract more than the base rate of FTB Part A

Maintenance income is not assessable for a child who:

  • is not an FTB child, or
  • does not attract more than the base rate of FTB Part A.

Act reference: FAAct Schedule 1 clause 20 Effect of maintenance income on FTB rate

Individual or partner is permanently blind

If an individual or their partner is permanently blind, and they receive one of the following payments:

  • social security Age or DSP, or
  • a DVA service pension, veteran payment or income support supplement

then maintenance income received by either the individual or their partner is not assessed. This is because their maintenance income excess is deemed to be nil.

Example: Stella receives FTB for 2 children. The children's other parent pays child support to Stella. Stella's current partner is permanently blind and receives DSP. Therefore, the maintenance income Stella receives is not assessable under the maintenance income test.

Act reference: FAAct Schedule 1 clause 19B Application of maintenance income test to certain pension and benefit recipients and their partners

Policy reference: SS Guide 1.2.3.10 Age pension (Age) - description, 1.2.5.10 Disability support pension (DSP) - description, 1.1.S.90 Service pension, 1.1.V.05 Veteran payment

Disability expenses maintenance

Maintenance income received for an FTB child specifically for expenses due to the child's permanent or long-term physical, intellectual or psychiatric disability or learning difficulty is not assessable under the maintenance income test.

Example: Disability expenses maintenance includes:

  • special equipment purchase or hire
  • special school fees, and
  • medical or pharmaceutical expenses.

However, not all maintenance received for a child who has a disability is necessarily classified as disability expenses maintenance.

Example: Kirsten's child support (1.1.C.20) administrative assessment is increased following a change of assessment (CS Guide 2.6) Reason 2 decision due to the special needs of their child. The notice of decision identifies that only part of the increase relates to the child's disability. Therefore, only the part of the increase that relates to the child's disability is disregarded under the maintenance income test for FTB Part A.

Act reference: FAAct section 19(3) Maintenance income

Identifying disability expenses maintenance

In most cases, disability expenses maintenance will be accounted for in the child support assessment as the assessment will normally identify the amount of maintenance paid specifically for the child's disability expenses. However, the individual should be asked to provide supporting documents if there is any doubt as to the amount of maintenance paid specifically for the child's disability expenses.

Note: Where a child support assessment includes an amount specifically indicated for a child's disability expenses, the Registrar may provide a breakdown to the payee in writing. The payee should provide a copy of this letter or other such evidence of the child's disability expenses to the Secretary to determine what amount of the assessment should be disregarded.

Maintenance received from the estate of a deceased payer

An individual may receive a payment of maintenance arrears from the estate of a deceased payer if it is reasonable to do so. Any payment received from the estate is not assessed as maintenance income. Any arrears owing should be exempt from the maintenance income test (3.1.5.70).

Explanation: Maintenance is defined as financial support from the payer to the payee (1.1.P.71) for a child. Since this payment has been made by the estate, not a person, it is not maintenance.

Policy reference: FA Guide 3.1.5.70 Exemptions from the maintenance action test

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