3.11 NBS rate

Introduction

There are 2 rates of payment for NBS - a higher rate and a lower rate.

The higher rate of NBS is $1,924.65.

The lower rate of NBS is $642.46.

It is paid for a period of up to 13 weeks (or 91 days) at a higher rate for a first born child or each child in a multiple birth, initial entrustment to care or initial adoption, and lower rate for subsequent children. Where eligible, the first instalment includes the NBU.

Annualising NBS

For the purposes of FTB Part A rate calculation, the NBS rate is annualised as follows:

NBS rate = (Higher or Lower NBS rate) × 365 ÷ 91

NBS is included in an individual's annual FTB Part A rate for a period of up to 91 days where eligibility criteria are met.

If an individual is eligible for at least one day of NBS and is not excluded under the legislative instrument, a NBU amount of $641.00 is also paid in respect of the first day of NBS eligibility.

Entitlement to NBS is assessed as part of an individual's FTB Part A claim. NBS is not payable to an individual where that individual receives PLP for the same child, see 1.2.18.

Payment of NBS

NBS is payable under 3 categories:

• parent
• entrusted to care, and
• adoption.

A child will attract the higher rate of NBS if the child is:

• Parent category
  • the first child born alive to the birth parent, and/or
  • born during a multiple birth.

• Entrustment to care category
  • the first child aged under one year that becomes entrusted to the care of the individual or their partner, and/or
  • a child aged under one year who is entrusted to the care of the individual or their partner as part of a multiple entrustment to care (that is, where 2 or more children aged under one year are entrusted to the care of the individual or their partner as part of the same process).

• Adoption category
  • the first child that becomes entrusted to the care of the individual or their partner as part of an adoption process, and/or
  • entrusted to the care of the individual or their partner as part of a multiple adoption process (that is, where 2 or more children aged under one year are entrusted to the care of the individual or their partner as part of the same adoption process).

Otherwise, a child will attract the lower rate of payment.

The table below shows the applicable rate of NBS for children in each of the 3 categories above:

* This refers to a child who becomes entrusted (1.1.B.17) to care as part of an adoption process, not the finalisation of the adoption process.

See 3.1.3 for an example of an FTB Part A calculation with NBS included.

NBS & infant death

Families who experience the loss of a subsequent child before the child's first birthday are entitled to receive the higher rate of NBS (subject to the income test) for the deceased child. This is in addition to the FTB bereavement payment (for a period of 14 weeks) from the day the child died.

A top-up amount (equivalent to the difference between the higher and lower rate of NBS) will be paid to families who previously received the lower rate of NBS before their child died.

The same rule applies in a subsequent entrustment to care or subsequent adoption where the child dies before their first birthday. Multiple births, entrustments to care that involve multiple children and adoptions that involve multiple children already attract the higher rate of NBS by default.