4.4.6 Income support claim pending for FTB or regular care child
Pending claim
A reassessment of an individual or ACO’s FTB entitlement is required where an FTB or regular care child of the individual or ACO makes a claim for a:
- social security pension (1.1.S.90) or benefit (1.1.S.60)
- LMP (1.1.L.10) payment, or
- prescribed educational scheme (1.1.P.100) payment where the child is aged 16 or more.
To ensure that no FTB is paid for a child who has claimed one of the specified payments, Centrelink must:
- cancel the individual or ACO's FTB entitlement if the child is the individual's only FTB or regular care child, or
- vary the daily rate of the individual or ACO's FTB entitlement.
Act reference: FA(Admin)Act section 28B Variation of instalment entitlement determination where claim made for another payment type
Date of effect of cancellation or rate reduction
The date of effect of the FTB cancellation or rate reduction determination is the day after the end of the last instalment period before the variation takes place (date paid to plus one) or at a later date as determined by the Secretary (for example, the FTB or regular care child’s 16th birthday where they make an early claim for the specified payment).
Example: Martin receives FTB for 2 children. The older child, Hendrik, is aged 17 and makes a claim for YA. The Secretary varies Martin’s FTB rate so that it does not take Hendrik into account from the day that Hendrik made the claim for YA.
Example: Leiz receives FTB for one child, Tess. Tess makes an early claim for DSP 13 weeks before their 16th birthday. The Secretary cancels Leiz’s FTB on Tess’ 16th birthday.
Act reference: FA(Admin)Act section 28B(2) Consequence of section applying if the individual is the claimant's only FTB or regular care child or the claimant is an approved care organisation, section 28B(3) Consequence of section applying if the individual is not the claimant's only FTB or regular care child
Child's claim rejected
If the FTB or regular care child's claim for the specified payment is rejected, withdrawn or taken not to have been made, the Secretary must vary individual or ACO’s FTB rate to undo the effect of the cancellation or rate reduction determination. The date of effect of this variation is the date of effect of the FTB cancellation or rate reduction. The variation restores the determination that applied before the cancellation or rate reduction.
Act reference: FA(Admin)Act section 28B(4) Consequence of later rejection etc. of individual's claim
Claim rejected for reason that would affect FTB entitlement
If the FTB or regular care child's claim for the specified payment was rejected, withdrawn or taken not to have been made, because of a personal circumstance that would affect the individual's FTB eligibility for that child, the individual or ACO’s FTB must be varied from the date the change in the child's circumstances occurred.