4.4.8 Review of FTB entitlements

Introduction

To ensure an individual receives the correct rate of FTB by instalment, an automated review of their entitlements (1.1.E.30) must be conducted just before an FTB child turns 16 or 18 years of age and prior to the expected end date of their course if they are a senior secondary school child (1.1.S.27).

Note: The below reviews apply to FTB Part B where the individual is a single parent, grandparent or great-grandparent. The rate of FTB Part B is nil for individuals who are not in these categories once their youngest child turns 13 years of age.

FTB child turning 16 years of age

In order to be entitled to FTB, a child 16 years or older must be participating in full-time senior secondary study.

Before the child's 16th birthday, the individual is sent a letter informing them of the date their child is expected to complete secondary study. The letter tells the individual that, if this information is incorrect or ceases to be correct, they must update their child's education details. No action is required from the individual, if the information in the letter is correct.

FTB child turning 18 years of age

If the individual is receiving child support for the child and the child will continue in full-time secondary study after their 18th birthday, the individual will need to take action to extend their child support assessment until the end of the school year, otherwise they may fail the MAT for the child which would reduce their rate of FTB Part A payment.

If the child support case was initiated as an agreement, signatures of both the payer and payee are required to extend the child support case past the child's 18th birthday. If one party refuses to extend the case, the party that attempted to extend the case has taken reasonable maintenance action and their rate of FTB Part A for that child will not be reduced to the base rate. However, in most cases if the payee does not take steps to extend the child support case (obtain maintenance) the payee is deemed to have not taken reasonable maintenance action and their rate of FTB Part A for that child will be reduced.

In the case where action could result in the payer swapping to be payee, the payer does not have to take maintenance action for FTB purposes.

Where it would disadvantage one party to extend the agreement it may be appropriate that the refusing party not fail the MAT.

For single parents, grandparents and great-grandparent carers, if the child is the individual's youngest FTB child, and is a senior secondary school child, FTB Part B ceases to be paid at the end of the calendar year in which the child turns 18. For couple families (that are not grandparent or great-grandparent carers), FTB Part B ceases to be paid once the youngest child turns 13.

In some circumstances, it is possible the FTB child may be eligible for an amount of YA greater than the individual's FTB Part A entitlement for that child.

FTB child completing full-time secondary study

An FTB child's completion of full-time secondary study affects their FTB child eligibility, as they are no longer a senior secondary school child. Prior to the child's expected course end date, the individual will be sent a letter informing them of the date their child is expected to complete secondary study. The individual does not need to do anything if the information is correct. The individual must update their child's education details if the child will remain in study or not complete their course.

Note: When a child has turned 19 and the calendar year in which the child turned 19 has ended, the FTB Part A rate payable for the child may also be affected, as the child will no longer be a senior secondary school child.

Shared care of FTB for child turning 16 or 18

A review letter is sent to each instalment individual who is sharing the care of an FTB child about to turn 16 or 18.

The term 'shared care' only applies in situations where parents or carers of a child have at least 35% (i.e. at least 128 nights a year) care of a child.