8.2 ES - grandfathering provisions
ES ceased on 20 March 2017 and is not paid for new FTB recipients who commence payment on or after this date. However, grandfathering rules permit an individual or ACO with entitlement to an FTB legislative rate on 19 September 2016 to continue to receive ES in circumstances as described below.
Grandfathering & FTB fortnightly payments
An individual or ACO with entitlement to a rate of FTB on 19 September 2016 will continue to receive ES with their payment provided there is no break in their entitlement for the payment.
Example: Ted and Polly's youngest child Harry finishes Year 12 in November 2016. As a result their FTB Part A payments are cancelled from 1 January 2017. In April 2017, they become carers of their 14 year old niece Jemima, and lodge a claim for FTB Part A. As there was a break in their FTB entitlement after 20 September 2016, ES is not included as part of the FTB payments going forward.
Grandfathering pathways for FTB
A person who moves between FTB Part A and FTB Part B (the pathway) on or after the 20 September 2016, without a break in their FTB entitlement, will continue to be eligible for a rate of ES which applies to that payment.
Example: Thelma receives both FTB Part A and Part B by fortnightly instalments for her 7 year old son Brad. On 3 April 2017, Thelma notified Centrelink that she has a new partner and loses eligibility to FTB Part B, however, due to their combined income she continues to receive FTB Part A. As there is no break in entitlement to FTB Part A, she continues to receive the ES with her FTB Part A.
An individual who loses entitlement to FTB on or after 20 September 2016, will no longer be eligible for ES, even if they later again become eligible for FTB payments.
Example: George and Mildred receive FTB Part A by fortnightly instalments for their child Jim during 2015-16. They contact Centrelink in May 2016 and provide an income estimate for the 2016-17 year which is over the threshold to receive FTB Part A by fortnightly instalments, resulting in them then not being eligible for FTB Part A by fortnightly instalments. When reconciliation of their 2015-16 FTB payments is finalised, it is found they were not eligible for FTB Part A payments due to their combined ATI. Mildred loses her job in July 2017 and lodges a new claim for FTB. The claim for FTB is granted, however ES is not included in their rate of FTB as they did not have continuous payment or entitlement to payment since 19 September 2016.
ES is not grandfathered from an income support payment to FTB or FTB to an income support payment.
Grandfathering for past period claims
Where a person lodges a past period claim for the 2016-17 income year (known as a lump sum claim) and the claim is granted; that person will be eligible for ES grandfathering if it is determined that they have an FTB legislative rate greater than nil in respect of 19 September 2016. That person's ES will be maintained for subsequent instalment and lump sum claim periods provided there is no break in FTB entitlement.
Example: Kath and Kim have 4 children under 12 and lodge a past period claim for FTB Part A for the 2016-17 income year on 10 August 2017. It is determined that they were entitled to FTB Part A for each day during income year which includes 19 September 2016, therefore they are entitled for ES to be included as part of the FTB Part A lump sum amount.
Note: If it was determined that Kath and Kim were not entitled to FTB Part A for one day or more after the 19 September 2016, they would no longer be eligible for ES in any future past period claim for FTB Part A.
Recipients from 20 September 2016 to 19 March 2017
ES will no longer be paid after 19 March 2017 to individuals who became new recipients of FTB after 20 September 2016.
Example: Rita lodges a claim for FTB to be paid in fortnightly instalments on 1 December 2016 following the birth of her first child, Emily, on 5 November 2016. Her claim for FTB is granted and when her fortnightly FTB instalments commence, ES is also paid as she was a new recipient after 20 September 2016. However, after 20 March 2017, ES ceases to be paid with Rita's fortnightly instalments.
Act reference: FAAct section 58(1) Annual rate of FTB for individuals, section 58(2) Annual rate of FTB to approved care organisation
Policy reference: FA Guide 3.1.4 FTB Part A rate calculation - Method 1, 3.1.8 FTB Part A rate calculation - Method 2, 3.1.9 FTB Part B rate calculation, 4.2 Claims for FTB, 1.2.10 Energy supplement (ES) - description