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.

3.9.1.40 HCC Provisions for Children & Dependants

Low income HCC

There is no upper or lower age limit that applies to claimants for the LIC. Where applications are lodged by or on behalf of children, each application should be assessed on the particular circumstances of the case.

Legislation places limitations on children/dependants who can claim a LIC, as follows.

Under 16 dependants

Children under 16 years of age are generally in the care of parents or other responsible adults and meet the 'FTB child' definition in FAAct section 22. Such children are dependants for card purposes and cannot obtain a LIC in their own right. Some exceptions appear in the table below.

Age Status HCC entitlement
0 - 15 years Is an FTB child as per definition. FAAct section 22 None. Child would appear on parent's card (if parent entitled).
 

- Is NOT FTB child, OR

- Is in the care of an ACO, OR

- Is in foster care

 CAN access LIC - not regarded as dependent of any individual. (See also 'Foster child HCC' and 'Wards of the state, awaiting adoption or refugee children' ).
0 - 16 years Is receiving income support or LMP payments. CAN access LIC. May already receive automatic HCC.

Act reference: SS(Admin)Act section 240A(4) Form of cards

FAAct section 22 When an individual is an FTB child of another individual

Students

Secondary students aged 16 to 18 years of age are usually dependants for card purposes and would therefore appear as dependants on any card that their family may qualify for, e.g. the FTB HCC or the LIC. These students CANNOT obtain the LIC in their own right. Some exceptions appear in the student table below.

Age Status HCC entitlement
16 - 18 secondary student Is an FTB child per definition FAAct section 22 None. Child would appear on parent's card (if parent entitled).
16 - 18 secondary student Is not an FTB child (receiving YA or prescribed educational scheme payment, such as ABSTUDY or VCES if applicable). CAN access LIC.
19 years secondary student FTB child or NOT an FTB child CAN access LIC.
16 - 24 tertiary student NOT an FTB child CAN access LIC.

Note: From 1 January 2019, a person receiving YA student or apprentice, Austudy or ABSTUDY living allowance qualifies for an automatic issue HCC.

Act reference: SSAct section 5(1)-'prescribed educational scheme'

SS(Admin)Act section 240A(4) Form of cards

Others

Age Status HCC entitlement
16 years plus - unemployed NOT an FTB child (may receive income support payments as job seeker) CAN access LIC (may already receive an automatic HCC).
16 years - employed FTB child or NOT an FTB child CAN access LIC.

Note: It is not a requirement under the FTB child definition in section 22 of the FAAct for a person to actually receive FTB payments for a child. An adult who has responsibility for a child can request cancellation of the FTB payment but this will not enable the child to become eligible for grant of a LIC in their own right, if the child is prevented from qualifying for LIC under SSAct section 1061ZT.

Act reference: SSAct section 1061ZO Qualification - see subsections (1) to (4), section 1061ZT Certain dependants not qualified for HCC

FAAct section 22 When an individual is an FTB child of another individual, section 22A Exceptions to the operation of section 22

Policy reference: SS Guide 3.9.1.20 Qualification for LIC

Foster child HCC

Provisions for the foster child HCC are contained in 3.9.1.45.

Carer allowance (CA) (child)

Where the parent or guardian (1.1.G.80) of a child is receiving the fortnightly payment of CA in respect of that child, the person is automatically issued with a HCC. The card can only be used for the child's benefit, it CANNOT be used for other members of the family. If there is more than one CA child (1.1.C.90) in the family, a separate card is issued for each child.

Where a child does not qualify its parent or carer for the CA payment, a HCC can be issued where the child satisfies the qualification criteria for a HCC only CA (child).

Cards are valid for 12 months from the date of commencement of CA. Renewal is automatic if entitlement is current.

Act reference: SSAct section 5(1)-'parent'

CA child also a dependant (1.1.D.65) of a HCC holder

If a CA child is also a dependant of a HCC holder, the child will appear on both cards. It is preferable to use the family card to avoid confusion when calculating expenditure towards a safety net (1.1.S.10).

Explanation: If the CA child's card is used, the expenditure may be counted towards the family safety net or the child's individual safety net, depending on the family situation.

Act reference: SSAct section 1061ZK Qualification: general rules - see subsections (2), (3) and (4)

Policy reference: SS Guide 3.6.7.10 Qualification for CA (child) HCC only, 3.6.7.20 CA (child) HCC only - measuring the level of care & attention, 3.6.7.30 Qualification for CA

Ex-CA (child) HCC

From 1 October 2007 16 - 25 year olds who are studying full-time and who had a CA HCC the day before their 16th birthday, may be eligible for the ex-CA (child) HCC.

Act reference: SSAct section 1061ZO(9) This section applies to a person on a day if…, section 953 Qualification for CA-caring for either 1 or 2 disabled children

SS(Admin)Act section 240B(2) Restrictions on listing of dependants

Policy reference: SS Guide 3.9.1.30 Qualification for ex-CA (child) HCC for 16-25 year old students, 3.6.7.30 Qualification for CA

Wards of the state, awaiting adoption or refugee children

When determining HCC eligibility for a child who is away from their parents, the following should be considered:

  • whether or not FTB is received for the child,
  • if FTB is received, whether by an individual, or by an ACO,
  • if the child is an 'FTB child' whether they are precluded from claiming LIC,
  • whether child is a dependant of an individual, AND
  • if the child can be considered to be in 'foster care'.

Explanation: A HCC is available to all children in the foster care of individuals or families (NOT ACOs). Because ACOs are not individual persons, a child in an ACO can obtain a LIC where the ACO receives FTB for the child, or FTB is not paid for the child. Where a person other than a parent receives FTB for a child, the child may appear on that person's HCC.

Child or partner ceases to be a dependant

When a dependent child or partner (1.1.P.85) of a cardholder ceases to be the cardholder's dependant, the loss of dependant is disregarded for a period of 4 weeks.

Example 1: A couple may be temporarily separated, then reconcile.

Example 2: A child may be in alternative care for a period of time.

Note: When permanent loss of dependant occurs, ongoing eligibility should be checked carefully.

Act reference: SSAct section 1071A-3 Cessation of dependency

Signatures on HCCs

The cardholder should sign the card wherever possible but this will not always be the case. For cards issued to children under 16 years, for example CA (child) and foster child cards, the child should sign where they are able. A parent, guardian or foster carer may sign on behalf of the child, where the child cannot sign, and this should be made clear in the signature block on the card.

Example: Child is too young to sign, or reproduce an identical signature when required.

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