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From 1 July 2011, for some FTB Part A individuals whose child turns 4 during an income year, payment of the FTB Part A supplement for that child for that income year is conditional on the child undergoing a health check.
This topic covers the following:
Act reference: FAAct section 61A FTB Part A supplement to be disregarded unless health check requirement satisfied
An FTB individual who is the parent (1.1.P.10) of an FTB child turning 4 in an income year, or who is partnered to the parent of that FTB child, is required to make sure their child has undergone the recognised health check (see Recognised health checks below) and notify the FAO that the health check requirement is met if they or their partner receives an income support payment (1.1.I.50) in relation to one or more days in the income year in which the child turns 4.
A non-parent carer FTB individual who has an FTB child turning 4 in an income year is required to make sure their child has undergone the recognised health check (see Recognised health checks below) and notify the FAO that the health check requirement is met if:
Note: Where an income support payment is retrospectively paid for a period during the income year in which the child turns or has turned 4, this can cause the health check requirement to apply to the individual.
Act reference: FAAct section 61A(1) Parents of FTB children, 61A(2) Other FTB recipients
A recognised health check must be completed and the FAO must be notified by the end of the second income year after the income year in which the child turned 4.
Example: Billy turns 4 in the 2011-2012 income year. The health check must be completed and FAO notified by 30 June 2014.
Explanation: If the health check is not completed or the FTB individual does not notify FAO by the end of the income year in which their child turned 4, part or all of their FTB Part A supplement for that child will be withheld, even if the FTB individual meets the tax lodgement requirements for the income year and their account is reconciled. The individual's FTB Part A supplement entitlement will be reviewed once the health check requirement is met by the end of the second income year after the income year in which the child turned 4.
However, if the child dies at any time within this timeframe, the health check requirement will not apply in relation to the child and the individual entitled to FTB in relation to the child will receive the Part A supplement for the relevant income year as normal.
Act reference: FAAct section 61A(1) Parents of FTB children, 61A(2) Other FTB recipients, subsection 61A(3) Exception
The following health assessments are recognised for the purposes of the health check requirement:
Where a health assessment is conducted overseas or under the Medicare Benefits Schedule, the health assessment must cover at a minimum the following examinations and assessments:
A suitable health check can be obtained in relation to a child who has turned 3 years of age, even where this is in the year before the child turned 4.
Act reference: FAAct section 61A(4) Health check requirement
Family Tax Benefit (Meeting the Health Check Requirement) Determination 2011 Part 2 Health check requirement
Where the child is taking or has already undertaken health assessments suitable to their particular circumstances, the child is taken to meet the health check requirement. In these cases an additional health assessment is not required.
Children in this category are:
Act reference: FAAct section 61A(7) Children taken to meet health check requirement
Family Tax Benefit (Meeting the Health Check Requirement) Determination 2011 Part 3 Classes of children taken to meet the health check requirement
Children in a specified class may be exempted from the health check requirement, as determined by the Minister.
The Minister has not yet specified a class of children to be exempted from the health check requirement.
Act reference: FAAct section 61A(6) Exempt class of children
If special circumstances exist in relation to the FTB individual or their partner (or both) that make it inappropriate to arrange a health check for the child, an exemption from the requirement for the individual to arrange the health check for their child may be granted at the discretion of the FAO. Special circumstance exemptions may be granted after the end of the second income year in which the child turned 4, provided the FAO has been made aware of the circumstances before the end of the second income year.
In deciding whether a special circumstances exemption applies, the particular facts of each case need to be considered. This exemption should only be granted in unusual and unexpected situations.
Factors that may give rise to a special circumstances exemption include, but are not limited to, the following:
It will usually be a combination of factors rather than a single factor that makes the circumstances unusual, unforeseen or exceptional to warrant a special circumstances exemption and circumstances must be considered on a case by case basis. Below is an example of a situation where a special circumstances exemption should NOT be applied.
Example: Cecelia lives on a remote cattle station in the Northern Territory and receives FTB Part A for her child who is turning 4 in the 2011-12 year. The nearest medical facility is several hundred kilometres away. The Royal Flying Doctor service provides remote medical services on-line and by radio and provides a visiting service at least twice a year, as well as in emergency situations. After receiving her letter informing her of the health check requirement, Cecelia requests a special circumstances exemption on the basis that she will have to wait until the next available opportunity to organise a physical check for her child, which could be several months away and she does not want to be put in danger of missing out on her supplement at the end of the year.
Based on these facts, this would not constitute special circumstances. Even if Cecelia cannot get her child's health checked some time during the 2011-12 financial year, she still has another 2 years after that to get the health check completed and to notify FAO. Cecelia has an obligation to ensure the health check is completed for her child before she can receive her supplement and must make every reasonable effort to do so.
If the FTB individual dies either during the income year in which the child turns 4, or within the subsequent 2 years after the year in which the child turned 4, the policy is that a special circumstances exemption will apply in these situations.
However, as the special circumstances exemption applies to the individual, the health check requirement will still apply in relation to the child following a change of care that occurs within the income year the child turns 4, when the new carer meets the criteria to be subject to the requirement.
Act reference: FAAct sections 61A(1)(c)(iv) special circumstances exist in relation..., (2)(e)(iv) special circumstances exist in relation to the individual...
If the health check requirement applies and is not met, the FTB Part A supplement for the child will be excluded in the calculation of the FTB Part A entitlement for each applicable day that the individual was affected by the health check requirement.
Act reference: FAAct section 61A(1) Parents of FTB children, 61A(2) Other FTB recipients
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Last reviewed: 20 September 2011
