1.1.M.10 Maintenance (FTB)

Summary

The following terms are all related to maintenance.

Definition: maintenance

Maintenance refers to payments or benefits received by an individual for the upkeep of an FTB child that is received from:

• a parent of the child, or
• the partner or former partner of a parent of the child.

Maintenance may include child maintenance (including child support), direct child maintenance and partner (spousal) maintenance.

Act reference: FAAct section 3(1)-'maintenance'

Definition: maintenance income

Maintenance income in relation to an individual means:

• child maintenance - the amount of a payment or the value of a benefit that is received by the individual for the maintenance of an FTB child of the individual and is received from:
  • a parent of the child, or
  • the partner or former partner of a parent of the child, or
• partner (spousal) maintenance - the amount of a payment or the value of a benefit that is received by the individual for the individual's own maintenance and is received from the individual's partner or former partner, or
• direct child maintenance - the amount of a payment or the value of a benefit that is received by an FTB child of the individual for the child's own maintenance and is received from:
  • a parent of the child, or
  • the partner or former partner of a parent of the child,

but does not include disability expenses maintenance.

Act reference: FAAct section 3(1)-'maintenance income'

Definition: maintenance action

For the purposes of FTB, maintenance action is the action required to obtain child support (1.1.C.20) from a payer (1.1.P.72).

Definition: maintenance action exemption

For the purposes of FTB, a maintenance action exemption occurs when a decision is made by the FAO that a recipient does not have to take action to obtain child support from a payer.

Definition: non-cash maintenance

For the purposes of FTB and baby bonus income estimates, non-cash maintenance is payments or benefits made to a person or their child, for the maintenance of either the person or their child, and received from:

• a parent of the child, or
• the partner (1.1.P.30) or former partner of a parent of the child.

Non-cash maintenance includes non-cash support, or payments made to a third party.

Examples: Components that may form non-cash maintenance include:

• food,
• clothing,
• household items and repairs,
• mortgage payments, rent and free lodging,
• health insurance and medical expenses,
• loan, credit card and store account repayments,
• child care fees,
• general education expenses, including school and tuition fees,
• sporting club costs including fees, equipment, related travel and accommodation,
• travel or holiday expenses,
• utility bills, such as electricity, gas, telephone, and heating,
• rates, such as council, water, and sewerage, and
• motor vehicle expenses.

Definition: non-cash housing maintenance

For the purposes of FTB, non-cash housing maintenance refers to maintenance income of a person that is not cash maintenance and is received in relation to the provision of a residence that is, or is to be, the person's principal home.

Definition: capitalised maintenance

Capitalised maintenance in relation to an individual means maintenance paid by an individual:

• that is neither a periodic amount nor a benefit provided on a periodic basis, and
• the amount or value of which exceeds $1,500.00.

A capitalised maintenance amount reflects a capitalisation period, which is the period of time the capitalised maintenance is meant to be used. Capitalised maintenance can be a single transfer of cash or property, but does not include property awarded to a non-resident parent as part of a matrimonial property settlement.

Policy reference: FA Guide 3.1.7.13 Capitalised Maintenance

Definition: capitalised maintenance income

Capitalised maintenance income in relation to an individual means maintenance income of the individual:

• that is neither a periodic amount nor a benefit provided on a periodic basis, and
• the amount or value of which exceeds $1,500.00.

Capitalised maintenance income does not include maintenance income that is annualised or received under a notional assessment as set out in clauses 20B and 20C under Schedule 1 of A New Tax System (Family Assistance) Act 1999.

Act reference: FAAct section 3(1)-'capitalised maintenance income'

Child Support (Assessment) Act 1989 section 146E Notional assessments, section 84(1)(e) ...lump sum payment provisions...

Definition: private collection

For the purposes of FTB, private collection refers to maintenance (including child support) that is collected directly from the payer by the payee. Private collection of maintenance does not involve the CSA.

_______________________________________________________

Last reviewed: 16 May 2011