2.1.1.33 Waiver of FTB

Introduction

From 1 July 2008, the minimum level of care required in order to be entitled to receive FTB is 35%. As a result, FTB entitlement cannot be waived. However an individual who has care between 35% and 65% may choose not to apply for FTB. The unclaimed FTB will not be allocated to another parent/carer unless their level of care increases.

Note: The rest of this topic relates to FTB entitlement prior to 1 July 2008.

Summary

Provisions from 1 December 2001 provide additional rules that allow a person who has at least 10% but less than 30% care of care for a child to waive their eligibility for FTB for a nominated period in favour of the parent with the majority of care. This is for past period claims up to 30 June 2008.

In cases where there are only 2 carers, this means that the parent with the majority of care is entitled to the full standard rate (subject to eligibility and income testing) for that child for the nominated period.

Individuals to whom the waiver applies

An individual may waive their FTB entitlement whether or not they have claimed FTB for the child in respect of whom they are waiving eligibility. Where no claim for FTB has been made for the child for whom they are waiving eligibility, the FAO delegate must be satisfied that they would have had, or would have, care of the child for at least 10% but less than 30% for the period.

Conditions for waiving eligibility of FTB

To waive FTB eligibility the following conditions must be satisfied:

there has or will be a pattern of care for a period in relation to a child, during which the child was an FTB child of more than one person,
the person making the waiver had care of the child for at least 10% but less than 30% of the period, and
that person makes a written declaration waiving his or her eligibility for FTB in respect of that child for some or all of the days in that period.

In these circumstances, the child is taken not to be an FTB child of the person making the waiver, for the nominated period. The effect of the waiver is that the child is an FTB child only of the parent with the majority of care.

Written declaration or revocation

A declaration to waive the individual's eligibility for FTB in respect of a child for a specified period is required from the parent with the minority of care in the form of a written statement. The child is taken not to be an FTB child of the individual on any day covered by the declaration.

Waiver declarations must be made in a form and manner approved by a delegate of the Secretary.

Act reference: FA(Admin)Act section 25A Secretary's power to approve a manner of notification

Policy reference: FA Guide 2.1.1.25 Shared Care of an FTB Child, 2.1.1.45 Establishing a Pattern of Care, 2.1.1.50 Determining Percentage of Care

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Last reviewed: 3 November 2008

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