2.1.2.30 Temporary Absence from Australia

Summary

FTB may continue in some circumstances where the child and/or the recipient are absent from Australia (1.1.A.120) for up to 3 years. FTB Part A at greater than the base FTB child rate and FTB Part B can only be paid for the first 6 weeks of an overseas absence (the 6 week period may be extended in certain circumstances). If the recipient was receiving RA and FTB continues to be paid at greater than the base rate during a temporary absence, RA may still be paid.

FTB instalment recipients must notify the FAO if they, and/or their child(ren) intend to leave Australia, even for a short period. They must also notify the FAO upon their return to Australia. Details of the trip must be obtained by the FAO to assess ongoing eligibility.

The following table lists the factors to be considered when determining a recipient's entitlement to FTB during an overseas absence:

Absent overseas child - FTB child

A child would be deemed an absent overseas FTB child if any of the following applies:

• a regular care child or FTB child leaves Australia, or
• a child born outside Australia is a regular care child or FTB child at birth, and
• the child continues to be absent from Australia for more than 6 weeks, and
• beginning on the first day after the end of the 6 weeks of the child's absence, the child is an FTB child.

The child is an absent overseas FTB child for any period that occurs:

• during the absence from Australia, and
• beginning on the first day after the end of the 6 weeks of the child's absence, and
• during the period in which the child continues to be an FTB child.

If an absent overseas FTB child returns to Australia but leaves again after less than 6 weeks and the child is still an FTB child, they should be considered an absent overseas FTB child for any period during their absence from Australia and the period during which the child is an FTB child.

Absent overseas child - regular care child

A child would be deemed an absent overseas regular care child if any of the following applies:

• a regular care child or FTB child leaves Australia, or
• a child born outside Australia is a regular care child or FTB child at birth, and
• the child continues to be absent from Australia for more than 6 weeks, and
• beginning on the first day after the end of the 6 weeks of the child's absence, the child is a regular care child.

The child is an absent overseas regular care child for any period that occurs:

• during the absence from Australia, and
• beginning on the first day after the end of the 6 weeks of the child's absence, and
• during the period in which the child continues to be a regular care child.

If an absent overseas regular care child returns to Australia but leaves again after less than 6 weeks and the child is still a regular care child, they should be considered an absent overseas regular care child. This covers any period during their absence from Australia and the period during which the child is a regular care child.

Act reference: FAAct section 24 Effect on certain absences of FTB child etc. from Australia, section 62 Effect on individual's rate of the individual's absence from Australia, section 63 Effect on FTB rate of FTB child's absence from Australia, section 63AA Regular care child's absence from Australia-meaning of absence overseas regular care child, section 63A Secretary may extend 6 week period of absence from Australia

FA(Admin)Act section 25 Obligation to notify change of circumstances

Policy reference: FA Guide 3.1.1.50 FTB Payments During Absence from Australia

Australian residence

The recipient must continue to be an Australian resident during any absence overseas to remain eligible for FTB. To remain an FTB child, a child who leaves Australia must continue to:

• be an Australian resident (1.1.A.130), or
• live with the recipient.

For the applicant/recipient and/or the child(ren) to retain Australian residency, the absence overseas must be temporary, and there must be a clear intention to return to Australia.

Act reference: SSAct section 7(3) In deciding whether or not a person is residing in Australia...

Policy reference: FA Guide 2.1.2.10 Residence Requirements

Absences from Australia

The following table explains the effect on FTB of a temporary absence from Australia by the FTB child or the FTB recipient.

Example: Amanda was receiving FTB for her 2 children. She took the children overseas for a 4 year period for a temporary work placement. Amanda ceased to be eligible for FTB after 3 years. When she returned to Australia she reclaimed FTB. Two weeks later Amanda was offered a new placement overseas, which she took up 3 weeks later. Amanda is eligible for FTB for the period of time spent in Australia, but is not eligible once she leaves Australia again. This is because she spent less than 6 weeks in Australia after losing eligibility due to her 4 year absence.

Child born overseas

A person can claim FTB and/or baby bonus for a child who is born overseas while they are outside Australia, subject to other eligibility criteria. The claim must however be lodged within the allowable claim period. The residence requirements for FTB and baby bonus are satisfied as long as at least one parent is an Australian resident who is temporarily absent from Australia.

If a person returns to Australia without the child, they may still be eligible for a payment if the child was living with them at any time after the birth. They may also be entitled to FTB and/or baby bonus if the child is an Australian resident or SCV holder residing in Australia as long as the child is still in their care.

Example 1: Sarah and Kate are a couple who leave Australia temporarily for 18 months. Four months after departure, Sarah has a baby and lodges a claim for FTB and baby bonus after the birth. As Sarah and the baby are only temporarily absent from Australia, they may be eligible for FTB and baby bonus.

Note: Sarah need not wait until her return to Australia to lodge the claim as the baby bonus claim must be lodged within 52 weeks of the child's birth.

Example 2: Jeffrey leaves Australia temporarily to travel overseas. While overseas he meets and marries a non Australian resident who subsequently has a child. As the birth parent is not residentially qualified for payment, Jeffrey may lodge a claim for FTB and baby bonus within the applicable time limits.

Act reference: FAAct section 24 Effect of certain absences of FTB child etc. from Australia

Recipient & FTB child both overseas

Where the recipient and the FTB or regular care child are both overseas, the restrictions on entitlement in respect of the recipient and the child as described in the table above need to be considered together. If the recipient and child have the same departure date, the 3-year period expires simultaneously. Where the recipient and the child have different departure dates, the 3-year period expires at different times.

Example: Gayle receives FTB for her 2 children, Simone and Jessica. All 3 will be living overseas for a period of 4 years whilst Jessica completes study in Canada. Jessica departs Australia alone on 1 November of the current income year. Jessica's FTB entitlement reduces to the base rate 6 weeks after this date and will cease 3 years later on 1 November. Gayle and Simone depart for Canada a month later on 1 December. Simone's FTB entitlement reduces to the base rate 6 weeks after this date and will cease 3 years later on 1 December.

Act reference: FAAct section 24 Effect of certain absences of FTB child etc. from Australia

Individual overseas prior to having an FTB child

If an individual is absent from Australia for more than 6 weeks but less than 3 years and is not eligible for FTB at that time, becomes eligible for FTB upon returning to Australia, and then leaves again less than 6 weeks after returning, the 3-year absence period applies from the first day of the initial departure.

Explanation: If the initial absence is more than 6 weeks but less than 3 years and the time in Australia between absences is less than 6 weeks the individual is taken to not have returned to Australia.

Note: An FTB applicant who has previously been temporarily absent from Australia need not have been eligible for FTB during that absence for the 3-year absence to apply from the first day of that absence.

Act reference: FAAct section 24(5) If an individual who has been absent from Australia…

When is an absence temporary?

The recipient or child must intend to return to Australia for the absence to be regarded as temporary. Whether an absence will be temporary may be apparent from the purpose of the overseas absence. The reason for the absence should be consistent with the intended duration.

The following factors should also be considered:

• commitment to any overseas home, and
• evidence of continuing ties with Australia such as:
  • retaining a home, bank account or employment in Australia,
  • whether the person has immediate or extended family still living in Australia, and
  • the length of residence in Australia before departure.

Example: Bruno and Pina are Australian citizens. Pina is receiving FTB for their children. Bruno has a good job, and they own their own home in Australia, as well as 2 units that they rent out. The family has visited Italy once for a short holiday to visit relatives since they migrated to Australia. Pina's parent in Italy becomes terminally ill, so the family decides to return to Italy to spend time with Pina's parent. Bruno takes long service leave from his job, but he returns to Australia after 3 months. Pina and the children remain in Italy, living with relatives. Pina states that the absence is temporary, as she will return to Australia after her parent's funeral. Pina and the children continue to be Australian residents. Their family home is in Australia, and Bruno has already returned to Australia. Their investment properties are in Australia. If Pina is overseas for more than 6 weeks, her rate of FTB will be affected, however she will continue to be eligible for FTB for up to 3 years.

Absence is not temporary

If the absence is not temporary, eligibility does not continue. If the recipient is going overseas permanently, FTB is cancelled from the date of departure. If the FTB or regular care child is going overseas permanently, they cease to be an FTB or regular care child from the date of departure and the recipient's FTB must be reassessed.

Example: Joan receives FTB for her 3 children. Joan and her partner Lloyd own their home in Australia. They originally migrated from England, and their extended family live in England and Scotland. Lloyd is offered a 2-year contract of employment in England. Joan notifies the FAO that she and the children will accompany Lloyd to England. Joan and Lloyd sell their house and furniture before they leave for England. They do not purchase return tickets for their trip. Even though the term of Lloyd's employment is only 2 years, they cease to be Australian residents. They have ended their financial ties with Australia and have no personal ties. The fact that they are returning to their original homeland with personal, employment and financial ties there indicates that they do not intend to reside permanently in Australia.

Temporary absence becomes permanent

If the absence is initially regarded as temporary, but the FTB recipient advises that the absence has become permanent, FTB must be reassessed from the date the recipient becomes aware that the absence is permanent.

Example: Sally is a sole parent who receives FTB for her child. She travels overseas for a 1 month holiday in the USA, and her FTB continues as the absence is temporary. However, while she is overseas she meets someone and decides to get married and live in the USA. She notifies the FAO once she makes the decision not to return to Australia. Her eligibility to FTB ceases from the date that she makes her decision.

Recipient employed overseas

The same provisions apply to all FTB recipients, including those who are:

• missionaries,
• foreign aid projects personnel,
• members of the defence forces, and
• Australian Government employees.

If a person travels to Australia to train as a missionary before being posted overseas, payment of FTB during their posting can only be granted if:

• the residence requirements have been met, and
• the FAO is satisfied that the person intends to return to Australia rather than their country of origin.

This may be determined by:

• the nature of property and assets held in Australia and/or the country of origin, and
• establishing to which country the person has the greater commitment.

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Last reviewed: 2 January 2013