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This topic includes information about calculating an FTB bereavement payment and covers the following:
continuation of eligibility for a deceased FTB child,
exceptions to continuation of eligibility,
lump sum bereavement payment,
14 week periods extended over 2 financial years,
14 week periods extended over 2 financial years - past period claim,
14 week periods extended over 2 financial years - increase in standard rate,
how to calculate a bereavement rate during the 14 week period,
how to calculate a lump sum bereavement payment, and
how to calculate bereavement payment for a past period claim.
If an individual is eligible for FTB for a child and the FTB child dies, the individual is eligible for an FTB bereavement payment. Individuals who receive instalment (1.1.I.100) payments may choose to receive the bereavement payment as a lump sum, or as a continuation of their eligibility for FTB for that child. Past period (1.1.P.60) claimants are paid a lump sum.
If a regular care child dies, the individual who receives RA components of FTB for the child may choose to receive the bereavement payment as a lump sum or in instalments.
If the individual is subsequently convicted in relation to the death of the FTB child the total amount received as bereavement payment may become a recoverable debt to the Commonwealth. The payment should not be stopped on the basis of the charges alone as the individual should be afforded the presumption of innocence until a court of law determines otherwise.
Act reference: FAAct section 31 Continued eligibility for FTB if an FTB or regular care child dies, section 32 Eligibility for a single amount of FTB if an FTB or regular care child dies, section 64 Calculation of rate of FTB for death of FTB or regular care child, section 65 Calculation of single amount for death of FTB or regular care child
Policy reference: FA Guide 2.1.1.110 Death of an FTB or Regular Care Child, 2.2.2 Death of an Individual Eligible for FTB
ACOs are not eligible for a bereavement payment of FTB when an FTB child of the ACO dies.
Explanation: The bereavement provisions in the legislation only apply to individuals (1.1.I.90).
If an individual was eligible for FTB before they died, and there is an amount of FTB outstanding to the individual, the amount can be paid to someone else if the Secretary considers that person is eligible. This can include a period of eligibility for FTB even if the deceased individual did not claim FTB before they died. It may also include a bereavement payment for a child if the individual's FTB child died at the same time or before the individual died.
Eligibility is worked out based on the circumstances of the deceased individual, not the circumstances of the individual claiming FTB. The amount payable is the amount the individual would have been paid if they had not died. There is no other payment in respect of the individual's death.
Act reference: FAAct section 33 Eligibility for family tax benefit if an eligible individual dies
Policy reference: FA Guide 2.2.2 Death of an Individual Eligible for FTB
An individual continues to be eligible for FTB for a deceased FTB child for a period of 14 weeks from the day the child died. The individual is generally eligible for the same rate of FTB that would have been paid if the child had not died. However, if the deceased child was the only child for whom the individual was entitled to receive maintenance (1.1.M.10) and at the time of the child's death that individual was restricted to base rate as a result of failing the maintenance action test (MAT) (3.1.5.10), the base rate restriction no longer applies during the bereavement period. Similarly, where an individual was receiving maintenance for the deceased child and the child was the only child for whom they were entitled to receive maintenance, any maintenance received during the bereavement period is disregarded. This is because there is no longer a relevant period for maintenance in these circumstances. The rate of FTB payable is still affected by any other expected changes in circumstances during the 14 week period.
Example 1: Jane lodges a past period claim for FTB for her child Matthew. Matthew died during the period of the claim, 6 weeks before his 5th birthday. Jane's FTB entitlement includes a bereavement payment for Matthew. The bereavement payment consists of 2 rates - a higher rate of FTB Part B for the first 6 weeks and a lower rate taking into account his 5th birthday for the remaining 8 weeks.
Example 2: Sarah has been receiving FTB at the maximum rate for her son David, who has been studying full-time toward his year 12 certificate. On 3 December, 2 weeks before the date he was expected to complete his year 12 certificate, David dies in an accident. David was more than 14 weeks short of his 18th birthday. Sarah receives her bereavement payment for David in a continuation of her instalment payments for the 14 week bereavement period. As it was expected that David would have completed his year 12 certificate on 17 December, Sarah is entitled to continue to receive the maximum rate of FTB for the 4 week period until the end of December. As David would have ceased to be a senior secondary school child (1.1.S.27) from 1 January of the following year, Sarah's rate reduces to the base rate for the remaining 10 weeks of the bereavement period.
If the individual is receiving FTB instalments, their bereavement payment is paid as a continuation of FTB for 14 weeks for the deceased child unless the individual requests a lump sum payment. If the individual is being paid an adjusted rate of FTB (1.1.A.45), the rate of FTB during the 14 week continuation period is the adjusted rate, unless the individual requests the original arrangement to cease. Any additional entitlement will be calculated after the end of the financial year, when the individual's actual ATI is known.
If the individual is claiming FTB for a past period, the bereavement payment is included in their total lump sum entitlement for the period.
Act reference: FAAct section 31(2) Individual remains eligible for FTB for 14 weeks after the death of the child, section 64 Calculation of rate of FTB for death of FTB or regular care child
Policy reference: FA Guide 2.1.1.110 Death of an FTB or Regular Care Child
There are 2 exceptions to the continuation of the rate of FTB during the 14 week bereavement period.
The period of payment cannot include:
Explanation: A person ceases to be an FTB child in these situations.
Note: A child does not cease to be an FTB child during the 14 week bereavement period in any other circumstances. For example, if a child dies within 14 weeks of their 16th birthday and the child was likely to fail the FTB activity test (1.1.F.53) on their 16th birthday, the child continues to be an FTB child for the full 14 week bereavement period. However, the child's rate may be affected because the child would not have been a senior secondary school child (1.1.S.27) when they would have turned 16.
Act reference: FAAct section 31(3) 14 weeks reduced in certain circumstances
Policy reference: FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts
An individual may request to have their bereavement payment paid as a lump sum instead of as a continuation of entitlement for the deceased child. The lump sum period begins on the day the individual requests the lump sum payment and finishes at the end of the bereavement period, 14 weeks from the day the child died.
Explanation: The lump sum period does not include the period between the day the child died and the day the individual requests the lump sum payment because the individual's rate of FTB for those days will have already included payment for the deceased child. If the individual was receiving an adjusted rate of FTB (1.1.A.45), the lump sum payment is calculated based on the adjusted rate, unless the individual requests the original arrangement to cease.
Act reference: FAAct section 32(1) Eligibility for a single amount of FTB if an FTB or regular care child dies - Instalment case, section 65(1) Calculation of single amount for death of FTB or regular care child - Instalment case
If the entitlement to bereavement payment falls over 2 financial years and the individual chooses to receive their payment as a lump sum paid in the first financial year, the bereavement payment is assessed on the individual's ATI for the first financial year.
Explanation: This is done by using the ATI for the first financial year to calculate FTB entitlement for the part of the 14-week period falling in the second of the 2 financial years.
If an individual is receiving FTB instalments and receives the bereavement payment as a continuation of their rate during the bereavement, and the 14-week accrual period overlaps 2 financial years, normal rules apply.
Explanation: Bereavement entitlement for periods during the second financial year is based on ATI for the second year.
Act reference: FAAct section 65(1) Calculation of single amount for death of FTB or regular care child - Instalment case
If an individual makes a past period claim for an FTB child, and the child died during the financial year, they are eligible for the continuation of eligibility for the 14 week period. If the 14 week period spans 2 financial years, the individual is paid a lump sum for the second of the financial years, based on their ATI of the first of the financial years. The total amount for the past period claim is paid as one lump sum payment.
Explanation: A past period claim relates to a single financial year. This provision ensures that entitlement to a lump sum bereavement payment is the same for individuals whether they receive FTB as a lump sum or instalment payments.
Act reference: FAAct section 32(2) Continued eligibility for a single amount of FTB if an FTB or regular care child dies - Other cases, section 65(3) Calculation of single amount for death of FTB or regular care child - Other cases
The standard rate for FTB Part A and FTB Part B increases on 1 July in line with CPI changes. Where the 14 week period extends over 2 financial years, the new standard rate from 1 July must be applied for the second part of the period.
Explanation: This is the rate that would have applied for the child from 1 July if she or he had not died.
Unless an individual requests a lump sum payment, their bereavement payment is paid as a continuation of FTB for 14 weeks for the deceased child.
The individual's rate of FTB is paid for a 14 week period starting from the date of the FTB child's death as though the child did not die. Any changes in rate that would have occurred during this period if the child had not died must still be taken into account:
However, if the deceased child was the only child for whom the individual was entitled to receive maintenance, neither the MAT not the maintenance income test (MIT) would apply during the bereavement period. This is because there is no longer a relevant period for maintenance.
Act reference: FAAct section 31 Continued eligibility for FTB if an FTB or regular care child dies, section 64 Calculation of rate of FTB for death of FTB or regular care child
The following table shows how to calculate the FTB rate payable to an individual who receives instalment payments.
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Step |
Action |
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1 |
Work out the lump sum period. The lump sum period starts on the day the individual requests the lump sum and ends 14 weeks from the day the child died. |
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2 |
Work out the rate of FTB Part A and FTB Part B that would have been payable if the child had not died: - including the rate for any other FTB children of the individual, and - disregarding any FTB child from the day they turn 18 if they are not a senior secondary school child, or from 31 December if aged 19 and a senior secondary school child (see Exceptions to the continuation of eligibility), and - disregarding the base rate restriction as a result of failing the MAT, if the deceased child was the only child for whom the individual was entitled to receive maintenance, and - disregarding any maintenance received during the bereavement period, if the deceased child was the only child for whom the individual was entitled to receive maintenance, and - applying the ATI from the first financial year only, if the accrual period spans 2 financial years, and - using the standard rate for each FTB child from 1 July to the second part of the period, if the 14 week period spans 2 financial years. |
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3 |
Work out the rate of FTB Part A and FTB Part B for the lump sum period: - excluding the deceased child, and - disregarding any FTB child from the day they turn 18 if they are not a senior secondary school child, or from 31 December if aged 19 and a senior secondary school child (see Exceptions to the continuation of eligibility), and - applying the ATI from the first financial year only, if the accrual period spans 2 financial years, and - using the standard rate for each FTB child from 1 July to the second part of the 14 week period, if the accrual period spans 2 financial years. |
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4 |
Subtract the result from Step 3 from the result of Step 2. This amount is the lump sum bereavement payment for the deceased child. |
If the 14 week period is contained within one financial year, the rate of FTB payable is worked out by continuing the eligibility of the deceased FTB child from the date of death to the end of the 14 week period.
Explanation: The bereavement payment is included with the total amount payable for the past period claim.
If the 14 week period extends over 2 financial years:
The following table shows how to calculate the lump sum for the second financial year.
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Step |
Action |
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1 |
Work out the lump sum period. The lump sum period begins on 1 July and finishes at the end of the 14 week accrual period. |
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2 |
Work out the rate of FTB Part A and FTB Part B that would have been payable if the child had not died: - including the rate for any other FTB children of the individual, and - disregarding any FTB child from the day they turn 18 if they are not a senior secondary school child, or from 31 December if aged 19 and a senior secondary school child (see Exceptions to the continuation of eligibility), and - disregarding the base rate restriction as a result of failing the MAT, if the deceased child was the only child for whom the individual was entitled to receive maintenance, and - disregarding any maintenance received during the bereavement period, if the deceased child was the only child for whom the individual was entitled to receive maintenance, and - applying the ATI from the first financial year of the 14 week period, and - using the standard rate for each FTB child from 1 July to the second part of the period. |
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3 |
Work out the rate of FTB Part A and FTB Part B for the lump sum period: - excluding the deceased child, and - disregarding any FTB child from the day they turn 18 if they are not a senior secondary school child, or from 31 December if aged 19 and a senior secondary school child (see Exceptions to the continuation of eligibility), and - applying the ATI from the first financial year of the 14 week period, and - using the standard rate for each FTB child from 1 July to the second part of the period. |
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4 |
Subtract the result from Step 3 from the result of Step 2. This amount is the lump sum bereavement payment for the deceased child. |
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5 |
The total amount of the past period claim and the lump sum bereavement payment are paid as one lump sum when the claim is determined. |
Bereavement payments for a deceased FTB child, whether paid as instalments over a 14 week period or a lump-sum, may be impacted by the receipt or repayment of an FTB advance.
Policy reference: FA Guide 1.2.8.10 Advance Payment of FTB Instalments
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Last reviewed: 2 January 2013
