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3.1.1.50 FTB Payments During Absence from Australia

Summary

This topic provides information about the rate of FTB payable when an individual or their FTB child leaves Australia (1.1.A.120) and includes the following:

  • eligibility and entitlement,
  • permanent and temporary absences from Australia,
  • FTB rate when FTB child leaves Australia,
  • FTB rate when an individual leaves Australia,
  • individual and FTB child both overseas,
  • effect of prior absence overseas on FTB entitlement,
  • RA when an individual leaves Australia,
  • 6 week period may be extended, and
  • international social security agreements.

 

Eligibility & entitlement

The specific distinction between 'eligibility' (1.1.E.17) and 'entitlement' (1.1.E.30) in this topic is that:

  • eligibility refers to the 3 year overseas absence period (after which time a person is no longer eligible for FTB), and
  • entitlement refers to the rates payable during a temporary absence.

 

FTB eligibility after leaving Australia permanently

Eligibility (i.e. qualification) for FTB ceases if an individual or child leaves Australia permanently, as they are no longer considered Australian residents (1.1.A.130) for FTB purposes.

 

Policy reference: FA Guide 2.1.2.10 Residence Requirements

 

FTB rate during temporary absences from Australia

The rate (i.e. entitlement) of FTB Part A and FTB Part B may be affected when the child and/or the individual leave/s Australia temporarily.

 

Child absences

The following table explains the 3 year eligibility rule and the rate of FTB payment to be applied for an FTB child where the child is temporarily absent from Australia.

If the child...

Then...

- leaves Australia, or

- is born outside of Australia and is an FTB child at birth,

- for the first 6 weeks of the absence FTB Part A in respect of the child is payable at greater than the base FTB child rate and FTB Part B is paid in respect of the child.

Note: The absence commences on the day of the child's departure of the day of their birth if born outside Australia.

- after 6 weeks of the absence, FTB Part A is only payable at the base rate in respect of the child and FTB Part B is not payable in respect of the child.

Note: FTB Part A is no longer payable after 3 years of absence because the child ceases to be an FTB child. Payment may cease earlier if there is evidence the child has left Australia permanently.

is absent from Australia for more than 6 weeks but less than 3 years,

- FTB Part A at greater than the base FTB child rate and FTB Part B for that child is payable for the first 6 weeks of an absence commencing on the day of departure, and

- after 6 weeks of absence the rate of FTB Part A payable is the base rate only, and FTB Part B is no longer payable.

- is absent for less than 6 weeks,

- returns to Australia, and

- leaves after less than 6 weeks,

- while the child is in Australia and for the first 6 weeks of the later absence FTB Part A is payable in respect of the child at greater than the base FTB child rate and FTB Part B is paid in respect of the child,

- a new 3 year period commences from the day of the later departure.

Note: The FTB child is not an absent overseas FTB child if absent from Australia for less than 6 weeks.

- is absent for more than 6 weeks but less than 3 years,

- returns to Australia and

- leaves after less than 6 weeks,

- a rate of FTB Part A greater than the base FTB child rate and FTB Part B can be paid in respect of the child on their return to Australia,

- only the base FTB Part A child rate is payable from the date of the later departure,

- the child's return to Australia does not affect the 3 year period, which applied from the 1st day of the initial absence. This is because the child returned to Australia for less than 6 weeks before they want back overseas.

- is absent for more than 6 weeks but less than 3 years,

- returns to Australia and

- leaves after more than 6 weeks,

- a rate of FTB Part A greater than the base FTB child rate and FTB Part B are payable for the first 6 weeks,

- only the base FTB child rate is payable after 6 weeks, no FTB Part B is payable,

- when the child returns to Australia and for the first 6 weeks of the later absence FTB Part A is payable at greater than the base FTB child rate in respect of the child and FTB Part B can be paid in respect of the child.

Note: As the child stayed in Australia for more than 6 weeks a new 3 year period commences from the day of the later departure.

- is absent from Australia for more than 3 years,

- returns to Australia, and

- leaves after less than 6 weeks,

- FTB Part A ceases to be payable in respect of the child after 3 years,

- a rate of FTB Part A greater than the base FTB child rate and FTB Part B can be paid in respect of the child during their return,

- they are not eligible for FTB Part A or FTB Part B in respect of the child at any time during the later absence.

Note: The 3 year period does not recommence as the child returned for less than 6 weeks.

 

Act reference: FAAct section 24(1) to (3) Absence from Australia of FTB or regular care child, section 63 Effect on FTB rate of FTB child's absence from Australia, section 63A Secretary may extend 6 week period of absence from Australia

 

Where an individual is absent

The following table explains the 3 year eligibility rule and the rate of FTB payment where an individual is temporarily absent from Australia.

If an individual...

Then...

leaves Australia temporarily,

- for the first 6 weeks of an absence commencing on the day of departure FTB Part A at greater than the base rate and FTB Part B are payable,

- after 6 weeks of the absence pay FTB Part A at base rate only, FTB Part B is not payable.

Note: FTB Part A ceases after 3 years absence. Payment may cease earlier if evidence indicates absence is not temporary.

- is absent for less than 6 weeks,

- returns to Australia, and

- leaves after less than 6 weeks,

- while the individual is in Australia and for the first 6 weeks of the later absence FTB Part A at greater than the base FTB child rate and FTB Part B are payable.

Note: A new 3 year period recommences from the day of the later departure.

- is eligible for FTB while absent from Australia and is absent for more than 6 weeks but less than 3 years,

- returns to Australia, and

- leaves after less than 6 weeks,

- for the first 6 weeks of initial absence, a rate of FTB Part A greater than the base rate and FTB Part B are payable,

- from the day of the later departure from Australia only the base rate of FTB Part A is payable,

- the individual's return to Australia does not affect the 3 year period. That is, the 3 year period does not recommence as the individual stayed in Australia for less than 6 weeks.

- is absent for more than 6 weeks but less than 3 years,

- returns to Australia, and

- leaves after more than 6 weeks,

- for the first 6 weeks of each absence, and while they are in Australia, a rate of FTB Part A greater than the base rate and FTB Part B are payable.

Note: As the individual stayed in Australia for more than 6 weeks a new 3 year period commences from the day of the later departure.

- is eligible for FTB while absent from Australia and is then absent from Australia for more than 3 years,

- returns to Australia, and

- leaves after less than 6 weeks,

- FTB Part A ceases to be payable to the individual after 3 years,

- a rate of FTB Part A greater than the base FTB child rate and FTB Part B can be paid while the individual is back in Australia,

- they are not eligible for FTB at any time during the later absence.

Note: The 3 year period does not recommence as the individual stayed in Australia for less than 6 weeks.

 

Individual & FTB child both overseas

Where the individual and the FTB child are both overseas, the 6 week restrictions on entitlement in respect of the individual and FTB child as described in the tables above need to be considered together. Where the individual and child have different departure dates, the 6 week period for the individual in respect of all their FTB children and the 6 week period in respect of the FTB child expire at different times. This means that where the individual is absent overseas before either the child departs overseas or is born overseas, the restriction on the individual's entitlement should have an effect on the entitlement in respect of the child.

Example: Carmel receives FTB for John and Paul. She leaves Australia with John to visit relatives in Ireland. Paul joins his family 3 weeks later. The higher rate of FTB Part A for both children and FTB Part B cease at the end of 6 weeks commencing from Carmel's departure date even though Paul has been absent from Australia for only 3 weeks.

 

Effect of prior absence overseas on FTB

The following table explains the FTB eligibility and entitlement rules that apply for a prior overseas absence.

If an individual...

Then...

- becomes eligible for FTB during the temporary absence,

Example: Following the birth of an eligible child.

- the period of the absence prior to eligibility commencing has an effect on eligibility and entitlement.

- there is no eligibility for FTB after 3 years, commencing from the day of the departure, and

- FTB Part A at greater than the base FTB child rate and FTB Part B are payable for the balance (if any) of the 6 week period that commenced from the day of the departure.

Example: Monique leaves Australia temporarily to travel overseas. She gives birth to her first child 2 weeks after her departure and claims FTB. She is eligible for the higher rate of FTB Part A and FTB Part B for the remaining 4 weeks of the 6 week period immediately following her departure. After this period, she can receive FTB Part A at the base rate for up to 3 years from her date of departure.

- is absent for more than 6 weeks but less than 3 years,

- is not eligible for FTB during the temporary absence from Australia,

- returns to Australia,

- becomes eligible for FTB on return to Australia, and

- leaves again after less than 6 weeks,

- FTB Part A at greater than the base FTB child rate and FTB Part B are payable for the period when the individual is back in Australia.

- the individual's return to Australia does not affect the 3 year eligibility period, which commenced from the day of the initial departure, as they stayed for less than 6 weeks.

- FTB ceases to be payable when the 3 year period expires, and

- FTB Part A at greater than the base FTB child rate and FTB Part B are payable for the first 6 weeks of the later absence, or up to the day when the 3 year period (beginning from the date of the initial departure) expires, at which point FTB ceases to be payable.

Example: Sharon was temporarily absent from Australia and living in Germany for 2 years and 9 months. Two weeks after returning to Australia, her first child was born. When the child was 3 weeks old Sharon went back to Germany for a month. The 3 year absence period is counted from the day of the initial absence, as Sharon was back in Australia for less than 6 weeks. Sharon is entitled to more than the base rate of FTB Part A from the date the child was born, until the 3 year period expires, beginning on the date of her initial departure. After the expiry of the 3 year period, Sharon is not eligible for any FTB because she no longer satisfies the residence requirements.

- is eligible for FTB during a temporary absence,

- ceases to be eligible for FTB because the temporary absence becomes permanent (i.e. longer than 3 years),

- returns to Australia, and

- leaves Australia again less than 6 weeks after returning,

- the individual is not eligible for any FTB while temporarily in Australia (as residency requirements are not satisfied), or upon leaving the country again.

- was absent from Australia for more than 3 years,

- was not eligible for FTB while absent from Australia,

- returns to Australia,

- becomes eligible for FTB, and

- leaves Australia temporarily,

- FTB Part A at greater than the base FTB child rate and FTB Part B are payable while the individual is in Australia and for 6 weeks commencing from the day of the later departure.

- after this period, FTB Part A is payable at the base rate for up to 3 years from the date of the later departure, after which time FTB eligibility ceases.

 

Act reference: FAAct section 24(4) to (6) Maximum period of eligibility for FTB while individual overseas, section 62 Effect on individual's rate of the individual's absence from Australia, section 63A Secretary may extend 6 week period of absence from Australia

 

RA during overseas absence

If FTB Part A is paid at greater than the base FTB child rate during a individual's temporary absence from Australia for up to 6 weeks, then RA may still be included in the rate of FTB Part A.

 

RA is only payable for accommodation:

  • rented in Australia before departure, and
  • continuing to be rented by the individual while overseas.

 

If FTB Part A is paid at greater than the base FTB child rate during a child's temporary absence from Australia for up to 6 weeks, then the child is still a RA child in calculating the amount of RA payable.

 

Act reference: FAAct Schedule 1 Part 5 Division 2B Subdivision A Rent assistance

Policy reference: FA Guide 2.1.2.30 Temporary Absence from Australia

 

6 week period may be extended

The 6 week period for payment of FTB Part A at more than the base rate, FTB Part B and RA may be extended in grievous circumstances where the person is prevented from returning to Australia immediately but would otherwise remain eligible. This applies both to absences of the child and the individual.

 

The circumstances in which the Secretary may extend the 6 week period are set out in section 63A of the A New Tax System (Family Assistance) Act 1999 and include, but are not limited to:

  • serious accident,
  • hospitalisation,
  • political or social unrest, or war, and
  • situations in which financial assistance is payable under the Medical Treatment Overseas Program.

 

The Secretary may also extend the 6 week period if the individual is unable to return to Australia within that period because the individual is deployed outside Australia as a member of the Defence Force, under conditions specified in a determination made under the Defence Act 1903 relating to such deployment; or the individual is deployed outside Australia for the purpose of capacity building or peacekeeping functions as a member or a special member of the Australian Federal Police, or a protective service officer within the meaning of the Australian Federal Police Act 1979.

 

Act reference: FAAct section 63A Secretary may extend 6 week period of absence from Australia

 

Additional child amount added to portability rate calculator

FTB is not included under international social security agreements. Instead, from 1 July 2000, 'additional child amount' is in the portability (1.1.P.90) rate calculator of the Social Security Act 1991.

 

The additional child amount is a fixed amount based on the family allowance and GA rates applicable at 30 June 2000. The payment is indexed in January each year according to the family allowance indexation rules. These indexation rules continue to apply after 1 July 2000 and only apply to this payment.

 

Act reference: SS(IntAgree)Act section 13 Overall calculation process

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Last reviewed: 2 January 2013


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Last Edited: 17/12/2012 10:25:52 AM


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