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To ensure an individual receives the correct rate of FTB by instalment, an automated review of their entitlements (1.1.E.30) must be conducted just before an FTB child turns 16, 18 or 21 years of age and prior to the expected end date of their course if they are a senior secondary school child (1.1.S.27) or are in full-time study.
When an individual is receiving FTB Part A by instalment for any FTB child and that child is about to turn 16, their FTB Part A entitlement must be reviewed.
If an individual is receiving FTB Part B by instalment and their youngest child is about to turn 16, their FTB Part B entitlement must be reviewed.
Before the child's 16th birthday the individual is sent a request for review form, which requires information on whether:
Note: From 1 January 2012, a child who is dependent, aged under 18 years, living at home and undertaking full-time study, will generally no longer be eligible for YA.
The individual's total FTB Part A and Part B entitlement may be cancelled if the individual does not provide the information, to the FAO, before the FTB child's 16th birthday.
Act reference: FAAct section 17B FTB activity test, section 22A(2) Definition-cut out amount
SSAct section 543A(2AA) Paragraph (2)(b) does not apply to a person who...
If the individual is receiving child support for the child and the child will continue in full-time secondary study after their 18th birthday, the individual will need to take action to extend their child support assessment until the end of the school year, otherwise they may fail the maintenance action test for the child (3.1.5.30, 3.1.5.40).
If the child is the individual's youngest FTB child, and is a senior secondary school child (1.1.S.27), FTB Part B ceases to be paid at the end of the calendar year in which they turn 18.
In some circumstances it is possible the FTB child may be eligible for an amount of YA greater than the individual's FTB Part A entitlement for that child.
Explanation: The individual is provided with information prior to each FTB child in their care turning 18 to ensure the individual and child have enough information to make an informed decision about claiming YA or a prescribed educational scheme payment. An individual's FTB entitlement will be cancelled if their FTB child is granted payment of YA, a prescribed educational scheme payment, or payment under a LMP.
Completion of a year 12 or equivalent qualification satisfies the FTB activity test (1.1.F.53), so is relevant to FTB child eligibility.
Completion of full-time secondary study also affects the senior secondary school child status (1.1.S.27) of the child and may result in a reduction, or in some cases an increase, in the rate of FTB Part A payable for the child. It may also result in cancellation of FTB Part B and MBA. For these reasons it is necessary for the individual to confirm whether their child will complete their year 12 or equivalent qualification at the date previously advised, or will remain in study, or not complete their course.
Note: When a child has turned 19 and the calendar year in which the child turned 19 has ended, the FTB rate payable for the child may also be affected, as the child will no longer be a senior secondary school child.
Policy reference: FA Guide 1.1.F.53 FTB activity test, 1.1.F.60 Full-time study, 2.1.1.10 FTB Child, 4.4.2.10 Change in Non-Income Related Circumstances
When an instalment individual is receiving FTB Part A for an FTB child, and the child is about to turn 21, a review of their FTB entitlement must be conducted.
Explanation: An FTB child must be a full-time student for FTB Part A to continue once a child turns 21 years of age. Regardless of whether the child remains a full-time student, the child ceases to be an FTB child once they have turned 22 years of age.
Before the child's 21st birthday, an instalment individual is sent a printed review form. The individual must then provide the required information. This review form requires information on whether:
If the individual does not provide the information before the FTB child's 21st birthday, either by returning the review form or verbally, the individual's FTB entitlements may be cancelled.
A review request is sent to each instalment individual who is sharing the care of an FTB child about to turn 16, 18 or 21.
Note: From 1 July 2008, the term 'shared care' only applies in situations where parents or carers of a child have at least 35% (i.e. at least 128 nights a year) care of a child.
Act reference: FA(Admin)Act section 25 Obligation to notify change of circumstances, section 25A Secretary's power to approve manner of notification, section 31 Variation of instalment entitlement determination to reflect changes in eligibility, section 154 General power to obtain information, section 157 Obtaining information to verify claims etc
Policy reference: FA Guide 4.4.1 Reasons for FTB Reassessment, 5.2 Information Required for FA
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Last reviewed: 3 January 2012
