Centrelink Benefits

A brochure prepared annually by the Australian Foster Care Association (AFCA), Centrelink and the federal Department of Family and Community Services and Indigenous Affairs (FaCSIA) outlines which benefits carers may be entitled to. Some are dependent on the carer’s income (i.e. are income or assets tested).

Since 1st July 2006, new carers are exempt from the job or training requirement under the Welfare to Work provisions. They will, however, be transferred to the Newstart Allowance once their youngest child turns 6. This will be an enhanced payment which will be equivalent to the current Parenting Payment.

Permanent carers and kinship carers are also exempt from the job requirement.

A letter stating that the carer is an active and registered foster carer will be provided for the carer to take to Centrelink to support the claim for the exemption. Carers also need to be considered a ‘Principal Parent Carer’ to get the exemption. This usually means the carer is receiving Family Tax Benefit for the child(ren) in their care.

Possible Referral Sources

Welfare Rights Unit 9416 1111
(free, independent legal centre offering advice, information & advocacy in relation to Centrelink problems)

Women’s Information & Referral Exchange 1300 134 130
(provides local referral options for financial counselling and/or material aid)

Australian Government Financial Support For Foster Families

Prepared by the Australian Foster Care Association in consultation with the Department of Family and Community Services and Centrelink – July 2005

Introduction

The Family Assistance Office through outlets in Centrelink, Medicare offices and ATO access sites, provides access to a range of payments and services. A range of helpful publications about payments, including current payments rates and eligibility criterion, can be found on their websites at www.familyassist.gov.au and www.centrelink.gov.au.

The information in this brochure is intended as a guide only. Due to their complexity, any matters relating to assistance in respect of children entering or leaving care should be dealt with by appointment with the Family Assistance Office by phoning 136 150, 8am to 8pm Monday-Friday.

Family Assistance Office Payments

Family Tax Benefit (FTB)

FTB Part A helps families with the cost of raising children and FTB Part B gives extra assistance to families with one main income earner including sole parents. Families entitled to FTB Part A, may receive extra assistance through Large Family Supplement, Multiple Birth Allowance and Rent Assistance.

FTB Part A may be paid to families who have a dependent child under 21 or a qualifying dependent student aged 21- 24 years. FTB Part B may be paid in respect of a dependent child under 16 or qualifying dependent student up to the age of 18. There are a number of reasons why FTB cannot be paid in respect of a dependent child/student, such as the child/student receiving Youth Allowance or a prescribed education payment such as ABSTUDY, and foster parents should discuss this with the Family Assistance Office.

A foster carer’s entitlement to FTB depends on their family circumstances including income. Foster Care Allowances paid by State/Territory Governments do not fall within the income test for FTB and CCB purposes, as the Australian Taxation Office does not consider remuneration received by people who are volunteer foster carers to be assessable income. Details on FTB and estimating income are available from the Family Assistance Office.

Foster carers with a child in their care who wish to claim FTB are encouraged to make early contact with the Family Assistance Office. It is important that the circumstances relating to each case should be taken into account when the Family Assistance Office is making any decision for a payment of FTB in foster care situations. In cases where the care arrangements are in dispute, this enables a timely determination to be made about who is eligible for assistance and minimises the possibility of previous carers having to pay back large amounts of assistance.

The date that a foster carer is considered eligible for payment depends on the duration of the care and whether the care arrangements are in dispute. In the following cases, payment of FTB can generally commence from the date a child is placed with the foster carer and, if an application is lodged within 2 years of the end of the financial year during which the child is placed in care, payment can be backdated to the date of placement:

When care arrangements are longer term (longer than four weeks) and not disputed by the previous carer, for example when a child in long term foster care is moving to another carer; or
When care is less than four weeks or the period of care is unknown, and the original carer does not want to be paid FTB.

As a guide, FTB is not generally payable if the placement is short term. Where the length of time is unknown or care is being disputed, payment may not be made until after a period of 4 weeks. In these cases, payment cannot generally be backdated to the date the child was placed with the foster carer. Where care arrangements are in dispute, foster carers should discuss their eligibility for FTB with the Family Assistance Office.

If the foster carer shares the care of the child with another carer, such as when a child is gradually returning to the care of their parents, it is possible for each carer to claim a share of entitlement to FTB, as long as each family cares for the dependent child/student for at least 10 per cent of the time. The Family Assistance Office can assist you to work out whether this would be an appropriate arrangement and what percentage of time you care for the child.

Maternity Payment

Maternity Payment recognises the legal relationship between a mother and her newborn baby, the role of the mother in the birth of the baby and the extra costs associated with the birth or adoption of a baby. Maternity Payment is intended to benefit the primary carer. A natural parent, or an adoptive parent, or a long term foster carer, or in some cases more than one of these, could qualify in respect of the one baby.

Maternity Payment is payable to:

A parent of a baby if the parent meets all other eligibility criteria at any time within 13 weeks of the baby’s birth; or
A parent of a stillborn baby if the parent would have met all the other criteria if the baby had not been stillborn; or
A claimant who is entrusted with the change of care of a newborn baby if the claimant meets all other eligibility criteria within 13 weeks of the baby’s birth and if the claimant is likely to continue to have care of the child for no less than 13 weeks; or
A claimant who, before a baby is 2 years of age, has the baby entrusted to their care because the claimant will be adopting the baby, provided the claimant meets all other eligibility criteria within 13 weeks of the baby coming into the care of the claimant.

If the delegate deems it appropriate more than one person can be paid a percentage of the Maternity Payment.

For further information regarding eligibility for Maternity Payment go to www.familyassist.gov.au

Note: There is no income or assets test for the Maternity Payment.

Maternity Immunisation Allowance

If the child is being cared for by a foster carer, they are eligible for this payment if:

The child has turned 18 months and meets the immunisation requirements while in their care; and
A claim for the fully immunised child is made before the child in their care turns 2.

Only one carer can qualify for Maternity Immunisation Allowance except in shared care situations where the payment can be split according to the percentage of care each person has.

Child Care Benefit (CCB)

CCB assists families with their child care costs. It helps families to balance work and family life and also provides opportunities for children’s learning and development. Families may be eligible for CCB where they use approved child care or registered child care and meet the necessary immunisation, residency and FTB child qualification criteria. Further details on eligibility for CCB are available from the Family Assistance Office.

A family’s entitlement to CCB will depend on their family income, the type and amount of care they use and whether they use the care for work or other specified reasons. Foster care allowances paid by State Governments are not counted as income for the purposes of CCB.

If a family needs access to child care, they can contact the
Child Care Access Hotline on 1800 670 305
to obtain information to help them find a child care service that meets their needs. The Hotline provides families with information on:

Child care services in their area;
The various types of child care available such as long day care, family day care, in-home care, outside school hours care and occasional care; and
Any quality of care issues.

The Hotline can also give families information about whether they may be eligible for financial assistance or they can obtain information from the FAO on 136 150.

Grandparents and Child Care Benefit (CCB)

The Australian Government has introduced two child care assistance measures which recognise the significant contribution grandparent carers are making by caring for two generations.

The Government has waived the work/study/training test for grandparents with the primary responsibility for raising their grandchildren, extending eligibility for CCB from up to 20 hours to up to 50 hours of approved child care per child per week. Grandparents who are the primary carers of their grandchildren and who receive an income support payment (such as the Age Pension) are eligible for a special rate of CCB. This rate, Grandparent CCB, covers the full cost of approved child care for up to 50 hours per child per week.

Note: Foster Care Allowances and Tax

Foster Care Allowances paid by State/Territory Governments do not fall within the income test for FTB and CCB purposes, as the Australian Taxation Office does not consider remuneration received by people who are volunteer foster carers to be assessable income. It should not be listed as income when making an application for a financial loan of any sort.

Centrelink Payments

Parenting Payment

Parenting Payment (PP) is an income support payment designed specifically for people, either single or partnered, who have primary care of a child. PP can be paid in addition to FTB. In general terms, to qualify for PP, a claimant must:

Have the care of a dependent child aged under 16;
Have income and assets below certain limits; and
Meet the residence requirements.

PP (Partnered) is only paid to one member of a couple. Only one person can receive PP in respect of a child (for example a natural/adoptive parent and a foster carer cannot receive PP for the same child). Qualification for PP in cases where the care arrangements are in dispute should be discussed with Centrelink.

The 2005-2006 Budget introduced measures, scheduled to come into effect on 1 July 2006, aimed at increasing workforce participation by parents.

From 1 July 2006 new claimants for income support will receive PP only until their youngest child turns six, whereupon they will transfer to an enhanced Newstart Allowance. People with primary care of a child receiving Parenting Payment on 30 June 2006 will continue to be eligible to receive it up until their youngest child turns 16.

Parents and carers in receipt of income support, whether Parenting Payment or Newstart allowance, whose youngest child is between 6 and 15, will generally have the following participation requirements:

Work part-time for a minimum of 15 hours per week; or
Look for part-time work of 15 hours a week; and,
Undertake suitable activities to help them return to work (these activities include participation in Job Network, Disability Open Employment Services or Vocational Rehabilitation depending on each parent’s individual needs).

Recipients may also have an annual Mutual Obligation requirement of 150 hours over a six month period. This is a part-time Mutual Obligation requirement in accordance with all other part-time activity test requirements for this client group.

These requirements will affect new claimants of Parenting Payment with youngest child aged 6 or above from 1 July 2006, whereas those already receiving Parenting Payment will not be affected until 1 July 2007 or until the youngest child in their care turns 7, whichever occurs later.

Each recipient’s individual caring responsibilities will be taken into account in determining the number of hours per week committed to meeting activity test requirements. Any special circumstances, such as a child with special needs, illness or several children under a person’s care will be taken into account.

A new Job Network service called Employment Preparation will be available to parents (and others with primary care of a child) to help them make the transition into the workforce. Employment Preparation will offer a unique blend of services tailored to the individual job seeker. Job seekers will benefit from a one-to-one interview with their Job Network Member. Based on the individual’s circumstances services might include access to courses to upgrade skills, training to improve self esteem, basic computer skills and information to help increase understanding of the modern day labour market.

There will be a “Service Quality Guarantee for Parents” that sets out the quality of services parents and carers can expect from Job Network.

There will also be additional places in other programmes to help people with special needs including Disability Open Employment Services, vocational rehabilitation, Personal Support Programme and Community Development Employment Projects.

There will also be additional child care places, more Language, Literacy and Numeracy programme places, vocational education and training places and other services.

Carer Payment

Carer Payment provides income support to people who, because of the demands of their caring role, are unable to support themselves through substantial workforce participation. It can be paid to a carer in respect of a child who has a profound disability. This payment is income and asset tested.

The foster carer may cease to provide constant care in order to undertake paid or voluntary work, study or train for up to 25 hours a week without losing eligibility for Carer Payment. In addition the foster carer can take a break from caring for up to 63 days in a calendar year, and the child/ adult that they are caring for can be hospitalised for up to 63 days in a calendar year without losing eligibility for Carer Payment.

The foster carer can be in receipt of both Carer Payment and Carer Allowance if eligible but cannot receive Carer Payment and another Social Security or Veterans Affairs income support pension at the same time.

Carer Allowance

This is a supplementary payment to people who provide daily care and attention at home for a person with a disability or chronic medical condition. To be eligible for this payment for a child under 16, the child must be a dependent child of the foster carer, they must live together in a private home and the child must have a disability that has been assessed against the appropriate eligibility criteria and is permanent or likely to last for at least 12 months.

A foster carer can take a break from caring for up to 63 days in a calendar year, and the child that they are caring for can be hospitalised for up to 63 days in a calendar year, without losing eligibility for Carer Allowance. The allowance is not income or assets tested and can be paid in addition to a social security income support payment.

If a carer of a child under 16 does not qualify for the Carer Allowance payment they can qualify for a Health Care card if the child requires at least 14 hours per week of additional care and attention.

Youth Allowance (YA)

Young people in foster care (and subject to a care and protection order) who are in full-time study (or are undertaking a combination of approved activities) may be classed as “independent”, which is based on their status of being in state care, and may be eligible for Youth Allowance (YA) from their 15th birthday, if they have attained the minimum school leaving age in their relevant state or territory. Each case is treated on its own merits, so it is important to provide all relevant information at the time of claim.

If YA is paid to the young person considered to be independent, it is not subject to their foster carer’s income or assets. In addition, if the young person receives YA even if they are not considered to be independent, the foster carer is not eligible for FTB. Generally, YA may be paid to a young person under 18 if they have not completed Year 12 and:

Are in full-time study or training; or
Agree to enter into an activity agreement.

Some young people in foster care will be considered to be dependants of their foster carer(s) where they are not subject to a care or protection order. In these cases, Youth Allowance is payable, subject to a Parental Means Test, to dependent young people over the age of 16 years.

The maximum age for YA is 21 years for unemployed young people and 25 years for full-time students. YA must be paid into the independent young person’s account unless there is a written advice from the young person requesting payment to go to a third party. However, if an independent young person is considered incapable of managing their financial affairs, YA may be paid to a third party (or nominee) on behalf of the young person. To decide whether a young person is incapable of managing their financial affairs, Centrelink would consider the available medical and other evidence, for example social worker reports.

Two payment rates exist for YA

(a) If the young person receives a form of 'upkeep'1 then YA is paid at the maximum "at home" rate.

(b) If the young person does NOT receive a form of 'upkeep'1 then YA is paid at the maximum "away from home" rate.

1 'Upkeep' refers to a payment by a State or Territory for items of a physical, tangible nature that are necessities of life for a young person in state care. Examples include a Fostering Allowance to the foster carer or State Government funding to a youth refuge or accommodation service

Double Orphan Pension

This payment provides assistance to people caring for children who are double orphans. To qualify for Double Orphan Pension, both of the child’s parents must no longer be living or one of the child’s parents must no longer be living and the other parent’s whereabouts is unknown or they are unable to assume caring responsibilities. This might be because of long-term imprisonment, or receiving psychiatric care in an institution, or residing in a nursing home. Some refugee children may also be considered as double orphans. This payment is not income or assets tested.

ABSTUDY

ABSTUDY is available to Aboriginal and Torres Strait Islander students who are studying an approved secondary course. Primary school students who live at home may be eligible for the ABSTUDY School Term and School Fees Allowances if they are 14 years of age or older on 1 January in the year of study. ABSTUDY may also available to Aboriginal and Torres Strait Islander students who go on to further study after leaving school. Students in state care may be eligible for the ABSTUDY Living Allowance either at the standard or away rate, if they have reached the minimum school leaving age.

Assistance for Isolated Children (AIC) Scheme

This scheme helps families with primary, secondary and tertiary students under 16 years of age who are unable to attend an appropriate government school on a daily basis primarily because of geographic location. An appropriate government school is one that offers the student’s level of study or, if the student has special health-related or educational needs, one that provides access to the facilities, programs and/or environment required for those needs.

Other Assistance

Health Care Cards (HCCs)

There are a number of ways in which children and young people in foster care can be covered by concession cards. The options are:

If a carer receives an income support payment, they may automatically get a concession card with the payment that lists their dependants,
If a carer does not receive income support, but is entitled to receive the maximum rate of Family Tax Benefit (FTB) Part A by fortnightly installments, they will automatically receive the FTB HCC, which also lists dependants,
If a carer does not qualify for the FTB HCC, they may claim the low-income HCC, which also lists dependants, and is subject to certain income limits – details are available from the Family Assistance Office, or
The foster child HCC can be claimed by carers on behalf of the child, provided the carer is an Australian resident and living in Australia. The foster child HCC is free from means testing.

Medicare Cards

Whether a child is formally in care under a court order or where the care of the child is managed by a state welfare agency, or private family agreement, arrangements can often be made to have the child copied onto a Medicare card of their own with the relevant agency or carer as the card holder. Where a child is in long term foster care (until the age of18 years) they may be enrolled on the foster carer's Medicare card.

When a child reaches the age of 15 years they may transfer themselves on to a Medicare card of their own.

For more specific information about your situation please contact Medicare on 132 011.

Further information may be obtained by consulting the Family Assistance Office through outlets in Centrelink, Medicare offices and ATO access sites, visiting their websites at www.familyassist.gov.au and www.centrelink.gov.au or by phoning 136 150 Monday to Friday, 8am – 8pm.

AFCA may be contacted by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Youth Allowance/Centrelink

Young people in foster care are eligible for Independent Rate of Youth Allowance. It is to be paid into the young person’s bank account. The Foster Carers regular payment is not affected by this. It is up to the young person what they do with the allowance.

Effective July 1st 2007, the age of eligibility was changed from 15 to 16 years of age.

A foster carer caring for a young person aged 15 who is receiving the full youth allowance, is not entitled to the Family Payment.

NB: The foster carer is expected to buy school books, cover medical expenses etc, as these costs are supposed to be met by the carer (via the $800 special payment), not by the young person themselves.

1067A (8) A person is independent if the person is not living with a parent, and :

(a) The person is in the guardianship, are or custody of a court, a Minister, or a Department, of the Commonwealth, a State or a Territory; or

(b) There is a current direction from such a court, Minister or Department placing the person in the guardianship, care or custody of someone who is not the persons parent: or

A person to whom this subsection applies is taken, for the purposes of this Part to be in State care.

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