3.7.2.80 SpB for Australian Citizen Children & Australian Permanent Resident Children in the Custody of a Non-permanent Resident

Summary

In certain circumstances, SpB may be paid to a child who is an Australian citizen or an Australian permanent resident, but whose custodial parent(s) is not a permanent resident of Australia (1.1.A.320), and is therefore precluded from receiving any social security payment (section 23(1)-'social security payment').

Explanation 1: Children born in Australia, with one parent who is a permanent resident of Australia, are automatically granted Australian citizenship. This applies even if the parent who is a permanent resident had separated from the non-resident parent before the child's birth. Since August 1986, a person is not an Australian citizen by virtue of being born here but only if at least one parent is a permanent resident.

Example: A child was born when one parent was a permanent resident and the other was not. The parents are now separated, and the child is in the custody of the parent without permanent residence status.

Explanation 2: Children born in Australia where neither parent is a permanent resident of Australia, may be granted permanent resident status, for example as a refugee (visa 866). The child has to reside in Australia for 10 years before being granted Australian citizenship.

Act reference: SSAct section 23(1)-'social security payment'

Policy reference: SS Guide 3.7.1.10 Qualification for SpB

Confirmation of circumstances

The parent or guardian needs to provide confirmation of the circumstances leading to the claim for SpB.

Policy reference: SS Guide 8.1.4.60 Special Payments - Documentation Required

General - child in the custody of non-permanent resident not qualified for a social security payment

In all cases, SpB can ONLY be granted if the:

• child is an Australian citizen or an Australian permanent resident, AND
• parent has taken all reasonable action to pursue child support from the non-custodial parent.

Children of or below pre-school age

If the child is of or below pre-school age, SpB can ONLY be paid if they are also in genuine hardship. If living with a parent, it must be clear that the parent has no means of adequately supporting the child. Such cases should be considered on their merits and referred to the local PDU for advice.

Policy reference: SS Guide 2.2.4 Verifying Residence

Children over pre-school age

SpB may be payable to an Australian citizen child (up to the age of 12 years) in the care of a non-resident parent not qualified for a social security payment.

SpB can ONLY be paid to children over pre-school age if the child, or their custodial parent, is judged to be homeless. The child or the custodial parent can be considered to be homeless if cancellation of SpB places the Australian citizen child and their sole non-resident custodial parent at severe risk of homelessness.

Note: After 12 years of age the Australian citizen child should be referred under the state/territory youth protocol.

Explanation: SpB legislation was not intended to subject children, or their custodial parent, to homelessness in order to qualify for SpB.

Policy reference: SS Guide 3.7.2.70 SpB for Young People Under 18 Years of Age

Determining the rate of payment

A child who is granted SpB when in the custody of a non-permanent resident who is not qualified for a social security payment or who is not receiving another form of support (e.g. Community Assistance Support or Asylum Seeker Assistance), should be paid at the 'single with child' rate of NSA. Where more than one Australian citizen child exists in a family unit, the youngest child receives the single with child rate of NSA and any additional children receive up to the maximum 'single, 16-17 years living at home' rate of YA. This may also include RA, paid to one of the qualifying children, however, the rate of the person's SpB is not to exceed the rate at which YA, Austudy or NSA would be payable if they were qualified for that payment and it was payable.

A child who is granted SpB when in the custody of a non-permanent resident who is receiving Community Assistance Support or Asylum Seeker Assistance should be paid SpB at the rate equivalent to the FTB rate that the non-permanent resident would otherwise have been entitled to for that child.

Explanation: These rates are comparable with the level of assistance available for the support of other Australian children of the same age.

Act reference: SSAct section 746(2) Rate of SpB not to exceed…

Policy reference: SS Guide 5.1.1.20 YA - Current Rates, 5.1.6.10 SpB - Current Rates

Other income

The maximum rate of SpB payable to the child should be directly reduced by any income:

• paid to the custodial parent (for example, child support which is paid for the express purpose of supporting the claimant), OR
• the child receives themselves.

If the parent is working and has income greater than the maximum rate of NSA that would otherwise apply to them, then the child's payment of SpB should be reduced applying the direct deduction income test for each dollar of income above the maximum rate of NSA. The maximum rate of NSA includes any add-ons that may otherwise be payable, e.g. RA.

For parental income, if there is more than one Australian citizen child, then the income is deducted from the child with the highest rate first, usually the youngest child, then any excess income is deducted from subsequent children until the rate is zero.

Payment arrangements

If the child is too young to manage money, it is likely that the parent will need to be a nominee (1.1.N.80) for the child. In this case, the child is the recipient and the parent is a nominee. As nominee, the parent has responsibility for notifying Centrelink of changes in circumstances prescribed under the notification provisions.

Policy reference: SS Guide 3.7.1.100 Notification & Recipient Obligations for SpB, 8.4.1.30 Payments to a Third Party

Review

It is important to continue to reassess the parent's residence status, as this may alter the child's qualification for payment of SpB or another payment.

Example: If DIAC has indicated that a decision can be expected soon, then the outcome of that decision should be followed up.

The following table explains the possibilities when the parent's permanent residence status is determined:

Policy reference: SS Guide 3.7.2.20 Substantial Change in Circumstances for SpB

_______________________________________________________

Last reviewed: 4 January 2010