Family Assistance The What, Why and How

Transcription

1 Family Assistance The What, Why and How July 2006

2 We speak your language

3 Family Assistance The What, Why and How Your guide to Family Assistance About this booklet This booklet provides information about the support you can receive from the Australian Government through the Family Assistance Office. This includes assistance to help with the cost of raising children, to help balance work and family needs. It provides information about Family Assistance including details on payments, eligibility and how to get the Family Assistance you are entitled to. The payments discussed in this booklet include Family Tax Benefit Part A, Family Tax Benefit Part B, Child Care Benefit, Maternity Payment and Maternity Immunisation Allowance. It also includes information on help with the cost of medical care through Medicare, Medicare Safety Net, the Australian Childhood Immunisation Register and the Pharmaceutical Benefits Scheme. Where do I go for more information? Visit the Family Assistance Office website at Visit the Medicare Australia website at Call the Family Assistance Office on * between 8.00 am and 8.00 pm (local time), Monday to Friday. Visit your nearest Family Assistance Office located in Medicare offices, Centrelink Customer Service Centres, and Tax Office shopfronts. TTY Service Freecall * A service for people who are deaf or have a hearing or speech impairment. A TTY phone is required to use this service. Call * for information in languages other than English. * Calls to 13 numbers cost 25 cents from anywhere within Australia. Calls to 1800 numbers are free of charge. Calls from public pay phones or mobile phones may be charged at a higher rate. i

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5 Family Assistance The What, Why and How Contents Introduction 3 What is Family Assistance? 3 How is Family Assistance set up? 4 How to get the most from Family Assistance 4 Reducing the risk of an overpayment 5 If you get your Family Tax Benefit payment fortnightly and/or Child Care Benefit as reduced child care fees Balancing your payments 7 Maternity payments 8 Help with the costs of a new baby 8 Maternity Payment 8 Maternity Immunisation Allowance 9 Family Tax Benefit Part A 10 Helping families with the cost of raising children 6 10 Family Tax Benefit Part B 12 Extra assistance for families with one main income 12 Single parent families 12 Two-parent families 12 Parents returning to work 13 The age of your youngest child will affect your payment 13 Medicare 14 What does Medicare cover? 14 Enrolling your new baby in Medicare 15 Medicare Safety Net 15 Australian Childhood Immunisation Register 16 Pharmaceutical Benefits Scheme 17 Child Care Benefit 18 Help with the costs of child care 18 Approved child care 18 Registered child care 18 You can choose how to receive your benefit 19 Extra help with the cost of child care 21 Other Assistance 22 What else can affect your Family Assistance? 24 Child Support 24 Shared Care 26 Are you a member of a blended family? 29 Managing your payments 30 What to watch out for 30 Keeping your personal information private 31 Where do I go for more information? 32 Family Assistance Office online services 32 Medicare Australia online services 33 Child Support Agency online services 33 1

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7 Introduction Introduction What is Family Assistance? The Australian Government offers a range of payments through the Family Assistance Office to support families with their work and family responsibilities. Each payment is different, depending on the needs of each family. The main payments The main payments are: Family Tax Benefit Part A this is the most common payment to help you with the cost of raising children and is paid per child. It includes a supplement per child available after the end of the financial year. Family Tax Benefit Part B gives extra assistance to single parent families and to two-parent families with one main income. It includes a supplement per family available after the end of the financial year. Child Care Benefit helps with the costs of child care. Maternity Payment helps with the costs of a new baby. Maternity Immunisation Allowance to encourage parents to immunise their children. Other assistance You may be entitled to other assistance, for example: Rent Assistance to help with your rental expenses. Health Care Card a benefit for low income earners and foster parents (including grandparents who are the primary carers of a grandchild). Large Family Supplement assistance for large families. Multiple Birth Allowance a payment for triplets, quadruplets, etc. Double Orphan Pension assistance for guardians of orphans. Other assistance may also be available, such as Carer Allowance and Parenting Payment. Your family may be entitled to more than one of these payments. 3

8 4 How is Family Assistance set up? We know how busy you are, so instead of going to different agencies to get family assistance, you can access services and payments in one place the Family Assistance Office. Here are some facts explaining why family assistance is set up the way it is. The benefits are based on your actual annual income People with lower incomes get more assistance than those with higher incomes. Family Tax Benefit Part A and Child Care Benefit are based on your actual annual family income, and Family Tax Benefit Part B is based on the actual annual income of the lower income earner. The benefits will be balanced to make sure you get the correct amount During the year, if you are getting a fortnightly payment or reduced child care fees, your payments are based on your estimated annual family income. At the end of the financial year, to make sure everyone gets the correct amount, the payments are balanced against your actual annual family income when you and your partner lodge your tax returns with the Tax Office. Your payments will be adjusted to make sure you were paid the right amount. If you underestimated your family s income and received more money than you were entitled to, you will get an overpayment. All overpayments need to be repaid. Overpayments of Family Tax Benefit and Child Care Benefit may be recovered from your future Family Tax Benefit payments including end of year supplement payments. Overpayments of Family Tax Benefit may also be recovered from tax refunds. What is a financial year? A financial year: begins on 1 July in any year, and ends on 30 June of the following year (e.g. 1 July June 2007). What is a calendar year? A calendar year: begins on 1 January in any year, and ends on 31 December of the same year (e.g. 1 January December 2006). How to get the most from Family Assistance First, let s discuss how and when you can get your payments. This is one of the most important decisions you must make. Choice 1 be paid annually You can choose to get your payment once a year when you know your actual income. You will need to lodge a claim with the Family Assistance Office or through the tax system. The advantage of being paid annually is that you will know your actual income and are less likely to be overpaid. You and your partner need to lodge your tax returns at the end of the financial year to get your full entitlement. If you don t need to lodge a tax return, you should notify the Family Assistance Office to ensure you get your entitlement. This choice cannot be used if you also intend to claim Rent Assistance. If it is possible, consider claiming your family assistance annually. That way, you will know exactly what your family s actual income was. This option doesn t suit every family, but for some families, it is definitely worth considering. You must lodge a claim for Family Tax Benefit and/or Child Care Benefit within two years of the end of the financial year you are claiming for.

9 Introduction Choice 2 get some now and some later Fortnightly Family Tax Benefit payments and reduced child care fees (choice 3) are worked out on your estimate of your annual family income, so it is possible that you may be paid too much throughout the financial year. One way to reduce this risk is to take some of your payments fortnightly and the rest after the end of the financial year, when your payments have been balanced against your actual annual family income. Choice 3 be paid fortnightly and/or as reduced child care fees You can choose to get your Family Tax Benefit payments fortnightly and/or your Child Care Benefit as reduced child care fees based on your estimate of your family s annual income for the financial year ahead. Your payments will be balanced against your actual annual family income when you and your partner lodge your tax returns. If you or your partner have an income which varies during the year Choice 2 may suit you better. A pay increase near the end of the financial year can mean all the payments you have already received were too high. You can ask to have your payments adjusted, but any remaining overpayment will then have to be repaid at the end of the financial year. Choice 4 ask your employer to take less tax out of your or your partner s wages Medicare Safety Net threshold If you receive it as an annual payment, you may not be eligible for the lower Medicare Safety Net threshold until the start of the next calendar year. If you choose to receive it as a fortnightly payment you will be eligible for the Medicare Safety Net threshold from the day you become entitled to Family Tax Benefit Part A. Once you become eligible for the lower Medicare Safety Net threshold there are other eligibility requirements that need to be met before any higher Medicare benefits can be paid. Reducing the risk of an overpayment An overpayment of family assistance can cause concern but it s important to remember that it s not an accusation of wrong doing. Overpayments mostly occur because people underestimate their income. Families may have more income in a financial year because someone gets a new job with higher pay, a pay rise, variable child support payments, extra overtime, a bonus, or if a family member (you, your partner or a dependent child) joins the workforce. You are at high risk of being overpaid if your family has: Ask your employer to take less tax out of your or your partner s wages equal to the amount of Family Tax Benefit you expect to be entitled to at the end of the financial year. You can do this by completing a withholding declaration available from your employer, Tax Office shopfronts and most newsagencies. You will also need to lodge a Family Tax Benefit claim form when you lodge your tax return at the end of the financial year. This choice cannot be used for Child Care Benefit or if you also intend to claim Rent Assistance. 5

10 an income between $ and $ an income of $ or more more than one income earner income changes because of irregular shift work, overtime or bonuses an income that is hard to estimate because you are a casual worker, you work on commission or contract, or have received a bonus or redundancy payment income from business or self-employment a child who may earn or receive taxable income over the income limit. Overpayments can also happen because family circumstances change and the Family Assistance Office is not told. These next steps will help you reduce the possibility of overpayment. If you get your Family Tax Benefit payment fortnightly and/or Child Care Benefit as reduced child care fees Step 1 Plan ahead If you choose to get your payments fortnightly or as reduced child care fees, the amount you are paid will be based on your estimate of your annual family income, for Family Tax Benefit Part B you need to estimate the annual income for the lower income earner. You will be asked to update your estimate at the start of each financial year. If you do not provide an estimate, the Family Assistance Office will calculate one for you. After the end of the financial year, your payments will be balanced against your actual annual family income. It is therefore extremely important to make sure your estimate of your annual income is as accurate as possible. You can update your estimate as often as you like. If you are unsure about your estimate, you can choose to take some of your payment fortnightly and get the rest after the end of the financial year. You can update your estimate online at Step 2 Think about the things which may affect your payments Are any of the following likely to affect your or your partner s income? If yes, you should try to factor them into your income estimate: working overtime/extra hours changing casual work, shift work or contract work pay rises lump sum payments receiving a redundancy payout receiving child support payments changing jobs returning to work work bonuses income from business or self employment other income, e.g. capital gains or commissions. If there are any changes you think could affect your family s payment act early. Here is a checklist of the sorts of things that should alert you to contact us: changes in family income caused by a new job, going back to work, a lost job, more hours, a pay rise, increased profits from business or investment dividends a change in your marital status children entering or leaving your care changes to child support payments leaving Australia (temporarily or permanently) change to your child care arrangements children starting or leaving school if shared care arrangements change children over 16 years of age getting a job or earning over the income limit a change in your address. Step 3 Include all income The income you need to tell the Family Assistance Office about is your and your partner s adjusted taxable income. Adjusted taxable income is: taxable income, including taxable pensions and benefits (for example Parenting Payment, Newstart Allowance, Department of Veterans Affairs payments), plus reportable fringe benefits, plus the value of any tax-free pensions or benefits (for example Disability Support Pension, Department of Veterans Affairs payments), plus 6

11 Introduction the value of any net rental loss from any real estate or investment property you own, plus any foreign income that is not taxable in Australia, less the full amount of any child support you and/or your partner pay. If you are unsure if a change will affect your payments contact the Family Assistance Office. For every $1000 your family s actual annual income is higher than your estimate, you may have an overpayment of up to $500 and have to pay it back after the end of the financial year. That is why it is important to estimate your income as accurately as possible. Step 4 Consider the number of pays you will get If your salary or wage is paid weekly or fortnightly, the number of individual paydays in a financial year can vary. You need to be aware of this when you estimate your income to avoid being overpaid. If you are unsure you should check the number of paydays for the financial year with your employer. Balancing your payments Your payments will be balanced after the end of the financial year Benefit may be recovered from your future Family Tax Benefit payments including end of year supplement payments. Overpayments of Family Tax Benefit may also be recovered from tax refunds. To allow us to check your records with the Tax Office you need to provide your tax file number. The Family Assistance Office uses this number for matching purposes only, so it cannot be retrieved by our Customer Service Advisers at a later date. If you don t provide your tax file number, or authorise us to get it from the Tax Office, you may not be able to get Family Assistance payments. Family Tax Benefit supplements Family Tax Benefit includes a Part A and Part B supplement. The supplements are only available after the end of the financial year when your payments are balanced. This will happen after you and your partner have lodged your tax returns with the Tax Office. If you or your partner are not required to lodge a tax return you should tell the Family Assistance Office straight away. The supplements may be paid once your payments are balanced, or used to reduce overpayments from the current or previous years. The supplements cannot be paid fortnightly. If you are receiving fortnightly payments of Family Tax Benefit or reduced child care fees, they will be checked at the end of the financial year against the amount you should have received based on your actual family income. The Tax Office advises Centrelink of your actual family income, after you and your partner have lodged your tax returns. You should lodge your tax return according to the timeframes advised by the Tax Office or advise the Family Assistance Office that you are not required to lodge otherwise you may be asked to pay back the Family Tax Benefit you have received. If your fortnightly payments don t match the actual amount you should have received, then your payments will be adjusted. This works either way if you have received too little, you may get a top-up payment. If you received too much however, you may get an overpayment, which you will have to pay back. Overpayments of Family Tax Benefit and Child Care 7

12 Maternity payments Help with the costs of a new baby There are two forms of extra assistance when you have a baby: Maternity Payment Maternity Immunisation Allowance. Maternity Payment Maternity Payment helps with the costs of a new born baby or adopted child. It is a non-income tested lump sum payment. Maternity Payment is a one-off payment of $4000* per child. This means a mother who gives birth to twins would get $8000*. By July 2008, Maternity Payment will increase to $5000* per child. * At certain times, the maximum rate of payment a customer can receive is adjusted in line with the Consumer Price Index. To be eligible for Maternity Payment you must: be the parent of a dependant child, or be a carer other than the parent, you must have care of a newborn child within 13 weeks of the child s birth and be likely to continue to have care of the child for no less than 13 weeks, or in the case of adoption, the child must have come into your care before the child is two years of age. In the case of overseas adoptions, the child must have entered Australia before their second birthday, and meet Australian residence requirements for family assistance purposes. You must lodge your claim with the Family Assistance Office: within 26 weeks of the birth of a child, or in the case of an Australian adoption, within 26 weeks of the child coming into your care, or in the case of an overseas adoption, within 26 weeks of the child entering Australia. 8

13 Maternity Payments Maternity Immunisation Allowance Maternity Immunisation Allowance is a non-income tested payment to encourage parents to immunise their children. Maternity Immunisation Allowance is a one-off payment per child, usually made when the child is 19 months old. Claims must be lodged on or before the child s second birthday. Maternity Immunisation Allowance is paid if your child is between 18 and 24 months of age and is fully immunised. What does fully immunised mean? A child is fully immunised when they have received all vaccinations which a child of 18 months of age should have received. For details of this vaccination schedule, ask your doctor or immunisation provider. Exemptions There are some exemptions from having to immunise your children for the purposes of getting Maternity Immunisation Allowance. If you think you should be exempt, or are on a catch-up schedule, talk to the Family Assistance Office. Important points Assistance may also be available for parents of children who die before two years of age. Please contact the Family Assistance Office for more information. You cannot claim either Maternity Payment or Maternity Immunisation Allowance through the tax system. They can only be paid through the Family Assistance Office. For more information regarding your child s immunisation records contact the Australian Childhood Immunisation Register, Medicare Australia Freecall

14 Family Tax Benefit Part A Helping families with the cost of raising children Family Tax Benefit Part A is the most common payment to help you with the cost of raising your children. It is worked out on your actual annual family income and the ages and number of dependent children in your family. It is paid per child. Family Tax Benefit Part A includes a supplement for each child. If you were entitled to Family Tax Benefit Part A for part of the financial year you will receive a portion of the supplement. The supplement is only available after the end of the financial year when your Family Assistance payments have been balanced. This will happen after you and your partner have lodged your tax returns with the Tax Office. If you or your partner are not required to lodge a tax return you should tell the Family Assistance Office. The supplement cannot be paid fortnightly and cannot be paid if you and your partner do not lodge tax returns, or do not tell the Family Assistance Office that you are not required to lodge. The supplement may be paid or used to: reduce excess payments, if you were paid too much during the year (based on the estimate you provided), and/or recover Family Tax Benefit overpayments from other years. You may be entitled to Family Tax Benefit Part A if: you have a dependent child up to the age of 21, or a full-time student aged in your care, and you are an Australian resident, or you hold certain temporary or special category visas or a criminal justice stay visa, and are residing in Australia. You don t have to be a parent to be entitled to Family Tax Benefit Part A, for example you could be a foster carer or grandparent with children in your care. How much payment you are entitled to depends on your family s actual annual income. To get the most money to the families that need it most there is a maximum rate of benefit for those on low incomes and a base rate for families on moderate incomes. 10

15 Family Tax Benefit Part A There is also an upper income limit. If your family income is above the limit you may not be entitled to any Family Tax Benefit Part A. You should check your entitlement at the end of the financial year when your actual income is known. Generally, if you receive an income support payment you will get this payment automatically. To find out how much you may be entitled to, check the Family Assistance Estimator at or contact the Family Assistance Office. Important points The amount you receive is based on your actual annual family income. If you take your payments fortnightly, you need to give the Family Assistance Office an accurate estimate of your family s annual income. Child support Eligibility for the lower Medicare Safety Net threshold How you receive your Family Tax Benefit Part A payments determines when you receive the lower Family Tax Benefit Part A Medicare Safety Net threshold. Eligibility to receive Medicare Safety Net benefits In order to receive higher benefits from Medicare under the Medicare Safety Net scheme, families must: be eligible for the lower Medicare Safety Net threshold have registered their family members for the Medicare Safety Net confirmed their family composition in writing with Medicare, and have reached the lower Medicare Safety Net threshold in out-of-pocket costs for paid out-of-hospital services. Child Support payments also affect how much Family Tax Benefit Part A you can get. If you have children from a previous relationship, you need to take reasonable steps to obtain child support from the child s other parent to be eligible for Family Tax Benefit Part A. Shared care If you share the care of your child, you may be entitled to Family Tax Benefit Part A for the time the child is in your care. 11

16 Family Tax Benefit Part B Extra assistance for families with one main income Family Tax Benefit Part B gives extra assistance to single parent families and to two-parent families with one main income, where one parent chooses to stay at home or balance some paid work with caring for their children. You may get Family Tax Benefit Part B on its own or both Family Tax Benefit Part A and Part B. Family Tax Benefit Part B includes a supplement. The supplement is only available after the end of the financial year when your payments are balanced. This will happen after you and your partner have lodged your tax returns with the Tax Office. If you or your partner are not required to lodge a tax return you should tell the Family Assistance Office. The supplement cannot be paid fortnightly and cannot be paid if you and your partner do not lodge tax returns, or do not tell the Family Assistance Office that you are not required to lodge. The supplement may be paid or used to: reduce excess payments, if you were paid too much during the year (based on the estimate you provided), and/or recover Family Tax Benefit or Child Care Benefit overpayments from other years. Single parent families Single parent families always get the maximum rate of Family Tax Benefit Part B, according to the age of their child. Two-parent families When working out the rate of payment for Family Tax Benefit Part B, the income of the main earner is not taken into account. It is the income of the lower earner that affects how much Family Tax Benefit Part B you will receive. For example, the lower income earner might be working part-time or be a stay-at-home parent. It is this part-time income that will affect your payment. 12

17 Family Tax Benefit Part B Parents returning to work Parents who are lower income earners in a couple and who return to work for the first time after the birth of a child may be entitled to the maximum rate of Family Tax Benefit Part B. Eligibility for this extra assistance will be calculated after the end of the financial year when Family Tax Benefit payments are balanced. If you have returned to work since 1 July 2005 for the first time after having a child you should tell the Family Assistance Office. The age of your youngest child will affect your payment A higher rate of Family Tax Benefit Part B is paid if your youngest child is under five. 13

18 Medicare Medicare ensures that all Australians have access to free or low-cost medical, optometrical and hospital care while being free to choose private health services. Medicare provides access to: free treatment as a public (Medicare) patient in a public hospital free or subsidised treatment by practitioners such as doctors, including specialists, participating optometrists or dentists (specified services only). Australia s public hospital system is jointly funded by the Australian Government and state and territory governments and is administered by state and territory health departments. Medicare enrolments and medical benefit payments are administered by Medicare Australia through its network of Medicare offices and other information claiming services. Your contribution to the health care system is based on your income and is made through taxes and the Medicare levy. What does Medicare cover? The benefits you receive from Medicare are based on a schedule of fees set by the Australian Government. Doctors may choose to charge more than the schedule fee. Out-of-hospital services Medicare provides benefits for: consultation fees for doctors, including specialists tests and examinations by doctors needed to treat illnesses, including x-rays and pathology tests eye tests performed by optometrists most surgical and other therapeutic procedures performed by doctors some surgical procedures performed by approved dentists specified items under the Cleft Lip and Palate Scheme specified items for allied health services as part of the Chronic Disease Management program contact Medicare for more information. You can choose the doctor who treats you for out-ofhospital services. In-hospital services Public patient If you choose to be admitted as a public (Medicare) patient in a public hospital, you will receive treatment by doctors and specialists nominated by the hospital. You will not be charged for care and treatment, or after-care by the treating doctor. Private patient If you are a private patient in a public or private hospital, you will have a choice of doctor to treat you. Medicare will pay 75 per cent of the Medicare Schedule fee for services and procedures provided by the treating doctor. If you have private health insurance some or all of the outstanding balance can be covered. You will be charged for hospital accommodation and items such 14

19 Medicare as theatre fees and medicines. These costs can also be covered by private health insurance but are not covered by Medicare. Enrolling your new baby in Medicare It is important that you enrol your new baby in Medicare so that he or she can have access to Medicare services and subsidised medicines under the Pharmaceutical Benefits Scheme (PBS). Children enrolled in Medicare are automatically included on the Australian Childhood Immunisation Register another reason why you should enrol your baby with Medicare. You should also include your baby in your Medicare family Safety Net registration to give you added protection against high medical costs. If you have not registered your family for the safety net, please refer to How do I register? on this page. Medicare Safety Net If you need to see a doctor or have tests regularly you could end up with high medical costs. The Medicare Safety Net is designed to help you when you need it most. It means that once you reach and qualify for a safety net threshold, visits to your doctor or having tests could end up costing you less. Medicare currently has three safety net thresholds that can help protect you and your family from high medical costs. For more information about the safety net thresholds visit your local Medicare Office, call Medicare on or visit How does the Medicare Safety Net work? Medicare keeps a tally of your out-of-hospital expenses for you. When you register with the Medicare Safety Net and you reach and qualify for one of the safety net thresholds, you may receive higher Medicare benefits for the rest of the calendar year. Who needs to register? All families and couples need to register. Even if all your family members are listed on your Medicare card you still need to register for the safety net. Each family member needs to be identified so their medical costs can be counted towards your family s safety net. You only need to register your family once. Registering is free. If you are not sure if your family is registered, or who in your family is on your registration, visit or phone your local Medicare office. As an individual enrolled with Medicare you are automatically covered by the safety net. How do I register? Registration options include: you can register online by visiting Medicare Australia s website at you can download a Medicare Safety Net registration form from Medicare Australia s website at or pick one up from your local Medicare office. Completed forms can be placed in the drop box at most local Medicare offices or you can mail forms to GPO Box 9822 in your capital city you can register over the phone by phoning What happens next? If you pay your doctor in full and then claim your Medicare benefit: Medicare automatically keeps a tally of your medical expenses for you Medicare will write to you when you are nearing a threshold. You can also check your Medicare Safety Net balance: online visit the Our Services for You section of Medicare Australia s website at over the phone call in person visit your local Medicare office. 15

20 If you claim from Medicare before paying your doctor: Medicare will send you a cheque payable to the doctor which you take to the doctor along with any outstanding balance to be paid you then take your receipts to Medicare as proof of payment so that Medicare can keep a tally of your expenses for you Medicare will contact you when you are nearing a threshold. Medicare will do the rest once you reach a threshold all further out-of-hospital claims you make for that calendar year may automatically attract a higher benefit. If you and your spouse and/or children are registered as a family, you must confirm your family composition in writing each year with Medicare before any higher benefits can be paid. You need to give Medicare all of your receipts for doctors accounts. This way you can make sure you get all the benefits that you re entitled to. What are the benefits to me? As an example, if you reach a threshold and then visit your doctor who charges you $50, you will receive your Medicare benefit of $ You will also receive 80 per cent of your out-of-pocket costs, giving you an extra $15.35 in your pocket. So in this example it will only cost you $3.80 to go to your doctor. An out-of-pocket cost is the difference between the Medicare benefit and what your doctor charges you. Australian Childhood Immunisation Register What is the Australian Childhood Immunisation Register? The Australian Childhood Immunisation Register (the Immunisation Register) is a national register that records details of vaccinations given to children under the age of seven who live in Australia, helping parents ensure that their children are fully immunised. How do I enrol my child? Children under the age of seven who are enrolled in Medicare are automatically included on the Immunisation Register. Children who are not eligible to enrol in Medicare will be added when a doctor or immunisation provider sends the details of a vaccination to the Immunisation Register. How can I keep track of my child s immunisations? Immunisation history statements show the immunisation details recorded on the Immunisation Register for children under seven years of age, and any immunisations that are missing. Immunisation history statements: will be sent to you when your child turns one, two and five years of age, or on request can be requested at your local Medicare office, by visiting Medicare Australia s website at or by calling the Immunisation Register on will be sent to the most recent address recorded on the Immunisation Register, so it is important to keep your details up-to-date with Medicare and your doctor or immunisation provider. Will my child s immunisation status affect my Family Assistance payments? Your child has to be up-to-date with immunisations, or have an exemption, to receive the Child Care Benefit and the Maternity Immunisation Allowance. Your child s immunisation status, as recorded on the Immunisation Register, is checked before these Family Assistance payments can be made. Immunisation exemptions The following immunisation exemptions apply: your child cannot be immunised due to a medical condition ask your doctor or immunisation provider to complete a Medical Contraindication form your child has a natural immunity to a disease or vaccine is unavailable ask your doctor or immunisation provider to give you a letter explaining the reasons 16

21 Medicare you have a personal, philosophical, religious or medical belief that your child should not be immunised ask your doctor or immunisation provider to complete a Conscientious Objection form. Where can I get more information about the Immunisation Register? For further information about the Immunisation Register: Call: acir@medicareaustralia.gov.au Internet: Pharmaceutical Benefits Scheme Pharmaceutical Benefits Scheme (PBS) Safety Net If you or your family need a lot of medicine in a calendar year, the PBS Safety Net helps you with the cost of medicine. Keep a record of your PBS medicine on a prescription record form which you can get from your pharmacy. Each time you have a PBS medicine supplied, hand your prescription record form to the pharmacist so the supply can be recorded. Your pharmacy might be able to keep a record for you on their computer, but its best to keep your own records as well. If you have a family, ask your pharmacist about combining the amounts you spend for your Safety Net total. Once you or your family reach the Safety Net threshold, you can apply for a PBS Safety Net card and your PBS medicine will be less expensive or free for the rest of the calendar year. For more information about the PBS Safety Net, talk to your pharmacist, visit your local Medicare office, visit Medicare Australia s website at or call the PBS information line on

22 Child Care Benefit Help with the costs of child care Child Care Benefit helps with the costs of child care for approved and registered care. It is designed to help parents, foster parents and grandparents balance their work and/or family commitments. Approved child care Approved care includes long day care, family day care, in-home care, outside school hours care, vacation care and some occasional care services. Services are approved by the Australian Government to accept your Child Care Benefit directly from the Family Assistance Office on your behalf, so you pay less out of your own pocket. You can ask your child care centre if they are approved. To find an approved child care centre in your area, you can contact the Child Care Access Hotline on Freecall (TTY Service Freecall ) between 8.00 a.m. and 9.00 p.m. (EST) Monday to Friday. The Hotline also provides advice on quality issues and Australian Government assistance with the cost of care. Registered child care Registered care is child care provided by grandparents, relatives, friends or nannies for work-related child care. It can also include some care provided by private preschools, kindergartens and outside school hours care. The carer must be registered with the Family Assistance Office for you to receive your Child Care Benefit. If you meet the following requirements for approved child care or registered child care, the Australian Government will pay a percentage of the standard fee and you have to pay any gap. It is only available to residents You or your partner must be an Australian resident living in Australia to be able to get Child Care Benefit, or hold certain temporary or special category visas. Immunisation requirements To get Child Care Benefit for any child under seven you must be able to prove that the child s immunisation is up-to-date. If you give the Family Assistance Office your Medicare number when you claim, proof of immunisation can, in most cases, be checked automatically. There are some exemptions from having to immunise your children for the purposes of getting Child Care Benefit. For more information on exemptions, speak to the Family Assistance Office. Payments for approved child care are based on your family s annual income Families on low incomes will receive the maximum rate of Child Care Benefit. However, all eligible families are entitled to at least the minimum rate. Child Care Benefit starts reducing on a sliding scale between the maximum rate and the minimum rate once your family income reaches a certain limit, and depending on the number of children you place in care. Grandparents who are primary carers for their grandchildren and who receive an income support payment will be able to claim Grandparent Child Care Benefit, which will cover the full cost of approved child care for up to their eligible hours limit (generally 50 hours per child per week). If you are in receipt of an income support payment you are entitled to the maximum rate of Child Care Benefit. 18

23 Child Care Benefit Allowable absences Payment can be authorised for up to 30 days of absences for each child per financial year across all approved care services. Approved absences Absences for certain reasons may be approved but not counted as one of your child s allowable absences. Please talk to your child care provider about the reason for absences. Your child s attendance Information about your child s attendance is passed on to the Family Assistance Office to assist with calculating your Child Care Benefit entitlement. You should only ever sign attendance records for the day that your child attends care, or where an allowable or approved absence is used. You should never sign attendance records in advance, or sign blank attendance records. It is a serious offence to give false or misleading information to the Family Assistance Office. You can choose how to receive your benefit If you use approved care you can: have your Child Care Benefit as reduced child care fees paid directly to the child care centre, which means you pay less in child care fees out of your own pocket choose to pay full child care fees throughout the year and receive your Child Care Benefit as a lump sum after the end of the financial year, or receive the minimum rate throughout the year and any further amount you are entitled to after the end of the financial year. If you choose to receive reduced child care fees (for children in approved care), your Child Care Benefit will be paid directly to your child care service. The amount of your benefit will be deducted from the amount of your child care fees. You will have to pay any gap in outstanding fees. 19

24 If you use registered care Child Care Benefit will be paid into your bank account when you lodge your receipts with the Family Assistance Office for fees that you have paid to the registered carer. Remember, this is only available if the carer is registered with the Family Assistance Office. To be paid Child Care Benefit for registered care you must lodge your receipts with the Family Assistance Office within 12 months after the care has been provided. The number of hours you can claim Approved care Up to 24 hours per child per week available to all eligible families. Up to 50 hours per child per week for work, training, or study-related care, looking for work or for grandparents with primary care of a grandchild using child care. Both you and your partner will need to be working, looking for work, training or studying for at least 15 hours per week or 30 hours per fortnight. More than 50 hours per week only for families in certain circumstances who need extra assistance. Registered care Up to 50 hours per week for work, training or studyrelated care. Things to tell the Family Assistance Office if your child starts school if you are no longer liable to pay your child care fees e.g. If you pay your child care through salary sacrificing if the child care service you use changes, or you cease to use child care if you or your partner stop working, training or studying or the amount of time you or your partner spend in these activities is less than 15 hours a week or 30 hours per fortnight if your child leaves your care. You should tell your child care provider: if you are using more than one child care service for your child. 20

25 Child Care Benefit Important points Child Care Benefit is not a tax benefit and it cannot be claimed through the tax system. If you choose to have your benefit paid directly to your child care centre as reduced fees, you must estimate your family s income as accurately as possible in advance. You can get the minimum rate without needing to give us an estimate of your income. High-income families are entitled to the minimum rate of Child Care Benefit as there is no income cut-off point. Your Child Care Benefit will be balanced after the end of the financial year. Adjustments will be needed if your actual family income is not the same as your estimate. If you choose to receive your Child Care Benefit as a lump sum, you must lodge a claim within two years of the end of the financial year for which you are claiming. Your child care provider must send information about your child care usage, attendance details and fee reductions to the Family Assistance Office. You are entitled to a full session of care if you have paid for the full session of child care. Extra help with the cost of child care Jobs, Education and Training Child Care Fee Assistance Jobs, Education and Training Child Care Fee Assistance (JETCCFA) provides extra help with the cost of approved child care to eligible parents undertaking activities such as job search, work, study or rehabilitation as part of an Activity Agreement, to help them enter or re-enter the workforce. JETCCFA can help meet the cost of child care by paying most of the gap fee the difference between the total child care fee and the amount covered by Child Care Benefit, for care related to participation in JETCCFA approved activities. JETCCFA payments are made directly to the child care service on your behalf. You will still make a contribution towards the cost of care. Contact the Family Assistance Office to find out if you qualify for this additional help with your child care costs. 30% Child Care Tax Rebate In addition to Child Care Benefit you may be able to claim the 30% child care tax rebate. The rebate covers 30% of your out-of-pocket child care expenses for approved child care, with a rebate of up to $4000 (indexed) per child per year. Out-of-pocket expenses are child care fees not already covered by the Australian Government s Child Care Benefit. The rebate is not a cash in hand refund. It is a tax offset that reduces the tax calculated on your income when you lodge your income tax return. To be eligible to claim the rebate in your income tax return you must have: used approved child care in the financial year received Child Care Benefit, and passed the Child Care Benefit work, training, study test. If you wish to claim the rebate you can confirm the Child Care Benefit entitlement and child care fee information which you will need to calculate your outof-pocket expenses by visiting the Family Assistance Office website or by calling You can use e-tax to import your 30% child care tax rebate information from the Family Assistance Office into your tax return. Your tax agent will also have access to the Family Assistance Office data to help in preparing your tax return or transfer advice. If you have already kept records, you can use your end of financial year Child Care Benefit letter from the Family Assistance Office and proof of approved child care expenses such as receipts and invoices to calculate your out-of-pocket expenses. More information about the 30% child care tax rebate is available from the Australian Taxation Office by visiting, or by calling A different gap fee may be payable for any child care used in the week not related to the JETCCFA activity. 21

26 Other Assistance Some Family Assistance customers may be eligible for other payments. Rent Assistance Rent Assistance is a payment provided to help you pay your rent. It gives you extra assistance if you have a low income and rent accommodation generally in the private rental market. For more information contact Centrelink on Large Family Supplement If you get Family Tax Benefit for three or more children, you will automatically get an extra amount for each child after the second. Multiple Birth Allowance If you have triplets or more, a Multiple Birth Allowance is added to your Family Tax Benefit and paid until the children are six years old. Double Orphan Pension If you are the guardian of an orphan you will be eligible for the Double Orphan Pension. It is not income or asset tested and is paid in addition Family Tax Benefit. 22

27 Other Assistance Health Care Card A Health Care Card helps make health care more affordable. Family Tax Benefit Health Care Card If you get the maximum rate of Family Tax Benefit Part A by fortnightly payments you will automatically receive a Health Care Card. Low Income Health Care Card If you want to claim Family Tax Benefit Part A through the tax system rather than as a fortnightly payment, or if you do not qualify for a Family Tax Benefit Health Care Card, you may be able to get a Low Income Health Care Card. Foster Child Health Care Card If you care for a foster child, you can apply for a Foster Child Health Care Card. Care can be under formal arrangements (through child protection or foster care agencies) or informal arrangements for example, the carer may be an aunt, uncle, grandparent or close family friend. You can claim the card on behalf of the child, even if you do not claim Family Tax Benefit for that child. The foster child Health Care Card is not means tested. Income Support Concession Cards If you receive an Income Support payment, such as Parenting Payment or Newstart Allowance, you will automatically receive a concession card with that payment, that also covers your dependants. Assistance for low income earners Other assistance may be available to families in special circumstances, or with little or no income, such as Parenting Payment. 23

28 What else can affect your Family Assistance? Child Support How do child support payments affect my Family Tax Benefit? Any child support payments you or your partner get for children in your care may affect how much Family Tax Benefit Part A you can get. If you or your partner have children from a previous relationship in your care, you or your partner must take steps to obtain child support payments otherwise the amount of Family Tax Benefit Part A you receive may be reduced. To apply for child support from the other parent of the child, contact the Child Support Agency. You must apply for child support within 28 days (from 1 January 2007 this will be extended to 13 weeks) of the latest of the following dates: the date of birth of your child the date you separated from your child s other parent, or the date the child came into your care. This is especially important if you are planning to claim Family Tax Benefit as a lump sum at the end of the financial year. If you do not take steps to get child support payments for the period you claim for, this may reduce the amount of Family Tax Benefit Part A you can be paid. You can still get Family Tax Benefit Part B, Child Care Benefit and Family Tax Benefit Part A at the base rate without applying for child support payments. 24

29 What else can affect your Family Assistance? If there is any reason that makes it difficult for you to apply for child support payments from the other parent of the child, you should discuss your situation with the Family Assistance Office. In calculating your Family Tax Benefit entitlement, you are able to receive a certain amount of child support before your Family Tax Benefit is affected. This is known as the Maintenance Income Free Area. Child support income over your Maintenance Income Free Area reduces your rate of Family Tax Benefit Part A, by 50 cents for every dollar of child support. Child support income cannot reduce your Family Tax Benefit Part A below the base rate. The child support payments I get change every month how can I make sure I get the right amount of Family Tax Benefit? Not everyone gets regular child support payments. If you get Family Tax Benefit paid fortnightly, the Family Assistance Office has two ways of assessing your child support payments to help you get the right amount of Family Tax Benefit. The Entitlement Assessment method If you think that your child support payments will be predictable, this may be the right method for you. Under this method your Family Tax Benefit payments are based on the higher amount of: child support you should be getting (entitled amount), or the value of child support calculated under the Disbursement Method (for those families who have child support payments collected by the Child Support Agency). Under this method, Family Tax Benefit will usually be based on the amount of child support you are entitled to get except when you receive a large arrears payment. You should discuss which method is best for you with the Family Assistance Office. The Disbursement Assessment method If you receive less child support than you should, or if you are not sure how much child support you will get, then you may be better off using the Disbursement Assessment method. Under this method the amount of Family Tax Benefit you get is recalculated whenever the amount of child support collected for you by the Child Support Agency changes. This means your Family Tax Benefit payment may go up or down, depending on how much child support you have been paid. Can I choose the assessment method to be used for my Family Tax Benefit payments? If the Child Support Agency is collecting your payments you can choose which method is to be used. You can change this method at any time. Whichever assessment method you choose, at the end of the financial year, the Family Assistance Office will balance your Family Tax Benefit by looking at your Child Support Payments and other income. I have a private arrangement with my child s other parent what assessment method can I choose? If you have applied for child support through the Child Support Agency and are collecting your payments privately, you will have to use the Entitlement Assessment method. If you think that you may not be paid all the child support you are entitled to under this private arrangement, and you want to use the Disbursement Assessment method, you will need to ask the Child Support Agency to collect your child support payments for you. For more information contact the Child Support Agency. What if I receive late or large, unexpected child support payments? In calculating your Family Tax Benefit entitlement, you are able to receive a certain amount of child support before your Family Tax Benefit is affected. This is known as the Maintenance Income Free Area. 25

30 If you receive a large child support payment that had been owed to you for some time, you should contact the Family Assistance Office to discuss your options for reducing the possibility of a Family Tax Benefit overpayment. The Maintenance Income Credit, reduces a possible Family Tax Benefit overpayment caused by large or late child support payments. How does the Maintenance Income Credit Work? From 1 July 2006 the Maintenance Income Credit allows families to access any unused maintenance income free areas from previous years to offset any large or late child support payments. If your child support payments are not regular, you will be paid the same amount of Family Tax Benefit as if you had received regular child support payments. For example: Jill is entitled to receive $1000 in child support payments every year but she has not been paid any child support since July 2000 In December 2006, she receives a lump sum child support payment of $5000. Currently, when her Family Tax Benefit payments are checked at the end of the financial year she would have to pay back some Family Tax Benefit because she has received more child support than expected for the year. After the Maintenance Income Credit is introduced, Jill would be able to use her maintenance income free areas available from previous years to offset the $5000 and she would not be overpaid when her payments are checked. You will not need to work out whether you are entitled to a Maintenance Income Credit as the Family Assistance Office will do this for you. The Family Assistance Office will use the Maintenance Income Credit for the first time when we balance your payments at the end of the financial year. How do the child support payments I pay affect my Family Tax Benefit? If you or your partner pay child support for children from a previous relationship, any child support paid in the financial year should be deducted from your family s income estimate, which is used to calculate your family assistance entitlements. You should keep proof of the child support you pay, as you may be asked to show evidence of this amount. Shared Care Will my Family Tax Benefit be affected if I share the care of any of my children with someone other than my current partner? If your children spend time for example, weekends or school holidays with someone other than your current partner or child care provider (such as their other parent if you are separated) there are special rules about how much Family Tax Benefit you can be paid. To be paid a share of Family Tax Benefit, you have to have care of your child for at least 10 per cent of the time during an assessment period. Ten per cent of the time is the same as 37 nights over a full financial year (see the next section for more information on an assessment period). If you begin to share the care of a child after 1 July in any financial year, the assessment period will be less than a whole financial year and 10 per cent of the time will be less than 37 nights. If you share the care of your child, you are entitled to Family Tax Benefit for the time the child is in your care. The percentage of Family Tax Benefit you are eligible for is the same as the percentage of time the child is in your care. You can get the full amount of Family Tax Benefit if you care for your child for more than 90 per cent of the time. There are special rules around the rates of Rent Assistance for parents in a shared care arrangement. Please contact the Family Assistance Office for more information. Sharing the care of a child with your current partner or child care provider is not shared care. 26

31 What else can affect your Family Assistance? Waiver of Family Tax Benefit entitlement If the child s other parent has care of the child for at least 10 per cent but less than 30 per cent of the time, they can choose to waive their Family Tax Benefit entitlement for the child in your favour for a nominated period. To do this the other parent needs to complete a form from the Family Assistance Office. What is an assessment period for Family Tax Benefit? An assessment period: begins on 1 July (the start of the financial year) or, if shared care begins after this, on the actual date that shared care commences, and ends on 30 June of the same financial year or on the day that shared care arrangements change, if this occurs before the end of the financial year. How do I work out the percentage of time I care for my child? To work out how much time you care for your child during the assessment period, add up the number of days the child is with you, and turn this into a percentage. Your child is generally considered to be in your care, on a particular day, if they are in your care overnight. For example, if your child stays at your home overnight, this is counted as one day in your care. If you have trouble working out the percentage of time you care for your child, contact the Family Assistance Office. 27

32 Sometimes I care for my child only part of the day how can I work out how many days I care for my child? If your child is in your care for part of the day but not overnight, this time can still be counted as time you care for your child during an assessment period. If you have trouble working out the percentage of time you care for your child, contact the Family Assistance Office. Calculating the percentage of shared care Eva and Eric separated on 20 January and they agreed to share the care of their child Jason. Their assessment period began on 20 January and ended on 30 June (a total of 162 days) so their assessment period is less than a full financial year. Jason is in Eric s care every Friday and Saturday night, a total of 46 days from 20 January to 30 June. To determine the percentage of time Eric has care of Jason, Eric converts 46 days out of a total of 162 days into a percentage. To do this, the number of days Jason is in Eric s care (46) is divided by the number of days in the assessment period (162). This is then multiplied by 100 to work out the percentage of days that Jason is in Eric s care. So, Eric has care of Jason for 28 per cent of the assessment period and Eva has care of Jason for the remaining 72 per cent of the assessment period. How much Family Tax Benefit can I receive if I share the care of my child? The percentage of Family Tax Benefit Part A you can receive for your child is the same as the percentage of time that your child is in your care, provided it is at least 10 per cent of the time. The same applies to the Family Tax Benefit Part A supplement paid for each child. If you share the care of any of your dependent children with someone who is not your partner, your entitlement to Family Tax Benefit Part B is generally based on the child who gives you the highest rate this is not necessarily the youngest child. What information do I have to provide if I am sharing care? If you and your child s other parent agree to care arrangements, you can tell the Family Assistance Office what your percentage of care is based on these arrangements. Alternatively, you can tell the Family Assistance Office what your agreed arrangements are and we will work out your percentage of care for your Family Tax Benefit. We may contact your child s other parent to verify the care arrangements for your child. The Family Assistance Office may also ask you for any court order, parenting plan or other documentation that explains your care arrangements. 28

33 What else can affect your Family Assistance? What if my child s other parent and I disagree about the amount of time we care for our child? If you and your child s other parent are having trouble agreeing on the amount of time each of you cares for your child, make an appointment to discuss the situation with the Family Assistance Office. Separated couples if you receive your Family Tax Benefit annually and have recently separated you may be entitled to share the payment for the period you were partnered. For more information please contact the Family Assistance Office. We can help you calculate your shared care arrangements or refer you to other organisations that may be able to help you. What if my care arrangements change? If you get your Family Tax Benefit as fortnightly payments, you must tell the Family Assistance Office if your care arrangements change, as this may affect your payments. You must tell us within 14 days of any changes. If you get your Family Tax Benefit through the tax system you should keep records of any changes in care arrangements so you can correctly fill in your claim for payments at the end of the financial year. If you anticipate an end of year lump sum through reduced withholdings (previously known as tax instalment deductions) you will need to submit a new Withholding Declaration to your employer reflecting any changes in care arrangements. Are you a member of a blended family? A blended family is a family where there are two or more dependent children, and: at least one of the children is a dependent child, from a previous relationship, of one of the partners, and at least one of the other children is a dependent child of both partners or is the child from a previous relationship of the other partner in the couple. If you are a member of a blended family, you and your partner can choose to share your combined Family Tax Benefit amount. You can decide between you what percentage of your combined Family Tax Benefit amount you will each receive. 29

34 Managing your payments By now, you will have a better understanding of family assistance the payments and benefits, and the important things to watch out for. Now it s time to put it all together. Here are all the important points you should keep in mind to get your correct entitlement. Five steps 1. Decide how and when you want to get paid. 2. If you get paid fortnightly or as reduced child care fees, plan ahead: estimate your family income as accurately as possible choose to take some of your payment now and get the rest after the end of the financial year. If you get paid annually, lodge your claim within two years of the year for which you are claiming. 3. Act early as soon as your family circumstances change contact the Family Assistance Office. 4. Make sure you and your partner lodge your tax returns in the timeframes required by the Tax Office or advise the Family Assistance Office that you are not required to lodge. 5. Your payments will be balanced after the end of the financial year. Not happy with a decision we ve made about your payments? If you think a decision we have made about your payments is wrong, you have the right to have that decision reviewed by the Family Assistance Office. For more information, please contact the Family Assistance Office. What to watch out for Here are the important points you should keep in mind to get the most out of your Family Assistance, especially what to watch out for. If anything changes, act early This is one of the most important things you need to do to help the Family Assistance Office pay you correctly. Here s a checklist of the sorts of things that should alert you to contact us: changes in family income, a new job, going back to work, a lost job, more hours, a pay rise, increased 30

35 What else can affect your Family Assistance? profits from business, investment dividends, they all make a difference to how much you could be paid a change in your marital status if a child enters or leaves your care if your child support payments change if you leave Australia (temporarily or permanently) a change in your child care arrangements if a child starts or leaves school if shared care changes if you think your child over 16 will earn over the income limit a change in your address. If you are unsure if a change will affect your payments act early contact the Family Assistance Office. Keeping your personal information private Any personal information that we collect about you or hold is protected by law. We can only give your information to someone else in special circumstances where Commonwealth laws allow or require us to, or when you give us permission. For more information phone the Office of the Privacy Commissioner on Under the Freedom of Information Act 1982, you are entitled to inspect or obtain copies of your Family Assistance file and other information we have about you. 31