Australian Government benefits and payments are available to all eligible carers and their families, including foster and relative carers’ families. It is important to note that for many of these payments, grandparent care arrangements are included in the term ‘foster care’.
The term ‘foster care’ includes formal care that is delegated by a child protection authority or by another court order and also informal ‘foster care’ where, for example, a grandparent assumes care of a child in a voluntary arrangement. If you have questions regarding your care status and entitlements to benefits, you should contact Centrelink on 13 61 50, or visit your local Centrelink Customer Service Centre.
The Australian Government makes a contribution to the well-being of all children in foster and relative care by:
Australian Government family assistance payments are available to all eligible Australian families, including grandparent carers, to assist with the costs of raising children. These payments include Family Tax Benefit, Maternity Payment and Double Orphan Pension. The payments are funded by the Department of Family and Community Services (FaCS).
Grandparents may be eligible for family assistance if they have day-to-day care and responsibility for a child, even if that responsibility has not been legally assigned. However, grandparents are unlikely to get family assistance payments if the child’s parent lives in the same household.
Family Tax Benefit (FTB) consists of two parts, Part A and Part B.
FTB Part A is designed to help families with the costs of children. Payment to a family is assessed on the combined income of the family, and is paid in respect of each child.
FTB Part B provides extra help to sole parent families and families with one main income. The payment is based on the age of the youngest child, and is assessed on the income of a family’s lower income earner.
FTB is not subject to asset tests. These payments are intended to supplement family income and thereby help with the costs of children.
If a grandparent carer receives a Tasmanian Government foster care allowance, it is considered outside the definition of taxable income for FTB purposes by the Australian Taxation Office.
You can choose to receive Family Tax Benefit in fortnightly instalments or as a lump sum after the end of the financial year.
Maternity Payment is a lump sum payable following the birth of a baby. It 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.
In some cases where there has been a change of care, the payment can be split between two or more carers if they can demonstrate eligibility. Some Maternity Payment may be paid to grandparents if they have care of a newborn baby within 13 weeks of the baby’s birth and are likely to continue to have care of the baby for no less than 13 weeks. Guidelines apply where payment is split between more than one carer.
Maternity Payment claims must be made within 26 weeks of the baby’s birth. This is because the payment is intended to assist with the costs around the time of birth. In cases of adoption the baby must come into the care of the parents within 26 weeks of birth. They then have another 26 weeks from the time of receiving the baby to claim.
Maternity Immunisation Allowance (MIA) is a one-off payment to carers, including grandparents, for children who have been fully immunised at 18 months, or after 18 months but before their second birthday. The payment is not income tested and is paid to a family if the immunisation requirements are met for a child in their care.
Grandparents may be eligible for a Double Orphan Pension if a child is in their care because:
To claim any of these forms of family assistance you need to complete a claim form. You can get the form by visiting a Family Assistance Office at Centrelink or by calling 13 61 50.
Once you have lodged a claim, a Customer Service Officer will assess it, taking into account your income and the amount of time the child is living with you. It may be possible to receive some Family Tax Benefit as long as you have at least 10% care of the child. If the care is in dispute, each party will need to provide evidence that they are caring for the child. A Family Assistance Customer Service Officer or a Centrelink Social Worker can help you with these matters.
Child Care Benefit (CCB) is assistance to help with the costs of child care. Families are eligible to receive CCB for children who meet the residency and immunisation requirements and attend approved or registered care for which a fee is charged. Approved child care services include most long day care, family day care, outside school hours care, vacation care, some occasional care services and some in-home care. Registered care is care provided for work-related purposes by carers who are registered with the Family Assistance Office.
CCB for families using approved child care is a means-tested payment based on family income. Families on the lowest incomes receive the highest rates of assistance (maximum rate). The CCB rate for approved care is gradually reduced as assessed family income increases, to the point where families receive the minimum rate. Families using registered care are eligible for the minimum rate only. Normally, the CCB pays for up to 20 hours of child care per child per week if the carer is not working, training or studying.
On 3 January 2005 Grandparent Child Care Benefit (GCCB) was introduced. This is for eligible grandparents who receive an income support payment and who are primary carers of their grandchildren. It covers the full cost of up to 50 hours of approved child care per child per week.
To get more information about CCB:
* 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.
The Australian Government funds a range of income support payments and other concessions, including the Parenting Payment, Age Pension, Carer Allowances and concession cards. Support that may be available to grandparents is explained below.
Parenting Payment is the main form of income support payment available to people who have responsibility for the care of a dependent child aged under 16. Parenting Payment can be paid at the single or partnered rate, depending on your marital status. Parenting Payment is only payable to one member of a couple. Parenting Payment customers are also eligible for a Concession Card that covers both the cardholder and any dependent children.
You may qualify for the Parenting Payment as a parent, grandparent or foster carer where:
There are two different categories within Parenting Payment:
More information on Parenting Payment can be found on the Centrelink website.
Some grandparents who are raising grandchildren may be paid age pension. If you have previously claimed age pension, and your pension was not paid or was stopped because of your income, you may now be entitled to a payment because you have children in your care. Age pensioners receive a Pensioner Concession Card that covers both the cardholder and any dependent children.
You may get age pension if you:
For women it depends on your date of birth – women qualify for age pension at different ages depending on their birth date (see below).
| 1 January 1940 to 30 June 1941 | 62 |
| 1 July 1941 to 31 December 1942 | 62½ |
| 1 January 1943 to 30 June 1944 | 63 |
| 1 July 1944 to 31 December 1945 | 63½ |
| 1 January 1946 to 30 June 1947 | 64 |
| 1 July 1947 to 31 December 1948 | 64½ |
| 1 January 1949 and later | 65 |
You can phone Centrelink on 13 23 00 or visit a Centrelink Customer Service Centre to tell them you wish to claim an age pension. Additional information on age pension can be found:
If the child you care for has a physical, intellectual or psychiatric disability which is permanent or likely to continue for an extended period, you may be able to get financial support as the child’s carer. The forms of support available to carers of children under 16 years of age are described below.
Carer Allowance is a supplementary payment available to people who provide daily care and attention at home for an adult or child with a disability or severe medical condition. Carer Allowance is paid in recognition of the impact of the caring role on the carer and is not designed to cover the cost of the equipment, care, or medication required because of the disability.
Carer Allowance is not income tested or assets tested, and can be paid in addition to an income support payment.
A child under 16 years of age must be your dependant before you can qualify for Carer Allowance.
People who receive the Carer Allowance automatically receive a Health Care Card with the payment. The card is issued in the name of the child only.
If the child’s functional disability does not qualify you for payment of the Carer Allowance, you may still be able to get a Carer Allowance Health Care Card if the child requires at least 14 hours a week of extra care and attention.
Carers of two children, who individually fall just below the qualification for Carer Allowance but whose combined assessment under the eligibility criteria meets the threshold for payment, may receive a single rate of the allowance.
Grandparents may be eligible for Carer Payment in addition to Carer Allowance.
Carer Payment provides income support to people who are caring for a child with a profound disability and who therefore are not able to undertake substantial employment in the workforce. Carer Payment is subject to an income and assets test and is paid at the same rate as other social security pensions. A person cannot receive Carer Payment and another social security income support payment at the same time. If you receive a Carer Payment, you also get a Pensioner Concession Card that covers both the cardholder and any dependent children.
To be eligible for Carer Payment a carer must provide a high level of care to a child with profound disabilities, in order to maintain comfort, sustain life, and attend to bodily functions that the child cannot manage by himself or herself. The payment is not generally available to carers of children with moderate to severe physical or intellectual disabilities.
Carer Payment is also available to carers of two or more children who, together, require a level of care that is at least equivalent to the level of care required by a child with a profound disability.
Information about the eligibility requirements for Carer Allowance and Carer Payment is available from your local Centrelink Customer Service Centre or by phoning 13 27 17.
Grandparents may have access to a range of concession cards covering grandchildren in their care. Australian Government concession cards like the Pensioner Concession Card (PCC) and Health Care Card (HCC) may provide:
If you are already receiving an income support payment such as an Age Pension or Parenting Payment, you will already have a concession card. If you are also eligible for Family Tax Benefit for grandchildren in your care, they can be added to the PCC/HCC. The children will then be able to receive the benefits of the card.
If you do not receive a pension or benefit, but you do get the maximum rate of Family Tax Benefit Part A paid fortnightly for your grandchildren, you will automatically be issued with an HCC. This card will cover both you and your grandchildren.
If you are not automatically entitled to an HCC under the above provision, you may be entitled to a low-income HCC instead. To qualify for a low-income HCC, you must have income below certain levels (but there is no assets test). This card will cover both you and your grandchildren.
If your grandchild has a disability or serious medical condition, they may qualify for a Carer Allowance (child) HCC. See details provided earlier under the section entitled ‘Carer Allowance’.
Another option is to claim a separate foster child HCC for the grandchildren in your care. This card is available to all grandparents who are providing full-time care for children through any form of arrangement. You do not have to meet an income or assets test to get this card. You can apply for it, but it is issued in the name of the grandchild and can only be used for the benefit of that child.
Grandparents can test their eligibility for the various cards by completing a claim form. Forms are available from any Centrelink Customer Service Centre, or by calling Centrelink on 13 61 50.
Allowance provides financial support to eligible young people who are studying, or seeking or preparing for paid employment, and who have reached the minimum school-leaving age. At present in Tasmania this is 16 years of age.
Young people in State care are considered independent for Youth Allowance purposes, which means they are not subject to the Youth Allowance Parental Means Test and may receive a higher rate of payment. A young person subject to a court, ministerial or departmental order or direction is considered to be in State care regardless of their legal guardianship status. This may include an order or direction to reside with grandparent or relative carers.
Where a young person aged 16–24 years is wholly or substantially dependent on their grandparent, the parental income test is applied to the grandparent’s income. If the grandparent receives an eligible Social Security or Veterans Affairs income support payment, the young person will be exempt from the Parental Income Test.
A young person living at home with grandparents may establish independence for Youth Allowance purposes, for example by demonstrating a sufficient period of workforce participation. According to particular independence criteria under Youth Allowance, an ‘at-home’ rate of Youth Allowance may be payable but the Parental Income Test might not apply. Information about Youth Allowance is available from a Centrelink Customer Service Centre or by calling 13 24 90.
Young people in the temporary care of their grandparents may be eligible for TILA if they also satisfy certain criteria. The Transition to Independent Living Allowance:
TILA is not provided in isolation from other support to a young person. The Tasmanian Government is responsible for developing a transition (exit) plan for young people leaving care. Implementation of the plan may involve one or more non-government organisations.
Those eligible for TILA are young people who:
This includes young people who are, or have been, supported by DHHS and are:
*Young people leaving juvenile justice facilities are only eligible if they meet the other criteria for TILA. Young people residing in immigration detention are only eligible if they have been supported by DHHS and have been granted a permanent protection visa.
In Tasmania, information about TILA is available through:
The Aboriginal and Torres Strait Islander study assistance scheme, Abstudy, provides a means-tested living allowance and a range of supplementary benefits to help eligible students to complete secondary schooling and go on to further education. Abstudy is funded by the Department of Education, Science and Training (DEST). Information can be obtained from the Abstudy contact line on 13 23 17.
Centrelink and the Family Assistance Office can help grandparents and other relative carers by providing access to a range of financial assistance, referral to information and support services, and access to specialist services such as Financial Information Officers and Social Workers.
Centrelink has implemented a Centrelink Service Strategy to increase customer, community and staff awareness of issues faced by grandparents and their families.
The information for grandparents and carers available on Centrelink’s website has been updated and expanded.
This Internet site has links to broader and more detailed information on all payments and services mentioned, so you can access detailed information on any topic of particular interest. It also includes the Internet addresses of several other very useful websites that have a wealth of information on topics of use to grandparents and other carers.
The Australian Government provides approximately $69 million in funding for family relationship services under the Family Relationship Services Program (FRSP).
Although services are not specifically targeted to grandparents, prevention, early intervention and family breakdown support are available to family members, including grandparents. Some of these services include relationship and parenting skills training and education, counselling, mediation, and supervised contact for children with non-resident parents.
See a full list of service providers.
Centrelink has an Indigenous Services Unit which provides support and assistance for Aboriginal customers on a one-to-one basis. Staff in the Unit liaise with Aboriginal organisations, and government and non-government agencies, and advise Centrelink on service delivery to the Aboriginal community. The unit can be contacted on:
Other Australian Government-funded services include Community Youth Activities Services, Family Liaison Workers Services, the Reconnect Program, and the Job Placement, Employment and Training Program.
For information regarding the Youth Activities Services, Family Liaison Workers Services and Reconnect Program contact the Australian Government Department of Family and Community Services Tasmanian State Office on 1300 653 227.
Information about the Job Placement, Employment and Training Program can be obtained from your Centrelink Customer Service Centre.
The Child Support Scheme was introduced to ensure that the children of separated parents are adequately supported.
Depending on their circumstances, grandparents (as well as any other non-parent carers) may be eligible for child support from the child’s parents. For example, if the grandparent is a child’s legal guardian or the child is in the grandparent’s care under a parenting order (from the Family Court or another court), then the grandparent is eligible for child support.
Grandparents may also qualify for child support if the child’s parents or legal guardians do not object to the grandparents providing or sharing care of the child.
However, in circumstances when either a parent or legal guardian raises an issue with the care arrangements, the grandparent will be eligible for child support only if the Child Support Agency establishes that it is unreasonable for the child to live with the parent or legal guardian.
For further information, you can contact the Child Support Agency on 13 12 72 or visit the Child Support Agency website.
This page has been produced by the Department of Education
Questions concerning its content may be directed by email to ServiceCentre@education.tas.gov.au or telephone 1800 816 057.
This page was last modified on 15th October 2008. The URL for this page is: http://www.education.tas.gov.au/school/parents/grandparents/finance/ausbenefits.
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