Division 4: Child allowance

TAX ALERT: PACMATE Annex 3.B, item 82.

15.2.18   Purpose
15.2.19   Member this Division does not apply to
15.2.20   Eligibility – child allowance
15.2.21   Working out child allowance
15.2.22   Allowance if social security benefit lowered

15.2.18   Purpose

Child allowance helps with the extra costs of maintaining a dependent child at the posting location.

15.2.19   Member this Division does not apply to

A member is not entitled to both child reunion allowance and child allowance at the same time for the same child.

See: Division 5, Child reunion allowance

See also:
Chapter 12 Part 1 clause 12.1.2, Member Chapters 12 to 16 do not apply to
Part 1 clause 15.1.3, Member this Chapter does not apply to
Division 1 clause 15.2.5, Member this Part does not apply to

15.2.20   Eligibility – child allowance

1.	This table sets out when eligibility for child allowance begins.

Item	Eligibility begins on the later of...
1.	The day the member's period of posting begins.
2.	The day the child arrives to begin living at the member's posting location.

2.	This table sets out when eligibility for child allowance ends.

Item	Eligibility ends on the later of...
1.	The day the member's posting period ends.
2.	The day the member becomes eligible for child reunion allowance for the child.
3.	Four weeks after the day the child stops living at the member's posting location.

15.2.21   Working out child allowance

1.	The amount of child allowance is based on the member's salary, the age of the child and the local post index.
2.	This table shows how to work out the amount a member is entitled to be paid.

Step	Action
1.	Work out 1.5% of the member's salary.
2.	If the child is: a. under 12 years old, then add AUD 1,500 to the step 1 amount. b. 12 or more years old, then add AUD 2,500 to the step 1 amount.
3.	Multiply the step 2 amount by the post index. See: Annex 15.2.A, Post Indexes

	Example: A member is on long-term posting in Paris. The member has the following.
	a.	A salary of AUD 55,000.
	b.	Two children, aged 13 and 10.
	c.	A post index of 133.2.
3.	This table shows how to work out the total child allowance for the two children.

Item	For the child aged...	the child allowance is...
1.	10 years	A: AUD 55,000 x 0.015 = AUD 825 B: AUD 825 + AUD 1,500 = AUD 2,325 C: AUD 2,325 x 133.2% = AUD 3,096.90
2.	13 years	A: AUD 55,000 x 0.015 = AUD 825 B: AUD 825 + AUD 2,500 = AUD 3,325 C: AUD 3,325 x 133.2% = AUD 4,428.90
	Total for both children	AUD 3,096.90 + AUD 4,428.90 = AUD 7,525.80

15.2.22   Allowance if social security benefit lowered

	TAX ALERT: PACMATE Annex 3.B, item 83.
1.	Reduction or loss of these social security benefits can lead to an entitlement under this clause. This is if the member's benefits for a dependent child are reduced or lost as a result of a long-term posting overseas.
	a.	Carer allowance for a child under the Social Security Act 1991.
	b.	Double orphan pension under the Social Security Act 1991.
	c.	Family tax benefit (Part A and Part B rate) under the A New Tax System (Family Assistance) Act 1999.
	d.	Maternity allowance under the A New Tax System (Family Assistance) Act 1999.
	e.	Parenting payment (single) under the Social Security Act 1991.
	See: Social Security Act 1991 A New Tax System (Family Assistance) Act 1999
2.	The member is entitled to an amount equal to the reduction in the amount of any benefit listed under subclause 1, if they meet both these conditions.
	a.	The member has a dependant child. See: Chapter 12 Part 3 clause 12.3.5, Definition of dependant
	b.	A social security benefit is reduced or lost for either of these reasons.
		i.	The child, or the parent who normally receives the payment, is away from Australia because of the member's long-term posting.
		ii.	The benefit is reduced because the member receives money from Defence for the child's education costs.
3.	At the end of the long-term posting, the additional amount under subclause 2 is still payable in these circumstances.
	a.	The child or parent returns to Australia before beginning another long-term posting.
	b.	While the child or member is in Australia, they are ineligible for the relevant benefit because of the expected absence due to the next posting.
4.	The member is entitled to continue receiving the additional amount under subclause 2, if all these conditions are met.
	a.	They have been entitled to an additional amount under subclause 2.
	b.	A parent of the child returns to Australia. Within three weeks, the parent applies for the social security benefit in relation to which they were entitled to the additional amount under subclause 2.
5.	The allowance under subclause 4 is payable for the period starting on the day of the parent's return. It ends the day before they become entitled to the relevant benefit.
	See: Division 1 clause 15.2.8, Post index Annex 15.2.A, Post indexes

PACMAN                                                              Version 2 (May 2005)                              Chapter 15 – Part 2 Division 4 – 1