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Child turns 18 : Contents

Outcomes when child turns 18

Parents and caregivers must contact MSD to respond to the notice before their child's 18th birthday. If they do not, the child will be no longer be considered a dependent child and will be excluded from their assistance, assistance paid for the child will stop, or the parent or caregiver's discretionary benefit will suspend.

An extension cannot be given when a parent or caregiver needs more time to respond.

Child excluded on or before 18th birthday

When a parent or caregiver advises MSD that the child is not continuing in education after their 18th birthday, or if the parent or caregiver does not respond to the notice, the child is no longer considered a dependent child and will be excluded from the start of the pay period following their 18th birthday.

When a parent or caregiver advises MSD that the child is not financially dependent on them from a date on or before their 18th birthday, the child is excluded from the start of the pay period following that date. For example, the start of the pay period following the date the child started full-time work, or the date they left the parent or caregiver's care.

Child excluded after 18th birthday

When a parent or caregiver has responded to the notice and MSD is satisfied that the child is continuing in education and not financially independent, their payments may continue with the 18-year old included as a dependent child for a limited period.

The child must be excluded from the start of the pay period following:

  • the date the child is no longer enrolled in school or tertiary education
  • the date the child is no longer attending school or tertiary education as required
  • the date the child is financially independent
  • the date the child leaves the parent or caregiver's care or
  • 31 December of the year they turned 18

whichever is earlier

If the parent or caregiver responds to the notice and the 18-year-old can continue to be included in the discretionary benefit for a limited period, they must complete another review of circumstances when the child is excluded.

Assistance suspends

If a parent or caregiver's main benefit suspends when the 18-year-old child is excluded, all of the parent or caregiver's extra help will also suspend, except for the following payments:

  • Child Disability Allowance
  • Childcare Subsidy
  • Guaranteed Childcare Assistance Payment
  • Orphan's Benefit
  • Out of School Care and Recreation Subsidy
  • Unsupported Child's Benefit

However, if the above assistance is paid on behalf of the 18-year-old child, they may also suspend when the child is excluded. For example, if a parent or caregiver's main benefit suspends when their child is excluded and they get Child Disability Allowance for the excluded child, their Child Disability Allowance will also suspend.

If a parent or caregiver's extra help suspends when the child is excluded, generally any other assistance the parent or caregiver gets may continue (unless that assistance is also paid on behalf of the child).

Temporary Additional Support suspends

A parent or caregiver's Temporary Additional Support will suspend (even if the parent or caregiver has a deficiency of income) if the following assistance suspends or cancels when an 18-year-old child is excluded:

  • Accommodation Supplement
  • Disability Allowance
  • Child Disability Allowance

MSD must reassess Temporary Additional Support to determine if the parent or caregiver still qualifies.

Disability Allowance may cancel

Disability Allowance will cancel when a parent or caregiver is:

  • only getting Disability Allowance for the 18-year-old child that gets excluded and no other Disability Allowance payments and
  • not getting Orphan's Benefit or Unsupported Child's Benefit for that child

If the parent or caregiver contacts MSD within 8 weeks after the cancellation, and MSD is satisfied that Disability Allowance can continue to be paid for the 18-year-old child for a limited period, MSD may regrant it if there is sufficient evidence, including a current Disability Allowance medical certificate.

Family tax credits

Family tax credits cannot be paid for a child who is no longer dependent. These payments should be stopped from the start of the pay period following the date the child is no longer dependent to avoid an overpayment with Inland Revenue for the parent or caregiver.

Legislation

  • Non-discretionary dependent child rate benefit: dependent child excluded for eligibility and for rate of benefit unless exception applies section 103B Social Security Act 2018
  • Discretionary dependent child rate benefit: suspension until MSD determines eligibility, rate of benefit, and if exception applies section 103C Social Security Act 2018
  • MSD may include C as dependent child for eligibility or rate of benefit for determined period section 103F Social Security Act 2018

For the purposes of the review of circumstances when a child turns 18 or an 18-year-old child is no longer considered a dependent child and is excluded from a parent or caregiver's benefit, the following are discretionary benefits:

Parents and caregivers must respond to the notice and complete the review of circumstances when a dependent child turns 18 or their discretionary ...