Child Benefits After a Parent Dies in Australia: Double Orphan Pension and Family Tax Benefit

When a parent dies, the surviving family's focus is on the children — emotionally and practically. But the financial support systems for bereaved children in Australia are scattered across multiple Centrelink payments, each with different eligibility rules and claiming processes.

Two payments matter most: the Double Orphan Pension and the recalculation of Family Tax Benefit. Getting both right in the first few weeks prevents gaps in the family's income.

Double Orphan Pension

The Double Orphan Pension (DOP) is a non-taxable payment from Services Australia designed for people caring for children who have lost both parents, or in some cases, one parent.

Who qualifies: The DOP is available to a person who has care of a child where both parents have died, or where one parent has died and the other parent is unable to care for the child due to imprisonment (serving a sentence of at least 10 years), incapacity (physical or mental), or being in a psychiatric institution. It also covers children of refugees whose parents are overseas and unable to care for them.

The key point most people miss: the carer claiming the DOP does not have to be a relative. A family friend, foster carer, or any person who has taken on the day-to-day care of the child can claim, provided they meet the residency requirements.

Payment rate: The base rate is $81.60 per fortnight per child (indexed annually). This is paid on top of any Family Tax Benefit the carer already receives for the child. The DOP is not income-tested — the carer's own income doesn't affect eligibility, though they must meet basic residency requirements.

How to claim: Contact Centrelink on 136 150. You'll need the child's birth certificate, the death certificate of the deceased parent(s), evidence of the other parent's incapacity or imprisonment (if applicable), and proof that you have care of the child. Processing takes 2-4 weeks.

Family Tax Benefit After a Death

When a parent who was receiving Family Tax Benefit (FTB) dies, the payment doesn't automatically transfer to the surviving parent or new carer. It needs to be re-claimed.

If the surviving parent was already receiving FTB: Their rate will be recalculated based on their new single-income household. This usually results in a higher FTB Part A rate because the family income assessment drops. Contact Centrelink immediately to report the change — delays can create overpayment complications.

If the surviving parent wasn't receiving FTB: They should claim now. With a single income, they may qualify for FTB Part A and Part B where they previously didn't.

If the child moves to a new carer: The previous FTB claim is cancelled and the new carer must lodge a fresh claim. The new carer receives FTB from their claim start date — there's no backdating if they delay.

FTB Bereavement Payment: If the deceased was receiving FTB, a lump sum bereavement payment equivalent to the FTB instalment amount may be payable for the 14-week bereavement period. This applies to the surviving partner or the person who now has care of the child.

Other Payments Affected by a Parent's Death

Child Care Subsidy: If the deceased parent was the one whose income determined the CCS rate, the surviving parent needs to update their income estimate with Centrelink. A lower household income typically means a higher subsidy percentage.

Parenting Payment (Single): The surviving parent of a child under 8 (or under 6 for grandfathered recipients) may now qualify for Parenting Payment Single, which has a higher rate than Parenting Payment Partnered and a more generous income test.

Youth Allowance or ABSTUDY: For children aged 16-24 who were financially dependent on the deceased parent, their Youth Allowance or ABSTUDY rate may increase if they're now assessed as independent or if the family's income has significantly decreased.

Superannuation and Life Insurance for Children

Children may also be beneficiaries of the deceased parent's superannuation death benefit or life insurance policy. A super fund can pay death benefits to a child under 18 as a tax-free lump sum or pension. For children aged 18-24 who were financially dependent on the deceased, the benefit is also tax-free. Adult children over 25 who weren't financially dependent face the standard 17-32% tax on the taxable component.

Life insurance held inside super is paid according to the member's Binding Death Benefit Nomination. If there's no nomination, the super fund trustee decides who receives the benefit — and they may pay it to the estate rather than directly to the children, which can have different tax consequences.

Standalone life insurance policies (outside super) are paid to the nominated beneficiary. If the beneficiary is a minor, the insurer typically pays the benefit into a trust until the child reaches 18.

Claiming Timeline

The optimal sequence for claiming child-related benefits after a parent's death:

1. Immediately: Report the death to Centrelink (132 300) to trigger the FTB bereavement payment and prevent overpayments on the deceased's record
2. Within 2 weeks: Lodge a claim for DOP if both parents are deceased or the surviving parent can't care for the child
3. Within 4 weeks: Update income estimates for CCS, claim Parenting Payment Single if eligible, contact super funds and life insurers
4. Within 13 weeks: If any claim is rejected, request a review of decision before the 13-week appeal window closes
5. Within 26 weeks: Check eligibility for the Pension Bonus Bereavement Payment if the deceased was in the Pension Bonus Scheme

The Victoria Survivor Benefits Navigator includes a child benefits eligibility flowchart and claiming templates for each payment type.

See more Victoria guides →