The Child Income account is currently created as a result of the death of a BUSSQ member, where the BUSSQ Insurance Committee will recommend that this account is the best course of action for the beneficiary. Prior to this, claims were paid to the Public Trust Office. We received feedback that this was not the ideal solution for a carer to obtain funds for the child, so we created the Child Income account.
Members can also nominate for their death benefit to be paid into one or more Child Income accounts for their dependent children using a Binding Death Benefit Nomination to Child Income form Binding Death Benefit Nomination to Child Income form.
The Child Income account will continue to pay an income stream, as long as there is a balance in the account, until the child reaches age 18. However, if the child remains dependent, the income stream can continue to be paid up to when the child turns 25. It can only continue beyond that if the child is permanently disabled. Once the child reaches one of these milestones, payments will cease and the balance of the account will be cashed out and paid to the child.
In some cases a lump sum may also be able to be drawn, but this can only be to cover limited circumstances. These may be for medical expenses for the child or one off educational expenses.
There are a number of investment options available, and we have grouped these together so you can select an investment mix suitable to the time frame for investment. For example, a younger child may have a more growth oriented portfolio to help keep up with inflation, whilst an older child may have a more conservative mix, to reflect the shorter time frame until they reach 18.
The BUSSQ Child Income account – helping to ease the financial pressures at a difficult time in life.
In order for your child to receive the income stream, you may need to apply for a Tax File Number (TFN) for the child. You can do this at:
The Department of Human Services (Centrelink)
The Department of Veteran Affairs Centre, or
For more information visit the Australian Tax Office website or call the fund office on 1800 856 722.
See changes to insurance effective 1 March 2017
Please note: In the event of a dispute, the insurance policy document will override the relevant Product Disclosure Statement and the information contained within this website.