Energy Supplement for Family Tax Benefit (FTB) recipients 101-03090060

View rate calculation details via the FTB Rate Explanation (REXFTB) screen.

Energy Supplement Part A (per child) and Energy Supplement Part B (per family) are displayed as separate components and are shown as:

• CES (A)
• CES (B)

See Item 13, FTB Energy Supplement rate calculation.

To check payment details

• Go to the Payment Summary (PS) screen
• Select the recipient's regular payment to view the Payment Details (PD) screen. The Energy Supplement is a component of the recipient's FTB Part A and Part B (see codes above)

After the end of the financial year

FTB Energy Supplement is included in the reconciliation process. To view assessment details for FTB reconciliation or lump sum claim, see Customer enquires about FTB reconciliation.

In rare circumstances where the system has not correctly reflected the recipient's entitlement to Energy Supplement, Families override contacts can override the system decisions. See Item 8.

From 20 March 2017, only grandfathered Energy Supplement recipients will receive the payment.

A person's Energy Supplement Part A and Part B entitlement is based on their income and other circumstances used to calculate their FTB rate. See Item 13, FTB Energy Supplement rate.

From 20 March 2017, only grandfathered Approved Care Organisations (ACO) are eligible for the base rate Energy Supplement for Part A for all FTB children in their care. Any children entering the care of a grandfathered ACO from 20 March 2017 will be included in the calculation of Energy Supplement.

Organisations that become ACOs and are granted FTB Part A with a date of effect after 19 September 2016 will not be eligible for Energy Supplement from 20 March 2017.

FTB Energy Supplement is not payable:

• after the first 6 weeks of a temporary overseas absence, see Item 7
• if FTB instalments are not payable due to:
• prohibition (non- lodger debt)
• zero entitlement years

FTB Energy Supplement eligibility is automatically assessed when processing an FTB claim (instalment, lump sum or bereavement claim) or reassessment activity.

Energy Supplements Part A and Part B are included in the FTB reconciliation process.

Recipients will continue to be paid Energy Supplement as long as they remain continuously eligible for FTB Part A and/or FTB Part B at a legislative rate greater than $0 and they met the Energy Supplement grandfathering provisions in respect of 19 September 2016.

The recipient will no longer be grandfathered for Energy Supplement on the first day their legislative rate of FTB Part A and Part B is $0. This applies to FTB instalment and FTB lump sum claim recipients.

If Family Tax Benefit is cancelled the recipient will no longer be grandfathered for Energy Supplement.

If a grandfathered Family Tax Benefit recipient for Energy Supplement purposes is found at FTB reconciliation to have no entitlement to FTB Part A or FTB Part B on any given day on or after 19 September 2016, then they have lost continuous eligibility and grandfathering is lost from that date.

For more information, see Item 16, Retrospective loss of Energy Supplement grandfathering and FTB Reconciliation.

A grandfathered recipient who moves between FTB Part A and FTB Part B without a break in entitlement will continue to be grandfathered

A recipient receiving FTB Part A in respect to 19 September 2016 who later goes on to be eligible for FTB Part B, will receive both Energy Supplement Part A and Energy Supplement Part B while they continue to receive both FTB Part A and FTB Part B at a legislative rate greater than $0.

A recipient receiving FTB Part B in respect to 19 September 2016 whose circumstances change resulting in the recipient becoming eligible for FTB Part A will be entitled to receive Energy Supplement Part A if there is no break in their entitlement between receiving FTB Part B and FTB Part A.

A FTB recipient who is grandfathered for Energy Supplement purposes will be entitled to receive Energy Supplement for any additional child that enters the recipient's care that they wish to claim FTB for, provided they have more than 35% care of the child.

This also applies to Approved Care Organisations (ACOs) who meet the Energy Supplement grandfathering provisions, for a child that has entered their care.

Recipients who do not have a continuous entitlement to Family Tax Benefit Part A or Part B between 20 September 2016 and 19 March 2017 will receive Energy Supplement for every day they were eligible in that period and then they will stop receiving Energy Supplement from 20 March 2017. These recipients will not be grandfathered.

For recipient claims finalised after 19 September 2016, where the recipient was eligible for FTB for a period that included the 19 September 2016, will be grandfathered as long as they have continuous entitlement to FTB.

For examples, see Resources.

Recipients can continue to receive Energy Supplement payments for up to 6 weeks only while temporarily absent from Australia, even if an extension of portability is granted beyond 6 weeks.

If a recipient is permanently leaving Australia or an extension of portability is granted beyond 6 weeks, Energy Supplement payments are not payable.

• If temporarily overseas, after 6 weeks Energy Supplements cease to be paid to the recipient (or for the child if only the child is overseas)
• An Energy Supplement entitlement is automatically reassessed upon recording overseas absence details for FTB

Where the recipient's Family Tax Benefit payment has been cancelled for portability reasons, the recipient will no longer be grandfathered for Energy Supplement. They will not receive Energy Supplement FTB Part A or FTB Part B if they reapply for FTB when they return to Australia, or if their FTB is restored from the date of their return where there is a gap in entitlement.

Portability Extensions and Energy Supplement grandfathering

Energy Supplement grandfathering is dependent on entitlement to the qualifying payment itself, not to the payment of Energy Supplement. A grandfathered recipient will continue to be grandfathered while their FTB is current, even if Energy Supplement itself is not payable. That is, if a grandfathered recipient of Family Tax Benefit:

• loses eligibility for Energy Supplement (because of portability restrictions), and
• subsequently regains eligibility for Energy Supplement at a later date (for example, returns to Australia), and
• has maintained continuous eligibility for their Family Tax Benefit during the entire period,

the recipient is considered grandfathered for the entire period and is to be paid Energy Supplement from the date they became eligible for Energy Supplement again.

For an example of this, see Resources.

For more information, see Family Tax Benefit (FTB), Child Care Subsidy (CCS) and Paid Parental Leave scheme customer/child going overseas.

In rare situations the system may not determine the Energy Supplement grandfathering status correctly for a recipient or Approved Care Organisation (ACO). Where this happens a Families override officer will have the ability to override the system decision using the Energy Supplement Grandfathering Status - Family Tax Benefit (FTBESOVR) screen.

To refer a recipient record to the Families override contacts, first record the decision on the recipient record. Then refer the record to a Families override contact.

The Families override contacts SharePoint communities' page contains information on how to make the referral.

Preferred method of contact for:

• Service Zones is via the Families override web form - refer to Families override contacts
• Smart Centres is via direct referral to the Service Support Officer (SSO)
• Other Teams is via Telephone or Skype - refer to Families override contacts

The Families override web form requires the service officer to provide the recipients CRN, provide a reason for the request and include any relevant Operational Blueprint references.

To access the override screen for individual recipients:

• Navigate to the Energy Supplement Summary Screen (CESSUM)
• Click the 'View Energy Supplement Grandfathering Status - Family Tax Benefit' hyperlink

Note: Approved Care Organisation (ACO) records will require direct navigation to the FTBESOVR screen as the CESSUM screen cannot be used to ACOs.

To access the override screen for ACOs:

• Navigate directly to the FTBESOVR screen

To record an override:

• Enter a date for the override to start (it cannot be earlier than 20 March 2017)
• Enter one of the following three types of override
• Yes - Grandfathering provisions to apply
• No - No Grandfathering provisions to apply
• IGN - Apply the automatic grandfathering decision from a specific date
• Press [Enter]. This will navigate to the Activity List (AL) screen

To change an existing override:

• Enter 'C' (change) in the selector field beside the override
• Change the date or the override code
• Press [Enter]. This will navigate to the Activity List (AL) screen

To delete an existing override

• Enter 'D' (delete) in the selector field beside the override
• Press [Enter]
• Confirm delete by entering 'Y' (yes)
• Press [Enter]. This will navigate to the Activity List (AL) screen

Historical override details can be viewed by all users. Only Families override officers will have permission to edit the details in this screen.

FTB payment choices allow recipients to choose how to receive Energy Supplement as part of their FTB Part A and Part B entitlement.

For any FTB paid fortnightly, Energy Supplements are paid fortnightly by default. Recipients may choose to be paid quarterly instead. Note: if FTB Part A and Part B are paid fortnightly, the Energy Supplement for Part A and Part B must be paid the same way; both fortnightly, or both quarterly.

If a recipient defers part or all of their FTB until after the financial year, any Energy Supplement relating to that FTB entitlement will also be deferred, and calculated at FTB reconciliation. If revoking their choice to defer part or all FTB, any arrears including Energy Supplement can only be paid if hardship provisions are met.

View history on the CES Quarterly Payment Choice History (FYCQ) screen.

• If nothing is recorded, Energy Supplement is being paid fortnightly or annually depending on the recipient's FTB payment choice
• If only a start date is recorded, Energy Supplement is being paid quarterly (if recipient has not chosen to receive FTB annually)
• If an end date is recorded, the recipient has chosen to no longer receive their Energy Supplement payments quarterly

Recipients may change their Energy Supplement payment choice at any time.

Run the Family Income and Choices workflow to record/update their Energy Supplement Part A and/or Part B payment choice. Check if the recipient wants to change their FTB payment choices at the same time.

For recipients receiving FTB fortnightly, the choice will apply from date paid to plus one day.

If changing from:

• Fortnightly to quarterly payments, see Item 11
• Quarterly to fortnightly payments, any Energy Supplement accrued for the current quarter will be paid immediately, according to their FTB payment choice (for example, if FTB Part A choice is base rate, Energy Supplement Part A arrears will be paid at base rate). Ongoing FTB payments will include Energy Supplement

For FTB recipients who choose to receive Energy Supplement for Part A and/or Part B quarterly:

• Energy Supplement entitlement accrues daily during the quarter (3 months beginning 1 July, 1 October, 1 January and1 April)
• Energy Supplement will be paid after 1 October, 1 January, 1 April and 1 July each year. This will be spread over a two week period, triggered on the day after the recipient's first FTB Entitlement Period End Date (EPED), that is, their Entitlement Period Start Date (EPSD) after the end of the quarter. If their relevant EPSD falls in a holiday processing period, Energy Supplement will still be triggered on the EPSD
• Ongoing FTB payments will be calculated disregarding any Energy Supplement entitlement
• If FTB arrears are generated, any Energy Supplement arrears will be paid with the recipient's next quarterly payment
• If FTB entitlement ceases, any Energy Supplement entitlement will be paid immediately. If FTB is subsequently restored, the recipient's next quarterly Energy Supplement payment will be reduced by any Energy Supplement already paid for the quarter

If the recipient revokes their payment choice to be paid Energy Supplement fortnightly instead, any Energy Supplement accrued for the current quarter will be paid immediately, according to their FTB payment choice (for example, if FTB Part A choice is base rate, Energy Supplement Part A arrears will be paid at base rate). Ongoing FTB payments will include Energy Supplement.

If the recipient has elected to receive Energy Supplement quarterly and their FTB is cancelled, any Energy Supplement accrued for the current quarter will be paid immediately.

Energy Supplement Part A and Part B are included as separate components in letters containing FTB payment or rate information.

For maximum rates, see C-E payment rates and thresholds.

Energy Supplement payments are automatically calculated based on the recipient's income and other circumstances used to calculate their:

• FTB Part A (per child) rate. Energy Supplement Part A may be reduced by income or maintenance income under FTB Part A apportioning rules
• FTB Part B (per family) rate. Energy Supplement Part B can be reduced by income once standard FTB Part B is reduced to nil

If FTB Part A is limited to base rate, Energy Supplement Part A is also paid at base rate, for example, payment choice, Maintenance Action Test not met for child, rate for Approved Care Organisations.

Shared care/blended families

The recipient's maximum Energy Supplement Part A and Part B rates are multiplied by the FTB:

• shared care percentage if care of the relevant child is shared with another person, or
• blended family percentage if a blended family assessment applies

Energy Supplement payability may be affected by:

• Mandatory continuous adjustment of FTB (although Energy Supplement eligibility/rate is based on the recipient's legislative rate of FTB Part A, ongoing Energy Supplement payments may be reduced to offset a potential FTB overpayment, for example, due to revised income estimate)
• Non-payment of FTB due to:
• prohibition
• zero entitlement years
• FTB Part B (including Energy Supplement Part B) is not payable for any period a recipient receives Parental Leave Pay (PPL)

Arrears

Grandfathered recipients may receive Energy Supplement arrears if:

• FTB arrears are issued due to a backdated claim or assessment, for example, child entered care, shared care, restoration of FTB
• the recipient revokes their quarterly Energy Supplement payment option to be paid fortnightly instead

FTB reconciliation

A recipient's correct FTB Energy Supplement entitlement is calculated after the end of the financial year. FTB reconciliation may result in an Energy Supplement Part A or Part B debt or top-up being calculated.

See Item 16, Energy Supplement and FTB Reconciliation

Indexation

The Energy Supplement is not indexed.

A recipient's Energy Supplement rate may need to be adjusted manually due to system limitations or because the recipient is on a manual FTB rate.

Service Officers will be alerted to check if a manual rate needs to be calculated.

• Confirm the recipient is considered "grandfathered" for Energy Supplement. To confirm this, view the details recorded in the Energy Supplement Grandfathering Status – Family Tax Benefit screen. This screen can be accessed when there is a recipient in context by clicking the Energy Supplement Grandfathering hyperlink on the Energy Supplement Summary Screen (CESSUM)
• If the currently recorded grandfathering status is not correct, refer the case to the Families override contacts. See Item 8

Energy Supplement Part A and Part B are coded as separate components on the One Off Payment (OOP), Rate Calculation (RAC) and Payment Adjustment (PYAJ) screens.

Manual adjustments and manual rates for:

• Energy Supplement Part A are limited to $2500 or less
• Energy Supplement Part B are limited to $200 or less

For help with coding, see:

• Non NSS systems coding for manual rate of payment
• How to manually code arrears

Approved Care Organisations are eligible for base rate Energy Supplement Part A for all FTB children in their care.

The same grandfathering provisions apply to ACOs as individual recipients:

• After 20 March 2017, only grandfathered Approved Care Organisations are eligible for base rate Energy Supplement for Part A for all FTB children in their care
• Organisations that become ACOs and are granted FTB Part A with a date of effect after 19 September 2016 will no longer be eligible for Energy Supplement from 20 March 2017
• ACOs that are grandfathered for Energy Supplement will receive Energy Supplement for any additional FTB Part A children that enter their care

Note: where a new CRN is created for an ACO that does not have a grandfathering status for Energy Supplement, a manual Energy Supplement Grandfathering override must be recorded for the new CRN to prevent automatic payment of Energy Supplement. Refer case to a Families override contact to complete this action. See Item 8 for instructions on how to make this referral.

During FTB instalment period

Where Energy Supplement grandfathering is lost retrospectively before FTB reconciliation, it is excluded from the recipient’s ongoing FTB entitlement only from the start of the current entitlement period. This is to avoid the creation of debts due to loss of Energy Supplement grandfathering status prior to reconciliation. The Energy Supplement grandfathering cease date will be stored and applied when reconciliation occurs.

Note: FTB overpayments, including Energy Supplement, can still be raised prior to reconciliation in other circumstances - for example, if the recipient retrospectively loses eligibility to FTB, the Energy Supplement component will be raised as part of the FTB qualification debt.

Reconciliation

When reconciliation for the relevant year occurs, Energy Supplement will be excluded from the Energy Supplement grandfathering cease date

Re-reconciliation

When re-reconciliation for the relevant year occurs the Energy Supplement grandfathering cease date may be revised. Changes in recipient circumstances that trigger a re-reconciliation may result in the Energy Supplement cease date changing once again. It is possible to have the Energy Supplement grandfathering cease date recorded and revised several times. Service Officers may need to review the recipient record for circumstance changes that have triggered the change.

Note: Where an FTB Energy Supplement Grandfathered override has been coded it will take precedence over any automatic reconciliation or non-reconciliation Energy Supplement grandfathering decisions and will be applied immediately and will not be deferred to the start of the current entitlement period (date paid +1).

Energy Supplement eligibility/rate is based on the recipient's legislative rate of FTB Part A, and so is not affected by any reduction due to FTB Part A advances.

However, Energy Supplement Part A may be used to recover outstanding FTB Part A advances, as they are recovered from the FTB Part A rate including add-ons, except for Part A supplement.

Energy Supplement entitlement can affect eligibility for FTB Part A advances and the maximum advance amount as the recipient may be entitled to a higher FTB Part A rate due to Energy Supplement. FTB advance payments.

Fortnightly Energy Supplement Part A and Part B payments can be used in Centrepay and Rent Deduction Scheme deductions, per FTB rules.

An Energy Supplement debt may occur if a recipient's FTB entitlement for a past period is reassessed.

When the reassessment occurs impacts on when and how the debt is created. Retrospective loss of Energy Supplement grandfathering can result in the creation of an Energy Supplement entitlement debt. To reduce the impact of the debt raised prior to reconciliation for the relevant year, Energy Supplement is excluded from the start of the current entitlement period (date paid to +1). When reconciliation occurs for the relevant year the true grandfathering cease date will be applied and the debt raised if necessary.

Refer to Item 15 in Table 1.

If an FTB debt is raised, it may include a portion of the Energy Supplement paid for the debt period. The Energy Supplement is not a payment type on its own. It is a component of FTB and is raised as an FTB debt. Energy Supplement debts are shown as a CES Part A or Part B debt via the component field on the Overpayment Calculation (OPCA) screen.

If FTB entitlement ceases, Energy Supplement entitlement also ceases. If an FTB debt is raised because the recipient had no entitlement for a period, they would also have no entitlement to Energy Supplement for the same period. They would also lose their Energy Supplement grandfathering status and would not be entitled to Energy Supplement with their FTB payment if they reapply for FTB in the future.

If FTB reconciliation results in a recipient having lower or nil FTB entitlement, Energy Supplement entitlement is also adjusted and the Energy Supplement grandfathering status adjusted accordingly.

If FTB Part A was calculated under Method 1 using estimated income (maximum standard rates of FTB and supplements were used to calculate Energy Supplement) but actual income meant it should have been calculated under Method 2 (base standard rates of FTB and supplements should have been used to calculate Energy Supplement), any FTB debt raised would include the difference between the two Energy Supplement Part A rates for the period.

Normal FTB debt offsetting provisions apply to Energy Supplement debts as they are to be raised as FTB debts.

Debt waiver rules that apply for family assistance payments also apply to the Energy Supplement debt components.

See Debt recovery for Centrelink.

FTB Energy Supplement payments are income managed according to existing FTB rules:

• all fortnightly Energy Supplement payments are income managed according to the applicable percentage
• all Energy Supplement lump sums (including Energy Supplement arrears, reconciliation results and quarterly Energy Supplement payments) are 100% income managed

If an FTB recipient dies, the new carer of the FTB child/ren may claim FTB. Any FTB entitlement for the period up until the date of death is based on the deceased person's circumstances.

If the new carer wishes to claim FTB for the child/ren they can claim FTB from the date the child came into their care.

If they are already an FTB recipient who has been grandfathered for Energy Supplement Part A or Part B then they will be entitled to Energy Supplement for the new child in their care.

If they are not an FTB recipient who has been grandfathered for Energy Supplement Part A or Part B then it is a new claim and they will not be entitled to Energy Supplement for the new child in their care.

If an FTB child dies, the 14 week FTB bereavement payment will include an Energy Supplement entitlement for that period. If the bereavement payment is paid as:

• Instalments, Energy Supplement can continue to be paid quarterly if chosen by the recipient (if they revoke their quarterly Energy Supplement choice, any Energy Supplement accrued for the quarter will be paid immediately). If the recipient has no other FTB child, any accrued Energy Supplement entitlement for the quarter will be paid immediately when FTB cancels at the end of the bereavement period
• A lump sum and the recipient had chosen to receive quarterly Energy Supplement payments, the quarterly option would need to be ended. A new quarterly choice cannot start until the bereavement period ends

For more information, see Bereavement payment of FTB.

A recipient can request an explanation or apply for a formal review of any decision relating to the Energy Supplement Part A and Part B.

See Initial contact about a decision and the review of decision process.

If a recipient revokes their previous payment choice:

• to receive quarterly Energy Supplement (change to receiving Energy Supplement fortnightly), the Energy Supplement entitlement accrued for the current quarter will be paid immediately
• to defer part or all of their FTB until after the financial year (change to receiving FTB fortnightly), any FTB arrears including any Energy Supplement can only be paid if hardship provisions are met

See Family Tax Benefit (FTB) claim options and payment choices for more information.

Note: Energy Supplement, like FTB, is not eligible to be paid as an urgent payment.