Family Assistance debts 107-04060000

FTB debts are identified:

• through the end of year reconciliation process
• by a customer or approved care organisation notifying their circumstances have changed after the event has occurred or
• through compliance activities

There are four main types of FTB debts:

• qualification
• circumstance
• reconciliation
• non-lodger

Qualification debts occur when a customer receives a payment for which they were not eligible. This can occur if a customer:

• receives more FTB and it is later determined that they were not a resident of Australia, or
• was in receipt of more than base rate of FTB and has failed to meet the Maintenance Action Test (MAT)
• does not meet the eligibility requirements for:
• individuals
• grandparent carers
• children in foster care

Raise qualification debts as soon as the loss of qualification is identified.

A circumstance debt occurs from any changes, other than:

• income and
• maintenance income

Circumstance debts arise if a change in circumstances results in the customer losing qualification to a payment. Raise the debt at the time the change in circumstances is identified.

For example, FTB eligibility would cease from the day a child left care where a customer notifies that a child left their care 1 month ago. Raise the debt immediately.

Reconciliation debts are a result of underestimating family income and/or maintenance income.

Customers receiving FTB payments as fortnightly instalments or as a fee reduction are usually paid based on an estimate of adjusted taxable income for the financial year. If a customer received more than they were entitled to for that financial year, they will have a reconciliation debt.

Reconciliation debts can also be raised due to child income and retrospective changes in circumstances.

A non-lodger debt occurs when a customer or their partner does not lodge an income tax return within the required time.