Debt arising from Family Tax Benefit (FTB) reconciliation 107-04090000

After reconciliation, the Australian Taxation Office (ATO) may amend a Notice of Assessment (NOA) or Services Australia:

• updates a customer’s income details, or
• records a change in circumstances for the relevant income year

Re-reconciliation recalculates the customer's FTB entitlement. If the debt is equal to, or more than, the small debt waiver threshold, it is parked waiting for a 'wash up' transaction from the ATO if the re-reconciliation occurs:

• as a result of changed details from the ATO, and
• results in an debt

Note: a 'wash-up' is the ATO response transaction.

The ATO returns a no recovery result. View the debt on Debt Management and Information System (DMIS).

To view the recalculated amount:

• 'S'elect the debt from the Debt List (OPDL) screen, and go to the Debt Amount (OPDA) screen
• the Reason Changed field will show as:
  • AIR ATO initiated re-reconciliation, or
  • CIR Centrelink initiated re-reconciliation
• the Recalculated Amount $ will show the new total of the debt after re-reconciliation

Does the debt cover the current financial year as well as the previous financial year(s)?

• Yes, go to Step 4
• No, go to Step 5

For the period reconciled, a separate debt is automatically raised for each income year affected.

For the current income year, an undetermined debt activity is created. This debt needs to be calculated, then raised or waived.

The Component Amount (OPCA) screen is for adding, displaying and updating financial year components of FTB debts.

Is the re-reconciliation debt amount less than the small debt waiver threshold?

• Yes, the FTB debt is automatically waived. Procedure ends here
• No, go to Step 6

Recovery action commences. The customer is sent a letter with details of the debt amount. Other details include:

• Debt reason:
  • FTB Re-reconciliation (FRR), for a Services Australia generated debt, or
  • Australian Taxation Office (ATO) Re-reconciliation (FRA), for an ATO generated debt
• Start date: 1 July of the relevant income year
• End date: 30 June of the relevant income year
• Section Act: section 71(2) Family Assistance (Administration) Act 1999
• Source code: FAO/SYS
• Benefit Type: FTB

• Yes, the standard reconciliation withholding rate is applied to recover the debt. Go to Step 8
• No, a repayment arrangement will be made with the customer. This is only if the amount remains unpaid by the due date. Go to Step 8

The customer may be subject to the non-payment of FTB instalments to zero entitlement customers where they:

• had a re-reconciliation result of zero entitlement to FTB due to the underestimation of income, and
• there are now 2 consecutive zero entitlement years since 2009-10 financial year