Blended families and Family Tax Benefit (FTB) 007-07040080

A blended family is a family with 2 or more dependent children. This can be a blend of children from a previous relationship or from the current relationship. Of the dependent children:

• one must be a child of one member of the couple from a previous relationship, and
• one must be a child of either:
• the current relationship, or
• the other member of the couple, from a previous relationship

Members of a blended family may choose for one person to claim FTB or for each member of the couple to claim and receive a nominated percentage of the family's FTB entitlement.

As a general rule, only one member of a couple can claim the FTB entitlement for a child, even if both members of a couple share the daily care of that child. However, a blended family can choose to share the FTB payment if both members of the couple have an FTB child. If they decide to share the payment, they must agree on the percentage each will claim.

To be assessed as a blended family, both members of the couple must have an FTB child in their actual care for at least 35% of the time. If one parent has an FTB child and the other parent only has a Regular Care Child, the family cannot be assessed as a blended family. They will need to decide who will receive the FTB payment and ancillary benefits for all children.

A separated couple may share FTB for a past period before they separated.

A blended family assessment cannot be completed until both members of the couple have claimed FTB or Single Income Family Supplement (SIFS). Each member of a blended family must claim FTB the same way, fortnightly instalments or as a lump sum after the end of the financial year.

Each member of the couple must lodge a claim for FTB for their child/ren only and each must be entitled to FTB. Normal eligibility rules apply to each person. Ideally, one member of the couple should claim for the child from the previous relationship and the partner should claim for the children from the current relationship.

If a child enters the care of a blended family receiving FTB, only one member of the couple needs to claim FTB for the child. The primary carer should claim for children of the current relationship.

SIFS grandfathering status

Both members of a couple in a blended family who split SIFS on 30 June 2017 will be grandfathered until the first day one or both do not meet the SIFS eligibility requirements. Where only one member of the couple is grandfathered for SIFS, that person, if eligible, will be paid 100% of their SIFS entitlement for their child/ren only. See the SIFS grandfathering provisions for general criteria.

From the 2012-13 financial year onwards, lump sum claims must be lodged by 30 June of the lodgement year. A person prevented from lodging their lump sum claim by the end of the lodgement year due to special circumstances may be granted a lodgement extension.

Note: for the 2011-12 and earlier years, customers had until the end of the extended lodgement year to lodge a lump sum claim.

Blended families who receive FTB instalments can each choose any of the FTB payment choices available. Each member of the blended family must advise their choice separately. They do not need to make the same choice.

Adequate income details are needed for FTB reconciliation and for a lump sum claim to be finalised and the normal non-lodger process applies to each member of the couple.

The start date cannot be earlier than the relationship start date, or the date they were both eligible for FTB. The assessment cannot include a period for which either person has been paid FTB.

If one member of the blended family has already been paid FTB since the start date of the current relationship, the couple will need to decide who will receive FTB for that period. A claim is needed from that person to receive FTB for their partner's children. If their partner has been paid FTB for that period, a debt will then need to be raised for the amount already paid.

The couple should nominate the percentage of the family's total FTB rate each will receive, between 1% and 99%. This does not need to reflect the number of children each person claims for.

Rate calculation:

• The FTB rate is calculated for the family, taking into account all the family's circumstances:
• FTB Part B is not paid to a member of a couple when their youngest child turns 13 years of age, unless the person is a grandparent carer
• FTB Part B is not paid during the 18 week Parental Leave Pay period
• The FTB rate for the family is then multiplied by their nominated percentages to obtain each person's rate. Individual circumstances can affect each person's rate separately, for example if one person goes overseas temporarily for more than 6 weeks, their payment will cancel
• If either person has chosen an adjusted rate under the FTB payment choices, their choice is then applied to calculate their individual ongoing rate
• The child's immunisation status is applied to both members of the couple in relation to the child. If the child does not meet immunisation requirements, the FTB payment for both members of the couple will be affected. See Immunisation for Family Tax Benefit

Customers may change their nominated percentages at any time, although their request to increase their percentage must first be confirmed with their partner.

If a customer is subject to either PIP prohibition or cancellation (under the application of the Sunset clause) of their fortnightly FTB payments and is also in a blended family, their current partner will also be subject to prohibition or cancellation of their fortnightly FTB payments. This will occur if they remain a couple even if the partner is receiving FTB for children from a previous relationship.

If a prohibited or cancelled FTB customer becomes partnered, the new partner will also be prohibited from being paid FTB or may have their FTB cancelled due to their partner's cancellation. This will apply regardless of whether the new partner is also an FTB customer and receiving instalment payments for children from a previous relationship.