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

Example

Description

1

Neither member of a couple receiving FTB

Nicole and Craig started living as a couple on 30 September 2019 and both lodge claims for Family Tax Benefit (FTB) on 30 October 2019.

As neither Nicole nor Craig has been paid FTB previously, the blended family assessment starts from the relationship start date, 30 September 2019.

For the period 1 July - 29 September 2019, both Nicole and Craig should be paid as single customers for their respective children.

From 30 September 2019, they will both receive their member of a couple blended instalment rate.

2

One member of couple receiving FTB, start of relationship after date paid to

Mary receives FTB and has been paid up until 22 July 2019. Mary begins living with Brian from 30 July 2019 and Brian lodges a claim for FTB on the same day as the couple agree that Brian will claim FTB for all of the children.

Mary is paid FTB as a single person for her FTB eligible children up until 29 July 2019.

FTB is granted to Brian from 30 July 2019 for all of the children.

3

One member of couple receiving FTB, claim lodged after date paid to

Karen and Janet have been living as a couple since 1 July 2019. On 4 August 2019, Janet claims FTB and they ask to be paid as a blended family. Karen has been paid FTB up until 30 July 2019.

Karen receives FTB for all eligible FTB children of the family up until 30 July 2019. Janet's claim can be backdated to 31 July 2019, as Karen has not been paid for this period.

4

One member of couple receiving FTB, claim processed after date paid to

Sally and David begin to live as a couple on 30 July 2019 and David lodges an FTB claim on the same day.

David's claim is processed on 10 August 2019. As Sally has already been paid FTB up until 8 August 2019, the blended family assessment starts from 9 August 2019 as it cannot apply for a period one or both members of the couple have already been paid.

Sally is linked to David from 30 July 2019 and David's income estimate is included in Sally's total adjusted taxable income from that date. David's children are linked and assessed on Sally's record from 30 July 2019 until 8 August 2019.

David's FTB claim is granted from 9 August 2019, the blended family assessment start date.

For the period 1 July - 29 July 2019, Sally is assessed as single and is paid FTB for her FTB children.

From 30 July - 8 August 2019, Sally is assessed as partnered and is paid FTB for all eligible FTB children including David's children.

From 9 August 2019, both Sally and David are paid FTB based on the blended family percentages they have nominated.

5

One member of couple receiving FTB, start date is eligibility date

Ann and Peter begin to live as a couple on 1 July 2019. Peter's child enters their care on 27 August 2019 and Peter lodges an FTB claim on 30 August 2019. Ann has been paid FTB up to 25 August 2019 for children in her care.

Ann should receive FTB for all eligible FTB children (excluding Peter's child) from 1 July - 26 August 2019. Peter's claim can be backdated for the past period and commence from 27 August 2019 (date Peter's child came into care) as no one else has been paid for this period.

Ann's next payment should reflect that 26 August 2019 is paid for children (excluding Peter's child) at the normal member of a couple rate and from 27 August 2019 for all FTB children based on her nominated blended family percentage. Peter's FTB is paid based on the nominated blended family percentage from 27 August 2019.

6

Both receiving FTB, relationship start date after date paid to

Scott and Lee start living as a couple on 30 August 2019 and advise this change on 30 August 2019. Lee has been paid FTB up to 20 August 2019, Scott has been paid to 25 August 2019.

Scott and Lee are linked from 30 August 2019. The blended family assessment starts from this date.

For the period 1 July - 29 August 2019, both Scott and Lee are paid as single for their respective children. From 30 August 2019, both should be paid FTB based on their nominated blended family percentage.

7

Both receiving FTB, date paid to for one is after relationship start date

Sharon and Bob begin to live together as a couple on 30 August 2019. They told Services Australia on 6 September 2019. Bob has been paid FTB up to 4 September 2019, Sharon up to 28 August 2019.

Sharon and Bob are linked from 30 August 2019. However, as the change in their relationship status was not advised until 6 September 2019, Bob has received payment since the relationship start date. As a result, the blended family assessment starts from 5 September 2019 (Bob's date paid to date plus 1 day). Blended family assessments cannot apply for a period one or both have already been paid.

From 1 July - 29 August 2019, both Sharon and Bob are paid as single for their respective children.

Sharon and Bob decide that Sharon is to receive all FTB for the family for the period 30 August - 4 September 2019. This is paid at the normal member of a couple rate. Bob has no entitlement during this period and a debt is raised for the FTB paid.

From 5 September 2019, both Sharon and Bob are paid FTB based on their nominated blended family percentage.

8

Both receiving FTB, date paid to for both is after relationship start date

Amy and Gary begin to live together as a couple on 30 August 2019. They advise Services Australia on 10 November 2019. Amy has been paid FTB up to 1 November 2019, Gary up to 5 November 2019.

Amy and Gary are linked from 30 August 2019. As the change was not advised until 10 November 2019, Amy and Gary have received payments after the relationship start date. As a result, the blended family assessment starts from 6 November 2019 (Gary's date paid to date plus 1 day). Blended family assessments cannot apply where one or more persons have already been paid for the claim period.

For the period 1 July - 29 August 2019, both Amy and Gary are paid as single for their respective children.

Amy and Gary decide that Amy is to receive all FTB for the family (including Gary's children) for the period 30 August - 5 November 2019. This is paid at the normal member of a couple rate. Gary has no entitlement for this period and a debt is raised for the FTB paid.

From 6 November 2019, both Amy and Gary are paid FTB based on their nominated blended family percentage.

9

One member of couple is subject to Prohibition of FTB Instalment Payments (PIP)

John and Mary began to live together as a couple from 19 August 2019 and advise this change on 30 August 2019. Mary has been paid FTB up to 25 August, John is subject to Prohibition of FTB Instalment Payments (PIP).

John and Mary are linked from 30 August 2019. The blended family assessment starts from this date.

For the period 1 July - 29 August 2019, both John and Mary are considered single for their respective children. From 30 August 2019, they will both be subject to PIP.

10

Only one member of the couple is grandfathered for Single Income Family Supplement (SIFS)

Sue and Joe are a blended family and each have one child from a previous relationship. They are FTB instalment customers who split their FTB payment - 60% for Sue and 40% for Joe. Sue is not grandfathered for SIFS, but Joe is.

At reconciliation, Joe meets all eligibility criteria for SIFS and maintains SIFS grandfathering status. Joe automatically receives 100% of the family's SIFS entitlement in respect of the child in his care. Sue is not eligible for SIFS, or to split the family's entitlement to SIFS as Sue was not grandfathered in respect of 30 June 2017.

11

Grandfathering for SIFS and reassessment

Liz and Phil have been assessed and paid SIFS as a blended family. Liz was eligible for the whole financial year but Phil was only paid for part of the financial year as Phil went overseas for the later part of the year.

For the period where Phil was overseas, Liz was paid the full entitlement of SIFS for her own children.

Services Australia later finds out that Phil had returned from the overseas trip after less than 6 weeks away. In this very uncommon situation, the system would recalculate the entitlement for both customers and the 'blended' decision would be reinstated.

12

Both members of couple receiving FTB, notification received outside lodgement year

Penny and Bob begin to live as a couple on 30 May 2017. Both receive FTB for their respective children prior to becoming partnered. They advise of the change on 1 August 2019.

Penny has already been paid FTB up until 28 July 2019 and Bob has been paid up to 25 July 2019. The blended family assessment starts from 29 July 2019 as it cannot apply for a period one or both members of the couple have already been paid for.

Penny is linked to Bob from 30 May 2017 and Bob's income estimate is included in Penny's total adjusted taxable income from that date. Bob's children are linked on Penny's record from 30 May 2017 until 28 July 2019.

For the period prior to 30 May 2017, both Penny and Bob are paid as single for their respective FTB children.

Penny and Bob decide that Penny is to receive all FTB for the family (including Bob's children). Penny cannot claim for Bob's children for the period 30 May - 30 June 2017 and for the 2017/2018 financial year as these periods are outside the allowable timeframe to claim. Penny's entitlement for her children will be assessed and paid at the normal member of a couple rate.

Penny will be assessed to receive all FTB for the family (including Bob's children) for the periods:

• 1 July 2018 - 30 June 2019
• 1 July 2019 - 28 July 2019

This will be assessed and paid at the normal member of a couple rate.

Bob has no entitlement for the period 30 May 2017 - 28 July 2019 and a debt is raised for the FTB paid.

From 29 July 2019, both Penny and Bob are paid FTB based on the blended family percentages they have nominated.