Family Tax Benefit (FTB) child income 007-07060040

Adjusted Taxable Income (ATI) includes taxable amounts of superannuation and compensation received by the child.

There is no legislative basis for requesting a child's tax return or Notice of Assessment (NOA) to verify the child's income. The customer's word is sufficient.

If the customer is reporting a child's income after the relevant financial year (for example, they deferred FTB for child), go to Step 7.

Did the FTB child income limit apply to the child?

Note: the child income limit was abolished from 1 May 2014, so child income has no effect on FTB child eligibility from the date.

• Yes, the child income limit applies to the child's ATI. Go to Step 2
• No, the child's income has no effect on their FTB child eligibility during this period:
• Note: the customer could previously choose to defer FTB for the child to reduce the risk of overpayment. From 13 June 2015, this is no longer an option. Refer to FAQs on the Resources page of Family Tax Benefit (FTB) claim options and payment choices for more information
• Record details on a DOC. Procedure ends here

Has the child's income definitely already reached the child income limit for 2013-2014?

• Yes, go to Step 3
• No, or if there is any doubt about the child's ATI, go to Step 5

When details are recorded, a debt will be generated for the period before 1 May 2014, but FTB and ancillary benefits may remain current for the child for periods after 1 May 2014.

Record details for the child via the Child Student/Income Circumstances (CHSI) screen.

If child is a customer, code details on child's record. The result will ripple to the customer's record.

• Code date the child ceased to be an FTB child or Regular Care Child in Date of Event: field
• Code 'Y' in Income Over Limit FTB: field
• Ensure student status is correct in Student Code: field. This can affect FTB Part B eligibility. A separate page may be needed to code this from the date the child's student status changed. For an FTB child aged 16-19, check study details for Part A and update if necessary
• Before finalising activity on Assessment Results (AR) screen, each child's eligibility can be checked by coding 'S' next to the FTB line and 'AX' in Nxt: field
• Record details on a DOC and finalise activity on AR screen. If processed via the child's record, create a DOC and record details in the customer's record also

The system will automatically generate a debt for any FTB paid for the child for the period the child income limit applied to them before 1 May 2014.

For Debt Raising Teams and Service Officers in service centres responsible for raising debts only

• Raise the debt and start recovery action immediately
• Advise the customer to contact Services Australia at the end of the financial year if the child's income was below the child income limit when assessed by the Australian Taxation Office (ATO)
• If FTB was cancelled, the customer can re-claim FTB for the past period

Procedure ends here.

If the customer has been paid or has claimed FTB for the child for a period before 1 May 2014, to offset or reduce the risk of overpayment for that period, the customer can defer payment for the child until the end of the financial year when their actual income is known. They must confirm the child's income.

They may cancel FTB for the child if they wish, but they would then need to reclaim FTB, via an 'Add Child' activity, if the child's actual income is below the child income limit.

Does customer wish to defer FTB for child?

• Yes,
• Check CHSI screen details are correct, including the student code. Record payment option, see Family Tax Benefit (FTB) claim options and payment choices
• For an FTB child aged 16 - 19, check study details and update if necessary
• Procedure ends here
• No, and the customer wants to:
• Cancel FTB for the child, go to Step 6
• Continue FTB for the child (income below limit), check Income Over Limit FTB: field and Student Code: field details are correct on the CHSI screen and record full details of the customer contact on a DOC. For an FTB child aged 16-19, check study details and update if necessary. Procedure ends here

Cancel FTB via the Child Student/Income Circumstances (CHSI) screen.

If child is a customer, code details on child's record. The result will ripple to the customer's record.

• Code date paid to plus 1 in Date of Event: field
• Code 'Y' in Income Over Limit FTB: field (in Macro, select radio box)
• Ensure student status is correct in Student Code: field. This can affect FTB Part B eligibility. A separate page may be needed to code this from the date the child's student status changed
• For an FTB child aged 16 - 19, check study details for Part A and update if necessary
• Record the details on a DOC and finalise activity on AR screen. If processed via the child's record, create a DOC and record the details in the customer's record
• Advise the customer a letter will be issued to follow up the child's taxable income at the end of the financial year. If the child's income is not below the child income limit, an overpayment will be raised for any FTB received for the child for the period before 1 May 2014 during which the child income limit applied to the child

Procedure ends here.

If the child's ATI is equal to or above the child income limit or if the customer does not report the child's income, reconciliation will exclude the child as an FTB child for any period the child income limit applied to the child during the financial year.

Forced reconciliation will occur in mid-November if only the child's income is needed for reconciliation to occur.

Re-reconciliation will be triggered if the child's income status is updated.

Update CHSI screen

If the child is a customer, update CHSI screen in the child's record. When finalising the activity, the Rip Consequences (RMC) screen will show that the updates will 'COM'plete (ripple) to the FTB customer's record.

• In Date of Event: field, code the later of 1 July of the relevant financial year or the date the child turned 16
• Update Income Over Limit FTB: field to (in Macro, ensure radio box is not selected):
• 'Y' if the child's income was equal to or above the child income limit
• 'N' if the child's income was below the limit
• Ensure student status is correct in Student Code: field. This can affect FTB Part B eligibility. A separate page may be needed to code this from the date the child's student status changed
• For an FTB child aged 16-19, check study details for Part A and update if necessary
• Press [Enter]
• Check CHSI screen details for each date of event in the relevant financial year. Ensure the Income Over Limit FTB: field is N for each date of event in the financial year. Update if necessary
• Record the details on a DOC and finalise the activity via the AR screen

In the customer's record, on the Child Entitlement Deferment (CHDF) screen, update the Include the Child in Reco: field to 'Y' for the relevant financial year. Note: if the relevant financial year is not displayed, change the column number until the correct year is displayed.

This will pay FTB for the child for any period they were an eligible FTB child per the CHSI screen, and assess any overpayment for the child.

Record the details on a DOC and finalise the activity via the AR screen.