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Effect of income support entitlement on Family Tax Benefit (FTB) 007-07070010



Scenarios

Effect on Family Tax Benefit (FTB)

This table contains scenarios showing how Family Tax Benefit (FTB) is impacted during an employment income nil rate period.

Item

Description

1

JobSeeker Payment (JSP) customer responds to estimate request + Read more ...

Portia is a two weekly (Statement) reporter on JSP with an Entitlement Period End Date (EPED) of 24 August, with one fortnight in an employment nil rate period due to employment income and responds to an FTB estimate request.

24 August

Portia reports fortnightly earnings for ISP purposes, with income over the JSP income threshold for the fortnight 11 - 24 August.

Portia enters an ISP employment income nil rate period for JSP from 11 August, which is the JSP Entitlement Period Start Date (EPSD).

25 August

Portia is sent a request to provide an FTB Estimate (to be supplied within 21 days).

Portia’s online Centrelink account displays a task to provide a new FTB income estimate.

FTB continues to be paid at the same rate during the 21 day grace period, allowing Portia time to respond and provide an estimate before cancelling FTB.

30 August

Portia provides an FTB income estimate and Portia's FTB A is then paid based on this estimate from the date it is supplied, ending the remainder of the 21 day grace period.

7 September

Portia reports for ISP with earnings under the JSP income threshold for the fortnight 25 August - 7 September.

FTB A is exempt from income test.

FTB Reconciliation

For the period 11 - 24 August, reconciliation of Portia's FTB is income tested and is calculated based on actual income.

2

Parenting Payment (PP) customer does not respond to estimate request + Read more ...

Rob is a two weekly (Statement) reporter on PP with an Entitlement Period End Date (EPED) of 24 August, with 3 fortnights at employment income nil rate period, and does not respond to an FTB estimate request.

24 August

Rob reports fortnightly earnings for ISP purposes, with income over the PP income threshold for the fortnight 11 - 24 August.

Rob enters an ISP employment income nil rate period for PP from 11 August, which is the PP Entitlement Period Start Date (EPSD).

25 August

Rob is sent a request to provide an FTB estimate (to be supplied within 21 days).

Rob’s online Centrelink account displays a task to provide a new FTB income estimate.

FTB continues to be paid at the same rate during the 21 day grace period, allowing Rob time to respond and provide an estimate before cancelling FTB.

7 September

Rob reports earnings over the PP income threshold for the fortnight 25 August - 7 September, PP continues in an employment income nil rate period.

Rob is still within the FTB grace period and has not provided a new family income estimate yet.

14 September

21 day FTB grace period ends with no estimate provided.

Rob's FTB cancels Off Income Support (CAN-OIS).

21 September

Rob reports earnings for ISP purposes, with income now under the PP income threshold for the fortnight 8 - 21 September.

Rob also updates his estimate for FTB and payment is restored from DPT+1.

FTB Reconciliation

For the period 11 August - 7 September, reconciliation for Rob's FTB is income tested and calculated based on actual income.