Family Tax Benefit (FTB) Part A and Part B supplements 007-11010030

The FRCS screen shows the customer's FTB reconciliation results.

Has the customer's FTB reconciliation or lump sum claim completed for the relevant financial year?

• Yes, go to Step 2
• No, see FTB reconciliation or lump sum claim pending. Procedure ends here.

Check if maximum supplement rates have been included, before eligibility changes and income testing:

• maximum Part A supplement rate per child
• maximum Part B supplement rate per family

Note: Supplement rates are calculated on a daily basis. Leap years will have a slightly increased supplement amount.

Check FTB Part A and Part B supplements within a new claim or other activity:

• After selecting Assess, use the Super Key to go to the FAO Reconciliation & Claim Summary (FRCS) screen
• Select the completed reconciliation/ lump sum claim line to open the navigation panel
• Select FTB Supplement Summary (FSUP) from the navigation link
• The FSUP table will show the Reco completed status
• View the FTB supplement calculation in the table. This includes the calculation status, number of Days, supplement included, previous calculation, recalculation and the difference
• To go back to FRCS screen, select the FRCS hyperlink at the top of the table

Note: Payment of FTB Part A supplement is subject to an income limit. This extends to income support payment (ISP) customers.

Single customers on an ISP for the entire financial year are subject to bulk reconciliation. If the ATI is above the limit, the Part A supplement is not paid. If this happens and the income applied in reconciliation is an estimate that is no longer accurate, such as the Most Recent Estimate (MRE), the customer may update their financial year income to have their entitlement reassessed by recording a ‘not required to lodge advice’, or by lodging a tax return, whichever is appropriate to the individual’s circumstances.

Is the supplement reduced or less than expected?

• Yes, go to Step 3
• No, go to Step 4

Maximum entitlement = maximum supplement rates. For Part A supplement, this is the amount per child X number of FTB children in care at any time in the relevant year.

Actual entitlement = amount the customer was entitled to, based on the family's circumstances.

From the FSUP screen, select the navigation link to go to:

• FTB Supplement Reduction Explanation (FSRE) screen for information on supplement reductions
• FTB Supplement Status Details (FSSU) screen. This displays the FTB supplement status details and the information required for the supplement to be included in the calculation

Is further investigation required to determine if the Supplement reduction is correct?

• Yes, see Table 2
• No, go to Step 4

Check if supplement and/or top-up has been used for ATO or FTB offsetting or debt recovery:

• On the FRCS screen, select the relevant financial year from the drop down option
• Select the completed reconciliation/ lump sum claim line to open the navigation link
• Select FTB Withholding for Debt Recovery - CLK (FWDC)
• The FWDC screen shows:
• FTB components
• amount available for withholding
• amounts withheld to reduce FAO debt
• current and other debts

Has supplement and/or top-up been used for offsetting or debt recovery?

• Yes, go to Step 5
• No, go to Step 6

Tell the customer the details of any amount(s) used to offset or recover their family assistance and/or ATO debt.

Debt recovery also applies to non-lodger or qualification debts, even if the customer has entered into a payment arrangement.

Annotate the claim DOC with details of the conversation.

For more information, see Debt offsetting during family assistance reconciliation and lump sum claim processing.

Procedure ends here.

Tell the customer:

• their FTB Part A and Part B supplement entitlement
• the factors affecting the amount paid

Record details on a Note on the DL/Notes screen

Procedure ends here.

Factors that may reduce the maximum Supplement rate payable:

• Shared Care, go to Item 2
• Failed SUP (A) Income Test, go to Item 3
• Income Over Limit, go to Item 4
• Blended family, go to Item 5
• Not Paid FTB for full year, go to Item 6
• Child eligibility changes, go to Item 7
• Immunisation requirements, go to Item 8

The amount for a child is apportioned between customers using the shared care percentage. Check details on the Shared Care Assessment (SCA) screen in the child record.

• For Part A supplement, use the shared care percentage of the child to work out amount for that child
• For Part B supplement, use the child with the highest shared care percentage

Part A Supplement will not be payable if the family's adjusted taxable income is more than the Supplement income limit

The reduction reason shows on the FSRE screen if the Part A supplement income limit for at least one day. It is therefore possible for recipients to be paid the Part A supplement for a part year and have the 'Failed Sup (A) Income Test' displayed

Part A higher income free area (HIFA)

Check this on the FAO Income Component Summary (FICS) screen:

• Use the Super Key to go to the FRCS screen
• Select the relevant financial year from the drop down option
• Select the Reco completed line and select FACRF from the navigation link
• On the FACRF screen, select a period in calculation result table and select FTB Calculation Period Assessment Part A (FCPAA)
• On the FCPAA screen, select the customer’s or partner’s record in the FTB Income table
• Select FAO Calculation Period Income Summary (FICS) from the navigation link
• The FICS screen shows the income components, customer income, partner income and combined income
• Select the FRCS hyperlink to return

For FTB Part A, the income reduction is apportioned between all Part A components.

For Part B, the primary earner's income exceeds the limit or the lower earner's income is over Part B income free area and supplement was reduced after the standard Part B rate was reduced to nil.

The family's total Part A and Part B supplement entitlements are calculated and then apportioned using the blended family percentages.

Check the FTB Child Eligibility Details (FCED) screen:

• Go to FRCS screen and select FACRF
• Select a period on the FACRF screen and then select FCPAA
• Select the customer or partner record in the Income table and select FCES
• On the FCES table, select the relevant child
• The FCED screen shows under the FCES table. View the FTB components and status for the selected child
• Select the FRCS hyperlink to return

The customer became entitled or ceased to be entitled during the financial year. View entitlement periods on these screens:

• FTB Component Calculation Result (FCCR) via FRCS > FACRF
• Legal Residence Information (RSLEG)
• Immigration Movements Information (RSIM)
• Child in Customer Care (CHC)

Check the FCED screen via FRCS > FACRF > FCES. For example, changes in care, child age, ceased full-time study, income over limit or child overseas.

Immunisation requirements must be met for Part A supplement to be included (for financial years 2012-13 to 2017-18 only)

The FRCS screen shows the customer's FTB reconciliation results.

Has the customer's FTB reconciliation or lump sum claim completed for the relevant financial year?

• Yes, go to Step 2
• No, see FTB reconciliation or lump sum claim pending. Procedure ends here

Check if maximum supplement rates have been included, before eligibility changes and income testing:

• maximum Part A supplement rate per child
• maximum Part B supplement rate per family

Note: Supplement rates are calculated on a daily basis. Leap years will have a slightly increased supplement amount.

From the FRCS screen:

• Code 'P' to view FTB Part A and Part B supplement details from the FTB Supplement Summary (FSUP) screen

Is the supplement reduced or less than expected?

• Yes, go to Step 3
• No, go to Step 4

Maximum entitlement = maximum supplement rates. For Part A supplement, this is the amount per child X number of FTB children in care at any time in the relevant year.

Actual entitlement = amount the customer was entitled to, based on the family's circumstances.

From the FTB Supplement Summary (FSUP) screen

• code ‘Y’ in the Go to FTB Supplement Reduction Explanation field
• the FTB Supplement Reduction Explanation (FSRE) screen shows the Maximum entitlement and the actual entitlement and any reduction factors

Is further investigation required to determine if the Supplement reduction is correct?

• Yes, see Table 2
• No, go to Step 4

Check if supplement and/or top-up has been used for ATO or FTB offsetting or debt recovery:

To view ATO debt offsetting, from the FRCS screen:

• code 'T' to view details of the result transaction sent to the ATO on the FAO Reconciliation & Claim Transaction (FRCT) screen, and to view amounts used by the ATO for debt offsetting

To view FTB debt offsetting, from the FRCS screen:

• code 'W' to view the FTB Withholding for Debt Recovery -CLK (FWDC) screen

Has supplement and/or top-up been used for offsetting or debt recovery?

• Yes, go to Step 5
• No, go to Step 6

Tell the customer the amount(s) used to offset their family assistance debt and or ATO debt.

Debt recovery also applies to non-lodger or qualification debts, even if the customer has entered into a payment arrangement.

Annotate the claim DOC with details of the conversation.

For more information, see Debt offsetting during family assistance reconciliation and lump sum claim processing.

Procedure ends here.

Tell the customer:

• their FTB Part A and Part B supplement entitlement
• the factors affecting the amount paid

Record details on a DOC

Procedure ends here

Factors that may reduce the maximum Supplement rate payable:

• Shared Care, go to Item 2
• Failed SUP (A) Income Test, go to Item 3
• Income Over Limit, go to Item 4
• Blended family, go to Item 5
• Not Paid FTB for full year, go to Item 6
• Child eligibility changes, go to Item 7
• Immunisation requirements, go to Item 8

The amount for child is apportioned between customers using shared care percentage. Check details on the FTB Shared Care (FSC) screen.

• For Part A supplement, use the shared care percentage of the child to work out amount for that child
• For Part B supplement, use the child with the highest shared care percentage

Part A supplement will not be payable if the family's adjusted taxable income is more than the supplement income limit

• The reduction reason will be displayed on the FSRE screen where the customer is over the Part A supplement income limit for at least one day. It is therefore possible for customers to be paid the Part A supplement for a part year and have the 'Failed Sup (A) Income Test' displayed

Part A higher income free area (HIFA)

See Income tests for family assistance and Paid Parental Leave scheme payments. Check the FAO Income Component Summary (FICS) screen/page

• For FTB Part A, the income reduction is apportioned between all Part A components
• For Part B, the primary earner's income exceeds the limit or the lower earner's income is over Part B income free area and supplement was reduced after the standard Part B rate was reduced to nil

The family's total Part A and Part B supplement entitlements are calculated and then apportioned using the blended family percentages. The FTB Child Eligibility Summary (FCES) screen/page shows blended family periods applied

The customer became entitled or ceased to be entitled during the financial year. View entitlement periods on the FTB Calculation Result (FACRF) screen/page, for example:

• Legal Residence Information (RSLEG)
• Australian Departure and Return Summary (ADRS)
• Child in Customer Care (CHC)

Check FCES screen/page, for example, changes in care, turned 25, ceased full-time study, income over limit, child overseas (also check relevant child update screens)

Immunisation requirements must be met for Part A supplement to be included (for financial years 2012-13 to 2017-18 only)