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

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This document outlines FTB Part A and Part B supplements. These are annual amounts included in FTB reconciliation and lump sum claim calculations. They cannot be paid as fortnightly payments and do not affect income limits for fortnightly FTB payments or Health Care Cards.

Process Direct

On this page:

Entitlement to FTB Part A and Part B supplements

Further investigation into Supplement reduction

Entitlement to FTB Part A and Part B supplements


Table 1

Expand table

Step

Action

1

FTB reconciliation result

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?

2

To check supplement details

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 FTB 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?

3

Supplement reduced

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?

4

Offsetting and debt recovery

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 dropdown menu
  • 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?

5

Supplement and/or top-up used for offsetting/debt recovery

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.

6

Explain entitlement

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.


Further investigation into Supplement reduction


Table 2

Expand table

Item

Description

1

Maximum rate not included

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

2

Shared care

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

3

Failed SUP (A) Income Test

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

4

Income over limit

Part A higher income free area (HIFA).

Check this on the FTB Calculation Period Income Summary (FICS) screen:

  • Use the Super Key to go to the FRCS screen
  • Select the relevant financial year from the dropdown menu
  • 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 FTB 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.

5

Blended family

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

6

Not paid FTB for full year

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)

7

Child eligibility changes

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.

8

Immunisation requirements

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