Family Tax Benefit (FTB) Part B quarantine and lump sum claims 007-11010070

Customers claiming FTB as a lump sum have until 30 June of the lodgement year or the FTB claim lodgement special circumstances extension end date (extended lodgement year for FTB claims for the 2011-12 financial year or earlier years) to notify or update return to work details for themselves or their partner.

The FAO system will determine the customer's eligibility for the FTB Part B quarantine when the lump sum claim is finalised.

Go to the FTB(B) Quarantine (FTBQ) screen to view the result:

• in Process Direct:
• On the FAO Reconciliation & Claim Summary (FRCS) screen, select the appropriate reconciliation/lump sum claim result and use the navigation link to go to the FTB Calculation Result (FACRF) screen
• On the FACRF screen, select the relevant period and use the navigation link to go to the FTB Calculation Period Assessment Part A (FCPAA) screen
• On the FCPAA screen, select the Income table and use the navigation link to go to the Part B Quarantine (FTBQ) screen
• in Customer First:
• On the FAO Reconciliation and Claim Summary (FRCS) screen, 'S'elect a reconciliation/ lump sum claim finalised or completed line
• On the FTB Calculation Result (FACRF) screen, 'S'elect a calculation /assessment period to view more details for the period on the FTB Calculation Period Assessment (FCPA) screen
• The customer's eligibility for the FTB Part B quarantine will be displayed on the FCPA screen for each period during the financial year. If the customer was eligible for the period, 'Quarantined' will display next to the FTB(B) Secondary Earner: field on the FCPA screen
• On the FCPA screen, 'S'elect the FTB(B) Secondary Earner: field to view more details on the customer's eligibility for the FTB Part B quarantine on the FTB(B) Quarantine (FTBQ) screen

Was the customer eligible for the FTB Part B quarantine?

• Yes, FTB Part B is paid at the maximum rate for the period they/their partner were not receiving employment income during the Part B quarantine period. The letter to the customer can be viewed on the History Summary (HS) screen or through the Customer Archive Retrieval (CAR) system. Procedure ends here
• No, go to Step 3

The reason will be displayed on the FTBQ screen.

The letter to the customer can be viewed on the History Summary (HS) screen or through the Customer Archive Retrieval (CAR) system.

• In Process Direct, the FTB Return to Work details (FRWD) screen displays return to work details recorded for the customer, current partner and ex-partner
• In Customer First, the FTB Return to Work Summary (FRWS) screen displays return to work details recorded for the customer, current partner and ex-partner. 'S'elect the relevant line to view details on the FTB Return to Work details (FRWD) screen

Reasons why the return to work criteria is showing as not satisfied:

• If the original notification date is after the lodgement year or FTB claim lodgement special circumstances extension end date (extended lodgement year for 2011-12 financial year and earlier years) the quarantine will not apply. If the dates on the FRWD screen are not correct, see Step 1 in Table 2
• First RTW for Child: field is N. If it is not the person's first return to work since caring for a child, go to Step 4
• If the customer did not have an eligible Part B quarantine child in care, go to Step 5
• For Centrelink lump sum claims only, if verification of the return to work has not been coded for a self-employed person or a person nominating a return to work of less than 10 hours per week, go to Step 6
• If the lower income earner received employment income throughout the Part B quarantine period, go to Step 7
• If the person who returned to work is not the lower income earner, go to Step 8
• If the customer/ partner returned to work on 1 July of the financial year, the maximum rate of FTB Part B can only be paid for the period of the financial year before the return to work. Procedure ends here

Check that the Child Customer Reference Number (CRN) shown is that of the child most recently in care. If not, the details will need to be corrected on the FRWD screen.

If the customer has already benefited from an FTB Part B quarantine period, they would not be eligible again following another return to work unless another child has entered their care.

If there are multiple lower income earners and there is a return to work recorded for more than one lower income earner, only one person's return to work in relation to a child will attract the FTB Part B quarantine. This will be the FTB Part B quarantine period that begins first. The other periods are ineligible and are recorded as not the first return to work.

Have details been correctly assessed and coded on the FRWD screen?

• Yes, the customer is not eligible for the Part B quarantine. Procedure ends here
• No, see Step 1 in Table 2

The customer must have an eligible Part B quarantine child in care at some point during the Part B quarantine period.

If the child is a precluded child, the reason will be displayed on the FTB (B) Quarantine Precluded Child NQS (FYQPNQS) screen.

If the most recent child in care is not an eligible Part B quarantine child (for example, because the child was an eligible Part B quarantine child for a previous carer), does the customer have another eligible quarantine child?

• Yes, code that child's Customer Reference Number (CRN) on the FRWD screen. See Step 1 in Table 2
• No, the customer is not eligible for the Part B quarantine. Procedure ends here

Verification of the return to work must be in writing where:

• the person returning to work is self-employed, or
• the person returning to work is nominating a return to work of less than 10 hours per week

Has verification of the return to work been provided?

• If the customer advised return to work details on their lump sum claim form, separate verification is not required as the claim form is considered to be written verification. See Step 1 in Table 2 table
• If the customer has advised return to work details after lodging their claim, advise them what they need to provide so that their eligibility for the quarantine period can be assessed. Procedure ends here until verification is provided
• Once verification is provided, Step 1 in Table 2

The lower income earner receiving employment income throughout the Part B quarantine period would most commonly occur when the customer has received passive employment income.

Check that the passive employment income details have been correctly assessed and coded on the FRWD screen. For help, see Recording return to work details and explaining eligibility for Family Tax Benefit (FTB) Part B quarantine.

Are details on the FRWD screen correct?

• Yes, the customer is not eligible for the Part B quarantine. Procedure ends here
• No, see Step 1 in Table 2

The income details used to finalise the lump sum claim are also used to determine who is the lower income earner, that is:

• adequate income, or
• their original income estimate for the relevant financial year

If the person who returned to work was not the lower income earner on either their adequate income or their original estimate, the customer is not eligible for the quarantine.

Procedure ends here.

Update return to work details on the FRWD screen.

For help with coding, see Recording return to work details and explaining eligibility for Family Tax Benefit (FTB) Part B quarantine.

If verification of the return to work has been provided for a Centrelink lump sum claim:

Process Direct:

• If the lump sum claim has already been finalised, return to work details will need to be updated in Customer first
• If updating within a lump sum claim activity, select ‘Yes’ in the Verification Indicator field, and select the appropriate Verification code
• If return to work criteria are met, select ‘Yes’ in the Satisfies return to work Criteria field. See Processing standalone and combined claims for family assistance and/or Paid Parental Leave scheme payments to continue processing the claim

Customer First:

• Code 'Y' in Verification: field and enter description code to show how details were verified
• If return to work criteria are met, code 'Y' in the Satisfies RTW Criteria: field
• Finalise activity on the Assessment Result (AR) screen to trigger recalculation of the customer's FTB lump sum claim entitlement

If eligible, the customer's FTB Part B is paid at the maximum rate for the Part B quarantine period. The results will be displayed on the FCPA and FTBQ screens.

Has the system correctly assessed the customer's eligibility to the quarantine period?

• Yes, advise the customer and record details on a Note/DOC. Procedure ends here
• No, go to Step 3

Overriding the assessment should only be done in limited circumstances, and only where the customer's eligibility has been confirmed.

To override an FTB Part B quarantine assessment, go to the FTB Quarantine Override (FTBQO) screen in Customer First. The customer can be made eligible or ineligible for the Part B quarantine for a particular period. The details recorded on this screen will override all other information on the customer's record.

When recording details on this screen, the start and end dates must reflect the actual period/s to be quarantined. Do not include any period/s where the customer was not entitled due to passive employment income.