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Returned payments and their effect on family assistance reconciliation 007-11040000

This page contains information on the return of payments made to a customer and the effect on reconciliation of Family Tax Benefit (FTB) and Child Care Benefit (CCB).

Effect of returned payments

Step	Action
1	Process returned payment + Read more ... FTB instalment payment FTB or Child Care Benefit (CCF) reconciliation payment Follow normal procedures to record return of payment so that the customer's Payment Summary (PS) screen is correct. Payments can be returned: electronically by the Financial Institution, or manually by the customer or third party attending the service centre Note: acceptance of cash/cheques at a Service Centre should always be a last resort. Where possible, encourage the customer to repay via an alternate method. To reissue a partial Family assistance payment returned from the financial institution and the customer is entitled to payment (e.g. customer had legal access to the original account and part payment was returned), go to Step 3. Is the payment manually returned? Yes, go to Step 2 No, go to Step 3
2	Manually returned payment + Read more ... $\\INTERNAL.DEPT.LOCAL\Shared\NAT\SERDELEXCEL\WORKPRODIMP\Operation Blueprint Migration\RDT Release Icons\32w\icon-face-to-face.png$ Process through ESSentials and issue a receipt to the person returning the payment. See Processing a returned payment. Record a DOC, including: Why payment was returned, for example no entitlement to FTB How payment was returned, for example by customer Amount and method, for example $X.XX cash, cheque details Period payment was for, for example Instalment for 3/2/19 to 16/2/19, reconciliation period 2018/19 Payment type, such as FTB instalment, FTB or CCB (CCF) reconciliation ESSentials receipt number Activity Management Reference (AMR) Why payment is to be held Use the Stop Customer Payment form in mySupport to have the payment held, so that it cannot be reissued. The Resources page contains a link to mySupport Once the Centrelink Payment Support Team (CPST) has held the returned payment, a reconciliation adjustment (FRMA) will also be coded to exclude the returned payment from the reconciliation result for the relevant financial year When the FRMA adjustment has been completed, the AMR details will be annotated in the manually returned payment DOC Procedure ends here
3	Reissuing payment + Read more ... The payment should be reissued unless: It has already been reissued, or It was issued incorrectly The customer has returned it because they were not entitled to it Is payment to be reissued? Yes, reissue payment to customer. See Replacement payments. The Payment Summary (PS) screen will show the returned payment was reissued to the customer. The reconciliation result for the relevant income year will not be affected as it will correctly include this payment in the amount paid: If the returned payment is a part FTB payment the customer is entitled to, go to Step 5 Otherwise, procedure ends here No, go to Step 4.
4	Payment not to be reissued + Read more ... For the correct FTB/CCF reconciliation result, the payment must be excluded from the amount paid: Record a hold payment DOC, including the following information: Payment type and component Amount to be held Period of the payment Reason the payment is to be held Why the customer is not entitled to the payment Use the Stop Customer Payment form in mySupport to have the payment held, so that it cannot be reissued. The Resources page contains a link to mySupport Once CPST has held the returned payment, a reconciliation adjustment (FRMA) will also be coded to exclude the returned payment from the reconciliation result for the relevant financial year When the FRMA adjustment has been completed, the AMR details will be annotated in the manually returned payment DOC The adjustment is displayed on the FACRF screen which shows the returned payment in the Total Auto/Man/Special Adjustments field.
5	Partial FTB payments to be reissued (customer entitled to the partial payment) + Read more ... Customers who advise they did not receive their FTB payment will have a ‘Request for Refund’ (RFR) actioned. The financial institution may return part of the FTB payment from the original account and confirm the customer had legal access to the account. For the correct FTB reconciliation result, the PYAJ payment amount must be excluded from the amount paid. Due to system limitations, FTB reconciliation partial payments cannot be reissued via PS screen. Action required PYAJ adjustment using (SYL) will be required to reissue the part payment. The below process must be followed before PYAJ adjustment is completed. Record a hold payment DOC, including the following information: Why the payment was returned, for example RFR was requested and the customer had legal access to the account and part of the payment was returned How payment was returned, for example, RFR request made and financial institution auto returned part payment Amount Period payment was for. For example, instalment for 03/02/19 to 16/02/19, reconciliation period potentially impacted 2021/2022 Payment type, such as FTB instalment, FTB reconciliation Activity Management Reference (AMR) Why payment is to be held That a PYAJ (SYL) will be coded after the block payment/FRMA has been actioned. PYAJ must not be coded before advice is received that this has been actioned Use the Stop Customer Payment form in mySupport to have the payment held, so that it cannot be reissued. The Resources page contains a link to mySupport Once CPST has held/blocked the returned payment, a reconciliation adjustment (FRMA) may also be coded to exclude the returned payment (PYAJ adj amount) from the reconciliation result for the relevant financial year When the FRMA adjustment has been completed, the AMR details will be annotated in the manually returned payment DOC and the mySupport request will be closed advising of the action taken The adjustment is displayed on the FACRF screen which shows the returned partial payment in the Total Auto/Man/Special Adjustments field. To issue a PYAJ, return to Step 1 of Using the Payment Adjustment (PYAJ) screen.