Estimating income for family assistance and Paid Parental Leave scheme payments 108-05030000
Expand allThis document outlines how an estimate of Adjusted Taxable Income (ATI) affects a customer's payment.
Payments affected by ATI
- Family Tax Benefit (FTB)
- Child Care Subsidy (CCS)
- Stillborn Baby Payment (SBP)
- Parental Leave Pay (PPL)
Annual estimate for ongoing FTB/CCS
A customer's annual family income estimate is used to work out their ongoing rate of FTB and CCS. Some customers do not need to provide an estimate.
After the end of the financial year, family assistance payments are reconciled. The customer's correct FTB/CCS rate is worked out using their Actual Adjusted Taxable Income (AATI). If they received more than their correct rate due to underestimating their family income, they will need to pay the money back.
To help reduce the risk of overpayment, at every contact, prompt the customer to revise their estimate. Explain to the customer:
- they must provide a reasonable estimate
- the reconciliation process
- they can reduce the risk of debt through:
- FTB claim options and payment choices
- increasing their CCS withholdings
- their FTB fortnightly payments may cancel if, for a previous year, they or their partner:
- fails to lodge a tax return or
- fails to contact to advise they do not need to lodge
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customers may update their estimate any time online or by phone
Ask the customer to use self service to complete the update unless:
- the service is not working (confirmed by Network News Update (NNU) Newsflash and Bulletins), or
- they cannot use self service this time
After the end of the relevant financial year, customers can:
- advise if they or their partner do not need to lodge a tax return
- confirm their or their partner's income for the previous financial year
Six month estimates for SBP claims
Customers claiming SBP need to provide an estimate of their ATI.
This must be for the 6 months starting on the day the child was born.
Customers who have a partner on the date they claim must provide an estimate of their partner's income.
Previous year estimates for PPL claims
Customers must provide an estimate of the primary carer's ATI.
This must be for the financial year before the date of:
- their pre-birth/adoption claim, or
- the child's birth or entry into care for a post-birth/adoption claim
Updating income details is a change of circumstances for PPL.
Contents
Helping families provide a reasonable annual income estimate for family assistance payments
Updating income estimates for the current financial year
Date of event (DOV) for family assistance income estimates
Automatic Uplift of income estimates
Paid Parental Leave income test and previous financial year income estimate
Related links
Assessment of adjusted taxable income for family assistance and Paid Parental Leave scheme payments
Combined family income for Child Care Subsidy (CCS)
Family Tax Benefit (FTB) claim options and payment choices
Recording not required to lodge advice and previous year income
Reconciliation of Family Tax Benefit (FTB)
New Financial Year Assessments (NFYA) for Family Tax Benefit (FTB) and Child Care Subsidy (CCS)
Customer notifies a change of circumstances for Parental Leave Pay (PPL)