Updating previous financial year incomes for Family Tax Benefit (FTB) and Child Care Subsidy (CCS) 108-05030040

Select the appropriate option below.

• If the customer advises they (or their partner, or ex-partner) are not required to lodge a tax return for the relevant financial year, see Recording not required to lodge advice and previous year income
• Procedure ends here

• An estimate can be accepted from the customer's partner if they are a Person Permitted to Enquire (PPE) and could reasonably be expected to provide an estimate
• A new estimate can be sought if they contact for other reasons
• Go to Step 2

• If a blended family assessment relates to the current partner, process an activity on both records for the estimate to affect both records
• Go to Step 2

• If the customer is providing an estimate for an ex-partner, there is no need to access or code an activity on the ex-partner's record, except where a blended family assessment applied for the ex-partner period.
• For customers who received CCS and need to provide ex-partner income, refer to Exceptional circumstances for Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS).

• If the most recent estimate (MRE) or a financial year estimate (FYE) on FAO Income for Previous Year (FIPY) screen has been used in a reconciliation calculation and it is not correct, the customer can provide the correct previous year income
• Go to Step 2

• There is no bulk/automatic reconciliation for CCS.
• This means all customers, even if they received ISP for the whole year, must still confirm their income for CCS reconciliation.
• Check the Non-Lodgement Exemption (FNLE) screen.
• If the ATO has provided a 'return not necessary' notification, FNLE will display 'ATO exemption.
• Go to Step 9

Check the Financial Year field to make sure the correct financial year details are displayed. Each financial year is displayed on a separate page.

For new records, it defaults to the previous financial year.

To change the year, overtype the Financial Year field or use [PF24] and [PF23] to scroll.

Amounts are displayed as:

• Est (estimate) - provided by the customer
• Actl (actual) - transferred by the Australian Taxation Office (ATO)

There are also separate screens for each person (customer, current partner and previous partner) for each financial year.

The Person field will show 1 for the customer, and 2 onwards for partners in the financial year in alphabetical order (if applicable).

To change the person, code the number in the Person field, or use [PF11] and [PF10] to scroll.

Is an actual amount recorded on the FIPY screen for the person?

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

If the ATO has supplied the actual adjusted taxable income (ATI) for any income components, the amounts cannot be changed. The customer will need to contact the ATO to lodge an income amendment.

Estimates of other components may be updated and may result in a reconciliation or re-reconciliation of FTB or CCS.

Note: if the FIPY screen displays an ATO income cancellation notification and the reconciliation result cancelled, see Manual intervention where Australian Taxation Office (ATO) cancels Notice of Assessment (NOA).

Does the customer wish to record or change estimates for:

• foreign income
• tax free pensions/benefits (Note: the system will use the higher of the estimate or the amount recorded on the Tax Payment Summary (TXGS) screen as being paid by Centrelink)
• deductible child maintenance expenditure?
• Yes, go to Step 6
• No, advise the customer the actual income will be/was used to calculate FTB or CCS for the previous financial year. If the customer is querying the amount assessed as actual ATI (components reported by the ATO), refer them to the ATO. Procedure ends here

The Service Officer must be satisfied the previous year income estimate is reasonable and consider:

• the reason for the change
• the previous year income estimate on the FIPY screen, and
• other information recorded on the customer's record

In Process Direct, use the Superkey: STPF to check any Single Touch Payroll (STP) employer reported income amounts. This screen may assist in determining if the customer's previous year income estimate is reasonable.

Compare the customer's new previous year estimate with information held on the customer’s record. For example, if they want to revise the tax free pension/benefit, compare new previous year income estimate to the amount on the TXGS screen or Payment Summary (PS) screen.

Check income support assessment screens for income the customer may need to include, for example, Earnings Summary (EANS) screen, Real Estate/Business Summary (REBS) screen. For more information, see Helping families provide a reasonable annual income estimate for family assistance payments and Reconciliation of Family Tax Benefit (FTB).

The customer's explanation of how they calculated the previous year income estimate must be consistent with the information on the customer’s record and information received via STP. Any discrepancies must be discussed with the customer.

If the customer is clearly underestimating their previous year income, considering all of the above, and they do not wish to change the amount, the previous year income estimate is not considered to be reasonable. The estimate must be the customer's own figures.

Is the new previous year income estimate reasonable?

• Yes, go to Step 8
• No, go to Step 7

Advise customer that based on the information on their record the estimate is not reasonable and cannot be used.

If the customer:

• elects to change the amount to a reasonable figure, go to Step 8
• refuses to change the amount:
• advise them the amount cannot be recorded to revise their entitlement
• record details on a DOC
• procedure ends here

In Customer First, record updates on the FIPY screen.

Ensure the correct financial year and person (customer/current partner/previous partner) page displays before starting the update.

Key all income components. Key '0' (zero) if the customer indicates no income for that component.

If actual adjusted taxable income details have been transferred from the ATO for the person, a previous year income estimate coded for taxable income, exempt reportable fringe benefits, other reportable fringe benefits, net investment loss, reportable superannuation contributions and tax exempt foreign income components of ATI will be disregarded by the system.

• To insert the first reasonable estimate for an income component, key the estimate directly in the blank Estimated AMT $: field
• 'C'orrect and update or 'D'elete an existing estimate if the estimate was recorded incorrectly
• Make sure the correct Date of Receipt (DOR) is used when updating FIPY:
• For corrections, the DOR is the date the previous year income estimate was first advised
• If the DOR is more than 12 months in the past, see the Background page of Date or receipt
• If actioning an I031FY MFU, complete the updates within the MFU activity
• Check:
• the result of any re-reconciliation that has occurred as a result of the updated previous year income, and
• the income used in reconciliation is as expected
• Finalise activity via the Assessment Results (AR) screen
• Record all details of the previous year estimate update on a DOC, including income amounts and any changes to entitlement

All CCS customers/partners/ex-partners are required to confirm their income, (that is, income must be recorded on the FIPY screen), even if they have told the ATO they are not required to lodge.

If the decision about lodgement requirements has already been made by the ATO:

• Check the Non-Lodgement Exemption (FNLE) screen.
• If the ATO has provided a 'return not necessary' notification, FNLE will display 'ATO exemption‘
• Income values in the FIPY table can be entered as advised by the customer without further investigation.
• For ex-partners, see Exceptional circumstances for Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS) > Table 8

In Customer First, record updates on the FIPY screen.

Ensure the correct financial year and person (customer/current partner) page displays before starting the update.

• Taxable income
• Exempt Reportable FB (Fringe Benefits)
• Other Reportable FB (Fringe Benefits)
• Foreign income
• Deductible Child Maintenance Expenditure
• Total Net Investment Losses
• Tax Free Pensions/Benefits
• Reportable Super Contributions
• Tax Exempt Foreign Income

Key all income components. Key '0' (zero) if the customer indicates no income for that component.

Complete:

• Receipt Date: Today's date in activity in dd/mm/yyyy format
• Source: Select the relevant channel

Finalise activity via the Assessment Results (AR) screen

Record all details of the previous year estimate update on a DOC, including income amounts and any changes to entitlement or CCS reconciliation results.

CCS reconciliation outcomes will not display on AR in Customer First. After finalising FIPY update there could be a delay before the CCS result is visible in the CCS Reconciliation Dashboard in Process Direct.

Advise the customer that CCS will be reconciled once all available information becomes available.

The customer will receive notification of the outcome once completed. Customers will be able to view the status of their CCS reconciliation using the payment balancing service within their online account or Express Plus Centrelink mobile app.

Once CCS reconciliation has been completed staff can check the reconciliation result by selecting:

• Process Direct
• CCS Reconciliation Dashboard
• Enter CRN
• Relevant Year to display the latest reconciliation result for CCS

If customer CCS had cancelled due to 2DL, see Reconciliation of Child Care Subsidy (CCS) for more information.

Procedure ends here.