Checking reasonable action has been taken to obtain child support for Family Tax Benefit (FTB) past period claims 277-51070140

When claiming FTB for a previous year, details of the action taken to obtain child support must be provided at the time of claim. There are special rules for FTB mixed delivery customers. An FTB mixed delivery customer is a customer who was in receipt of FTB via instalments for part of the financial year and claimed as a lump sum for the remainder of the same financial year.

Where the customer is required to satisfy the MAT for a past period, the customer must have sought child support or be granted an exemption from seeking child support for that period, to be paid more than the base rate of FTB Part A.

From 2011-12 onwards, all claims are assessed using information provided by Child Support. Customers can no longer self-assess their child support. If the customer indicates on the claim t they have not taken action for their child/ren, and they have not supplied a reason which may indicate an exemption may be applicable, for example other parent overseas, family and domestic violence, parentage unknown etc., the customer fails the MAT for the relevant child/ren for the relevant financial year.

Before 1 July 2012, if a customer elected to privately collect their child support, Centrelink assumed the customer received their full child support entitlement. If a customer privately collected less than their full child support entitlement, they would fail the MAT and their FTB Part A would be restricted to the base rate for the child/ren, unless the customer was granted an exemption or changed to Child Support collection.

If the customer advised they had privately collected more than the full child support entitlement, the amount actually received in the financial year would be applied in the Maintenance Income Test.

From 1 July 2012, unless they are eligible for an exemption, private collect customers will be deemed to receive their full child support entitlement for Maintenance Income Test purposes, regardless of the amount actually received. Customers who collect less than the full amount as assessed by Child Support will no longer be restricted to the base rate of FTB Part A due to failing the MAT. They will continue to be deemed as receiving their full child support entitlement.

Exemptions from seeking child support may be backdated where the circumstances existed during the past period (e.g. fear of family and domestic violence, identity of parent unknown, cultural reasons).

If the customer has not taken action to obtain child support, the Service Officer will need to tell them of the appropriate action to take when they claim FTB so they can be paid more than the base rate of FTB Part A from that date.