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Entitlement Method 277-51080050



Level 2 Policy Helpdesk

Examples of using the Entitlement method to estimate income

This table provides examples of using the Entitlement Method to estimate annual maintenance income for Family Tax Benefit (FTB) Part A during the financial year.

Item

Example

1

Child support entitlement decreases during year + Read more ...

As at 1 July 2006, Trish has an annual child support entitlement of $4000 which is collected privately.

Child Support reassesses the entitlement to $3000 with effect from 25 December 2006. When details are transferred from Child Support on 5 January 2007, Trish has been paid FTB up to 31 December 2006.

Annual maintenance income is estimated as follows to work out Trish's FTB Part A rate during the 2006-07 financial year:

  • From 1 July 2006, annual maintenance income is $4000.
  • On 5 January 2007, annual maintenance income is recalculated and applied to the FTB Part A rate from 1 January (DPT + 1):
    • $4000 x 184 days / 365 = $2016.44 (for the period 1 July - 31 December 2006)
    • $3000 x 181 days/ 365 = $1487.67 (for the period 1 January - 30 June 2007)
    • Total = $3504.11

At FTB reconciliation, annual maintenance income is calculated as $3504.11 as above. As Trish was paid FTB Part A for the first half of the financial year based on an estimate of annual maintenance income of $4000, Trish may be entitled to a top-up payment of FTB.

From 1 July 2007, annual maintenance income is estimated as $3000 as this is Trish's current annual entitlement.

2

Child support entitlement increases during year + Read more ...

Trish's annual child support assessment is $3000 from 1 June 2006.

Child Support advises on 5 January 2007 that Trish's entitlement has increased to $4000 with effect from 25 December 2006. Trish has been paid FTB up to 31 December 2006.

Trish collects child support privately.

Annual maintenance income is estimated as follows to work out Trish's FTB Part A rate during the 2006-07 financial year:

  • From 1 July 2006, $3000 is the annual maintenance income
  • On 5 January 2007, annual maintenance income is recalculated and applied to the FTB Part A rate from 1 January (DPT + 1):
    • $3000 x 184 days / 365 = $1512.33 (period 1 July - 31 December)
    • $4000 x 181 days/ 365 = $1983.56 1 Jan - 30 Jun)
    • Total = $3495.89

At FTB reconciliation, annual maintenance income is $3495.89 as above. As Trish was paid FTB Part A for the first half of the financial year based on an estimate of annual maintenance income of $3000, Trish may have been overpaid during that period.

From 1 July 2007, the annual maintenance income is estimated as $4000 as this is Trish's current annual entitlement.

3

Child support assessment applies for less than full year + Read more ...

As at 1 July 2006, Bonita has a current annual child support entitlement of $4000 which is collected privately.

Child Support advises on 5 January 2007 that Bonita's entitlement has reduced to $3000 from 25 December 2006. Bonita has been paid FTB up to 31 December 2006 (DPT).

On 1 April 2007 Bonita reconciles with the paying parent John and advises Centrelink. Bonita asks Child Support to end the child support assessment from that date.

Annual maintenance income is estimated as follows to work out Bonita's FTB Part A rate during the 2006-07 financial year:

  • From July 1 2006, annual maintenance income is $4000
  • From 5 January 2007, annual maintenance income is recalculated with effect from DPT + 1:
    • $4000 x 184/ 365 = $2016.44 (1 July - 31 December 2006)
    • $3000 x 181/ 365 = $1487.67 (1 January - 30 June 2007)
    • Total = $3504.11
  • From 1 April 2007, annual maintenance income is recalculated because Bonita is no longer entitled to maintenance from John from 1 April.:
    • $4000 x 184 days/ 365 = $2016.44 (1 July - 31 December 2006)
    • $3000 x 90 days/ 365 = $739.72 (1 January - 31 March 2007)
    • Annualised total = $2756.17 x 365/ 274 days = $3671.53 (1 July 2006 - 31 March 2007 is 274 days)

At FTB reconciliation, annual maintenance income is $3671.53. Bonita's FTB Part A entitlement may be adjusted because a different maintenance income amount was used up until 31 March to work out the ongoing FTB payments.

Maintenance income is nil from the start of the next financial year.