Energy Supplement for Family Tax Benefit (FTB) recipients 101-03090060

There are three major changes that are effective from 20 March 2017:

• New claimants receiving Family Tax Benefit Part A or Part B will not receive Energy Supplement. These claimants will not be grandfathered
• Recipients who received Energy Supplement in respect of 19 September 2016 will continue to be paid Energy Supplement as long as they remain entitled to Family Tax Benefit Part A or Part B at a legislative rate greater than $0. These recipients will be grandfathered
• Recipients who start to receive or do not have a continuous entitlement to Family Tax Benefit Part A or Part B between 20 September 2016 and 19th March 2017 will receive Energy Supplement for every day they were eligible in that period and then they will stop receiving Energy Supplement from 20th March 2017. These recipients will not be grandfathered

For FTB recipients to be eligible for Energy Supplement Part A recipients must:

• be eligible for Family Tax Benefit Part A at a legislative rate greater than $0, and
• be grandfathered for Energy Supplement purposes, and
• satisfy Australian residence requirements. Temporary overseas absences of up to 6 weeks are acceptable

For FTB recipients to be eligible for Energy Supplement Part B recipients must:

• be eligible for Family Tax Benefit Part B at a legislative rate greater than $0, and
• be grandfathered for Energy Supplement purposes, and
• satisfy Australian residence requirements. Temporary overseas absences of up to 6 weeks are acceptable

FTB recipients who lose their grandfathered status for Energy Supplement will not be eligible to Energy Supplement from that date onwards.

If temporarily overseas, after 6 weeks the Energy Supplement will cease for the recipient (or for the child if only the child is overseas).

Grandfathered Approved Care Organisations (ACO) are eligible for base rate Energy Supplement Part A for all FTB children. Organisations that become ACOs after 19 September 2016 will not be eligible for Energy Supplement. See Item 15 in Table 1 on the Process page for more information about ACOs.

There are two important dates to consider that impact on a recipient's grandfathering status for Energy Supplement Part A and Energy Supplement Part B.

• 20 March 2017 is the date grandfathering rules came in to effect
• 19 September 2016 is the test date for grandfathering for Energy Supplement Part A and Part B
• Recipients must have been eligible for Family Tax Benefit (FTB) Part A and/or Part B at a legislative rate greater than $0 in respect of 19 September 2016

This includes:

• FTB Lump Sum claimants if they were eligible for FTB Part A or FTB Part B at a legislative rate greater than $0 in respect of 19 September 2016
• Claimants that are granted FTB with a backdated date of effect, and the backdated period includes FTB Part A and/or FTB Part B at a legislative rate greater than $0 in respect of 19 September 2016
• Recipients who have a cancelled status as of 19 September 2016 and their FTB is later restored at a legislative rate greater than $0, and the restored period includes 19 September 2016
• Recipients who did not receive FTB as instalments, in respect of 19 September 2016, but, at reconciliation, the recipient is found to be eligible for FTB Part A and/or FTB Part B at a legislative rate greater than $0 in respect of 19 September 2016
• Recipients who are subject to Prohibition of Family Tax Benefit Instalment Payments (PIP) or deferred PIP as of 19 September 2016
• Current at zero rate (CZR) recipients, or
• Cancel at next pay (CNP) recipients

Recipients who meet the above eligibility for grandfathering, and who have their FTB paid to a third party (for example, a nominee) are still considered to meet the grandfathering provisions.

Note: the legislative rate is before deductions are taken into account including:

• More Choice for Families (MCFF) options
• Mandatory Continuous Adjustment
• Recovery of an advance payment or debt

A recipient who is only entitled to the Rent Assistance component of Family Tax Benefit for a 'regular care' child (i.e. less than 35% care), in respect of 19 September 2016, will not become grandfathered.

Losing Grandfathering Status - see Item 3 in Table 1 on the Process page.

Transferring between FTB Part A and FTB Part B - see Item 4 in Table 1 on the Process page.

Grandfathering status and Adding a child - see Item 5 in Table 1 on the Process page.

FTB payment choices allow recipients to choose how to receive their Energy Supplement payments as part of their FTB Part A and Part B entitlement: fortnightly, quarterly or after the financial year.

For any FTB paid fortnightly, the Energy Supplement payments are paid fortnightly by default. Grandfathered recipients may choose to be paid quarterly instead (if FTB Part A and Part B are paid fortnightly, the Energy Supplement for Part A and Part B must be paid the same way, that is, both fortnightly or both quarterly).Quarterly Energy Supplement payments are paid October, January, April and July each year.

Grandfathered recipients lodging an FTB lump sum claim will receive the Energy Supplement as part of their annual FTB entitlement when their claim is finalised.

Grandfathered ACOs are paid Energy Supplement Part A fortnightly.

Energy Supplement Part A and Part B are calculated as a daily rate based on income and other circumstances used to calculate the recipient's FTB Part A and Part B rates. The Energy Supplement payments are included in the FTB reconciliation process.