Family Assistance debts 107-04060000

FTB debts are identified:

• through the end of year reconciliation process
• by a customer or approved care organisation notifying their circumstances have changed after the event has occurred or
• through compliance activities

The main types of FTB debts are:

• qualification
• circumstance
• family and maintenance income
• reconciliation, and
• non-lodger

Qualification debts occur when a customer receives a payment for which they were not eligible. This can occur if a customer:

• receives more FTB and it is later determined that they were not a resident of Australia, or
• was in receipt of more than base rate of FTB and has failed to meet the Maintenance Action Test (MAT)
• does not meet the eligibility requirements for:
• individuals
• grandparent carers
• children in foster care

Raise qualification debts as soon as the loss of qualification is identified.

A circumstance debt occurs from any changes, other than:

• income and
• maintenance income

Circumstance debts arise if a change in circumstances results in the customer losing qualification to a payment. Raise the debt at the time the change in circumstances is identified.

For example, FTB eligibility would cease from the day a child left care where a customer notifies that a child left their care 1 month ago. Raise the debt immediately.

Family and maintenance income overpayments generated for a period in the current financial year do not need to be raised immediately, zero the negative adjustment before finalising the activity.

Family and maintenance income debts will be determined in the FTB reconciliation process.

Reconciliation debts are a result of underestimating family income and/or maintenance income.

Customers receiving FTB payments as fortnightly instalments or as a fee reduction are usually paid based on an estimate of adjusted taxable income for the financial year. If a customer received more than they were entitled to for that financial year, they will have a reconciliation debt.

Reconciliation debts can also be raised due to child income and retrospective changes in circumstances.

A non-lodger debt occurs when a customer or their partner does not lodge an income tax return within the required time.