Family Tax Benefit (FTB) and Child Care Benefit (CCB) debts for the 2000-2001 income year 107-04090060

Item

Description

1

Review or re-reconciliation

• I have recently reviewed your overpayment of Family Tax Benefit (FTB) after receiving an update of your family income for the 2000-01 Financial Year. Based on this information, the amount of FTB or Child Care Benefit (CCB) that you received was more than you were entitled. The result is an overpayment of $xxx.xx or
• Following reconciliation of your FTB for the 2000-01 financial year, your entitlement has been recalculated due to updated information about your family income. As a result, the amount of FTB or CCB that you received was more than you were entitled. The result is an overpayment of $xxx.xx

2

Replacement letter - Mandatory

This letter replaces any previous letters you may have received about FTB/CCB paid to you in 2000-2001.

3

If the customer is eligible for the $1,000 waiver

To assist families to adjust to the new system, the Government decided that for the 2000-01 financial year only, families do not have to repay the first $1,000 of some FTB overpayments related to incorrect estimates of income or shared care or the first $1,000 of some CCB overpayments.

4

Amount of overpayment

• As the amount of your excess payment is below the waiver amount allowed, you do not have to repay any money or
• The overpayment has been reduced by the 2000-01 financial year waiver introduced by the Government or
• I have decided that as your repayment is less than $50 you do not have to repay any money

5

Where the customer has made payments on the original overpayment

• The money you have already repaid will be transferred to the recalculated overpayment or
• The money you have repaid will be transferred to the recalculated overpayment and any other outstanding debts or
• You are owed a refund for repayments you made prior to this review

6

Details of the amount payable for the period 1/7/2000 to 30/6/01

• Amount paid is the total amount the customer received. See the Families Reconciliation & Claim Summary (FRCS) screen for finalised reconciliation or re-reconciliation results
• Amount for period is the total amount the customer should have received. See the FRCS screen for the finalised re-reconciliation result
• Amount overpaid is the overpayment amount before any waiver
• Amount of $1,000 waiver is the amount of the waiver applied
• Amount of small debt (LTF) less than $50 waiver is the amount of waiver applied other than the $1,000 waiver
• Amount repaid is the amount previously repaid on the overpayment that was zeroed
• Due Date is the date the overpayment was raised date plus 28 days

7

Notification obligations

To avoid being overpaid in the future, it is important that you ensure the estimate of your income and other information you have given to Services Australia about your circumstances is correct. You can now update your income estimate by visiting our Website at www.servicesaustralia.gov.au

8

Contact number for overpayments once waivers have been applied

Please call Services Australia on (insert the appropriate Payment Assurance Operations phone number) to discuss your repayment options before the due date.

Item

Example

1

Waiver of $1,000 and small debt waiver provisions examples

Example 1

Jane has a reconciliation debt of $48. This is less than $50. The debt is automatically waived under the small debt waiver provision.

Example 2

Wayne has a reconciliation debt of $600. This is more than $50 and less than $1,000. The debt is automatically waived under the $1,000 transitional waiver provisions.

Example 3

Shane has a reconciliation debt of $1,038. This is more than $1,000 but less than $1,050. The first $1,000 is automatically waived under the $1,000 transitional waiver provisions. The balance of $38, and is automatically waived under the small debt waiver provisions.

Example 4

Elaine has a reconciliation debt of $1600. The $1,000 transitional waiver is automatically applied. The balance of $600 is over $50. The small debt waiver provision cannot apply. Elaine has an outstanding balance of $600 to repay. Elaine has a recoverable debt of $600.

2

Blended family example

Natasha and Ben are a couple. They both have children from previous relationships. Each has claimed FTB instalments during the 2000-01 income year. The agreed percentage for FTB is Natasha 75%, Ben 25%.

At reconciliation, Natasha and Ben's actual income is more than the estimate used during the year. This results in the following debts:

• Natasha's FTB debt is $900
• Ben's FTB debt is $600
• Natasha also has a CCB debt of $350

Full waiver applies to all 3 debts. Natasha and Ben both have access to the $1,000 waiver to FTB and CCB.

3

Shared care example

Tom and Mary have shared care of their child Alice since separation. They each received FTB and CCB during the 2000-01 income year. Tom's level of care was 25%, Mary's 75%.

At reconciliation:

• Tom has a $700 FTB debt and a $260 CCB debt due to actual income being higher than the estimate of income
• Mary has a $600 FTB debt due to actual maintenance income being higher than the amount used during the year. Mary is entitled to a CCB top-up because the actual income was slightly lower than the estimate of income

Full waiver applies to all 3 debts. Both Tom and Mary have access to the full $1,000 waiver to FTB and CCB.

4

Applying the $1,000 waiver at re-reconciliation examples

Reconciliation and re-reconciliation both result in a top-up

• At reconciliation:
• FTB paid - $5,000
• FTB entitled - $6,000
• Top-up - $1,000 paid as a direct credit
• At re-reconciliation, the full amount paid at reconciliation is used in the calculation:
• FTB paid - $6,000
• FTB entitled - $6,400
• Top-up - $400

Reconciliation results in a top-up, re-reconciliation results in a debt

• At reconciliation:
• FTB paid - $3,000
• FTB entitled - $4,000
• Top-up - $1,000
• At re-reconciliation:
• FTB paid - $4,000
• FTB entitled - $3,500
• Debt - $500 waived under $1,000 waiver

Reconciliation results in a debt, re-reconciliation results in a top-up

• At reconciliation:
• FTB paid - $6,000
• FTB entitled - $4,500
• Debt of $1500. $1,000 waived. $500 raised as a recoverable debt
• At re-reconciliation, the reconciliation debt is cancelled and the amount included in the calculation:
• FTB paid - $6,000
• FTB entitled - $6,200
• Top-up - $200

$50 was withheld from ongoing FTB instalments to repay the reconciliation debt. This amount is manually refunded to the customer.

Reconciliation and re-reconciliation both result in a debt

• At reconciliation:
• FTB paid - $5,000
• FTB entitled - $3,000
• Debt of $2,000. $1,000 is waived and $1,000 is raised as a recoverable debt
• At re-reconciliation, the reconciliation debt is cancelled and the amount included in the calculation:
• FTB paid - $5,000.
• FTB entitled - $3,500
• Debt of $1,500. $1,000 is waived. $500 is raised as a recoverable debt.

$100 was withheld from ongoing FTB instalments to repay the reconciliation debt. The repayments are manually transferred to the new debt. This leaves a balance of $400 to be repaid.