Manual Follow-ups (MFU) for Family Assistance reconciliation recovery 107-04110000

A MFU is created when a FTB re-reconciliation activity generates a change to an already calculated held debt amount. As an automatic advice is not issued, the MFU is a reminder that a manual account payable letter is required to be sent.

Debt waiver measures were in place for the 2000-01 financial year for debts resulting from:

• family assistance reconciliation
• Australian Taxation Office (ATO) amended tax notice of assessment (TNA) re-reconciliation, and
• Centrelink family assistance generated re-reconciliation

These measures assisted customers with the transition to the family payment system and ensured customers received the full benefit of waiver provisions for FTB and CCB debts .

In some cases, a waiver of the first $1,000 occurred for a:

• FTB debt, and
• CCB debt

Eligibility for transitional waiver included:

• customers paid FTB via instalments during 2000-01
• mixed delivery customers (customers who have been paid instalments and paid via an FTB ATO claim or Centrelink past period claim for 2000-01), and
• CCB customers

A debt may have occurred due to :

• underestimation of:
• adjusted taxable income (ATI)
• maintenance income provided for payment of FTB by fortnightly instalments
• a child's ATI (where the child's actual ATI exceeded the $7662 cut out) for FTB by fortnightly instalments and/or CCB by reduced child care fees
• FTB being paid fortnightly for a child at a percentage higher than the customer's share of care for that child, and
• overestimates of child care usage provided for payment of CCB by reduced fees

Customers must receive an account payable letter to advise of a debt. Where a MFU exists, letters are not automatically issued after re-reconciliation. When completing a family assistance re-reconciliation account payable letter including statement of recoverable amount (Q418), the following details must be included:

• the service reason FTB and/or CCF
• debt reason
• start and end dates
• amount paid and amount entitled
• less any repayments
• amount owing
• recovery information
• special arrangements during the 2000-01 (transitional year) of $1,000 waiver

This family assistance re-reconciliation account payable letter replaces all previous entitlement letters.

Note: for FTB and/or CCB debts for the 2000-2001 income year, see Family Tax Benefit (FTB) and Child Care Benefit (CCB) debts for the 2000-2001 income year.

Include the Interest Charge warning in the Q418 on the account payable for:

• former Centrelink customers, no longer receiving Centrelink payments who:
• are not in an acceptable payment arrangement, and
• do not have any excludable circumstances

See Interest Charge (IC) for Centrelink debtors no longer receiving payments.