Relationship Status for Family Tax Benefit (FTB) 007-07030130

Category

Description

1

Definition of a member of a couple

A person is a member of a couple if

• they are legally partnered to another person (legally married, in a registered relationship or in a de facto relationship) and are not living separately or apart from the other person on a permanent or indefinite basis, or
• all of the following conditions are met:
• the person has a relationship with a person
• the person is not legally married or registered to the partner
• the relationship between the person and the partner is as a member of a couple
• both the person and the partner are over the age of consent that applies in the State or Territory in which they live
• the person is not an ancestor, descendant or brother or sister (part or full blood) of the partner

In determining if a person is in a member of a couple relationship, consideration must be given to the following 5 factors:

• the financial aspects of the relationship
• the nature of the household
• the social aspects of the relationship
• any sexual relationship between the people, and
• the nature of the people's commitment to each other

2

Income test for members of a couple

• Part A is based on the combined adjusted taxable income of the customer and their partner. Details are needed for both members of a couple. Income details must be provided within 28 days. See Income tests for family assistance
• Part B is limited to families where the higher income earner in an eligible couple (a couple with a youngest child under 13 years of age or a grandparent or great grandparent couple with a youngest child over 13 years of age) has an adjusted taxable income of $100,000 per year or less
• If the primary earner's income is at or below this limit, FTB Part B will be assessed on the secondary earner's income. See Income tests for family assistance, FTB Part B

3

Members of illness, respite care or temporarily separated couples

For definitions of these couples, see the Social Security Act 1991, section 4.

• These couples are still treated as couples and the normal income test for members of couples applies
• However, members of these couples may be entitled to higher Rent Assistance rates

Temporarily separated couples:

• Only married or registered couples can be temporarily separated
• To verify temporary separation, the Service Officer must establish the customer lives apart from their partner (for example, proof of payment for accommodation) and may need to discuss the circumstances with the customer

Couples separated due to illness or respite care:

• Partnered couples who are unable to live together due to illness or infirmity. This can be verified by confirming admission to a nursing home, hostel or other community based care

Coding:

• Relationship status is recorded on the Marital Status (MS) screen which can be accessed directly or selected from the Customer Details Task (CDTS) screen
• To ensure the correct rate of Rent Assistance is paid, the correct code must be input on the Accommodation (AC) screen

4

Separated under 1 roof

• Customers who are assessed as separated even though they share accommodation with their former partner are treated the same as a single customer
• If they share the care of a child/ren with their former partner, they can be paid Family Tax Benefit if the percentage is at least 35%, they are treated like any 'shared care' customer. The pattern of care must be established to work out the % of care

5

Separated, but claim is for a period when member of couple

• Family Tax Benefit can be shared between 2 people who have separated but who both claim Family Tax Benefit for a period when they were a couple. See Separated couples and eligibility for Family Tax Benefit for a period before separation for more information
• For the period before separation, an overall rate is calculated based on the incomes of both members of the couple and the rate is then shared according to a percentage agreed between them. (Must be at least 35%). If no agreement, pay 50% each

6

Partner in gaol

These customers will be treated as members of a couple. Part B will be income tested on the lower earner's income.