Family Tax Benefit (FTB) child income 007-07060040

If the child's income is equal to or above the child income limit for the 2013-2014 financial year and the child's income limit applied to the child during the period 1 July 2013 - 30 April 2014, they are not a Family Tax Benefit (FTB) child for the period it applied.

If a customer advised after 1 May 2014 that their child's income will be over the limit, any qualification debt is to be raised immediately, but FTB will not be cancelled.

If FTB for the customer has cancelled due to child income, the customer must lodge a new claim to receive FTB for the child. For current FTB customers, an 'Add Child' activity will be appropriate.

Customers who have deferred FTB for the child during the year must confirm the child's income after the financial year for FTB entitlement for the child to be included in the reconciliation calculation.

The child income limit applied to children aged:

• 5-15 years who were not studying full-time
• 16 or 17 years who were not in full-time secondary study, for example, they have completed Year 12 or equivalent qualification
• 16-19 years with an exemption from the education/training requirements

A child with an adjusted study load was considered to be in full-time secondary study and therefore the child income limit did not apply.

For the 2011-2012 financial year the child income limit applies to all 16-19 year olds (even if in full-time secondary study) from 1 July - 31 December 2011.

Income earned in the whole financial year affects Family Tax Benefit (FTB) for the period the child income limit applied.

If the child's adjusted taxable income is equal to or above the child income limit in the relevant financial year, they are not an FTB child or Regular Care Child for any period in the financial year the child income limit applied to them. For any period in the financial year where the child income limit did not apply to the child, that period is quarantined and not included in the child income limit debt as part of the reconciliation process.

To reduce the risk of overpayment, customers could choose to receive Family Tax Benefit (FTB) for a child with income after the end of the financial year when the child's actual income is known. The customer then needed to advise whether or not the child's income was under the child income limit to be paid any extra FTB for the child.

If the child had received income by way of compensation or superannuation, and any of the amount received was considered by the Australian Taxation Office (ATO) to be taxable income, the taxable portion was treated as taxable income of the child.

If the child is a member of a couple, the child's adjusted taxable income includes their partner's adjusted taxable income.