Cancellation of Family Tax Benefit (FTB) 007-07090020

Determine if the cancellation should be coded automatically or manually.

For a list of codes and if they are for automatic or manual cancellation, see Cancellation, rejection and Current Zero Rate codes for FTB.

Note: do not manually cancel FTB to change payment choice. See FTB claim options and payment choices.

FTB instalment customers may ask to cancel FTB to reduce the chance of an overpayment and claim any extra FTB after the end of the income year. These customers should be encouraged to choose the defer FTB Part A and Part B rather than have their FTB cancelled.

Customers can update their payment choice via self service (online, Express Plus Centrelink mobile app and Interactive Voice Response (IVR) phone self service. See FTB claim options and payment choices for further information.

The customer will not need to lodge a claim at the end of the income year. They will receive any top-up payment automatically once income tax returns are lodged by the end of the lodgement year.

FTB Part A and Part B will continue at a zero rate where a customer has provided a revised family income estimate that reduces the legislative rate of payment to nil (FTB CZR-ITH or CZR-IEU). Rather than cancelling, the payment will remain current at a zero rate for automatic assessment of entitlement at reconciliation.

Cancellation (CAN-INC) will apply if the source of the estimate is an uplift or the applicable income threshold has decreased due to a change in circumstances.

Note: if the customer is receiving Child Care Subsidy (CCS), advise the customer they can update their withholdings to avoid an overpayment of CCS. See CCS withholdings.

In case of future contact being required (for example, debts outstanding), check with the customer that their contact details are up to date, such as address, phone number, etc.

• For automatic cancellation, go to Step 2
• For manual coding, go to Step 3

Code details on relevant screens and allow system to cancel. The results will show on the Assessment Results (AR) screen

See the relevant procedure based on the circumstance for coding and procedural information.

Go to Step 7.

While in the customer's record, go to the Benefit Action (BA) screen by:

• Typing 'BA' in the Nxt field, or
• Selecting it from the appropriate task selection screen

Complete the coding:

• Complete the Service Reason: and Action fields
• Enter 'FTB' as the type of benefit in the Svc Rsn field
• Enter the code 'CAN' in the Action field

To obtain a relevant code, either:

• Use field help ('?') for relevant codes, or
• Look up Cancellation, rejection and Current Zero Rate codes for FTB and code fields, using appropriate cancellation code

Complete the footer details

Code the source of the cancellation in the Source field.

Code the date of receipt in the DOR field.

Code Date of Effect. See FTB dates of effect.

Press [Enter] and the date of effect will default or enter the date of effect of the cancellation in the Effect Date field.

If the customer's payment is cancelled and withholdings were being applied to their FTB, Run the Debt Repayment Guided Procedure.

If the guided procedure refers to the Debt Recovery team:

• Transfer the customer to the Debt Recovery team and/or
• Provide the phone number for the customer to call the Debt Recovery team as soon as possible to arrange payment

Go to the AR screen by keying 'AR' in the Nxt field, or pressing [Enter] if the BA or AR screens were selected from the task selection screen.

A manual letter will be required if a Manual Follow-up (MFU) activity has been created on the Activity List (AL) screen after the cancellation or where the FTB has been manually cancelled for reason OTH or INV.

• If there is an MFU or if the FTB has been cancelled for reason OTH or INV requiring a manual letter to be sent to the customer, go to Step 8
• If there is no MFU cancellation, go to Step 9

If there is an MFU on the AL screen, select the 'ADV' activity and complete the advice.

If there is no MFU activity on the AL screen complete a Q999. See Creating a Q999 or Q888 letter.

The letter should advise the customer of the reason for cancellation of payment and their review and appeal rights.

Ensure the DOC covers the reasons for the cancellation, how the information was received, if a manual advice was sent and other relevant information.

Existing Fast Note templates can be used for the below cancellation reasons. Select Auto text, use Families > SUS/CAN/RES and one of:

• FTB-CAN-FRC
• FTB-CAN-INC
• FTB-CAN-NDE
• FTB-CAN-OIS

For more information, including document requirements and Act References for other cancellation reasons, see:

• Online Document Recording (ODR), Resources page for Act References
• Creating, reviewing and deleting documents (including Fast Notes and DOA DOCs)