Reconciliation of Family Tax Benefit (FTB) 007-11010000

For information about viewing FTB reconciliation and lump sum claim details, see Enquiries about FTB reconciliation or lump sum claim.

In Customer First, for:

• 2010-11 onwards, select Workspace > Families Benefits > FTB and CCB Reconciliation > Family Tax Benefit (FTB) and Child Care Benefit (CCB) Reconciliation workflow
• 2009-10 or earlier years, see Enquiries about Family Tax Benefit (FTB) reconciliation or lump sum claim

To view details on the Centrelink system, select the FTB reconciliation completed or finalised line from the FAO Reconciliation and Claim Summary (FRCS) screen. See FTB reconciliation and lump sum calculation screens.

• If FTB reconciliation has not yet occurred, see FTB reconciliation or lump sum claim pending
• To check details of FTB reconciliation and lump sum claim amounts used for offsetting and debt recovery, in Customer First:
• from the FTB and CCB Reconciliation workflow, select the twisty next to the reconciliation result for factors that have affected the reconciliation result
• select the AMR number to show Supplement details and which payments have been withheld for debts
• the FTB Debt Offset Summary (FTBDOS) screen in Customer First will summarise all FTB debt offsetting that has occurred for the customer

Reconciliation is an automatic process that occurs after the end of a relevant financial year for customers who have been paid FTB as either fortnightly payments or a lump sum.

For customers to receive their full annual FTB entitlement, income lodgement requirements must be met by the end of the lodgement year (extended lodgement year for 2011-12 or earlier years).

At reconciliation, the system:

• calculates correct FTB entitlement based on actual dates of changes in circumstances, actual income details transferred from the Australian Taxation Office (ATO) (if required), or income provided by the customer when completing a not required to lodge advice, immunisation status and actual maintenance income
• includes, if entitled, Part A supplement, Part B supplement, Energy Supplement Part A and Part B and Single Income Family Supplement (SIFS) in maximum annual FTB entitlement once all required information and adequate income or not required to lodge details are available. SIFS is assessed using taxable income, not adjusted taxable income (ATI), which means FTB reconciliation may result in only SIFS being assessed. Note: SIFS is not payable to new claimants for 2017-18 and later financial years. Grandfathering provisions apply for current customers
• assesses entitlement to Part B quarantine period if return to work details are recorded
• compares correct entitlement based on actual adjusted taxable income and maintenance income with the amount of FTB the customer was paid during the financial year using estimated income and estimated maintenance income
• will use a top-up to offset any debts, even if a payment arrangement exists

Special processing rules apply for ex-partners.

The result of FTB reconciliation can be either:

• no change
• a top-up payment issued by Centrelink which may be used to offset other family assistance, social security, student assistance and Paid Parental Leave scheme payment debts or tax debts, or
• a debt, part or all of which may be recovered from tax refunds. Tax refunds can be used to recover any FTB debt as well as Child Care Benefit (CCB)/Child Care Rebate (CCR) debts determined after 1 July 2016

Reconciliation can occur from 2 July of the lodgement year once all information is available, including actual income details needed for the customer (and/or their current partner) if required.

From 2018-19, reconciliation will not occur until a child’s immunisation status has been received. Additionally, for FTB instalment claims, reconciliation will not occur until all FTB Part A immunisation grace periods that started in the financial year have been completed. See Immunisation requirements for Family Tax Benefit (FTB) Part A from 1 July 2018.

If a customer queries why reconciliation has not occurred, see Family Tax Benefit (FTB) reconciliation or lump sum claim pending.

Automatic FTB reconciliation will occur in the first 2 weeks of July of the lodgement year for customers who have received their last payment for the financial year and:

• have adequate income/not required to lodge details available, or
• are single and on an income support payment with no gaps in payment or employment income nil rate periods for the entire period they were FTB current during the financial year, e.g. Parenting Payment Single (PPS)

Partial reconciliation, including FTB supplements, can occur from 2 July following the relevant year if only ex-partner actual income details are needed for reconciliation to occur. SIFS is not paid for a partnered period if partner income is not known. Special processing applies for customers with an ex-partner.

Reconciliation will remain pending until all required information is available for reconciliation. See Family Tax Benefit (FTB) reconciliation or lump sum claim pending.

Note: before August 2022, customers residing in locations affected by disaster events may have their FTB reconciliation remain pending ‘debt deferral’ where the outcome was a debt.

From 2015-16 financial year onwards, forced reconciliation no longer applies. Reconciliation will not occur until the customer and their partner confirm their income for the relevant financial year.

For financial years 2014-15 and earlier, forced reconciliation may have been done on some records.

Forced reconciliation was the process where the system attempted to reconcile some records that were held pending. It occurred from mid-November of the lodgement year, for the following pending reasons:

Low Income Review

The customer (or their partner) had an estimated income below $6,000 and was neither a Liable Parent nor a Recipient Parent under a child support assessment.

Child Deferral

Prior to 1 May 2014, if the customer deferred payment of FTB for any child until after the end of the relevant year, and did not advise whether the child's income had exceeded the child income limit, reconciliation excluded the deferred child.

From 13 June 2015, no new instances of child deferral could be coded. From 1 July 2015, customers with the child deferral payment choice in place had the choice ignored.

From the 2014-15 financial year, deferred children were automatically included in the reconciliation result as child income requirements no longer applied.

300 day Income Support

The customer (or their partner) received income support payments for more than 300 days in the financial year, and:

• the customer did not receive any FTB Part B while partnered during the year, and
• the income support customer is neither a Liable Parent nor a Recipient Parent under a Child Support Assessment

Child Disability Allowance (CDA)/Double Orphan Pension (DOP) saved FTB rate

The customer has been paid a CDA or DOP saved rate of FTB for the whole financial year and they did not receive any FTB Part B while partnered during the year.

Once the tax return is received and assessed by the ATO, actual income details are automatically sent to Centrelink for the reconciliation result to be calculated. Note: from 1 July 2019, the taxable income or loss amount reported by the ATO to Services Australia will exclude any assessable First Home Super Saver (FHSS) Scheme amount from the data transfer. These amounts are disregarded when calculating a customer’s income for family assistance purposes.

Have actual income details been received?

To check in:

• Process Direct on the FAO Reconciliation and Claim Summary (FRCS) screen, select the most recent reconciliation line for the relevant financial year to go to FAO Non Lodger Details (FNLD) screen
• Customer First, type 'L' next to line on the FAO Reconciliation and Claim Summary (FRCS) screen to go to the FAO Non Lodger Details (FNLD) screen

The FNLD screen will display the following for the customer and/or partner:

• Has lodged
• Has not lodged
• Has an exemption from lodging where the FAO Non-Lodger Exemption (FNLE) screen is coded
• Is excluded from lodging

If actual income details have not been received and the customer advises a tax return:

• is required to be lodged or is not required to be lodged, see Non-lodger and late lodger process for FTB reconciliation
• has been lodged, see ATO information not received for family assistance reconciliation or lump sum claim

Schoolkids Bonus ceased from 31 December 2016. It was last payable for the 30 June 2016 bonus test day.

The notification period to update child education details for FTB customers to receive the 1 January 2016 and 30 June 2016 Schoolkids Bonus instalments ended on 30 June 2017.

However, Schoolkids Bonus assessments may still result from FTB reconciliation for the 2012-13 through to 2015-16 financial years.

For more information, see Schoolkids Bonus.

ATO

After income details have been received from the ATO, details of family assistance debts are sent back to the ATO for possible debt offsetting from the customer's (or their consenting partner's) tax refund.

Debt offsetting from tax refunds may occur regardless of whether a repayment arrangement is in place.

The ATO will advise Centrelink of any amounts used to recover outstanding family assistance debts.

Centrelink

FTB instalment arrears, reconciliation top-ups and lump sum claim amounts can be automatically used to repay family assistance, social security, student assistance and Paid Parental Leave scheme payment debts. This will happen even if the customer has a payment arrangement in place.

Temporary exclusion from debt offsetting may be considered if special circumstances apply.

An FTB top-up or lump sum claim amount, after debt offsetting by Centrelink, may be used by the ATO to offset tax debts if the ATO has not yet issued the Notice of Assessment (NOA).

Centrelink will issue any remaining FTB top-up amount to the customer after debt offsetting, and issue a letter to advise the customer of the result.

As Newborn Supplement (NBS) is a component of FTB Part A, it can be used in debt offsetting or may be included in the top-up. Newborn Upfront Payment (NBU) can only be used to offset a previous NBU debt. A separate letter will be sent to the customer about NBU.

To check details of transactions sent to the ATO, in Customer First, type 'T' next to the line on the FAO Reconciliation and Claim Summary (FRCS) screen to go to the FAO Reconciliation & Claim Transaction (FRCT) screen.

For more information, see Enquiries about FTB reconciliation or lump sum claim.

To check individual debt details sent to the ATO and what debt has been offset from a tax refund, in Customer First type 'Y' in the 'Go to FTB Debt Withholding - ATO screen' field to go to the FAO Withholding for Debt Recovery - CLK (FWDA) screen.

For more information about transactions between the ATO and Centrelink, see Debt offsetting during family assistance reassessment, reconciliation and claim processing.

Since 1 July 2009, the ATO no longer delivers FTB reconciliation or lump sum claim payment to the customer or advises FTB entitlement details in the Notice of Assessment (NOA) issued to advise the tax assessment.

However, an FTB top-up or lump sum claim amount, after debt offsetting by Centrelink, may be used by the ATO to offset tax debts if the ATO has not yet issued the NOA.

Services Australia issues the FTB reconciliation top-up payment or lump sum claim amount (if entitled) and issues a letter to the customer to advise the result. If the customer has subscribed to Electronic Message and Reminder Service, an SMS may be sent to confirm a top up has been issued.

Reconciliation letters advise details of any amounts used to offset or repay a Centrelink debt. An account payable will be issued for any FTB reconciliation debt raised for the relevant financial year.

For more information, see Debt offsetting during family assistance reassessment, reconciliation and claim processing.

Reconciliation may result in FTB not being assessed for the full financial year if there were periods when FTB was not current.

If the periods where FTB has not been assessed during the financial year are due to income (CAN-INC) the customer will be advised on their reconciliation letter that they should contact the agency so their entitlement can be checked.

Customers who had a non-payment period during the financial year due to income (CAN-INC) will receive a reconciliation letter advising:

• FTB has not been assessed for the full financial year
• to make an annual lump sum claim to reassess eligibility for the income cancellation period

Service Officers can identify any non-payment periods for the financial year via the FAO Reconciliation and Claim Summary (FRCS) screen in Customer First (code 'Y' next to Go to Reconciliation & Claim Period Summary Screen). Further checks are needed to determine if any are due to income cancellation.

For more information, see Assessment of income cancellation periods in FTB reconciliation

FTB zero rate periods will be assessed automatically at reconciliation.

Applicable zero rate periods (CZR) include:

• ITH or IEU where FTB has reduced to zero rate because a customer provided estimate is too high to receive fortnightly payments
• MCA Mandatory Continuous Adjustment
• MCO Nil Pay More Choice Option
• Prohibition of FTB instalment payments (PIP)

Reconciliation is based on the following information for the relevant financial year:

• Information provided by the customer. See Dates of effect for review of decision outcomes
• Centrelink details of non-taxable income support payments, tax-free pensions or benefits paid to the customer or partner. However, if their most recent estimate of these amounts is higher than the Centrelink details, the most recent estimate amount(s) will be used
• If required, actual adjusted taxable income (AATI) details transferred from the ATO once the customer or current partner or ex-partner has their tax return assessed. A link with the ATO must have been set up through the Mutual Customer Identification (MCI) process
• The latest estimate for the relevant financial year for other components of adjusted taxable income, and for those not required to lodge a tax return. In some cases, the latest estimate for these income components will be a default estimate
• For maintenance reconciliation, details of maintenance action, entitlement and disbursements for the customer and partner(s) transferred from Child Support
• Income assessment modes are used to determine which income details are used for reconciliation. See Item 4
• Immunisation status for FTB Part A children, provided by the Australian Immunisation Register (AIR) from information updated by the child's vaccination provider. A link between Centrelink and the AIR must be set up. See Item 6
• Healthy Start for School (HSFS) health check status, for applicable children only. This information is provided by the customer. See Item 6

Included in reconciliation calculation:

• All FTB (Part A and Part B) paid in the relevant financial year
• FTB debt calculation amounts caused by income and maintenance income that were zeroed during the relevant financial year. Note: qualification debts (for example, changes in care, shared care changes, residence and Rent Assistance (RA) may be raised when they are identified, otherwise will be included in the reconciliation result
• Rent Assistance
• Large Family Supplement (LFS). Note: LFS ceased to be payable from 1 July 2016. In the 2015-16 financial year, LFS was payable only to families with 4 or more children
• Multiple Birth Allowance (MBA), see FTB Part A - rates
• Newborn Supplement (NBS)
• Energy Supplement for FTB recipients. From 20 March 2017, Energy Supplement is only payable if grandfathering provisions are met
• FTB Part A supplement (if eligible) and Part B supplement
• Single Income Family Supplement (SIFS). Note: SIFS is not payable to new customers for 2017-18 and later financial years. Grandfathering provisions apply for existing customers

Excluded:

• Arrears for previous financial years
• Reissued payments (because the initial payment was included) and returned payments that have not been reissued. See Returned payments and their effect on family assistance reconciliation
• FTB raised as a debt for the relevant financial year
• Advance payments of FTB (this amount is included in the customer's legislative FTB Part A)

The system calculates a person's annual FTB entitlement for the relevant financial year by applying the actual dates of any changes in the family's circumstances.

To receive their full annual FTB entitlement, income lodgement requirements must be met by the end of the lodgement year (extended lodgement year for 2011-12 or earlier years).

There are 2 main steps, income reconciliation and maintenance reconciliation

• Income reconciliation for income reconciliation periods where estimated income was used to work out their FTB rate during the relevant financial year. If available, actual adjusted taxable income details are used to work out correct FTB entitlement. Income assessment modes. See the Resources page for further information
• For any period they were partnered, their and their partner's combined adjusted taxable income is used to work out the correct FTB rate. FTB Part A is not income tested for periods during which they or their partner received an income support payment above nil rate. FTB Part B is income tested for all partnered periods. See Effect of income support entitlement on FTB
• Special processing rules apply for ex-partners
• If they or their partner returned to work after caring for a child during the relevant financial year, FTB Part B may be paid free of the secondary earner income test for the period before the return to work. See FTB Part B quarantine and the reconciliation process
• FTB entitlement to Part A and Part B supplements and SIFS is assessed during reconciliation once income lodgement and any other required information is available
• From 1 July 2016, an income limit applies for payment of Part A supplement. This limit extends to periods in which they or their partner received an income support payment
• From 1 July 2017, SIFS is not payable to new customers. Grandfathering provisions apply for existing customers
• From 10 June 2019, FTB top-up, supplements and lump sum claim amounts will be used to repay outstanding social security, student assistance and Paid Parental Leave scheme payment debts. Note: from this date, offsetting will also apply to FTB instalment arrears payments
• Maintenance reconciliation - Maintenance reconciliation is required if their FTB Part A rate after income reconciliation is above the base rate and they and/or their partner were entitled to receive child support for a child from a previous relationship. If they have a child support entitlement registered for collection by Child Support, they may benefit from the Maintenance Income Credit (MIC)
• The system compares the correct FTB entitlement with the amount paid during the year. The result will be no change, a top-up or an overpayment

See also Debt offsetting during family assistance reassessment, reconciliation and claim processing.

The income assessment mode indicates where the income used in the FTB reconciliation calculation came from.

The FAO Calculation Period Income Summary (FICS) screen displays the income assessment mode used for each income component. See FTB reconciliation and lump sum claim calculation screens.

A different income mode may be used for the customer, current partner and ex-partner. Income of a deceased person is converted to an annualised actual income amount.

Income modes apply at the income component level according to the following hierarchy:

• Actual Income (AIN): actual adjusted taxable income details that override estimated taxable income, reportable fringe benefits and total net investment losses. A different income mode applies to other income components
• Financial Year Estimate (FYE): the estimate of income component recorded on the FAO Income for Previous Year (FIPY) screen provided in the current financial year but applies to the relevant financial year. For non-taxable pension/benefit, this mode is used only where the estimate is higher than the actual amount known to be paid
• Most Recent Estimate (MRE): the latest estimate recorded for the income component up to the end of that financial year on ongoing income screens (for example, FAO Taxable Income screen). For non-taxable pension/benefit, 'MRE' is the mode used only where the estimate is higher than the actual amount known to be paid. In some cases, the most recent estimate will be a default estimate
• Centrelink Actual (CAI): the actual amount of non-taxable pension/benefit paid to the person from Tax Cluster details, where this amount is higher than the estimate recorded on the FIPY screen or ongoing income screens
• Estimates As Provided (EAP): for an ex-partner period only, partial reconciliation and the ex-partner income comparison process uses estimates as recorded on the ongoing income screens during the relevant financial year, applying each estimate from the date of event recorded
• Ex-Partner No Estimate (XNE): is used where there is no estimate recorded for the ex-partner. FTB is limited to the base rate for the ex-partner period
• SPR: Ex-partner
• DPR: Deceased partner

For SIFS, taxable income is used, not adjusted taxable income (ATI). From 1 July 2017 SIFS is only paid to current customers if they meet grandfathering provisions)

For any periods the customer was Single and received ISP:

• FTB Part A and Part B instalments are not income tested. However, from 1 July 2018, if a customer's ISP is reduced to a nil rate due to employment income during the financial year, FTB Part A will be subject to the income test for these periods.
• From 1 July 2016, payment of FTB Part A supplement is subject to an income limit. This includes ISP customers
  Note: single ISP customers whose FTB is automatic reconciled using an adjusted taxable income (ATI) below the limit will be paid the Part A supplement. However, if they later lodge a tax return and their new ATI exceeds the supplement income limit, an overpayment will be raised for the Part A supplement. The Resources page contains an example

For any periods the customer was Partnered and either they or their partner were entitled to an ISP:

• the FTB Part A instalments are not income tested. However, from 1 July 2018 the FTB Part A income test does apply to partnered income support customers for periods when:
• both are in receipt of an income support payment and both are in an employment income nil rate period
• only one member of the couple is in receipt of an income support payment and they are in an employment nil rate period
• From 1 July 2016, payment of FTB Part A supplement is subject to an income limit. This includes ISP customers. Part B is income tested for all partnered customers:
• the primary earner income limit does not apply during ISP periods
• the secondary earner income test does not apply during a return to work quarantine period

All ISP customers

A separate income test applies for SIFS (from the 2017-18 financial year, SIFS is only paid to customers if they meet grandfathering provisions).

For all ISP customers, the maintenance action test and maintenance income test can affect their FTB Part A rate. However, FTB Part A cannot be reduced below the base rate by maintenance income.

For 2011-12 to 2017-18 financial years, recipients with a child who turned 4 years of age during the year are also affected by Healthy Start School requirements when assessing eligibility for the FTB Part A supplement. See Item 7 in Table 3.

ISP suspended

Customers are subject to FTB income tests during periods ISP was suspended.

School Enrolment and Attendance Measure (SEAM): there will be limited cases of continued SEAM suspension over 13 weeks (payments auto cancel after 13 consecutive weeks and are then subject to review and manual determinations). If payments are suspended for 13 weeks or more, FTB Part A is subject to the income test at reconciliation for the entire suspension period. However, if the period spans financial years, only the period in the second financial year will be income tested. Manual intervention is required to ensure these rules are applied correctly.

Income support periods

If the system cannot be updated to reflect the correct income support periods (for example, change to date of retrospective cancellation after review), as a last resort the FAO Income Support Override (FISPO) screen can be used to record the correct periods to ensure a correct reconciliation and lump sum claim result. Access is limited to staff at the APS5 level.

For more information, see Effect of income support entitlement on FTB.

From 2018-19 onwards, an FTB Part A rate reduction can be applied to a customer’s rate of FTB Part A.

The FTB Child Eligibility Details (FCED) screen contains details about a child’s immunisation status and whether an FTB Part A rate reduction has been applied:

In Process Direct:

• From the FRCS screen, select the appropriate reconciliation/lump sum claim results to go to the FACRF screen
• From the FACRF screen, select the relevant period, and select the FTB Calculation Period Assessment Part A (FCPAA) screen
• On the FCPAA screen, select the Income table to go to the FTB Child Eligibility Summary (FCES) screen
• To view details in the FCED table, select the child record from the FCES table

In Customer First:

• ‘S’elect a child from the FTB Assessment Details (ASDT) screen
• The Generic RRD: field displays whether a rate reduction has been applied
• The Reason: field displays the rate reduction reason
• The FTB Immunisation Grace Period: field displays whether the period was an FTB immunisation grace period
• Press [F7] or [F8] to view details for the previous or next period listed on the LRMS screen
• Press [Enter] to return to the FTB Calculation Period Assessment (FCPA) screen

FTB immunisation grace period

For any periods where FTB was paid as instalments, any FTB immunisation grace periods are checked.

• If the child did not meet the immunisation requirements before the end of the FTB immunisation grace period an FTB Part A rate reduction will be applied to the FTB Part A rate payable for the child for the days in the FTB immunisation grace period
• If any FTB grace periods are still being served, reconciliation will remain pending until the grace period ends. See FTB reconciliation or lump sum claim pending

For FTB lump sum claims, the child’s immunisation status is checked when the claim is determined. If the child does not meet immunisation requirements on this date the FTB Part A rate reduction will be applied to each day in the lump sum period. Note: if the child’s immunisation status is unknown, the FTB lump sum claim will have a status of pending for up to 14 days while the AIR link is attempted. See FTB reconciliation or lump sum claim pending

For more information, see:

• View and update a child's immunisation status and assess or update immunisation exemptions for Family Tax Benefit (FTB)
• Immunisation requirements for FTB Part A from 1 July 2018

FTB lump sum claims cannot be finalised until adequate income details are available for the customer (and their current partner). Lump sum claims must be lodged and income confirmed by the end of the lodgement year (extended lodgement year for 2011-12 or earlier years).

Claims for earlier financial years could be granted using actual income details for the customer and estimated income for the partner. If the partner's actual income details were later received, lump sum claim entitlement was recalculated. If their current partner was expected to lodge a tax return and actual income details had not been received from the ATO by November of the extended lodgement year (for example, by November 2011 for 2009-10), a non-lodger debt was automatically calculated for the total FTB paid for the relevant financial year.

• From the 2012-13 financial year a lump sum FTB claim will be made not effective if the claim is lodged late or income is not confirmed by the end of the lodgement year, unless a special circumstances extension is granted

From the 2018-19 financial year, a child’s immunisation status is checked when the claim is determined. On the date of determination, if the child’s immunisation is:

• No (immunisation requirements are not met), the FTB Part A reduction due to immunisation is applied to the rate of FTB Part A for the entire lump sum claim period
• Yes (immunisation requirements are met), the FTB Part A reduction due to immunisation is not applied to the rate of FTB Part A
• Unknown, the FTB lump sum claim will have a status of pending for up to 14 days while the AIR link is attempted

For more information, see Processing FTB lump sum claims.

An I031FY MFU is created after reconciliation is completed and an estimate is used in the reconciliation calculation and outcome is a debt.

The purpose of the MFU is to initiate a review of the actual amount received by the customer to ensure the tax-free pensions and benefits income used in reconciliation outcome is correct.

If tax-free pensions and benefits income has not been recorded on the Previous Financial Year Income (FIPY) screen, when FTB is reconciled the system will use the higher of:

• tax free pensions and benefits amount on Tax Payment Summary (TXGS) screen, or
• the estimate (MRE, FYE or EAP) on the FAO Tax Free Pension/Benefit (FTF) screen for the relevant financial year

Check if the reconciliation debt was caused by the customer over-estimating income by checking the:

• Tax Payment Summary screen (TXGS) screen
• Department of Veterans’ Affairs (DVA) income screen (DVAS) screen, and
• FAO Reconciliation and Claim Summary (FRCS) screen
• To view the income used in the reconciliation calculation in Process Direct:
• Select the reconciliation outcome for the relevant financial year via FRCS
• Select the FTB Calculation Result (FACRF) screen
• Select a period to view more details for the period
• Select FTB Calculation Period Assessment Part A (FCPAA)
• Select the Income table to go to the FAO Calculation Period Income Summary (FICS) screen
• To view the income used in the reconciliation calculation in Customer First:
• 'S'elect the reconciliation outcome for the relevant financial year via FRCS
• 'S'elect a period to view more details for the period
• 'S'elect FTB(A) Status
• 'S'elect FTB Income to view income details used in reconciliation via the FAO Calculation Period Income Summary (FICS) screen

Make a genuine attempt to contact the customer by phone to request the information. If the customer is subscribed to Desktop Messaging, send a pre-call notification SMS through Desktop Messaging before calling them. For pre-call messages, allow a lead-in time of 5 minutes in case there is a delay sending the message.

If contact is successful:

• Discuss the tax-free pensions and benefits. Ask the customer if they or their partner received a tax-free pension or benefit from the Department of Veterans’ Affairs, as this would not be included on TXGS
• The customer must provide a revised tax-free pensions and benefits amount before the income can be updated. They must provide an amount that is at least equal to the amount on TXGS
• Update the income on FIPY in Customer First if necessary using the actual tax-free pensions and benefits paid. For help, see Updating previous financial year incomes for FTB, CCS and CCB
• DOC the record with the reason the income was updated and the re-reconciliation outcome
• Discuss the current financial year estimate to ensure it is reasonable. For help, see Helping families provide a reasonable annual income estimate for family assistance payments
• Cancel the MFU from AL screen with the MFU Keyword #RECTFA
  Note: updates to the tax-free pensions and benefits amount may not result in a change to the reconciliation outcome

If customer contact is not successful:

• no updates to FIPY should be made
• DOC the record advising if customer contacts to discuss and update the tax-free pensions and benefits amount via FIPY if necessary using the actual tax-free pensions and benefits paid on TXGS
• Cancel the MFU from AL screen with the MFU Keyword #RECTFA

An AWE screen edit will appear when the result is zero entitlement for the second consecutive year.

If a customer (or their current partner) has had 2 consecutive zero entitlement years, they may be subject to non-payment of FTB instalments.

FAO Blended Percentage Override (FBPO) screen.

If the blended family percentage used for FTB reconciliation does not match the latest details for the same period on the Blended Families Split FTB Rate (FBSR) screen, the FBPO screen can be updated in Customer First to correct the result.

• This fix is only available for a period the FTB instalments were paid. For a Lump sum claim period, refer case to Local Peer Support (LPS) for further investigation. If Information Communication Technology (ICT) investigation is required, refer via mySupport. The Resources page contains a link to mySupport

Delegation to update the FBPO screen is at the APS5 level.

• Manually calculate the correct FTB reconciliation entitlement
• On FBPO screen, code the start and end dates of the period for which the override is to apply. Code each period separately within the same activity
• If an override is also needed for the partner, code FBPO screen on their record within the same activity
• Record a DOC stating period/s system was using incorrect blended family percentage, correct percentage for period/s, manual calculations
• Check result on the Assessment Result (AR) screen

Is the system calculated result on the AR screen correct?

• Yes, finalise the activity
• No, do not finalise the activity. Refer the case to Local Peer Support (LPS) for further investigation. If ICT investigation is required, refer via mySupport. The Resources page contains a link to mySupport

If the reconciliation result is incorrect:

• Due to inaccurate customer details on the system, correct the relevant information to re-reconcile the result. Manual adjustment is not needed
• Due to an administrative error, check whether the account can be partially or fully waived under:
• administrative error waivers, or
• special circumstances debt waivers
  manual adjustment of the reconciliation result may not be needed
• Due to a system problem/issue, details of the record must be referred to Local Peer Support (LPS) for further investigation. If Information Communication Technology (ICT) investigation is required, refer via mySupport. The Resources page contains a link to mySupport
• And cannot be corrected by updating details on the record, the result must be manually adjusted on the FAO Reconciliation Manual Adjustment (FRMA) screen in Customer First

To have the reconciliation result manually adjusted on the FRMA screen:

• First ensure the reconciliation result has been reviewed as appropriate by a review officer or the Administrative Appeals Tribunal (AAT)
• In Customer First use Fast Note - select Auto text, use Families > Reconciliation > ACTDOC Manual Correction on FRMA. Include all the following details:
• Customer Reference Number (CRN)
• customer name
• partner name
• relevant income year
• service reason (CCF/CCR/FTB)
• the date and activity number (AMR) of the reconciliation result that needs to be changed
• the full reason why the reconciliation result needs to be adjusted (including relevant sections of the Act)
• date of DOC completed by review officer
• full manual calculations for the new entitlement (period by period)
• new total adjustment amount
• Officer's contact details
• DOC the customer's record

If the customer is 'at risk' or experiencing hardship add the 'URGENT' keyword.

If the customer/partner circumstances are not correct on the system, the activity will not be actioned and will be referred back for correction. Once adjusted, an email confirming completion will be sent (within 5 working days). Normal auto letter issuing will apply.

If FTB top-up amounts including supplements and SIFS have been incorrectly suppressed, referral to Families and Childcare Level 2 Policy HelpDesk via the online enquiry form is required.

The Resources page contains a link to the online enquiry form.

Referrals to Families and Childcare Level 2 Policy HelpDesk should include:

• customer's Customer Reference Number (CRN)
• customer's name
• partner's name
• relevant income year
• full reason why supplements and SIFS should be uninhibited
• date of DOC on customer's record

If a response has been received from Families and Childcare Level 2 Policy Helpdesk, or the decision is due to an Authorised Review Officer (ARO) or Administrative Appeals Tribunal (AAT) review, email the decision to the Families Reconciliation team. See contact details for the team in Families Reconciliation team

ARO or AAT decision implementation for a Date of Receipt (DOR) more than 12 months in the past

If FTB top-up amounts (including supplements) were correctly suppressed within reconciliation based on original coding applied, but a determination has since been made that an incorrect DOR was used and a request is made to backdate the DOR more than 12 months in the past, referral to the Families Reconciliation team may not be appropriate.

For example, a non lodger update was initially coded using a DOR that resulted in FTB top-ups and supplements being suppressed. Following a review, it is determined that the late lodgement assessment is incorrect, and a request is made to backdate the DOR of the non-lodgement advice to within the lodgement year.

Due to system limitations, generally a DOR cannot be coded with a date more than 12 months in the past. The following coding is required:

• on the Benefit Action (BA) screen, create a reassessment (REA) activity using the correct DOR in the Effect Date/Date of Effect field and a Receipt date equal to 12 months in the past
• activity updates can then be made within the REA activity
• if this does not generate the correct outcome, complete the FCC Non-new claim over 365 Days Request webform on the Resources page in Date of Receipt

Special rules apply for ex-partners to ensure customers are not disadvantaged if the ex-partner lodges their tax return late or fails to lodge.

This processing also applies if the customer's partner died during the relevant financial year.

Income of a deceased partner is converted to an annualised actual income amount so the annual income test can be applied.

See Previous partners and FTB and CCB reconciliation.

If a customer has died during the relevant financial year, the reconciliation process remains the same except that:

• if a tax return is required to be lodged for the customer, it will be lodged by the estate
• the customer's actual taxable income is converted to an annualised actual income amount so the annual income test can be applied

A Manual Follow-up (MFU) will be created to issue a manual letter to the estate after reconciliation or re-reconciliation has occurred.

Extra assistance may be available to families if the customer or their partner returned to work for the first time after caring for a child during the relevant financial year.

At reconciliation, or during the assessment of a lump sum claim, the customer's FTB Part B rate may be calculated at the maximum rate for the period in the financial year they were not working to care for a child at home, regardless of the income of the secondary income earner.

For 2008-09 onwards, this return to work assistance is only available if the primary earner's income is not above the primary earner income limit, except for income support periods.

For more information, see FTB Part B quarantine and the reconciliation process.

For periods prior to 1 May 2014, if the customer deferred payment of FTB for any child until after the end of the relevant year, and did not advise whether the child's income had exceeded the child income limit, reconciliation excluded the deferred child.

From 13 June 2015, no new instances of child deferral can be coded. From 1 July 2015, anyone with the child deferral payment choice in place will have the choice ignored.

If the customer did not advise whether income is above or below the limit:

Forced reconciliation occurred in November following the relevant financial year if other requirement information was available but the customer had not confirmed the child's income.

The deferred child was excluded as an FTB child:

• for the whole year if they were 16 years of age at the start of the financial year or
• if they turned 16 years of age during the year, from the date they turned 16 or the date they ceased to be a full-time student per details on CHSI screen, whichever is earlier

If they later contacted and advised their child's income did not exceed the FTB child income limit, details could be updated to trigger re-reconciliation and include the child as an FTB child. See FTB child income.

Check the FTB Child Eligibility Details (FCED) screen.

This screen shows whether a child is subject to HSFS, health check completed details, parent or non-parent rules applied, and exemption reason (if applicable).

See HSFS requirements from 1 July 2018.

Check the FTB Child Eligibility Details (FCED) and Child Immunisation Summary - guided procedure. These screens show whether:

• a child is subject to immunisation requirements
• immunisation requirements have been met
• parent or non-parent rules were applied, and
• Centrelink immunisation override applied

2015-16 financial year, 2 different sets of immunisation rules will be applied when calculating the FTB Part A supplement. For an example, see FTB Part A and Part B supplements.

From 1 July 2018, immunisation requirements are linked to FTB Part A. An FTB Part A rate reduction due to immunisation is applied if a child does not meet immunisation requirements.

This option ceased from 1 July 2008.

During the relevant financial year, they or their partner may have reduced tax withholdings from their wages in anticipation of FTB entitlement.

They were required to lodge an FTB lump sum claim after the end of the financial year, within the allowed time.

The Part A and Part B supplements were included when working out the lump sum claim entitlement as they were not included in the reduced tax withholding rate during the year.

The value of the tax withholdings is not taken into account in working out what was paid for the previous year and does not affect the adjustment of FTB at reconciliation. However, the ATO takes into account the amount of tax withholdings to work out a tax refund or tax debt.