Reconciliation of Family Tax Benefit (FTB) 007-11010000

Date

Topic & reconciliation

2 July 2024 (after 6pm)

FTB reconciliation begins

Reconciliation period begins for Family Tax Benefit (FTB) for previous financial year (2023-24).

2-15 July 2024

Automatic Reconciliation for FTB occurs

Reconciliation will be attempted on the customer's Entitlement Period End Date (EPED) + 1 day and if all information is available, it will complete. If they are entitled to receive a top-up, they will generally receive this up to 2 working days after their regular payday.

5 August 2024

CCS reconciliation begins

Reconciliation of Child Care Subsidy (CCS) commences.

July 2024

FTB partial reconciliation for previous partners

FTB reconciliation occurs for customers who separated from their partner during the 2023-24 financial year where only the previous partner income is still required.

August 2024

Non-lodger debts raised

FTB non-lodger debts raised for non-lodgers for 2022-23 financial year

October 2024

Peak of FTB/CCS reconciliation enquiries

Peak of FTB/CCS reconciliation enquiries as tax returns for 2023-24 must be lodged by 31 October 2024 for most customers.

March 2025

Non-lodger reminder mail out

Non-lodger reminder mail out to ask customers who have not lodged tax returns or advised they are not required to lodge for 2023-24 to confirm income so their FTB can be reconciled.

April 2025

Small peak in reconciliation

Customers using Tax Agents and Accountants usually lodging by end of April can create a small peak in reconciliation.

May 2025

Electronic Message reminder

An electronic message reminder will be sent to customers who still have not lodged their tax returns for the 2023-24 financial year or advised they are not required to lodge.

June 2025

Final Electronic Message reminder

A final electronic message reminder will be sent to customers if family income lodgement requirements are still not met for the 2023-24 financial year.

July 2025

Interim reconciliation for previous partners

FTB reconciliation occurs for customers who separated from their partner after the end of the 2023-24 financial year where only the previous partner income is still required.

30 June 2025

CCS Reconciliation 1st Deadline

The 1^st deadline is 1 year after the end of the relevant income year (midnight 30 June or if this falls on a weekend, midnight of the first business day after) unless a special circumstance extension has been granted.

For 2023-24 the 1st deadline will occur on 30 June 2025.

30 June 2026

CCS Reconciliation 2nd Deadline

The 2nd deadline is 2 years after the end of the relevant income year (midnight 30 June or if this falls on a weekend, midnight of the first business day after) unless a special circumstance extension has been granted. In some circumstances a customer can have this 2nd deadline extension extended indefinitely.

For 2023-24 the 2^nd deadline will occur on 30 June 2026.

Item

Description

1

Examples of FTB reconciliation

Actual income details received.

Lauren's estimated taxable income is $67,000. Lauren's partner Carlos' estimated taxable income is $42,000 and $3,200 reportable fringe benefits.

The Australian Taxation Office (ATO) sends actual adjusted taxable income (AATI) details of:

• Lauren $45,000
• Carlos $28,500
• No fringe benefit amounts were received from the ATO for either

Reconciliation will take place on the comparison between the FTB Lauren was paid during the financial year based on their combined estimated ATI of $112,200 and their correct FTB entitlement based on their combined AATI as advised by the ATO of $73,500.

The following are included in the FTB reconciliation calculation (if eligible):

• Family Tax Benefit (FTB) Part A and Part B supplements
• Single Income Family Supplement (SIFS) (only included from 2017-18 if the customer meets the grandfathering provisions)

2

Customer not required to lodge an income tax return

Belinda was paid Family Tax Benefit (FTB) Part A and FTB Part B by instalments.

Belinda's FTB was paid using an estimated income of $11,000 (taxable income) for herself and partner Rodney had an estimated income of $31,500 (taxable income). Belinda advises of not being required to lodge a tax return.

During the process of advising non-lodgement, the system detects Single Touch Payroll (STP) income for Belinda and displays a wage/salary amount from employment of $12,500. Belinda is confident the amount displayed is correct and chooses to advise her taxable income from employment as $12,500 as part of her advice of non-lodgement.

The system also detects and pre-fill’s an amount of $2,000 for taxable income from Australian Government payment’s which Belinda knows to be her Parenting Payment.

As Belinda's income is less than the tax-free threshold and Belinda had no tax withheld, a non-lodgement exemption is recorded, FTB reconciliation can occur as soon as Rodney's actual income is confirmed by the ATO.

At reconciliation:

• Rodney's actual income transferred by the ATO is $33,000
• Belinda received $2,000 Parenting Payment Partnered (PPP) in the relevant financial year, in addition to the $12,500 taxable income from employment
• Reconciliation of FTB occurs using Belinda's taxable income of $12,500 plus the PPP of $2,000 and Rodney's actual income of $33,000. Combined actual adjusted taxable income of $47,500 is used to work out Belinda's correct FTB rate
• The period Belinda was entitled to PPP would be exempt from the income test for FTB Part A. However, FTB Part B for the same period is income tested using the lower earner's income

3

Adjusted taxable income above the Part A supplement income limit received after automatic reconciliation (from 1 July 2016)

Laura is a single income support customer (Parenting Payment Single (PPS)) for the entire 2019-2020 financial year and was paid Family Tax Benefit (FTB) Part A and FTB Part B by instalments for 2 children.

As the payments received during the financial year are not subject to income reconciliation, FTB reconciliation will occur automatically as soon as Laura has been paid her final instalment for the financial year. This is referred to as ‘Automatic’ or ‘bulk’ FTB Reconciliation.

At reconciliation

• Laura’s entitlement is reconciled on the basis that the FTB Part A and FTB Part B are not subject to income reconciliation, and as
• Laura's adjusted taxable income (ATI) is a most recent estimate (MRE) of $34,000, the FTB A and FTB B supplements are paid

At re-reconciliation

During the 2019-20 financial year Laura had received a superannuation payment under the early release process. While this payment does not directly impact their PPS, it will count towards adjusted taxable income for the assessment of the Part A supplement.

As a result of super withdrawal Laura is required to lodge an income tax return for the 2019-2020 financial year, and does so after receiving the supplement payment in Automatic FTB reconciliation.

• Advice of Laura’s 2019-2020 adjusted taxable income is received from the ATO, and is $85,000
• Laura’s FTB entitlement is re-reconciled, and Laura is no longer entitled to the Part A supplement as the adjusted taxable income is above the supplement income limit
• An account payable is sent to Laura for the FTB A supplement amount paid

4

Break in entitlement to Single Income Family Supplement (SIFS) on or after 1 July 2017

Sally is grandfathered for SIFS and receives FTB by fortnightly instalments. Sally goes overseas from 2 August 2018 to 4 October 2018 (a period of 9 weeks).

Sally is paid SIFS for a period of 6 weeks until 12 September 2018. From 13 September 2018 Sally is no longer eligible for SIFS as they have been overseas for longer than the 6 weeks allowable time and will lose their SIFS grandfathering status.

Sally will not be able to receive SIFS again for any period on or after 13 September 2018.

5

FTB immunisation grace period at FTB reconciliation (on or after 1 July 2018)

During the 2020-21 financial year, Eric received Family Tax Benefit (FTB) fortnightly. Eric has one child, Giovanni.

On 1 October 2020, the Australian Immunisation Register (AIR) sends through an immunisation status update as Giovanni no longer meets immunisation requirements.

FTB immunisation grace period:

• start date: 2 October 2020
• end date: 3 December 2020

During this grace period, an FTB rate reduction due to immunisation is not applied to the rate of FTB for Giovanni.

On 4 December 2020 Giovanni’s immunisation status is checked. An FTB rate reduction due to immunisation starts on 4 December 2020.

At reconciliation, the rate reduction due to immunisation is applied to the rate of FTB Part A for Giovanni for the period 2 October to 3 December 2020.