Family Tax Benefit (FTB) Part A and Part B supplements 007-11010030

FTB Part A and Part B supplements can only be paid after the end of the relevant financial year, if entitled.

Supplements are only included in the FTB reconciliation or lump sum claim calculation once adequate income details are available for the person and their current partner.

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).

From 1 July 2016, payment of FTB Part A supplement for a child may depend on families meeting the FTB Part A supplement income limit.

Payment of FTB Part B supplement for a family may depend on meeting the FTB B income limit. For more information, see Calculating Family Tax Benefit (FTB) Part B.

• For financial years 2012-13 to 2017-18, FTB Part A supplement child immunisation requirements were linked to payment of the FTB Part A supplement. See the Resources page for an example
• For financial years 2011-12 to 2017-18, Healthy Start for School requirements (if applicable) must be met for a child who turned 4 in the relevant financial year for Part A supplement to be included for the child

To check FTB Part A and Part B supplements within a new claim or other activity:

• After selecting Assess, use the Super Key to go to the FAO Reconciliation & Claim Summary (FRCS) screen
• Select the completed reconciliation/ lump sum claim line to open the navigation panel
• Select FTB Supplement Summary (FSUP) from the navigation link
• The FSUP table will show the Reco completed status
• View the FTB supplement calculation in the table. This includes the calculation status, number of Days, supplement included, previous calculation, recalculation and the difference
• To go back to FRCS screen, select the FRCS hyperlink at the top of the table

For more information about FTB supplement details for a claim, see Table 2.

The FRCS screen shows the customer's FTB reconciliation results.

Has the customer's FTB reconciliation or lump sum claim completed for the relevant financial year?

• Yes, go to Step 4
• No, see FTB reconciliation or lump sum claim pending. Procedure ends here

Check if supplement and/or top-up has been used for offsetting or debt recovery:

• On the FRCS screen, select the relevant financial year from the drop down option
• Select the completed reconciliation/ lump sum claim line to open the navigation link
• Select FTB Withholding for Debt Recovery - CLK (FWDC)
• The FWDC screen shows:
• FTB components
• amount available for withholding
• amounts withheld to reduce FAO debt
• current and other debts

To view amounts withheld by the Australian Taxation Office (ATO) to offset debt recovery, in Customer First:

• go to the Debt List (OPDL) screen
• select the debt and go to the OPRH screen

To view parked debts, key 'PRK' in the Select View field on the OPDL screen.

Has supplement and/or top-up been used for offsetting or debt recovery?

• Yes, go to Step 5
• No, go to Step 6

Tell the customer the amount(s) used to offset their family assistance debt.

If the reconciliation top-up or lump sum claim entitlement was sent to the Australian Taxation Office (ATO) to be included in the customer's Notice of Assessment (NOA), it may also be used to recover non-family assistance debts.

Supplement debt recovery also applies to non-lodger or qualification debts, even if the customer has entered into a payment arrangement.

Reconciliation and lump sum claim letters will advise customers whether or not the supplements have been included, and any amounts used for offsetting or to recover debts.

Annotate the claim DOC with details of the conversation.

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

The FRCS screen shows the reconciliation payment amount and expected delivery date. For more detail, see Step 8 in Table 2.

For late lodgers, the FTB supplements are not included in the reconciliation calculation. See Non-lodgers and late lodgers for FTB reconciliation.

Have supplements been included in the reconciliation result?

• Yes, go to Step 7
• No, go to Step 8

• Tell the customer:
• their FTB Part A and Part B supplement entitlement
• the factors affecting the amount paid
• details of any amounts used for offsetting or to recover a debt
• Record details on a Note on the DL/Notes screen
• For more details on the amount paid, see Step 6 in Table 2

If reconciliation has not happened yet, check what information is still required. For help, see FTB reconciliation or lump sum claim pending.

If reconciliation has happened and the Part A supplement has not been paid, check that the family's adjusted taxable income (ATI) is not higher than the Part A supplement income limit.

Note: from 1 July 2016, payment of FTB Part A supplement is subject to an income limit. This extends to income support payment (ISP) customers.

Single customers on an ISP for the entire financial year are subject to bulk reconciliation. If the ATI is above the limit, the Part A supplement is not paid. If this happens and the income applied in reconciliation is an estimate that is no longer accurate, such as the Most Recent Estimate (MRE), the customer may update the 2016-17 financial year income to have their entitlement reassessed by recording a ‘not required to lodge advice’, or by lodging a tax return, whichever is appropriate to the individual’s circumstances.

Advise the customer:

• What information is still needed for the supplements to be included in the calculation
• To receive their full annual FTB entitlement, income lodgement requirements must be met by 30 June of the lodgement year (extended lodgement year for 2011-12 or earlier years)

Record details on Notes/DL screen.

Go to the FAO Reconciliation and Claim Summary (FRCS) screen in Process Direct:

• use the Super Key to go to the FRCS screen
• select the Financial Year from the drop down box
• select the completed reconciliation/ lump sum claim line to open the navigation panel
• select FTB Supplement Summary (FSUP)

FTB Part A and Part B supplements can only be paid after the end of the relevant financial year, if eligible.

Has FTB reconciliation or FTB lump sum claim completed for the relevant financial year?

• Yes, go to Step 2
• No, see FTB reconciliation or lump sum claim pending. Procedure ends here

In the FSUP table, is the Supp Incl field Yes?

• Yes, go to Step 4
• No, go to Step 3

The supplement is not included in the reconciliation calculation until adequate income or not required to lodge information is available for the customer and current partner.

If only actual income details of an ex-partner are needed, the supplements will be included if eligible. See Previous partners and family assistance reconciliation.

• On the FSUP screen, 'select the Reco Completed line from the table
• Select FTB Supplement Status Details (FSSU) from the navigation panel
• The FSSU screen shows the Supplement status and the information needed for the Supplement calculation

Procedure ends here.

Check if maximum supplement rates have been included, before eligibility changes and income testing:

• maximum Part A supplement rate per child
• maximum Part B supplement rate per family

Check this on the FTB Supplement reduction explanation (FSRE) screen:

• From the FSUP screen, select the Reco completed line from the table
• Select FTB Supplement Reduction Explanation (FSRE) from the navigation panel
• On the FSRE screen, view the reduction factors for FTBA and FTBB. If there are no factors, No data displays. Note: this field only displays from 2004-05 reconciliation. For earlier financial years, go to Step 6

The maximum supplement has been paid if the Maximum Entitlement column shows the full Supplement amount

Have the maximum supplement rates been included?

• Yes, the calculation included (but may not have paid) the maximum Part A and Part B supplements for the financial year. Go to Step 6
• No, go to Step 5

Maximum entitlement = maximum supplement rates. For Part A supplement, this is the amount per child X number of FTB children in care at any time in the relevant year.

Actual entitlement -= amount the customer was entitled to, based on the family's circumstances.

Factors that may reduce the maximum Supplement rate payable:

Shared care

The amount for a child is apportioned between customers using the shared care percentage. Check details on the Shared Care Assessment (SCA) screen in the child record.

• For Part A supplement, use the shared care percentage of the child to work out amount for that child
• For Part B supplement, use the child with the highest shared care percentage

Failed SUP (A) Income Test

Part A Supplement will not be payable if the family's adjusted taxable income is more than the Supplement income limit

The reduction reason shows on the FSRE screen if the Part A supplement income limit for at least one day. It is therefore possible for recipients to be paid the Part A supplement for a part year and have the 'Failed Sup (A) Income Test' displayed

Income over limit - Part A higher income free area (HIFA).

Check this on the FAO Income Component Summary (FICS) screen:

• Use the Super Key to go to the FRCS screen
• Select the relevant financial year from the drop down option
• Select the Reco completed line and select FACRF from the navigation link
• On the FACRF screen, select a period in calculation result table and select FTB Calculation Period Assessment Part A (FCPAA)
• On the FCPAA screen, select the customer’s or partner’s record in the FTB Income table
• Select FAO Calculation Period Income Summary (FICS) from the navigation link
• The FICS screen shows the income components, customer income, partner income and combined income
• Select the FRCS hyperlink to return

For FTB Part A, the income reduction is apportioned between all Part A components.

For Part B, the primary earner's income exceeds the limit or the lower earner's income is over Part B income free area and supplement was reduced after the standard Part B rate was reduced to nil.

Blended family

The family's total Part A and Part B supplement entitlements are calculated and then apportioned using the blended family percentages.

Check the FTB Child Eligibility Details (FCED) screen:

• Go to FRCS screen and select FACRF
• Select a period on the FACRF screen and then select FCPAA
• Select the customer or partner record in the Income table and select FCES
• On the FCES table, select the relevant child
• The FCED screen shows under the FCES table. View the FTB components and status for the selected child
• Select the FRCS hyperlink to return

Not paid FTB for full year

The customer became entitled or ceased to be entitled during the financial year. View entitlement periods on these screens:

• FTB Component Calculation Result (FCCR) via FRCS > FACRF
• Legal Residence Information (RSLEG)
• Immigration Movements Information (RSIM)
• Child in Customer Care (CHC)

Child eligibility changes

Check the FCED screen via FRCS > FACRF > FCES. For example, changes in care, child age, ceased full-time study, income over limit or child overseas.

Immunisation requirements

These must be met for Part A supplement to be included (for financial years 2012-13 to 2017-18 only)

Health Check

A health check must be completed for Part A supplement to be included (from 2011-12 to 2017-18 only)

Check supplement amounts paid to the customer on the Payment Summary (PS) screen:

• select the date range and payment type
• expand the reconciliation payment summary line to view the payment components

For late lodgers, the FTB supplements are not included in the reconciliation calculation. See Non lodgers and late lodger process for FTB reconciliation.

The debt recovery amount displayed is the amount withheld from the supplement.

After saving updates, return to the SWE screen to view errors, warnings and messages in the Message Log. Address errors to finalise the claim or change in circumstance activity.

See Using Digital Assistant Roxy in Process Direct for more information about errors and warnings.

Once all errors have been addressed, select Assess and check claim outcome.

To finalise the claim, see the relevant procedure.

• For instalment claims, Processing standalone and combined claims for Family Assistance and/or Paid Parental leave Scheme payments
• Processing FTB lump sum claims

FTB Part A and Part B supplements can only be paid after the end of the relevant financial year, if entitled.

Supplements are only included in the FTB reconciliation or lump sum claim calculation once adequate income details are available for the person and their current partner.

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).

From 1 July 2016, payment of FTB Part A supplement for a child may depend on families meeting the FTB Part A supplement income limit.

Payment of FTB Part B supplement for a family may depend on meeting the FTB B income limit. For more information, see Calculating Family Tax Benefit (FTB) Part B.

From 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. Go to Step 2
• 2009-10 or earlier years, see Step 1 of Table 2

The Family Tax Benefit (FTB) and Child Care Benefit (CCB) Reconciliation results page contains the customer's FTB Reconciliation results.

If the workflow is unavailable, see Step 1 in Table 2 table.

Has the customer FTB reconciliation or lump sum claim completed for the relevant financial year?

• Yes, go to Step 3
• No, see FTB reconciliation or lump sum claim pending

Select the corresponding activity number, the FTB Reconciliation Summary page will display supplement information including:

• Maximum Entitlement
• Paid
• Reconciliation calculated
• Difference
• Reduction Factors

Has the supplement entitlement been used for offsetting or debt recovery?

• Yes, go to Step 4
• No, go to Step 5

Tell the customer the amount(s) used to offset their family assistance debt.

If the reconciliation top-up or lump sum claim entitlement has been sent to the Australian Taxation Office (ATO) to be included in the customer's Notice of Assessment (NOA), it may also be used to recover non-family assistance debts.

Supplement debt recovery also applies to non-lodger or qualification debts, even if the customer has entered into a repayment arrangement.

Reconciliation and lump sum claim letters will advise customers whether or not the supplements have been included and any amounts used for offsetting or to recover outstanding debts.

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

The reconciliation payment amount and expected delivery date is displayed at the top of the page.

For more detail, see Step 8 in Table 2.

For late lodgers, the FTB supplements are not included in the reconciliation calculation. See Non-lodgers and late lodgers for FTB reconciliation.

Have the supplements been included in the reconciliation result?

• Yes, go to Step 6.
• No, go to Step 7

• Tell the customer:
• their FTB Part A and Part B supplement entitlement
• the factors affecting their entitlement, and
• details of any amounts used for offsetting or to recover a debt
• Record details on a DOC
• For more information on the amount of supplements paid, see Step 6 in Table 2. Procedure ends here

If reconciliation has not yet occurred, check what information is still required. For help, see FTB reconciliation or lump sum claim pending.

If reconciliation has occurred and the Part A supplement has not been paid, check that the family's adjusted taxable income (ATI) is not higher than the Part A supplement income limit.

Note: from 1 July 2016, payment of FTB Part A supplement is subject to an income limit. This extends to income support payment (ISP) customers.

Single customers on an ISP for the entire financial year are subject to bulk reconciliation. If the ATI is above the limit, the Part A supplement will not be paid. If this occurs and the income applied in reconciliation is an estimate that is no longer accurate, such as the Most Recent Estimate (MRE), the customer may update the 2016-17 financial year income to have their entitlement reassessed by recording a ‘not required to lodge advice’, or by lodging a tax return, whichever is appropriate to the individual’s circumstances.

Advise the customer:

• What information is still required for the supplements to be included in the calculation
• To receive their full annual FTB entitlement, income lodgement requirements must be met by 30 June of the lodgement year (extended lodgement year for 2011-12 or earlier years)
• Record details on a DOC

Check the FAO Reconciliation and Claim Summary (FRCS) screen/page for reconciliation or lump sum claim for relevant financial year.

FTB Part A and Part B supplements can only be paid after the end of the relevant financial year, if eligible.

For FTB Part A supplement, eligibility may depend on:

• From 1 July 2016, Part A supplement will not be paid if a family's adjusted taxable income is more than the income limit
• From 2012-13 to 2017-18, FTB Part A supplement immunisation requirements apply
• From 2011-12 to 2017-18, eligibility for the Part A supplement for a child who is turning 4 in the relevant year may depend on a health check being completed

For FTB Part B supplement eligibility:

• from 1 July 2016, FTB Part B is not payable to a member of a couple who has a youngest child aged 13 years or over, unless the person is a grandparent carer. Single customers and grandparent carers can continue to be paid FTB Part B up to the end of the calendar year in which the youngest child turns 18 (child must be in full-time secondary study if aged 16-18)
• may depend on meeting the relevant income tests
• FTB Part B and FTB Part B supplement will not be paid throughout any period that PPL is being received

Has FTB reconciliation or FTB lump sum claim completed for the relevant financial year?

• Yes, go to Step 2
• No, see FTB reconciliation or lump sum claim pending. Procedure ends here

Have supplements been included in the reconciliation or lump sum claim calculation?

On the FRCS screen/page, code 'P' next to the completed reconciliation/ lump sum claim line to go to the FTB Supplement Summary (FSUP) screen/page.

Is Supp Incl field 'Yes'?

• Yes, go to Step 4
• No, go to Step 3

The supplement is not included in the reconciliation calculation until adequate income or not required to lodge information is available for the customer and current partner.

If only actual income details of an ex-partner are needed, the supplements will be included in the reconciliation calculation. See Previous partners and family assistance reconciliation.

• On the FSUP screen/page, 'S'elect Reconciliation/lump sum claim line to go to FTB Supplement Status Details (FSSU) screen/page
• Advise the customer of information required for the supplement to be included in the calculation
• Record details on a DOC

Procedure ends here.

Check if maximum supplement rates have been included before eligibility changes and income testing:

• the maximum Part A supplement rate per child, and
• maximum Part B supplement rate per family

The maximum supplement has been paid if the Received Maximum Entitlement: field is 'Y' on the FSUP screen/page. Note: this field only displays from 2004-05 reconciliation, for earlier financial years, go to Step 6.

Have the maximum supplement rates been included?

• Yes, the calculation included (but has not necessarily paid) the maximum Part A supplement and Part B supplements for the financial year. Go to Step 7
• No, code 'Y' in Go to FTB Supplement Reduction Explanation: field. Go to Step 5

Maximum Entitlement - maximum supplement rates. For Part A supplement, this is the amount per child X number of FTB children in the customer's care at any time in the relevant year.

Actual Entitlement - amount customer was entitled to, based on the family's circumstances.

The maximum supplement rate payable may be reduced by:

• Shared care - amount for child is apportioned between customers using shared care percentage. Check details on the FTB Shared Care (FSC) screen.
• For Part A supplement, use the shared care percentage of the child to work out amount for that child
• For Part B supplement, use the child with the highest shared care percentage
• Failed SUP (A) Income Test - Part A supplement will not be payable if the family's adjusted taxable income is more than the supplement income limit
• The reduction reason will be displayed on the FSRE screen where the customer is over the Part A supplement income limit for at least one day. It is therefore possible for customers to be paid the Part A supplement for a part year and have the 'Failed Sup (A) Income Test' displayed
• Income over limit (Part A higher income free area (HIFA)). See Income tests for family assistance and Paid Parental Leave scheme payments. Check the FAO Income Component Summary (FICS) screen/page
• For FTB Part A, the income reduction is apportioned between all Part A components
• For Part B, the primary earner's income exceeds the limit or the lower earner's income is over Part B income free area and supplement was reduced after the standard Part B rate was reduced to nil
• Blended family - the family's total Part A and Part B supplement entitlements are calculated and then apportioned using the blended family percentages. The FTB Child Eligibility Summary (FCES) screen/page shows blended family periods applied
• Not paid FTB for full year - the customer became entitled or ceased to be entitled during the financial year. View entitlement periods on the FTB Calculation Result (FACRF) screen/page, for example:
• Legal Residence Information (RSLEG)
• Australian Departure and Return Summary (ADRS)
• Child in Customer Care (CHC)
• Child eligibility changes - check FCES screen/page, for example, changes in care, turned 25, ceased full-time study, income over limit, child overseas (also check relevant child update screens)
• Immunisation requirements must be met for Part A supplement to be included (for financial years 2012-13 to 2017-18 only)

Check if supplement entitlement has been used for offsetting or debt recovery:

• key 'O' next to line on FSUP screen to go to the FTB Withholding for Debt Recovery (FWDC) screen/page
• the FWDC screen/page displays amounts used for Centrelink offsetting and debt recovery
• for Australian Taxation Office (ATO) FTB lump sum claims where FTB entitlement was delivered by the ATO, amounts withheld are displayed on the FAO Withholding for Debt Recovery - ATO (FWDA) screen/page

Has supplement entitlement been used for offsetting or debt recovery?

• Yes, go to Step 7
• No, no supplement entitlement has been withheld for offsetting or to recover a debt. Go to Step 8

Advise the customer of the following:

• The amount(s) used to offset their family assistance debt
• The supplement will be used to offset their family assistance debt even if they have a repayment arrangement in place

If the reconciliation top-up or lump sum claim entitlement has been sent to the Australian Taxation Office (ATO) to be included in the customer's Notice of Assessment (NOA), it may also be used to recover non-family assistance debts.

Supplement debt recovery also applies to non-lodger or qualification debts.

Reconciliation and lump sum claim letters will advise customers whether or not the supplements have been included and any amounts used for offsetting or to recover outstanding debts.

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

Check supplement amounts paid to the customer on the Payment Details (PD) screen/page by 'S'electing the reconciliation payment from the Payment Summary (PS) screen/page.

For late lodgers, the FTB supplements are not included in the reconciliation calculation. See Non lodgers and late lodger process for FTB reconciliation.

The debt recovery amount displayed is the amount withheld from the supplement.

Advise the customer of their FTB Part A and Part B supplement entitlement, factors affecting their entitlement, and details of any amounts used for offsetting or to recover a debt.

Record details on a DOC.