Family Tax Benefit (FTB) Part B quarantine and the reconciliation process 007-11010060

Since 1 July 2005, Family Tax Benefit (FTB) Part B may be paid free of the income test for partnered customers if the lower earner in the family has returned to work during the relevant financial year for the first time since the birth of a child or since a child entered their care.

FTB Part B is not payable for 2008-09 and following years if the primary earner's adjusted taxable income exceeds the Part B primary earner income limit, excluding income support periods.

To benefit from the return to work assistance, FTB instalment customers need to notify return to work details.

During the financial year, the customer's FTB Part B rate is worked out according to the income estimate for the lower earner and the customer's FTB payment choice.

During the FTB reconciliation process for the financial year in which the customer or their partner returned to work, the system will determine the customer’s eligibility for this assistance based on return to work details on the customer's record. If eligible, the customer's FTB Part B rate will not be income tested for the Part B quarantine period, regardless of the income of the lower earner.

The customer’s eligibility for the FTB Part B quarantine period is displayed on the reconciliation screens.

A letter will be sent to the customer following reconciliation for the financial year. The letter will advise:

• whether or not the Family Tax Benefit (FTB) Part B quarantine period has been applied, and
• if the customer is not eligible, the reason

In some cases it will be necessary to obtain further information from the customer to determine their eligibility.

Partnered customers will be advised in their reconciliation letter to contact Services Australia if they have had a return to work to see if they are eligible for this assistance.

If a customer is claiming Parental Leave Pay (PPL), FTB Part B is not payable during this payment period.