Assessing and recording exemptions from the non-payment of Family Tax Benefit (FTB) instalment payments to zero entitlement customers 007-11010160

Under the Non-payment of FTB instalment payments to zero entitlement customers measure, customers who repeatedly underestimate their income for FTB and then have no entitlement at reconciliation will no longer be entitled to receive fortnightly instalment payments of FTB Part A and/or FTB Part B.

A customer's precluded FTB instalment payment can be reinstated if the customer is eligible for an exemption.

An exemption can be applied if any of the following has occurred since the end of the 2 consecutive zero entitlement years:

• An FTB child that was not an FTB child of the customer (or their partner) during the 2 consecutive zero entitlement years has come into care of the customer (or their partner). This can include any of the following:
• newborn or adopted child
• Regular Care child that has since become an FTB child
• partner's child that has become an FTB child of the customer since becoming partnered
• The customer has become separated or is no longer a member of a couple with the person who was their partner at the end of the second zero entitlement year
• The customer (or their partner) has received or been granted an income support payment
• The customer has a deemed entitlement to FTB, except when they are in an employment income nil rate period
• The customer (or their partner) has an entitlement to FTB greater than zero for a later financial year due to reconciliation, re-reconciliation or the assessment of a lump sum claim
• Special circumstances for a non-payment of FTB instalments preclusion exist in relation to the customer or their partner that did not exist at the end of the 2 consecutive zero entitlement years

An exemption may also be created due to a ministerial instrument.

Note: exemptions due to deemed or assessed entitlement (reconciliation, re-reconciliation or lump sum claim) are not applied if the customer has had an additional 2 consecutive financial years since this entitlement occurred.

An exemption will apply until either the customer meets the rules for a new preclusion to be applied or until a new exemption is granted, except for:

• Special circumstances due to the death of an FTB child exemptions. These exemptions may only be granted for the duration of the bereavement period to enable the customer access to FTB instalment payments for any surviving children
• Becoming separated exemptions. If the customer was granted an exemption due to separating from their partner but then reconciles with the partner for whom the exemption was granted, the exemption will cease from the date they reconciled

Eligibility for an exemption is assessed when:

• a claim to receive FTB by instalments is received from a precluded customer (or their partner) who is not FTB current
• an FTB current customer with a precluded component advises a change in circumstances, or
• a customer requests a reassessment because of a change in circumstances