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

An exemption from non-payment of FTB instalment payments to zero entitlement customers is assessed when any of the following occurs:

• An FTB instalment claim is lodged by a precluded customer (or their partner) who is not FTB current (FTB-CAN/ZEP or FTB-REJ/ZEP)
• An FTB current customer with only FTB Part A or FTB Part B precluded advises a change in circumstances
• A reassessment occurs where the customer is now eligible for an exemption

A warning will appear on the Errors (SWE) screen in Process Direct or the Assessment Warning and Error (AWE) screen in Customer First before finalising a new claim or relevant change in circumstances on the record of a precluded customer (or partner) who may now be subject to an exemption. A determination must be made before completing the activity.

In Process Direct

• If outside of a new claim:
• Key START in the Super Key and select the FTB Zero Entitlement Preclusion workflow from the Task Selector
• Select the FTB Zero Entitlement Override and Exemption task
• Select Start
• If in a new claim transaction:
• Go to the FTB Zero Entitlement Override and Exemption Summary (FTBZEC) screen
• The FTB zero entitlement override (part A) and FTB zero entitlement override (part B) tables display preclusion details, including dates and the relevant First Zero Entitlement Year

In Customer First

• From Workspace, go to Families Benefits menu > FTB Zero Ent. Preclusion
• This page shows which component/s of FTB are precluded, and the start date
• Select the preclusion entry line to display the first zero entitlement year

Is the customer already subject to preclusion?

• Yes, go to Step 3
• No, the customer may be eligible for an exemption to prevent a preclusion being applied. To check if the customer meets an exemption, go to Step 5

Is the customer FTB current or CNP-ZEP, or is the exemption being assessed because the customer has lodged an instalment claim?

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

What is the cancellation/rejection code?

• FTB-CAN/ZEP or FTB-REJ/ZEP:
• A new claim for FTB is required to access FTB paid as instalments. A lump sum claim is required to be paid as a lump sum at the end of the financial year. A customer can apply for a formal review of the decision to have a preclusion applied at any time
• Tell the customer that a new claim or a lump sum claim is required. An exemption can be considered when processing the new claim
• Procedure ends here
• All other FTB cancellation/rejection codes, investigate whether restoration is appropriate. If the customer's FTB:
• Can be restored, finalise the restoration of FTB. Go to Step 5
• Cannot be restored, advise the customer that a new claim is required. Procedure ends here

An exemption may only be considered if any of the following has occurred since the end of the 2 consecutive zero entitlement years:

• An FTB child who was not an FTB child of the customer (or their partner) during the two consecutive zero entitlement years has come into the customer's care. This can include a newborn or adopted child, a Regular Care child who has since become an FTB child, or a partner's child who has become an FTB child of the customer since becoming partnered. The Resources page contains examples
• 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
• There has been entitlement to FTB greater than zero for a later financial year due to reconciliation, re-reconciliation or the assessment of a lump sum claim and there are not another 2 more recent years of nil entitlement. This includes where the partner has become entitled to FTB
• Special circumstances for a non-payment of FTB instalments preclusion exist in relation to customer or their partner that did not exist at the end of the two consecutive zero entitlement years. Note: evidence may be required for special circumstance exemptions

Note: an exemption may also be created due to a ministerial instrument.

Is the request for exemption covered by one of the above criteria?

• Yes, and the customer:
• has a preclusion already applied, go to Step 6
• has not have a preclusion applied, record details on a DOC advising an exemption is not required. The customer does not need to have a preclusion coded prior to the exemption. Procedure ends here
• No, go to Step 8

A customer may not be eligible if they have had another two consecutive zero entitlement years of FTB entitlement since they last received FTB or last had deemed entitlement.

Check if the customer has had two consecutive zero entitlement years since the most recent deemed entitlement/entitlement greater than zero in the FTB reconciliation year.

In Process Direct:

• Access the screen:
• For a new claim activity, go to the FTB Zero Entitlement Override and Exemption Summary (FTBZEC) screen
• For a non-new claim activity, key START into the Super Key and select the FTB Zero Entitlement Preclusion workflow from the Task Selector. The FTB Zero Entitlement Override and Exemption Summary (FTBZEC) screen will display
• Check the FTB zero entitlement override (part A) and FTB zero entitlement override (part B) tables to see the relevant First Zero Entitlement Year
• Go to the FAO Reconciliation & Claim Summary (FRCS) screen
• Check the reconciliation result for all financial years after the later of First Zero Entitlement Year and the financial year of the deemed entitlement/entitlement greater than zero
• Select the most recent reconciliation line and a navigation pane will open
• Select FTB Calculation Result (FACRF)
• Check the Totals row for the Reco $ column for a $0 amount

In Customer First

• Select Families Benefits > FTB Zero Ent. Preclusion from the menu
• Check the Zero Entitlement Customer Summary page to see the relevant First zero entitlement year
• Select Family Benefits > FTB and CCB Reconciliation to go to the Family Tax Benefit (FTB) and Child Care Benefit (CCB) reconciliation results
• Check the reconciliation result for all financial years after the later of First Zero Entitlement Year and the financial year of the deemed entitlement/entitlement greater than zero
• To view a more detailed explanation of a result, select the activity number that matches the result to be viewed

Note: if re-reconciliation has occurred and the most recent result is zero, this indicates that there has been no change to the previous result, not that the customer has zero entitlement. A re-reconciliation result of zero entitlement would appear as the negative amount of the previous result.

Has the customer (or their current partner) had two consecutive zero entitlement years since they had deemed entitlement/entitlement greater than zero?

• Yes, go to Step 7
• No, see Step 1 in Table 2

Is the customer eligible for an exemption based on other reasons, for example special circumstances?

• Yes, see Step 1 in Table 2
• No, go to Step 8

Tell the customer that they are not currently eligible for an exemption and they can apply for a formal review of the decision to apply a preclusion at any time.

Record details on a DOC and issue a Q999 letter to the customer. The Resources page contains text.

If the customer applies for a formal review of the decision to apply a preclusion:

• do not select the Compensation/Preclusion decision type option as this code relates to compensation payments only
• run the Internal Review/Explanation script in Customer Record, select:
• Decision Type: Rate
• Reason for Decision: Precluded Previous Zero Entitlement

Explain the review and appeals process including timeliness standards and impact on payments.

The customer will be advised of the formal review outcome. If successful, the preclusion is deleted and FTB can be restored or re-granted.

If the preclusion has not yet been coded, see Non-payment of Family Tax Benefit (FTB) instalment payments to zero entitlement customers.

Procedure ends here.

To view the information in Process Direct:

• If outside of a new claim:
• Key START in the Super Key and select the FTB Zero Entitlement Preclusion workflow from the Task Selector
• Select the FTB Zero Entitlement Override and Exemption task
• Select Start
• If in a new claim transaction:
• Go to the FTB Zero Entitlement Override and Exemption Summary (FTBZEC) screen
• The FTB zero entitlement override (part A) and FTB zero entitlement override (part B) tables display preclusion details, including dates and the relevant First Zero Entitlement Year

To view the information in Customer First:

• Go to the Zero Entitlement Customer (ZEC) Summary page (in the customer's record) by selecting Families Benefit menu > FTB Zero Ent. Preclusion
• This page will display which components (FTB Part A and/or FTB Part B) are precluded and the first of the 2 consecutive zero entitlement financial years that determined the preclusion

If the request is to:

• record a new exemption
• in Process Direct, go to Step 2
• in Customer First, go to Step 3
• end a current exemption
• in Process Direct, go to Step 4
• in Customer First, go to Step 5

To record an exemption, the current preclusion must first be end dated.

To end date current preclusion

• Select Edit on the preclusion row to cease
• Update the End date: Where the change in circumstances occurred:
• Before 1 July of the current financial year, update the preclusion end date field from 1 July
• After 1 July of the current financial year, update the preclusion end date field from the start date of the exemption, or if the preclusion has a start date in the future, delete the preclusion. The Resources page contains a table outlining the Date of Event (DOV) for exemption coding
• Select Save
• Complete the Receipt Date and Channel fields, select Save

To record the exemption

• Select Add
• The Create FTB zero entitlement override screen displays the selected component. Note: some exemptions will apply to both components, where others will only apply to either FTB (A) or FTB (B)
• Override Type: Exemption
• Start date: Record the appropriate DOV. The Resources page contains a link to a DOV table
• End date: Only required when coding an exemption due to 'special circumstances' (such as bereavement) or when the exemption no longer applies. Note: if FTB is CNP-ZEP, a restoration activity is required via Benefit Action (BA) screen in Customer First
• Exemption Reason: Select the appropriate exemption reason from the drop-down box. If the customer meets the criteria for multiple exemptions, select the exemption reason with the earliest date of effect
• Document Notes: Record relevant information. This information will be recorded in an automatically generated Note/DOC
• Select Save

Has an end date been recorded?

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

To record an exemption, the current preclusion must first be end dated.

End date current preclusion

End date the current preclusion by updating the End date: field. Where the change in circumstances occurred:

• Before 1 July of the current financial year, the preclusion is to be end dated from 1 July
• After 1 July of the current financial year, end date the preclusion from the start date of the exemption, or if the preclusion has a start date in the future, delete the preclusion. The Resources page contains a table outlining the Date of Event (DOV) for exemption coding

Record the exemption

Code the following fields:

• Start date: Record the appropriate DOV. The Resources page contains a link to a DOV table
• Exemption Reason: Select the appropriate exemption reason from the drop-down box. If the customer meets the criteria for multiple exemptions, update the exemption with the earliest date of effect
• Component: Select which component of FTB will be exempt from preclusion. Note: some exemptions will apply to all components or only FTB Part A or B
• Activity Note: Record relevant information. This information will be recorded in an automatically generated DOC
• End date: Only required when coding an exemption due to 'special circumstances' (such as bereavement) or when the exemption no longer applies. Note: if FTB is CNP-ZEP, a restoration activity is required via BA screen.

Has an end date been recorded?

• Yes, go to Step 6
• No, update the Source and DOR: fields. Go to Step 7

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

To end a current exemption:

• Select Edit on the exemption row to end
• The Change FTB zero entitlement override screen displays the selected component
• End date: Where the change in circumstances occurred:
• Before 1 July of the current financial year, update the preclusion end date field from 1 July
• After 1 July of the current financial year, update the preclusion end date field from the start date of the exemption, or if the preclusion has a start date in the future, delete the preclusion. The Resources page contains a table outlining the Date of Event (DOV) for exemption coding
• Select Save
• Complete the Receipt Date and Channel fields, select Save
• Go to Step 7

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

On the ZEC Summary screen, select the current exemption and update the End date: field. Where the change in circumstances occurred:

• Before 1 July of the current financial year, update the preclusion end date field from 1 July
• After 1 July of the current financial year, update the preclusion end date field from the start date of the exemption, or if the preclusion has a start date in the future, delete the preclusion. The Resources page contains a table outlining the Date of Event (DOV) for exemption coding

Go to Step 7

Update the preclusion to start after the exemption period

In Process Direct:

• Select Add for the FTB component to code the preclusion for.
• The Create FTB zero entitlement override screen displays for the selected component. Note: some preclusions will apply to both components, where others will only apply to either FTB (A) or FTB (B)
• Override Type: Preclusion
• Start date: Use the exemption end date plus one day
• First zero entitlement year: select the first year of the two consecutive nil entitlement years
• Document Notes: Record relevant information. This information will be included in an automatically generated DOC
• Select Save

In Customer First:

• Start date: Use the exemption end date plus one day
• Component: Select which component of FTB will be precluded. Note: some preclusions will apply to both components, where other’s will only apply to FTB (A) or FTB (B)
• First zero entitlement year: select the first year of the two consecutive nil entitlement years
• Activity Note: Record relevant information. This information will be included in an automatically generated DOC
• Source and DOR: fields

In Process Direct:

• Select Assess
• Address any errors/warnings on the Errors (SWE) screen
• Select Assess
• Make sure the correct outcome is on the Entitlements (ELD) screen
• Select Finish
• Record details of the update
• Select Finalise

In Customer First:

• Go to the Assessment Results (AR) screen to check the result and complete the update

In Customer First cancel any preclusion or exemption MFU activities that are generated as a result of this activity