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

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Letter text for rejecting exemption from preclusion of FTB instalments

Table 1: Sample text for letters to advise customers of the decision about a request for an exemption from non-payment of FTB instalment payments to zero entitlement customers.

Item

Letter text

1

Q999 rejection letter text for single customer

You recently applied for an exemption from having your Family Tax Benefit instalment payments stopped. Unfortunately, your request for this exemption has been rejected. If you would like to discuss this further, you can contact us on 13 6150.

You should check your entitlement with us at the end of the income year when your family's actual income is known.

What you need to do if your circumstances change

If your circumstances change you need to contact us to check your entitlement to Family Tax Benefit. Changes can include:

  • the birth of a child
  • a new child comes into your care
  • you start to receive an income support payment such as a Centrelink pension or allowance
  • you receive Family Tax Benefit for a later financial year based on your actual income
  • other significant changes in your financial circumstances, for example you are affected by a natural disaster

2

Q999 rejection letter text for partnered customer

You recently applied for an exemption from having your Family Tax Benefit instalment payments stopped. Unfortunately, your request for this exemption has been rejected. If you would like to discuss this further, you can contact us on 13 6150.

You should check your entitlement with us at the end of the income year when your family's actual income is known.

What you need to do if your circumstances change

If you and/or your partner’s circumstances change you need to contact us to check your entitlement to Family Tax Benefit. Changes can include:

  • the birth of a child
  • a new child comes into your care
  • you separate from your partner
  • you or your current partner start to receive an income support payment such as a Centrelink pension or allowance
  • you receive Family Tax Benefit for a later financial year based on your actual income
  • other significant changes in your financial circumstances, for example you are affected by a natural disaster

DOC text for rejecting exemption from preclusion of FTB instalments decision

Table 2: Sample text for recording on a DOC a decision about an exemption from non-payment of FTB instalment payments to zero entitlement customers.

Item

Example

1

Exemption rejected DOC

Ext Detail: FTB preclusion exemption

Text: Cust contacted via XXX to request an exemption from the preclusion of FTB Part A and/or FTB Part B due to [include details]. Exemption rejected as [include details] or cust has had another two consecutive years of nil entitlement [20XX-XX and 20XX-XX] to FTB Part A and Part B since the date of change [XX/XX/XX]. Q999 issued advising exemption rejected and cust advised lump sum claim can be lodged at the end of the financial year. Cust has been advised of the review and appeal process.

FTB remains precluded under FAAA S32AF.

Examples of exemptions from preclusion of FTB instalments

Table 3: Examples of how to determine an exemption from non-payment of FTB instalment payments to zero entitlement customers.

Item

Example

1

Exemption due to deemed FTB entitlement

Exemptions due to a customer having a deemed entitlement to FTB for a year since the end of the 2 consecutive zero entitlement years are to be recorded for whichever component/s (FTB Part A and/or FTB Part B) attract the deemed entitlement.

Example

Reconciliation has confirmed that Nathan had zero entitlement to the instalment payments of FTB that he received for his son Sam for the 2009-10 and 2010-11 financial years.

As Sam left Nathan's care in June 2011, Nathan was not FTB current for the whole of the 2011-12 financial year.

On 1 July 2012, Sam returns to Nathan's care and Nathan's payments are precluded for the 2012-13 financial year due to having 2 consecutive years of zero entitlement.

Nathan cannot be assessed for an exemption due to a child coming into care as Sam was an FTB child of Nathan during the zero entitlement years (2009-10 and 2010-11).

Nathan's adjusted taxable income (ATI) for 2011-12 has been assessed by the Australian Taxation Office (ATO) and he would attract entitlement to both FTB Part A and Part B for the 2012-13 financial year based on his current circumstances (his deemed entitlement). Nathan can be exempted from the preclusion of both FTB Part A and FTB Part B for the 2012-13 financial year.

If Nathan's deemed entitlement was only to receive FTB Part B, the exemption could only be applied to this component.

2

Exemption due to FTB entitlement greater than zero

If a customer with precluded payments has an entitlement to FTB greater than zero for a later financial year since the end of the 2 consecutive zero entitlement years due to reconciliation, re-reconciliation of the assessment of a lump sum claim, an exemption can be recorded for whichever component/s of FTB have an entitlement greater than zero.

Example

For the 2013-14 financial year Amie's FTB Part A and FTB Part B payments are precluded due to the non-payment of FTB instalments to zero rate customers measure.

Amie lodges a lump sum claim for the 2012-13 financial year and is determined to have entitlement to FTB Part A only.

An exemption due to deemed entitlement is able to be recorded for FTB Part A. FTB Part B will remain precluded and Amie can access instalment payments of FTB Part A.

If Amie's lump sum claim determined entitlement to both FTB Part A and FTB Part B, the exemption could be applied to both.

Guide to determining Date of Event

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