How a social worker assesses and codes a deferral where requirements are met 003-12050020

The Prohibition of Family Tax Benefit (FTB) Instalment Payments (PIP) can be deferred by a Services Australia social worker for up to 6 months.

If they determine that customer and/or their family members will be at risk of family and domestic violence if the customer were to pursue the issue of lodging outstanding tax returns with their non-lodging current partner.

The social worker should view the customer's PIP information before contacting the customer:

• Navigate to Family Assistance > Prohibition of Family Tax Benefit > Assessment Explanation
• Check reconciliation outcomes on the FAO Reconciliation & Claim Summary (FRCS) screen for the relevant financial year/s. Note: if reconciliation has completed, advise outcome and record details on a DOC

Assess family and domestic violence issues. For the purposes of PIP, the assessment is specifically in relation to the risk of family and domestic violence if the customer were to pursue the issue of lodging late tax returns with their partner.

• If a couple have separated, the ex-partners non-lodgement of tax returns can no longer affect the FTB payments of the customer and fortnightly payments will resume
• If a customer cannot lodge their tax return because of the actions of their ex-partner, it is possible to grant a PIP deferral for a specified period
• PIP deferrals can include where the violence was threatened or carried out against a child, or another member who resides in the household, and the customer has been unable to lodge their tax return
• A social worker deferral for PIP will mean the customer can continue to be paid FTB by instalments
• No report is required
• Record in SWIS.

Has the customer or their partner had two or more non-lodger debt decisions?

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

The customer's FTB is at risk of cancellation in the future, due to the Sunset Clause despite any social work exemption. This is likely to occur if another non-lodger debt decision is made.

• Check DOCs detailing PIP information and discuss with the customer
• Check letters issued on the History Summary (HS) screen

Consult with the Families and Parenting Service Support Officer to discuss whether the customer may be eligible for a deferral of the Sunset Clause.

Explain to the customer that the deferral only prevents their FTB instalment payments from being stopped, it does not negate the requirement for the customer or their partner to lodge a tax return. This is still a requirement of the Australian Taxation Office (ATO) and the ATO may contact them regarding the tax returns which have not been lodged.

Deferral granted

• Remind the customer that the social worker deferral will automatically end after 6 months. If required, they will need to reapply for another deferral before the end date of the current deferral
• Tell the customer that if they have had 3 or more non-lodger debts and have at least one of those debts outstanding, the social worker deferral will no longer apply as their FTB payment will be cancelled (Sunset Clause)

Deferral rejected

• Tell the customer to visit the ATO website, for more information about obtaining help in lodging their or their partners outstanding tax returns and remind them of the risk of the cancellation
• Refer the activity to an FCC Processing Team for coding use Fast Note:
• select Auto text, use Families > Updates > SWO Assessed PIP Deferral