Updating previous financial year incomes for Family Tax Benefit (FTB), Child Care Subsidy (CCS) and Child Care Benefit (CCB) 108-05030040

Advising non-lodgement: If the customer advises they (or their partner, or ex-partner) are not required to lodge a tax return for the relevant financial year, see Recording not required to lodge advice and previous year income. Procedure ends here.

Partner contact: An estimate can be accepted from the customer's partner if they are a Person Permitted to Enquire (PPE) and could reasonably be expected to provide an estimate. A new estimate can be sought if they contact for other reasons.

Blended family records: If a blended family assessment relates to the current partner, process an activity on both records for the estimate to affect both records.

Ex-partner records: If the customer is providing an estimate for an ex-partner, there is no need to access or code an activity on the ex-partner's record, except where a blended family assessment applied for the ex-partner period.

For customers who received CCS and need to provide ex-partner income, refer to Exceptional circumstances for Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS).

Revise income already used in reconciliation calculations: If a most recent estimate (MRE) has been used in a reconciliation calculation and it is not correct, the customer can provide the correct previous year income.

Check the Financial Year: field to ensure the correct financial year details are displayed. Each financial year is displayed on a separate page.

For new records, it defaults to the previous financial year.

To change the year, overtype the Financial Year: field or use [PF24] and [PF23] to scroll.

Amounts are displayed as:

• Est (estimate) - provided by the customer
• Actl (actual) - transferred by the Australian Taxation Office (ATO)

There are also separate screens for each person (customer, current partner and previous partner) for each financial year.

The Person: field will show 1 for the customer, and 2 onwards for partners in the financial year in alphabetical order (if applicable).

To change the person, code the number in the Person: field, or use [PF11] and [PF10] to scroll.

Is an actual amount recorded on the FIPY screen for the person?

• Yes, go to Step 5
• No, go to Step 6

If the ATO has supplied the actual adjusted taxable income (ATI) for any income components, the amounts cannot be changed. The customer will need to contact the ATO to lodge an income amendment.

Estimates of other components may be updated and may result in a reconciliation or re-reconciliation of FTB, CCS or CCB.

Note: if the FIPY screen displays an ATO income cancellation notification and the reconciliation result cancelled, see Manual intervention where Australian Taxation Office (ATO) cancels Notice of Assessment (NOA).

Does the customer wish to record or change estimates for:

• foreign income
• tax free pensions/benefits (Note: the system will use the higher of the estimate or the amount recorded on the Tax Payment Summary (TXGS) screen as being paid by Centrelink)
• deductible child maintenance expenditure?
• Yes, go to Step 6
• No, advise the customer the actual income will be/was used to calculate FTB/CCS/CCB for the previous financial year. If the customer is querying the amount assessed as actual ATI (components reported by the ATO), refer them to the ATO. Procedure ends here

The Service Officer must be satisfied the previous year income estimate is reasonable, taking into account:

• the reason for the change,
• the previous year income estimate on the FIPY screen, and
• other information recorded on the customer's record

From the 2020-21 financial year, a check of the Superkey: STPF in Process Direct for any Single Touch Payroll (STP) employer reported income amounts may assist in determining if the customer's previous year income estimate is reasonable.

Compare the customer's new previous year estimate with information held on the customer’s record. For example, if they want to revise the tax free pension/benefit, compare new previous year income estimate to the amount on the TXGS screen or Payment Summary (PS) screen.

Check income support assessment screens for income the customer may need to include, for example, Earnings Summary (EANS) screen, Real Estate/ Business Summary (REBS) screen. For more information, see Helping families provide a reasonable annual income estimate for family assistance payments and Reconciliation of Family Tax Benefit (FTB).

The customer's explanation of how they calculated the previous year income estimate must be consistent with the information on the customer’s record and information received via STP. Any discrepancies must be discussed with the customer.

If the customer is clearly underestimating their previous year income, taking into account all of the above, and they do not wish to change the amount, the previous year income estimate is not considered to be reasonable. The estimate must be the customer's own figures.

Is the new previous year income estimate reasonable?

• Yes, go to Step 8
• No, go to Step 7

Advise customer that based on the information on their record the estimate is not reasonable, and cannot be used.

If the customer:

• elects to change the amount to a reasonable figure, go to Step 8
• refuses to change the amount:
• advise them the amount cannot be recorded to revise their entitlement
• record details on a DOC
• procedure ends here

In Customer First, record updates on the FIPY screen.

Ensure the correct financial year and person (customer / current partner / previous partner) page displays before starting the update.

Key all income components. Key '0' (zero) if the customer indicates no income for that component.

If actual adjusted taxable income details have been transferred from the ATO for the person, a previous year income estimate coded for taxable income, exempt reportable fringe benefits, other reportable fringe benefits, net investment loss, reportable superannuation contributions and tax exempt foreign income components of ATI will be disregarded by the system.

• To insert the first reasonable estimate for an income component, key the estimate directly in the blank Estimated AMT $: field
• 'C'orrect and update or 'D'elete an existing estimate if the estimate was recorded incorrectly
• Ensure the correct Date of Receipt (DOR) is used when updating FIPY. The DOR is the date the previous year income estimate was first advised. If the DOR is more than 12 months in the past, refer to the Background page of Date or receipt
• Check:
• the result of any re-reconciliation that has occurred as a result of the updated previous year income, and
• that the income used in reconciliation is as expected
• Finalise activity via the Assessment Results (AR) screen
• Record all details of the previous year estimate update on a DOC, including income amounts and any changes to entitlement