Automatic Uplift of income estimates 108-05030050

Certain customers are excluded from the NFYA/Auto Update processes.

View the letter on either the History Summary (HS) screen or the Search Outbound Correspondence tool (Customer First).

Did the customer get a letter asking them to give an income estimate for the new financial year as part of the NFYA review process?

• Yes, the customer may be subject to the first stage Automatic Uplift. Go to Step 3
• No, the customer will not be subject to the first stage Automatic Uplift, but may be subject to the second stage Automatic Uplift. Go to Step 8

A default estimate is calculated for all customers included in the NFYA review.

If the customer does not provide their own estimate, the default estimate is used to work out the customer's rate of:

• FTB entitlement from 1 July of the new financial year
• or 21 days after the NFYA letter was sent if that is later
• CCS entitlement from the start of the CCS year (the first Monday in July)

To view this in:

• Process Direct - go to the FAO Income uplift details (FIUD) screen
• Customer First - in the Search Workspace field, key FAO Income Uplift Details (FIUD)
• select the Search button
• the default estimate will display with the Source Income Type field as EST

See the Resources page for information on how the default estimate is calculated.

Did the customer respond to the NFYA letter before the scheduled application date of the default estimate?

• Yes, go to Step 5
• No, go to Step 7

The customer may give their own reasonable estimate or elect to use the default estimate.

Customers should be encouraged to give their own reasonable estimate if possible. If an uplift estimate results in the customer exceeding the relevant FTB income threshold FTB may cancel due to income (CAN-INC).

If the customer:

• gives their own reasonable estimate, see Step 3 in the Finalising the procedure table
• advises they wish to use the default estimate, go to Step 6

Advise the customer they do no need to take any further action. The default estimate will apply from the scheduled application date.

If CCS current, tell the customer that the CCS rates displayed before the beginning of the new financial year are an estimate only. Customers should check their online account after the start of the CCS year to view their actual CCS entitlement.

Customers who accept the first stage uplift may be subject to the second stage Automatic Uplift if the Agency receives actual ATO income throughout the financial year.

Go to Step 8.

The default estimate on the FIUD screen will display the Action Taken field as Auto Applied.

If the uplift estimate is more than the relevant Part A and/or Part B income thresholds, FTB may cancel income (CAN-INC) from the scheduled application date.

The default estimate will continue to be used until 1 of the following events occurs:

• Customer provides their own reasonable estimate. See Step 3 in the Finalising the procedure table
• Actual ATO Income - the Agency receives actual ATO income details for the previous financial year from the ATO for the customer or their current partner. Go to Step 9
• A new financial year starts. See Step 4 in the Finalising the procedure table

The receipt of actual ATO income for the customer or their current partner for a previous financial year will trigger the second stage Automatic Uplift process if:

• the customer is FTB or CCP current
• the customer has not given their own estimate for the current financial year, and
• the first stage Automatic Uplift applied a default estimate, or the customer was excluded from the first stage Automatic Uplift (no estimate for themselves or their partner)
• the current estimate is less than the indexed actual ATO income

The second stage Automatic Uplift may occur more than once. For example, actual ATO income details received at different times for the customer and their partner, or amended actual ATO income details received from the ATO.

If next NFYA due

The second stage Automatic Uplift process will not occur:

• if actual ATO income for the customer/partner is received
• the scheduled application date for the new default estimate is after the start of the next NFYA mail-out, or
• the current estimate is equal to or greater than the indexed actual ATO income, or
• the current estimate is customer given (not an uplift)

If the customer has not given an income estimate, the system calculates a new default estimate by applying an indexation factor to actual ATO income for the person.

See the Resources page for how the default estimate is worked out.

The FIUD screen shows the new default estimate with the Source Income Type field code of ATI.

Partnered customers

Has the Agency received actual ATO income for both members of the couple?

• Yes, the new default estimate is worked out by applying an indexation factor to actual ATO income for both
• No, the system sets a 14 day review to await actual ATO income for the other member of the couple. If their actual ATO income is not received, the new default estimate is worked out on day 14 as the sum of actual ATO income multiplied by the indexation factor and the most recent default estimate for their partner

Is the new default estimate higher?

• Yes, go to Step 2
• No, the existing default estimate (Uplift 1) will continue to be used to calculate the customer's entitlement until:
• the customer gives a reasonable estimate
• new actual ATO Income details are received, or
• a new financial year begins

The FIUD screen will still show the new estimate with Action Taken: field Not Applied and the reason 'Lower'. The customer is not sent a letter, as there has been no change. Procedure ends here

A letter is issued to the customer advising details of the new default estimate and that their rate of FTB and/or CCS will be reassessed in 21 days using the new default estimate unless they give their own reasonable estimate before then.

If the uplift estimate is more than the relevant Part A and/or Part B income thresholds, FTB may cancel income (CAN-INC) from the scheduled application date.

The date the new default estimate will be applied will display on the FIUD screen in the Scheduled Application Date: field.

Did the customer contact Services Australia within 21 days of letter being issued?

• Yes, go to Step 3
• No, the new default estimate is used to work out the customer's rate of FTB and/or CCS from the scheduled application date

• If the customer wishes to give their own reasonable estimate, and is:
• an FTB or FTB/CCS customer, go to Step 4
• a CCS only customer, go to Step 5
• If the customer wants to use the new default estimate for themselves or their current partner, run the Family Income and Choices workflow. Record the uplift amount and customer acceptance of the default estimate (which can be found in the change reason)
• Note: if the workflow is unavailable, record the details on a DOC
• The new default estimate (uplift) will not be used to work out their FTB/CCS rate until the 21 day review matures. Automatic Uplift may occur again if new or amended actual ATO income details are received for the previous financial year
• If the customer gets CCS, also review their and their partner’s (if they have one) Activity Test details and update if needed
• Procedure ends here

Customer contacts to give their own reasonable estimate.

For FTB or FTB/CCS customers, run the Family Income and Choices workflow to record this estimate. If FTB is cancelling income (CNP) or has cancelled (CAN), restoration may be needed via the Benefit Action (BA) screen.

The customer provided estimate will override the default estimate and will be used to calculate their rate of FTB and/or CCS entitlement from either:

• FTB:
• 1 July of the new financial year if the estimate is given before the start of the new financial year (in response to NFYA letter), or
• the date the new estimate is given
• CCS
• from the start of the CCS year if given on or before that date, or
• the start of the next CCS fortnight if given after the start of the CCS year

For example, if the customer gives an estimate that is either equal to or different from the default uplift estimate before the 21 day review completes, the new estimate will be used to work out their FTB/CCS rate. When the 21 day review matures, it will exclude the default uplift estimate.

Note: for FTB/CAN-OIS (off income support), the estimate may apply from the date of cancellation. See Restoration of Family Tax Benefit (FTB).

The customer will not be subject to any more Automatic Uplift for the current financial year.

If a customer gets CCS, staff should review their and their partner’s (if they have one) Activity Test details and update in Process Direct, if needed.

Procedure ends here.

If a CCS only customer contacts to give their own reasonable estimate encourage them to update their estimate using their Centrelink online account through myGov or the Express Plus Centrelink mobile app.

Staff should also encourage them to update their and their partner’s, activity details.

If CCS only customer is not able to update their income estimate using online channels, launch Process Direct.

• Select the Customer Summary tile, and locate the customer’s record using the Search Criteria. Select the customer’s record from the Search Results screen
• Go to the FAO Taxable Income (FTI) screen
• Select the Add to record the income component. The Create FAO Taxable Income table displays, pre-populated with the customer’s current income details. Update all fields as needed:
• Start Date: if notified before the start of the financial year, insert 1 July of the new financial year. If the customer has contacted after the start of the financial year, it is the date the customer notified of the change
• Financial Year: select the relevant year from the dropdown menu. For example, select 2021 for the 2020-21 financial year
• Income Source: will default to Customer Provided (no change needed)
• Income Status: will default to Estimated Income (no change needed)
• Complete all income fields as appropriate:
• Taxable Income
• Exempt Reportable Fringe Benefits
• Other Reportable Fringe Benefits
• Foreign Income
• Deductable Child Maintenance Expenditure
• Total Net Investment Losses
• Tax Free Pensions/Benefits
• Reportable Superannuation Contributions
• Tax Exempt Foreign Income
  All income components recorded on the FTI table should be discussed with the customer. Record income as ‘0’ for all income types the customer advises nil income.
  Note: Service Officers do not need to record ‘0’ income for components which have not been recorded previously or are already recorded as ’0’.
• Select Save

Note: if the customer is partnered, select the partner from the Relationship menu to update their income details on the FTI table.

Select Save and return to the customer’s record by selecting them from the Relationship menu.

Once all required income components have been updated for the customer and the partner (if applicable), in the CCS customer’s record:

• Select Assess
• Complete the Update Header Data – Receipt Date and Channel and select Save
• Select Finalise to complete the activity
• For the new CCS year, the income estimate will take effect from the start of the financial year, or the start of the next CCS fortnight if the customer has advised after the start of the CCS year
• Tell the customer of their new CCS subsidy percentage as a result of their updated income estimate and the date this will take effect
• Remind customers they can choose to increase their CCS withholdings to reduce the likelihood of an overpayment when their payments are reconciled at the end of the financial year

Note: when a customer gives an estimate for the new financial year, it is possible their and/or their partner’s (if they have one) level of activity may also have changed.

See Activity Test for Child Care Subsidy (CCS) for more information about reviewing activity details.

The NFYA process occurs in May each year and the customer may once again be subject to an Automatic Uplift for the new financial year.

The default estimate for the new year will be based on the customer's current income estimate, unless actual ATO income is received before the NFYA mail-out starts.