Default estimates examples
Every time a default estimate is calculated, it will display on the FAO Income Uplift Details (FIUD) screen, whether it is used to work out the customer's Family Tax Benefit rate. The indexation factor is also recorded on the FIUD screen.
The following are examples of how the default estimate is calculated for each stage of the Automatic Uplift process for Family Tax Benefit during the 2026-27 financial year, commencing 1 July 2026.
First stage Automatic Uplift - New Financial Year Assessment review
Table 1: this table explains the first stage of the Automatic Uplift on customer's income estimates. The most recent income estimate for the customer (and their partner) is adjusted by applying an indexation factor to each component of Adjusted Taxable Income (ATI).
Item | Most recent estimate for 2025-26 | Indexation factor for 2026-27 | Default estimate for 2026-27 (after rounding applied) |
Taxable Income | $25,000 | 1.034 | $25,850 |
Total Reportable Fringe Benefits and Exempt reportable fringe benefit adjusted amount | $5,000 | 1.034 | $5,170 |
Reportable Superannuation Contributions | $8,000 | 1.034 | $8,272 |
Total Net Investment Losses | $3,000 | 1.034 | $3,102 |
Tax Free Pensions/Benefits | $2,225 | 1.034 | $2,301 |
Foreign Income | $10,000 | 1.034 | $10,340 |
Tax Exempt Foreign Income | $0 | 1.034 | $0 |
Less Deductible Child Maintenance Expenditure | Less $3,000 | 1.034 | Less $3,102 |
Total | $50,225 | | $51,933 |
Second stage Automatic Uplift - calculation of new default estimate
Table 2: this table explains how a default estimate that is being used to work out the customer's FTB and the actual ATO income details that are received from the Australian Taxation Office (ATO) for the customer or their partner, calculate to a new default estimate. Indexation that occurs under Uplift 2 only applies to the ATO confirmed income components.
Item | Actual income for 2025-26 | Source | Indexation factor for 2026-27 | New default estimate for 2026-27 (after rounding applied) |
Taxable Income | $26,850 | Actual Income from ATO | 1.034 | $27,763 |
Total Reportable Fringe Benefits and Exempt reportable fringe benefit adjusted amount | $5,460 | Actual Income from ATO | 1.034 | $5,646 |
Reportable Superannuation Contributions | $7,522 | Actual Income from ATO | 1.034 | $7,778 |
Total Net Investment Losses | $3,138 | Actual Income from ATO | 1.034 | $3,245 |
Tax Free Pensions/Benefits | $2,327 | Customer's most recent estimate | N/A | $2,327 |
Foreign Income | $10,460 | Customer's most recent estimate | N/A | $10,460 |
Tax Exempt Foreign Income | $0 | Actual Income from ATO | 1.034 | $0 |
Less Deductible Child Maintenance Expenditure | Less $3,340 | Customer's most recent estimate | N/A | Less $3,340 |
Total | $52,417 | | | $53,879 |
Examples of Automatic Uplift process
Table 3: this table explains the Automatic Uplift process.
Date | Example |
May 2026 | New Financial Year Assessment (NFYA) letter issued inviting the customer to give a reasonable estimate for 2026-27. It also advises the default estimate will apply from 1 July 2026 if they do not give their own estimate. |
1 July 2026 | Customer has not given an income estimate for 2026-27, and therefore the default estimate (Uplift 1) applied. Customer $52,134 - default estimate (Uplift 1) Partner $31,562 - default estimate (Uplift 1) |
21 August 2026 | The customer's actual ATO income for 2025-26 of $56,435 is advised by the ATO. A review is set for 14 days for receipt of their partner's actual ATO income. |
5 September 2026 | The partner's actual ATO income for 2025-26 has not been received by the end of the 14 day review period. A new default estimate is calculated for the customer of $58,354. As the new default estimate is higher than their current default estimate (Uplift 1), the customer is sent a letter advising the new default estimate to apply in 21 days unless they advise their own estimate. |
27 September 2026 | Customer $58,354 - default estimate (Uplift 2) Partner $31,562 - default estimate (Uplift 1) |
23 November 2026 | The partner's actual ATO income for 2025-26 becomes available after the new default estimate has been calculated for the customer. The partner's actual ATO income is $28,800. A new default estimate is calculated for the partner of $29,779 which is lower than their current default estimate, so the current default estimate continues to be used. The customer is not sent a letter, as there has been no change. Based on this estimate (after rounding is applied) is as follows: Customer $58,354 - default estimate (Uplift 2) Partner $31,562 - default estimate (Uplift 1) |
Indexation factors for each financial year
Table 4: this table describes the indexation factors for each financial year.
Financial year | Uplift factors |
2026-27 | 1.034 |
2025-26 | 1.055 |
2024-25 | 1.039 |
2023-24 | 1.037 |
2022-23 | 1.038 |
2021-22 | 1.019 |
2020-21 | 1.026 |
2019-20 | 1.028 |
2018-19 | 1.024 |
2017-18 | 1.016 |
2016-17 | 1.015 |
2015-16 | 1.013 |
2014-15 | 1.030 |
2013-14 | 1.046 |
2012-13 | 1.038 |
2011-12 | 1.043 |
2010-11 | 1.050 |
2009-10 | 1.042 |
2008-09 | 1.038 |
2007-08 | 1.046 |
2006-07 | 1.053 |
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