Customers receiving Rent Assistance (RA) with their primary payment instead of Family Tax Benefit (FTB) 108-08080130

When a person receives a social security payment or ABSTUDY (primary payment), and Family Tax Benefit (FTB) Part A, Rent Assistance (RA) is usually paid with FTB Part A. However, in some cases, RA can be paid with the recipient's primary payment instead. This occurs if any of the following apply. The customer's:

• FTB Part A reduces to the base rate due to the Maintenance Action Test:
• RA is paid with the primary payment
• If the customer takes maintenance action, RA is paid with FTB Part A
• Rent is lower than the FTB rent threshold:
• The customer is not eligible for RA with FTB Part A
• The customer is paid RA with their primary payment under social security law as the rent threshold is lower than that used for FTB
• Rent threshold is solely dependent on the customer's relationship status. In most cases, the amount of RA payable is very small. This is an unintended result of legislation and may be repealed in the future
• FTB Part A or FTB Part A and Part B are precluded due to non-payment of FTB instalment payments to zero entitlement customers:
• RA is paid with the primary payment
• If the customer can demonstrate that they are again eligible, or a change in circumstance has occurred and an exemption is granted RA will revert to be paid with FTB Part A

Rent Assistance (RA) is not paid with a primary payment if the:

• customer's Family Tax Benefit (FTB) Part A rate is reduced to the base rate due to income including maintenance income
• customer shares the care of a child for 14-34% of the time and does not apply for FTB. Customers with children in their care for less than 35% of the time are not entitled to the child related component of FTB. However, customers with a Regular Care Child should be assessed for RA through the FAO system
• customer is subject to Prohibition of FTB Instalment Payments (PIP), or
• customer's FTB has cancelled Off Income Support (OIS) due to not providing an estimate following an employment income nil rate period. FTB will maintain responsibility for the payment of RA for a 12 week period from date of cancellation. When FTB is restored, RA will be paid with FTB arrears, if entitled

A customer subject to Prohibition of FTB Instalment Payments (PIP) retains their entitlement to Family Tax Benefit (FTB), including Rent Assistance (RA).

The rate payable to the customer while their FTB is prohibited is zero. This means:

• RA is not paid with their primary payment during this period
• they are still entitled to receive RA through the FAO system

If PIP is deferred:

• payment of FTB, including RA will recommence
• arrears are paid once their non-lodgement issues are resolved and the prohibition is lifted

If FTB is cancelled due to the Sunset Clause (status of CAN-L3Y/N3O/N3P/N3Y):

• the customer does not retain their entitlement to FTB
• RA is payable with their primary payment

The customer’s Family Tax Benefit (FTB) payment automatically adjusts when they:

• receive Rent Assistance (RA) as a component of their primary payment, and
• then make a claim for arrears of FTB

The adjustment takes into account the amount of RA already paid. This prevents the customer receiving a duplicate payment of RA.