Modified Entitlement Method 277-51080030

For FTB instalment customers, annual maintenance income is estimated during the financial year using either the Entitlement Method or the Disbursement Method.

• For private collect customers, the Entitlement Method is used
• For Child Support collect customers, a customer can choose to be assessed under the Disbursement Method otherwise a Modified Entitlement Method is used
• For Child Support collect customers on the Modified Entitlement Method:
• Maintenance income is assessed from 1 July of each financial year using the Entitlement Method
• Whenever Child Support advises new disbursement details or changed entitlement information for the customer, the system calculates annual maintenance income using the Entitlement Method and the Disbursement Method and uses the method that results in the higher amount to work out the customer's ongoing FTB Part A rate

Maintenance income is estimated in this way to reduce the risk of overpayment due to changes in maintenance income during the financial year. If maintenance income increases during the year, customers can further reduce the risk of overpayment through a number of FTB payment choices.

Details of the annual maintenance income assessment can be viewed from the Maintenance Income Test (MIT) Explanation Summary (MNEX) screen. A breakdown of the annualised amount of maintenance income by maintenance entitlement group can be viewed on the FTB Maintenance Assessment Explanation (REXFTBM) screen.

The effect of annual maintenance income on the customer's FTB Part A rate can be viewed on the Rate Explanation (REXFTBA) screen.

When FTB reconciliation occurs after the end of the financial year, annual maintenance income is recalculated based on all Child Support disbursements received, child support entitlement for private collect periods, and other maintenance income such as capitalised maintenance.

The customer's total annual maintenance income is the sum of the annual amounts from each person the customer (and their partner) are entitled to receive child support from. Customers with a child support entitlement registered for collection by Child Support may benefit from the Maintenance Income Credit during FTB reconciliation.

From 2011-12 onwards, customers can no longer self-assess their child support, therefore lump sum claims from customers with child(ren) from a previous relationship are assessed using information from Child Support.

For 2008-09 to 2010-11 financial years, customers had the option to give Centrelink permission to obtain child support payment details directly from Child Support rather than self- assessing.

Prior to 2008-09, customers were asked to provide details of any child support income as part of their lump sum claim (they were able to self-assess). Details were recorded on separate screens to those used for a current financial year and were used to assess their FTB Part A rate for the relevant financial year.