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Explaining Family Tax Benefit (FTB) reconciliation overpayments due to child support issues 277-51190030

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This document outlines how to explain the reason for an FTB reconciliation overpayment that was partly or entirely due to maintenance income or action taken to obtain child support.

When overpayments can occur

An overpayment could occur if:

  • the customer's total annual maintenance income for the financial year (including any arrears payments) was more than the amount estimated during the financial year and is above the customer's Maintenance Income Free Area (MIFA)
  • there is a retrospective increase to a child support assessment for a private collect customer. Note: the customer can apply for a formal review of the FTB reconciliation debt with Centrelink. However if the customer wants a review of the retrospective increase to the assessment, they need to contact Child Support
  • reasonable action to obtain child support was not taken. FTB Part A is limited to the base rate for a child if action to obtain child support is required but not taken
  • relationship status changed during the financial year

FTB Part A supplement, Part B supplement and Single Income Family Supplement (SIFS) are included in the reconciliation calculation for eligible customers once adequate income/ not required to lodge details are available. FTB top-ups, including supplement and SIFS entitlement, are automatically used for debt offsetting.

If a customer contacts to advise that the retrospective child support assessment information on their Centrelink record is incorrect or not present. see Child Support data has not loaded onto or is incorrectly affecting customer’s record for further details.

Maintenance reconciliation for Family Tax Benefit (FTB)

Maintenance Income Credit (MIC)

Calculating and recording the Maintenance Income Credit (MIC) for Family Tax Benefit (FTB) lump sum claims

Maintenance Action Test (MAT) for Family Tax Benefit (FTB) customers

Maintenance Income Test (MIT) for Family Tax Benefit (FTB)

Modified Entitlement Method

Maintenance reconciliation

Reconciliation of Family Tax Benefit (FTB)

Debt offsetting during family assistance reassessment, reconciliation or claim processing

Amending maintenance income details on the Override Maintenance Income (MNOI) screen

Customer enquires about reconciliation overpayment

Child support Manual Follow-up (MFU) activities and automatic reviews