3.2.8.20 Estimate Following Cancellation of Income Support Payment or During Employment Income Nil Rate Period

Summary

This topic covers information relating to income support individuals and includes the following:

  • income support individuals - FTB,
  • income support individuals - CCS,
  • income support payment cancelled, and
  • employment income nil rate period - FTB.

Note: This topic is not relevant to SBP.

Income support individuals - FTB

If the individual (1.1.I.90) or their partner (1.1.P.30) receive an income support payment, they are not subject to the income test for FTB Part A. They are eligible for the maximum rate of FTB Part A, subject to the maintenance income test (1.1.M.10) and MAT.

Act reference: FAAct Schedule 1 clause 38L Application of income test to pension and benefit recipients and their partners

Income support individuals - CCS

All individuals, including income support recipients (1.1.I.50), need to provide an estimate of income when claiming CCS to determine their rate of subsidy.

Act reference: FAAct Schedule 2 Part 1 Amount of CCS, Schedule 2 Part 2 Amount of ACCS (child wellbeing), ACCS (temporary financial hardship) or ACCS (grandparent) for an individual, Schedule 2 Part 3 Amount of ACCS (transition to work)

Income support payment cancelled

If both the individual and their partner lose eligibility for the pension or benefit, their eligibility for FTB must be reassessed and the income test applied. Their CCS entitlement (1.1.E.30) will also be reassessed if applicable. For FTB purposes, recipients of an income support payment on an income nil rate period are not considered to be receiving an income support payment and are subject to the income test for FTB Part A.

The individual and their partner must provide an estimate of their ATI (1.1.A.20) for the current financial year. For FTB, the income test must be applied to work out their new rate of FTB. For CCS, the individual will already have an income estimate in place, but they may need to update this if the cancellation of the income support payment has affected their income estimate for the year.

Employment income nil rate period - FTB

Income support recipients or their partners in an employment income nil rate period who also receive FTB will have 21 days to provide an estimate of their ATI for the current financial year from the start of the nil rate period. The estimate will be applied as soon as it is received and the income-tested rate will be applied from the start of the income nil rate period.

Act reference: FA(Admin)Act section 31A Variation of instalment entitlement determination to reflect revised adjusted taxable income estimates

Policy reference: FA Guide 4.4.4 Reassessment of FTB - Income Support Cancelled or Employment Income Nil Rate Period

SS Guide 3.1.12 Employment Income Nil Rate Period

Last reviewed: 2 July 2018