4.2 Claims for FTB
Types of claim
There are 3 main types of claims for FTB:
A claim for FTB can include any combination of these claim types, but separate claim forms do not have to be lodged, provided the individual has provided all the necessary information in the claim to make the determination for each type of claim and the claim relates to one financial year.
One common claim scenario is a combination of past period claim and instalment claim where the individual becomes eligible for FTB prior to lodging the claim. The past period claim is paid out as a lump sum and ongoing entitlement is paid as instalments.
Example: Judy has a baby in August 2016 and lodges her FTB claim 6 weeks later. Judy is eligible for FTB from the day the baby is born. Her entitlement is determined as a past period claim from the baby's DOB up to the date the claim is lodged, and as an instalment claim from the date the claim is lodged. The administrative process involved in the 2 claims is not apparent to Judy. When her FTB is paid, she receives a lump sum for her arrears and continues to receive fortnightly FTB instalments.
If an individual is claiming for a past period in a previous financial year and the current financial year they need to lodge a past period claim for the period in the previous year and an instalment claim (which will include the past period) for the current financial year.
Example: Judy has a baby on 3 May 2016 and lodges her FTB claim on 9 September 2016. Judy needs to lodge a lump sum claim for the period 3 May to 30 June 2016. Her entitlement to this period is determined when Centrelink has her (and her partner if applicable) ATI confirmed by the ATO or she has advised Centrelink that she (and her partner if applicable) are not required to lodge a tax return for that financial year.
Judy also needs to lodge an instalment claim for her ongoing entitlement. Her entitlement is determined from 1 July to 8 September 2016 as a past period, and as an instalment claim from 9 September when the claim was lodged.
Individuals can put in a claim for FTB up to 97 days before the expected day on which a child will become an FTB child of the individual. Pre-claims may also be lodged for PLP.
Example: Judy is due to have a baby in February. Judy may submit a pre-claim for FTB and/or PLP 97 days before her expected due date in February. Judy's entitlement for any of the payments will however be determined after the baby is born and she has provided any additional required information to Centrelink. However, Judy may choose to wait until her baby is born to make a claim.
If a person is receiving FTB by instalment and claims FTB for an additional child (e.g. a newborn child) this is a variation to the individual's rate of FTB and the policy relating to non-income related circumstances needs to be followed.
Policy reference: FA Guide 18.104.22.168 Change in Non-Income Related Circumstances
Individuals have 12 months after the relevant income year (1.1.I.75) to lodge a past period claim for that income year.
Example: Vicki wants to lodge a past period claim for the 2016-17 financial year. She has 12 months after the income year to lodge the claim. Therefore, she has until 30 June 2018 to lodge her claim.
The claim lodgement timeframe may be extended if special circumstances have prevented a recipient from lodging a past period claim. However, any extension provided must end no later than the end of the second income year after the relevant income year.
Act reference: FA(Admin)Act section 10 (2A) Restrictions on claims for payment of FTB for a past period