4.2.3.10 Restrictions on Determining FTB Claims

Summary

If an effective (1.1.E.10) claim for FTB has been made, the claim must be determined. However there are some situations where an effective claim can be made, but it cannot be determined. This topic outlines the restrictions that apply to determining an FTB claim.

Restrictions on determining FTB claims

If any conditions in the table below are met, the action outlined in column 2 must be taken. If none of the conditions are met, the claim can be determined.

Determination condition If condition is met see…
Individual (1.1.A.72) has withdrawn an effective FTB claim before the claim is determined.

Act reference: FA(Admin)Act section 12 Claim may be withdrawn or varied

4.2.4.120 Claim Action 12 - Claim Withdrawn
If the claim is made by an individual (1.1.I.90) for a past period, and
  • the past period falls in an income year before the income year in which the claim is made, and
  • the individual is required to lodge an income tax return for the year in which the past period falls, and
  • on the date of the claim, an assessment of their taxable income (1.1.T.20) has not been made for that year.

Explanation: A past period claim lodged in the year following an entitlement year, cannot be based on the individual's estimated income for that year where a tax return is required to be lodged. It can, however, be based on an estimate of the partner's income.

Note: For the 2009-10 year onwards, past period claims will not be able to be based on an estimate of the partner's income. The partner will also need to lodge a tax return, where required by the ATO.

Act reference: FA(Admin)Act section 14 Restriction on determining claim where income tax assessment not made

4.2.4.130 Claim Action 13 - Taxable Income Not Assessed
A TFN claim person makes a statement that they do not know their TFN and the ATO has advised within 28 days of the claim being lodged that the person has no TFN. 4.2.4.110 Claim Action 11 - ATO Advises Centrelink No TFN
If 28 days pass and the ATO has not responded to the request for details of the individual's TFN then the claim should be determined.

Act reference: FA(Admin)Act section 15(3) Restriction on determining claim where TFN not provided etc.

4.2.4.100 Claim Action 10 - ATO Has Not Actioned TFN Request
A TFN claim person (1.1.T.50) makes a statement that a TFN application is pending and the ATO advises Centrelink that the individual:
  • has withdrawn the TFN application, or
  • has been refused a TFN, or
  • has not actually applied for a TFN.
4.2.4.110 Claim Action 11 - ATO Advises Centrelink No TFN
If 28 days pass and the ATO has not responded to the TFN application then the claim should be determined (4.2.4.100).

Act reference: FA(Admin)Act section 15(2) Statement that an application for a TFN is pending

 
If the claim is an instalment claim (1.1.I.100) - the individual has not nominated a bank account within 28 days of making a statement that they would provide bank details.
Explanation: Unless the individual is granted an exemption, FTB instalments can only be paid by direct credit.

Act reference: FA(Admin)Act section 15A Restriction on determining claim where bank account details not provided

4.2.4.150 Claim Action 15 - Bank Details Not Provided Within 28 Days

If the claim cannot be determined it becomes ineffective.

Claim is effective & can be determined

If the claim is effective and there are no applicable restrictions for determination, the claim must be determined.

Act reference: FA(Admin)Act section 13 Secretary must determine claim

Policy reference: FA Guide 4.2.3.20 Determining an FTB Claim

Past period claim lodged in one income year though not determined until the next (the current) income year

Where an individual lodges a past period claim (1.1.P.60) in one income year, and

  • the past period falls in the income year in which the claim is made, and
  • the claim is not determined until the following income year,

the entitlement is assessed on the estimate of income provided by the individual if information about the individual's amount of ATI is unavailable.

Example: Dana lodges a past period claim for FTB on 26 June following the birth of her child on 1 May. Dana's FTB claim is not determined until the following income year, on 2 July. If Dana was not required to lodge an income tax return for that income year at the time of lodgement, the FTB claim can be determined on an estimate of income provided by Dana for the income year.

Act reference: FA(Admin)Act section 20 Determination of rate may be based on estimate, indexed estimate or indexed actual income

Last reviewed: 20 September 2016