4.3.1.10 FTB payment delivery choices

Summary

This topic outlines the payment options available for FTB. It covers:

• payment options
• payment of FTB advances
• delivery choices for individuals who receive FTB by instalment
• individual or partner is receiving income support
• FTB delivery method, and
• payment of FTB supplements may be conditional.

Payment options

Note: FTB lump sum claims will not be processed until the individual (and their partner if they have one) have lodged an income tax return for the same income year as the claim, or have notified Centrelink that they are not required to do so.

If an individual lodges a combination claim for both a past period and instalments, both the lump sum payment and instalments of FTB are paid following determination of the claim.

A stand-alone claim for a past period is effective (1.1.E.10) only after the end of the relevant income year. In this situation, the lump sum can only be paid after the end of the income year.

An individual who receives FTB by instalments must provide their bank account details for the direct credit of FTB unless an exemption has been granted. If an exemption has been granted, FTB may be paid by other means. The FTB Part A and Part B supplements are not included in the instalment payments as these can only be paid as part of the reconciliation process.

Note: Conditions apply to the payment of FTB Part A. From 1 July 2018, where a child does not meet the immunisation or health check requirements (2.1.3), the FTB child rate may be reduced for each day during an FTB child rate reduction period (1.1.F.58).

Payment of FTB advances

A portion of FTB may also be paid as an FTB advance. When an individual receives an FTB advance, their ongoing FTB Part A rate is reduced to repay the advance (1.2.8.10).

FTB Payment Delivery Choices may be impacted by the receipt or repayment of an FTB advance.

Delivery choices for individuals who receive FTB by instalments

Generally, individuals who receive FTB by instalments can choose to receive their payments fortnightly through Centrelink or defer payment of some or all of their FTB until the end of the income year.

While ES aligns with FTB in many ways, individuals can elect to receive their ES payments quarterly (4.3.1.25). However, individuals who elect to receive their ES payment quarterly should be aware that a More Choice For Families (MCFF) deferral option may override their election to receive ES as a quarterly payment.

In order to help individuals reduce the chance of being overpaid FTB, a series of options to help families match payments to their circumstances are available under MCFF initiatives (4.3.1.20).

Mandatory continuous adjustment applies to individuals who receive FTB by instalments where required. Individuals who notify an increased estimate to Centrelink, or who have their income estimate or actual income automatically uplifted by Centrelink, will have their daily rate of FTB for the remainder of the income year adjusted automatically to avoid or reduce a projected FTB overpayment. Mandatory continuous adjustment also applies where an instalment claimant's estimate of maintenance income is increased during the income year.

Where an individual's rate of FTB is subject to continuous adjustment, any future increase or decrease in the individual's income estimate for that income year will require recalculation of the adjustment necessary to their daily rate for the remainder of the income year, based on the revised income estimate.

Individuals who have an MCFF option in place can alter it, but cannot use other MCFF options to increase fortnightly payments above an amount set by continuous adjustment.

Any payment deferred under an MCFF choice will be made following the reconciliation process if the individual remains entitled to it.

Note: An individual's payment choice will remain in place until such time as the individual's circumstances are reassessed. If the individual chooses to revoke selected payment choice, any arrears owing will not be paid until after reconciliation unless the individual can provide sufficient detail about financial hardship.

Individual or their partner is receiving income support

For a claim to be effective, a past period claim for FTB must be combined with an instalment claim for FTB, when an individual or their partner (1.1.P.30) is receiving income support, including a:

• social security pension (1.1.S.90)
• social security benefit (1.1.S.60)
• service pension (1.1.S.30).

The individual or their partner must also have been receiving 1 of the above-mentioned payment types at any time during the past period for which FTB is being claimed.

Note: The above conditions do not apply if the individual is no longer entitled to FTB payments based on an estimate (6.4.3.70).

FTB delivery method

Where an individual or their partner is receiving an income support payment they must claim FTB by instalments if they lodge a past period (lump sum) claim for FTB for a previous income year in which they or their partner were at some stage receiving income support, even if they are unsure if they would have an ongoing entitlement.

The individual does not need to lodge an instalment claim with their past period claim if they have no ongoing entitlement to FTB via instalments and/or income support. This situation could arise where the individual may not be entitled to FTB because they no longer have or do not expect to have a child in care; or they may no longer be entitled to FTB by instalment due to the sunset clause under the prohibition of instalment payments policy.

Payment of FTB supplements may be conditional

For individuals who are required to lodge a tax return, the FTB Part A and/or Part B supplement can only be paid after the end of the income year when all relevant tax returns and other income details are available. An individual (and their partner if they have one) who is not required to lodge a tax return needs to notify Centrelink before any FTB supplements can be paid.

Additionally, from 1 July 2016, if an individual's ATI (which includes the ATI of their partner if any) is more than $80,000 for the relevant income year, then the individual's FTB Part A supplement in relation to that year will be nil.

The FTB supplements can only be paid to individuals. This means FTB supplements are not available to ACOs.

Note: If an individual (and their partner if they have one) fail to lodge a tax return by the end of the income year following the year of entitlement, then they are no longer entitled to FTB for the relevant income year and any FTB paid for that year will be raised as a debt. This also applies to those who are not required to lodge but who do not notify Centrelink of this fact.

Note: Additional conditions may also apply to the payment of the FTB Part A supplement. For income years prior to 2018-19, entitlement to FTB Part A supplement is conditional on immunisation and heath check requirements being met (8.1.2).