The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

4.4.4 Reassessment of FTB - income support cancelled or employment income nil rate period

Notice of request

If an FTB instalment recipient or their partner loses their entitlement to an income support payment or are placed on an employment income nil rate period, the FTB recipient should be sent a notice requesting a reasonable estimate of their ATI (1.1.A.20).

The FTB recipient has 21 days from the date of the notice to provide an estimate of their ATI. Failure to comply with this request within the specified timeframe will result in cancellation of their FTB.

The FTB recipient's rate of FTB Part A is maintained at the pre-cancellation or suspension rate until:

  • the requested estimate is provided, or
  • the specified timeframe expires.

Date of effect of variation

The following table shows the date of effect of the variation determination.

Circumstance Action
ATI estimate provided within the specified timeframe and resulting in an unfavourable decision (that is, a decrease in the recipient's rate of FTB). FTB entitlement is reduced from the date of notification (or the start date of the recipient's next entitlement period where it is not actioned in time for the payday following notification).
ATI estimate provided within the specified timeframe and resulting in a favourable decision (that is, an increase in the recipient's rate of FTB). FTB entitlement is increased from the date that the recipient notifies their new ATI estimate.
ATI estimate provided after FTB is cancelled but before the end of the income year following the income year in which the cancellation took effect. FTB entitlement must be varied from the date of cancellation of FTB.
ATI estimate provided after the end of the income year following the income year in which the cancellation took effect. FTB entitlement cannot be varied.

Act reference: FA(Admin)Act section 29 Variation of instalment entitlement determination where failure to provide information, section 31A Variation of instalment entitlement determination to reflect revised adjusted taxable income estimates, section 154 General power to obtain information, section 158 Written notice of requirement

Policy reference: FA Guide 4.4.2.20 Change in income related circumstances

FTB payment delivery choices

Once the FTB recipient or their partner is no longer receiving income support, the FTB recipient can choose to:

  • continue to receive FTB instalments, or
  • claim any further entitlement to FTB as a lump sum from Centrelink.

FTB recipients should be made aware of their continuing eligibility to receive FTB by instalments if their ATI and their circumstances entitle them to:

  • rent assistance, or
  • an automatic HCC.

Policy reference: FA Guide 4.3.1 FTB delivery choices

Last reviewed: