6.4.1.20 Payments Affected by Reconciliation

Summary

This topic describes the FA payments and amounts included in reconciliation.

Payments affected by reconciliation

FTB and CCB are reconciled.

The reconciliation of FTB covers all components that make up the payment comprising:

  • FTB Part A standard rate,
  • ES Part A,
  • rent assistance,
  • NBS and NBU,
  • multiple birth allowance,
  • FTB Part B standard rate,
  • ES Part B,
  • FTB Part A and Part B supplements (included at time of reconciliation, subject to certain conditions being satisfied - see 6.4.1.30 for further details), and
  • SIFS (included at time of reconciliation, subject to certain conditions being satisfied - see 2.11 and 6.7 for further details).

Note: The ES ceased on 20 March 2017 for new FTB recipients. For individuals who became new recipients of FTB after 20 September 2016, they will no longer be paid ES after 19 March 2017. However, eligible individuals and ACOs may continue to be paid ES as part of their FTB rate under grandfathering rules. See 8.2.

Payments of CCB for registered care and for periods for which an individual receives SCCB are not reconciled.

Explanation: There is only one rate of CCB for registered care. SCCB is an entitlement based on special circumstances. Both CCB for registered care and SCCB are not income tested and therefore not reconciled.

From July 2011, the payment of CCR occurs in one of the following ways:

  • as a weekly payment, in arrears, to an individual's bank account following a week of care for which CCB fee reductions have been calculated,
  • as a weekly payment in arrears to an approved child care service following a week of care for which CCB fee reductions have been calculated. The child care service will pass on the weekly rebate amount by reducing the individual's child care fees for that week,
  • as a quarterly payment to the individual's bank account, when attendance information is received from child care services, or
  • as an annual lump sum payment after the CCB reconciliation has occurred and a determination of entitlement to CCB or no entitlement because a nil amount was made.

The following payments are not reconciled:

  • FTB advances,
  • SBP (paid under the income test),
  • low income HCC,
  • FTB payments to ACOs (1.1.A.80), and
  • double orphan pension.

Amounts reconciled

FTB or CCB paid in respect of an individual's entitlement for the relevant income year (1.1.R.23) are included in reconciliation.

This includes:

  • payments made in respect of a period in the relevant income year but not received in that year, and
  • bereavement payments of FTB made for a period during the relevant income year.

This excludes:

  • arrears payments received in the relevant income year in respect of a period in a previous income year,
  • reissued returned payments,
  • amounts paid in respect of periods in the relevant income year already raised as debts, and
  • periods in the relevant income year where SCCB is paid.

FTB advances

The reduction of an individual's FTB Part A rate due to receipt of an FTB advance is part of the rate calculation process for FTB. Reconciliation compares the individual's FTB entitlement based on an estimate with their rate based on ATI. The FTB Part A amounts that are compared in this process are the amounts as reduced by the FTB advance repayment, but the advance payment itself is not taken into account in this process.

The initial receipt of an advance will not be affected by variations to FTB Part A entitlement applicable to the advance assessment day (1.1.A.55) in the reconciliation process if the variation is caused by the individual's actual ATI (1.1.A.20) or maintenance income only. However, variations to FTB entitlement applicable to the advance assessment day as a result of changes in other circumstances may affect the individual's entitlement to an advance amount issued, whether these changes are identified as a result of the reconciliation process or otherwise.

Act reference: FAAct Schedule 1 Part 5 Division 4 Reduction for FTB advance

FA(Admin)Act section 35A Entitlement to FTB advance, section 35C Amount of FTB advance, section 71A Debts arising in respect of FTB advances

Policy reference: FA Guide 1.2.8 FTB Advance - Description, 1.2.8.20 Variations to FTB Advance Repayment Period, 2.11 SIFS Eligibility, 6.7 SIFS Review & Payment Process

NBS & NBU

From 1 March 2014, the NBS component of FTB Part A is also included in the FTB reconciliation process. The NBU is raised as a debt where FTB reconciliation results in nil FTB Part A entitlement for the day that NBU was paid.

Note: If NBS and/or NBU are raised as a debt due to FTB Part A reconciliation, the individual may still be eligible for NBS and NBU for a later date. In this case, a debt is raised for the original payment and the debt is offset by the new entitlement for the later date.

Example: Jane has a newborn child and claims FTB Part A by instalments. At FTB reconciliation, Jane's ATI is above the FTB Part A threshold. As such, all of Jane's FTB Part A for the relevant year, including the NBS and NBU, is raised as a debt during reconciliation. However, as Jane is still eligible for FTB Part A by instalments as at 1 July of the following year and it is still before the child turns one, Jane is now paid NBS and NBU due to her FTB Part A eligibility on 1 July. The NBS and NBU are used to offset the debt raised for the original payments, and as the NBS rate had increased on 1 July due to indexation, the difference is used to offset part of Jane's FTB Part A debt.

Stillborn baby payment

Individuals who receive SBP may be indirectly subject to reconciliation. Where SBP is paid under the income test, payment is not reconciled. Where SBP is paid under the FTB Part A eligibility test, the SBP is not reconciled directly, but is raised as a debt where FTB reconciliation results in nil FTB Part A entitlement for the day that SBP was paid.

Note: If SBP is raised as a debt due to FTB Part A reconciliation, the individual may still be eligible for SBP for a later date. In this case, a debt is raised for the original payment and the debt is offset by the new SBP entitlement for the later date.

Example: Jane is receiving FTB Part A by instalments for 2 children and gives birth to a stillborn child. Jane does not meet the SBP income test, but is eligible for payment as she is in receipt of FTB Part A. SBP is paid due to Jane's FTB Part A eligibility on the day of the stillbirth. At FTB reconciliation, Jane's ATI is above the FTB Part A threshold. As such, all of Jane's FTB Part A for the relevant year and her SBP are raised as a debt during reconciliation. However, as Jane is still eligible for FTB Part A by instalments as at 1 July of the following year and it is still within 52 weeks beginning on the day of the stillbirth, Jane is now paid SBP due to her FTB Part A eligibility on 1 July. The new SBP is used to offset the debt raised for the original payment, and as the SBP rate had increased on 1 July due to indexation, the difference is used to offset part of Jane's FTB Part A debt.

Last reviewed: 3 July 2017