6.4.2.40 Impact of maintenance action test on FTB reconciliation

Summary

This topic explains how the MAT can affect the reconciliation of FTB Part A.

For FTB recipients who, or whose partner, have children from a previous relationship and are entitled to more than the base rate of FTB under the income test, reconciliation must also take into consideration whether the MAT has been satisfied.

For any period during the relevant income year when the MAT is not satisfied, a recipient's entitlement to FTB Part A is restricted to the base rate in respect of the child/ren for whom a maintenance entitlement exists.

The MAT is satisfied during periods where the recipient or their partner:

• has a valid application with Child Support for the collection of child support
• has, or is deemed to privately collect 100% of their maintenance entitlement, or
• has an exemption from the MAT.

Note: Arrangements for privately collecting child support changed on 1 July 2012. Prior to this date, if an individual did not privately collect 100% of their maintenance entitlement, they may have failed the MAT. Where an individual applies for a review of a reconciliation decision for a period prior to 1 July 2012 on the basis that they, or their partner, did not collect the full amount of their maintenance entitlement, they may have failed the MAT unless there were valid reasons for them not collecting the full amount.

From 1 July 2012, an individual privately collecting their maintenance entitlement is deemed to be receiving 100% of their maintenance entitlement and therefore passes the MAT.