6.4.4.10 Reconciliation - Current Partners

Summary

This topic discusses the treatment of current partners in the reconciliation process. It details:

  • the impact of a current partner on the timing of reconciliation,
  • the impact of one partner not lodging an income tax return, and
  • the assessment of ATI for periods when the individual was partnered.

A current partner for the purposes of reconciliation is a person with whom the individual was partnered for part of, or for the entire claim period, during the relevant income year (1.1.R.23) and with whom they were still partnered on 30 June of that year. It applies to both instalment individuals and individuals who have made a past period claim after the end of the income year.

Impact of a current partner on the timing of reconciliation

If both the individual and their current partner are not required to lodge a tax return, reconciliation can occur immediately following the end of the relevant income year provided all the other conditions for reconciliation are met.

If the individual and/or their current partner are required to lodge tax returns for the relevant income year, reconciliation can only occur after their income tax return/s have been lodged and all the other conditions for reconciliation are met.

Example: An individual in receipt of FTB, Rachel is partnered to Steve throughout the relevant income year. Both are required to lodge income tax returns. Steve lodges a return by 1 October in the current lodgement year and actual maintenance income and child-care usage are available at that time. Rachel has not yet lodged her income tax return. No reconciliation of Rachel's FTB entitlement can be carried out until Rachel lodges her income tax return.

Policy reference: FA Guide 6.4.1.30 Reconciliation Process, 6.4.3.10 Valid Reasons for Not Lodging a Tax Return

Tax return/s not lodged by March/April of lodgement year

In instances where the individual and/or their current partner are required to lodge an income tax return but have not done so by March/April of the lodgement year, the individual will be subject to the non-lodger notice process.

Policy reference: FA Guide 6.4.3 Requirement to Lodge an Income Tax Return

Assessment of ATI

For individuals with a current partner or an ex-partner, assessment of their family assistance entitlement is carried out by including:

  • only the individual's ATI (1.1.A.20) for any period they were single, and
  • both the individual's and partner's (1.1.P.30) ATI for any period they were a member of a couple.

Example: Gayle receives FTB for the whole of the last financial year. She is partnered to Gordon for the period 1 July to 30 September, single for the period 1 October to 31 December, and partnered to Brian for the period 1 January to 30 June. Gayle's actual ATI for this year is $10,000, Gordon's income is $20,000 and Brian's income is $8,000. The ATI for Gayle's FTB for each period is as follows.

Period FTB Part A FTB Part B Child care benefit
1/7 to 30/9 $30,000 $10,000 $30,000
1/10 to 31/12 $10,000 No income test $10,000
1/1 to 30/6 $18,000 $8,000 (see note) $18,000

Note: FTB Part B is generally assessed on the secondary earner's income for members of a couple. However, an income limit of $100,000 is applicable to the primary income earner in a couple family, and to individuals who are single.

Policy reference: FA Guide 6.4.3 Requirement to Lodge an Income Tax Return

Last reviewed: 1 July 2015