1.2.10 Energy supplement (ES) - description

Summary

From 1 July 2013, the rate of FTB (Part A and Part B) was increased to deliver assistance with carbon pricing. Carbon pricing was removed by the Government from 1 July 2014 however the support has remained in place to deliver assistance with household costs, including energy costs.

From 20 September 2014 the name changed to the ES and the payment ceased to be indexed.

ES ceased on 20 March 2017 and is not paid for new FTB recipients who commence payment on or after this date. However, eligible individuals and ACOs may continue to be paid ES as part of their FTB rate under grandfathering rules. See 8.2.

An amount of ES is automatically added to an individual's maximum or base rate of FTB Part A and Part B before the FTB income and maintenance income tests are applied.

Claims

Individuals do not need to claim ES. ES is automatically available, for periods of eligibility before 20 March 2017, as part of an individual's fortnightly FTB payments or, if the individual chooses, on a quarterly basis. ES is paid as part of an individual's end of year entitlement if the individual claims their FTB as a lump sum.

ES ceases when FTB ceases

Where FTB entitlement ceases, ES entitlement will also cease. This means that if an FTB debt is raised as an individual or ACO had no entitlement for a particular period, they would also have no entitlement to ES for the same period. Similarly, where a review results in an individual having less FTB entitlement than was previously paid, the FTB debt raised will also include an amount for ES.

Where FTB reconciliation results in an individual having lower or nil FTB entitlement for a particular year, ES will also be adjusted accordingly.

ES is non-taxable, and is not considered income for FA or income support purposes.

ES rate during temporary absence from Australia

ES is also only paid to an individual for the first 6 weeks of an absence from Australia (1.1.A.10), or in respect of an FTB child for the first 6 weeks of the child's absence unless an extension applies.

Act reference: FAAct section 58A Election to receive ESs quarterly, Schedule 1 clause 31B ES (Part B), Schedule 1 clause 38AA ES (Part A-Method 1), Schedule 1 clause 38AF ES (Part A-Method 2), section 58(2) Annual rate of FTB to approved care organisation

FA(Admin)Act section 105B Review of instalment determination-taking account of ESs

Policy reference: FA Guide 2.1.2.40 FTB portability from 1 July 2016, 6.4 Reconciliation, 7.1.1 FA debts - general provisions

Last reviewed: 10 May 2021