1.2.8 FTB advance - description

Introduction

Individuals receiving FTB Part A by instalments can request an FTB advance payment. The amount of an advance payment is based on the individual's FTB Part A rate on the advance assessment day (1.1.A.55). FTB advances are repaid via a reduction of the individual's ongoing FTB Part A rate over the subsequent repayment period (1.1.R.33).

Options for requesting an advance

A request may be made for payment of an FTB advance at any time during the financial year. An individual may withdraw the request at any time for advances not yet paid.

How FTB advance is paid

FTB advance is paid as a lump sum by direct credit into an individual's bank account.

Effect of receipt of an advance

When a request is lodged for an FTB advance, the individual's entitlement to be paid an FTB advance will be assessed. If entitled, the advance will then be paid to the individual as described below, and the individual's FTB Part A rate is generally then reduced by the standard reduction (1.1.S.105) to repay the advance unless there is a variation (1.2.8.20) to the original repayment period (1.1.O.30).

Regular advance

A regular advance is available to individuals who receive FTB Part A by instalments. When a request for a regular advance is made, the individual may nominate their advance assessment day, which can either be the day the request is determined, or a day up to 182 days in the future. The advance assessment day for second and subsequent regular advances is the day after the end of the last 182 day interval. The first 182 day interval begins on the day the repayment period for the first regular advance began, and second and subsequent 182 day intervals begin on the day after the end of the last 182 day interval. Individuals are restricted to one regular advance at any one time, and regular advances continue to be issued until either the individual withdraws the request, or fails to satisfy the entitlement criteria on their advance assessment day. Regular advances are paid at the minimum advance amount (1.1.M.55).

The repayment period for an initial regular advance is 182 days and begins on the day after the end of the instalment period ending after the advance assessment day, or from the first day from which it is practicable to adjust the individual's FTB Part A rate due to the advance. The second and subsequent repayment periods begin on the day after the end of the last 182 day interval.

If, on the advance assessment day for a second or subsequent regular advance, the individual has failed to repay the last regular advance within the 182 day interval, or if reduced or suspended repayments (1.2.8.20) apply to an unrepaid one-off advance (including social security advances), the regular advance arrangement ceases, and the individual needs to re-apply and meet the entitlement criteria if they again wish to receive a regular advance.

Individuals who receive regular advance will still be able to apply for one-off advances where all other entitlement criteria (2.7) are met.

Number of advances

Individuals can receive multiple advance payments throughout the financial year, which can have concurrent repayment periods, as long as the total of the original balances of any advances not yet fully repaid does not exceed the individual's maximum amount (1.1.M.25). However, an individual can only have one regular advance at any one time (1.2.8.10) in addition to any other advance/s.