4.3.1.10 FTB payment delivery choices

Summary

This topic outlines the payment options available for FTB. It covers:

• payment options
• payment of FTB advances
• delivery choices for individuals who receive FTB by instalments
• when a past period claim must be accompanied by an instalment claim, and
• payment of FTB supplements may be conditional.

Payment options

Note: FTB lump sum claims will not be processed until the individual (and their partner if they have one) have lodged an income tax return for the relevant income year, or have notified Centrelink of their ATI if they are not required to lodge an income tax return.

If an individual lodges a combined claim for both a past period and instalments, both the lump sum payment and instalments of FTB are paid following determination of the claim.

A stand-alone claim for a past period is only effective (1.1.E.10) after the end of the relevant income year and can only be paid after the end of the income year.

An individual who receives FTB by instalments must provide their bank account details for the direct credit of FTB unless an exemption has been granted. If an exemption has been granted, FTB may be paid by other means. The FTB Part A and Part B supplements are not included in the instalment payments as these can only be paid as part of the reconciliation process.

Note: Conditions apply to the payment of FTB Part A. Where a child does not meet the immunisation or health check requirements (2.1.3), the FTB child rate may be reduced for each day during an FTB child rate reduction period (1.1.F.58).

Payment of FTB advances

A portion of FTB may also be paid as an FTB advance. When an individual receives an FTB advance, their ongoing FTB Part A rate is reduced to repay the advance (1.2.8.10).

FTB Payment Delivery Choices may be impacted by the receipt or repayment of an FTB advance.

Delivery choices for individuals who receive FTB by instalments

Generally, individuals who receive FTB by instalments can choose to receive their payments fortnightly through Centrelink or defer payment of some or all of their FTB until the end of the income year.

While ES aligns with FTB in many ways, individuals can elect to receive their ES payments quarterly (4.3.1.25). However, individuals who elect to receive their ES payment quarterly should be aware that a More Choice For Families (MCFF) deferral option may override their election to receive ES as a quarterly payment.

In order to help individuals reduce the chance of being overpaid FTB, a series of options to help families match payments to their circumstances are available under MCFF initiatives (4.3.1.20).

Mandatory continuous adjustment applies to individuals who receive FTB by instalments, where required. Individuals who provide an increased income estimate to Centrelink, or who have their income estimate or actual income automatically uplifted by Centrelink, will have their daily rate of FTB automatically adjusted for the remainder of the income year to avoid or reduce any projected FTB overpayment. Mandatory continuous adjustment also applies where an instalment claimant's estimate of maintenance income is increased during the income year.

Where an individual's rate of FTB is subject to continuous adjustment, any future increase or decrease in the individual's income estimate or estimate of maintenance income for that income year will require recalculation of the adjustment amount applied to their daily rate for the remainder of the income year, based on the revised income or maintenance income estimate.

Individuals who have an MCFF option in place can alter their payment delivery choice, but cannot use other MCFF options to increase fortnightly payments above an amount set by continuous adjustment.

Any payment deferred under an MCFF choice will be made following the reconciliation process if the individual remains entitled to the payment.

Note: An individual's payment choice will remain in place until such time as the individual's circumstances are reassessed. If the individual chooses to revoke their selected payment choice, any arrears owing will not be paid until after reconciliation unless the individual can demonstrate financial hardship.

When a past period claim must be accompanied by an instalment claim

For an FTB claim for a past period to be effective, the claim must be accompanied by an instalment claim (1.1.I.100) for FTB when the claim relates to either a past period:

• in the same income year in which the claim is made and the claimant is eligible for FTB at the time the claim is made, or
• in an income year prior to the income year in which the claim is made and the claimant and/or their partner (1.1.P.30) is receiving an income support payment (1.1.I.50) both at the time the claim is made and at any time during the past period to which the claim relates.

Note: The above conditions do not apply if the individual is no longer entitled to FTB payments based on an estimate (6.4.3.70) at the time that the past period claim is made, or if the individual is not entitled to FTB at the time that the past period claim is made, such as where they no longer have or do not expect to have a child in care.

Payment of FTB supplements may be conditional

For individuals who are required to lodge a tax return, the FTB Part A and/or Part B supplement can only be paid after the end of the income year when all relevant tax returns and other income details are available. An individual (and their partner if they have one) who is not required to lodge a tax return needs to notify Centrelink of their ATI before any FTB supplements can be paid.

Additionally, if an individual's ATI (which includes the ATI of their partner, if any) is more than $80,000 for the relevant income year, then the individual's FTB Part A supplement in relation to that year will be nil.

The FTB supplements can only be paid to individuals. This means FTB supplements are not available to ACOs.

Note: If an individual (and their partner if they have one) fail to lodge a tax return by the end of the lodgement year (1.1.L.30), then they are no longer entitled to FTB for the relevant income year and any FTB paid for that year will be raised as a debt. This also applies where an individual and/or their partner are not required to lodge an income tax return but they do not notify Centrelink of their ATI by the end of the lodgement year.