4.4.4 Reassessment of FTB - income support cancelled or employment income nil rate period
Notice of request
If an FTB recipient loses their entitlement to an income support payment or are placed on an employment income nil rate period they should be sent a notice requesting a reasonable estimate of their ATI (1.1.A.20).
The recipient has 21 days from the date of the notice to provide an estimate of their ATI. Failure to comply with this request within the specified timeframe will result in cancellation of their FTB.
The instalment recipient's rate of FTB Part A is maintained at the pre cancellation or suspension rate until:
- the requested estimate is provided, or
- the specified timeframe expires.
Date of effect of variation
The following table shows the date of effect of the variation determination.
|ATI estimate provided within the specified timeframe and resulting in an unfavourable decision (i.e. a decrease in the recipient's rate of FTB).||FTB entitlement is reduced from the date of notification or the start date of the recipient's next entitlement period, whichever is the later.|
|ATI estimate provided within the specified timeframe and resulting in a favourable decision (i.e. an increase in the recipient's rate of FTB).||FTB entitlement is increased from the date that the recipient notifies their new ATI estimate.|
|ATI estimate provided after FTB is cancelled but before the end of the income year following the income year in which the cancellation took effect.||FTB entitlement must be varied from the date of cancellation of FTB.|
|ATI estimate provided after the end of the income year following the income year in which the cancellation took effect.||FTB entitlement cannot be varied.|
Act reference: FA(Admin)Act section 29 Variation of instalment entitlement determination where failure to provide information, section 31 Variation of instalment entitlement determination to reflect changes in eligibility, section 154 General power to obtain information, section 158 Written notice of requirement
Non-income support payment delivery choices
Once the recipient is no longer receiving income support, they can choose to:
- continue to receive FTB instalments, or
- claim any further entitlement to FTB as a lump sum from Centrelink.
A recipient should be made aware of their eligibility to receive FTB by instalments if their ATI and their circumstances entitle them to:
- rent assistance,
- an automatic HCC, or
- a reduction in up-front child care fees.
Policy reference: FA Guide 4.3.1 FTB delivery choices