6.4.1 Overview of reconciliation
This section gives an overview of reconciliation.
Reconciliation is the process of determining an individual's (1.1.I.90) eligibility for FTB. For the purposes of FTB and CCS, this process also determines an individual's correct rate of payment for the relevant income year (1.1.R.23). Depending on an individual's circumstances, this involves comparing the FTB and/or CCS received during the relevant income year, based on their estimated ATI (1.1.A.20), maintenance income (1.1.M.10) (for FTB), and child care usage (for CCS), with their actual entitlement (1.1.E.30), based on their:
- actual ATI (provided in part by the ATO),
- actual maintenance income (FTB Part A only), and
- session reports (1.1.S.35) submitted by approved providers (1.1.A.90).
The purpose of reconciliation is to determine whether an individual was eligible to receive payment (for FTB) and, if so, whether they received their correct entitlement.
An adjustment takes place in cases where reconciliation shows a difference between the amount of FA the individual received, based on estimated income, and their correct entitlement, based on actual income.
The following table shows where more information on reconciliation can be found.
|Subject||For more information refer to|
|General information about reconciliation||188.8.131.52 Reconciliation process|
|Information about the FTB Part A supplement||184.108.40.206 Reconciliation process|
|How ATI is verified||220.127.116.11 Verification of adjusted taxable income|
|Treatment of individuals who have had periods on income support during the relevant income year||18.104.22.168 Income test exemptions for individuals in receipt of income support|
|How maintenance income affects reconciliation||22.214.171.124 FTB reconciliation due to maintenance income|
|How the MAT affects reconciliation||126.96.36.199 Impact of maintenance action test on FTB reconciliation|
|When an individual is not required to lodge a tax return||188.8.131.52 Valid reasons for not lodging a tax return|
|Treatment of individuals who are required to lodge a tax return but do not do so||184.108.40.206 Non-lodger process|
|Raising of debts due to not lodging a tax return where required to do so||220.127.116.11 Outcomes of non-lodger process|
|Reconciliation for an individual who has been in the same relationship throughout the relevant income year||18.104.22.168 Reconciliation - current partners|
|Reconciliation for an individual who separates from a partner during the relevant income year||22.214.171.124 Reconciliation - ex-partners|
|Reconciliation where ex-partners do not lodge a tax return||126.96.36.199 Reconciliation - ex-partners|
|Reconciliation where an individual dies||188.8.131.52 Death of individual|
|Reconciliation where a partner dies||184.108.40.206 Death of partner|
|Reconciliation where an FTB child dies||220.127.116.11 Death of FTB or regular care child|
The payment of CCS and ACCS generally occurs by way of a weekly or fortnightly payment made directly to approved providers. Individuals will no longer be able to elect to receive their subsidy as a lump sum at the end of financial year. Individuals will need to make a claim for CCS when (or before) each child starts attending care in order to receive subsidy. Any CCS owed to families following the end of year reconciliation process will continue to be paid directly to individuals as a lump sum. Conversely, if any overpayment occurred because the individual underestimated their income, these amounts will be raised as a debt against the individual.