126.96.36.199 Individuals affected by reconciliation
FA individuals who receive FA on the basis of ATI and/or maintenance income may be subject to reconciliation. All individuals who receive CCS during the financial year will be subject to reconciliation (1.1.R.10). ACCS entitlement is not reconciled, but if an individual receives both ACCS and CCS during a financial year, the CCS amounts are always reconciled. ATI, maintenance income and/or child care usage may be relevant for FTB by instalment, CCS by fee reduction, or FTB for a past period.
FTB individuals to whom reconciliation does not apply
Certain FTB individuals are not subject to reconciliation of ATI - either because all the relevant actual ATI is known when their FTB claim is determined or because their FTB entitlement is not subject to the income test. These include:
- single individuals in receipt of income support for the entire period during the relevant income year that they received payment (noting that individuals whose annual income is over $80,000 are not entitled the FTB Part A supplement regardless of whether they are in receipt of income support)
- Explanation: An individual's entitlement to FTB Part A is not subject to an income test during the period that they and/or their partner receive income support. For periods during which the individual and/or their partner does not receive income support, the FTB Part A income test is applicable. Single individuals are also eligible for the maximum rate of FTB Part B if their ATI is equal to or below the FTB Part B primary income earner limit.
- single individuals claiming for a past period in the previous income year
- Explanation: A past period claim for a previous income year can be determined only when the individual's actual ATI for that year is known.
- partnered individuals claiming for a past period in the previous income year where their partner's actual ATI is available at the time the claim is made.
- Explanation: If a partner's ATI is not available, a past period (lump sum) claim may only be determined using the individual and their partner's actual income once it is known.
- Example: Mary lodges an FTB claim on 1 August 2023 for the period 1 July 2022 to 30 June 2023 following lodgement of their tax return. Their partner Bill lodged their tax return in July 2023. Mary is paid FTB on the basis of their and their partner's combined actual 2022-23 ATI.
Act reference: FAAct Schedule 1 clause 28B Adjusted taxable income exceeding $100,000, Schedule 1 clause 38A Rate of FTB Part A supplement, Schedule 1 clause 38L Application of income test to pension and benefit recipients and their partners
FA(Admin)Act section 32C Relevant reconciliation time—first individual must lodge tax return