6.4.1.20 Payments affected by reconciliation

Summary

This topic describes the FA (1.1.F.02) payments and amounts included in reconciliation.

Payments affected by reconciliation

FTB and CCS are reconciled. ACCS payments are not reconciled.

The reconciliation of FTB covers all components that make up the payment comprising:

• FTB Part A standard rate
• ES Part A
• rent assistance
• NBS and NBU
• multiple birth allowance
• FTB Part B standard rate
• ES Part B
• FTB Part A and Part B supplements (included at time of reconciliation, subject to certain conditions being satisfied - see 6.4.1.30 for further details), and
• SIFS (included at time of reconciliation, subject to certain conditions being satisfied - see 2.11 and 6.7 for further details).

Note: The ES ceased on 20 March 2017 for new FTB recipients. However, eligible individuals and ACOs may continue to be paid ES as part of their FTB rate under grandfathering rules. See 8.2.

The following payments are not reconciled:

• FTB advances (see below)
• SBP (paid under the income test)
• low income HCC
• FTB payments to ACOs (1.1.A.80)
• double orphan pension, and
• additional child care subsidy.

Amounts reconciled

FTB or CCS paid in respect of an individual's entitlement (1.1.E.30) for the relevant income year (1.1.R.23) are included in reconciliation.

This includes:

• payments made in respect of a period in the relevant income year but not received in that year, and
• bereavement payments of FTB made for a period during the relevant income year.

This excludes:

• arrears payments received in the relevant income year in respect of a period in a previous income year
• reissued returned payments, and
• amounts paid in respect of periods in the relevant income year already raised as debts.

FTB advances

The reduction of an individual's FTB Part A rate due to receipt of an FTB advance is part of the rate calculation process for FTB. Reconciliation compares the individual's FTB entitlement based on an estimate with their rate based on ATI (1.1.A.20). The FTB Part A amounts that are compared in this process are the amounts as reduced by the FTB advance repayment, but the advance payment itself is not taken into account in this process.

The initial receipt of an advance will not be affected by variations to FTB Part A entitlement applicable to the advance assessment day (1.1.A.55) in the reconciliation process if the variation is caused by the individual's actual ATI or maintenance income only. However, variations to FTB entitlement applicable to the advance assessment day as a result of changes in other circumstances may affect the individual's entitlement to an advance amount issued, whether these changes are identified as a result of the reconciliation process or otherwise.

NBS & NBU

The NBS component of FTB Part A is also included in the FTB reconciliation process. Where reconciliation results in nil FTB entitlement for part or all of a period that NBS was paid, the NBS for that period is raised as a debt. The NBU is raised as a debt where FTB reconciliation results in nil FTB Part A entitlement for the day that NBU was paid. However, as an individual can be eligible for NBS/NBU for any day within a period of 52 weeks beginning on the child's birth or entrustment to care as part of an adoption process, NBS and/or NBU eligibility may exist for a later date. In these cases, the reconciliation debt raised may be offset with the NBS/NBU entitlement for the later period.

SBP

Individuals who receive SBP may be indirectly subject to reconciliation. Where SBP is paid under the income test, payment is not reconciled. Where SBP is paid under the FTB Part A eligibility test, the SBP is not reconciled directly, but is raised as a debt where FTB reconciliation results in nil FTB Part A entitlement for the day that SBP was paid.

Note: If SBP is raised as a debt due to FTB Part A reconciliation, the individual may still be eligible for SBP for a later date. In this case, a debt is raised for the original payment and the debt is offset by the new SBP entitlement for the later date.