6.4.3.50 Deferral of prohibition of FTB based on an estimate

Summary

Individuals are able to request a deferral of a prohibition of FTB based on an estimate (1.1.P.135) or the non-entitlement to FTB (1.1.N.31) if they have special circumstances.

Special circumstances are by their very nature incapable of precise or exhaustive definition. The qualifying adjective 'special' looks to circumstances that are unusual, uncommon or exceptional. Whether circumstances answer any of these descriptions must depend upon the context in which they occur.

It is not possible to predict all the situations where special circumstances should be applied as the circumstances of each particular situation need to be considered on a case-by-case basis. Domestic/family violence (1.1.F.15), natural disasters or bereavement situations could be possible examples of where special circumstances could be applied.

All deferrals are approved on a case-by-case basis at the discretion of the Secretary after consideration of the individual circumstances; these are not able to be applied automatically.

Deferral of prohibition

As a general rule, individuals may request a deferral of the application of the prohibition of FTB due to special circumstances, such as a result of hardship, evidence of lodgement and/or an ATO tax lodgement deferral, or review and appeals. Individuals may also seek deferral under other special circumstances.

Deferral of prohibition - hardship

Prohibition of FTB based on an estimate may be temporarily deferred at the request of an individual who is experiencing hardship, for example, due to:

• domestic/family violence (referral to a social worker or ISO is required) (up to 6 months)
• severe financial hardship (up to 4 weeks), or
• severe illness (up to 6 months).

Deferrals under hardship provisions may be backdated to apply from a day in the past at the discretion of the Secretary.

Deferral of prohibition - income tax return deferrals or lodgement enforcement suspensions

A prohibition may be temporarily deferred for an individual (or their partner, if applicable) who has been granted a tax lodgement deferral by the ATO or where the ATO has suspended any lodgement enforcement action regarding an outstanding income tax return. These deferrals are generally for a period up to ATO due date plus 7 days.

You can find more information about tax lodgement deferrals and suspensions of enforcement action on the ATO website.

If there have been a number of non-lodger decisions for previous income years and the individual has only been granted an ATO deferral or lodgement enforcement suspension for one of these years, the prohibition of FTB will still be applied for the other years.

Deferral of prohibition - reviews & appeals

If an individual seeks a review of or appeals a decision to apply prohibition, the prohibition period may be deferred until the review and/or appeal process is complete.

If an individual seeks a review of or appeals all of the non-lodger decisions that led to the application of the prohibition, the prohibition period may be deferred until the review and/or appeal process is complete.

If there have been a number of non-lodger decisions for previous income years and the individual has not sought a review of or appealed all of those decisions, the prohibition period will still be applied for the other previous income years while the review and/or appeal process is in progress.

A special circumstances deferral may also apply to an individual who is no longer entitled to FTB as a result of the application of the non-entitlement provision outlined in 6.4.3.70.