18.104.22.168 Removal of prohibition of FTB based on an estimate
Where an individual has one or more outstanding FTB non-lodger decisions due to the individual and/or their partner not lodging their tax returns or failing to inform Centrelink that they are not required to lodge, their non-lodger status will need to be resolved, or the non-lodger debt/s arising from these non-lodger decision/s fully repaid, before the individual can receive FTB by fortnightly instalments again.
Removal of the prohibition
A prohibition on being paid FTB based on an estimate can be removed if the individual (and/or their partner) lodges all outstanding income tax returns, or advises Centrelink of not being required to lodge all outstanding tax returns, or fully repay all outstanding non-lodger debt (or a combination of all 3) for all entitlement years for which there was a non-lodger decision.
Where an individual's partner has also been subject to a prohibition on FTB based on an estimate due to the individual's failure to lodge a tax return, or fully repay any non-lodger debt by the end of the grace period, the prohibition will be removed from the partner when the individual is no longer subject to prohibition, or if the couple separates.
Act reference: FA(Admin)Act section 32AA Non-payment of FTB for non-lodgement of tax returns, section 32AB Prohibited periods for claimant, section 32AC Prohibited periods for relevant partner, section 32AD Prohibited periods for new partner
Recommencement of FTB based on an estimate
Upon the removal of the prohibition, the individual will automatically recommence receiving FTB based on an estimate. Individuals will be notified in writing that the prohibition has been lifted and their requirement to notify Centrelink if their circumstances have changed since last receiving FTB based on an estimate.
Back payment of FTB
Individuals who have their FTB non-lodger decisions resolved may be able to receive any unpaid entitlement of FTB (amount not paid during the period of a prohibition) on the prohibition ending. This may include unpaid FTB for the lapsed part of the entitlement year in which the prohibition is lifted, and the entitlement year immediately prior. These periods can be paid based on current income estimates of the individual (and their partner, if applicable). For years prior to this, FTB can still be paid once the individual (and their partner where applicable) have lodged their tax returns or have advised Centrelink they are not required to lodge. Where income is confirmed after late lodgement, these periods can be paid based on the recalculated amount (excluding FTB supplements), or the amount that the individual was entitled to be paid before the non-lodger determination was made, whichever of the 2 is less.
Offsetting of FTB once prohibition lifted
Upon the removal of a prohibition, any amount of FTB paid for previous year/s entitlement that was withheld due to the prohibition may be set-off against any outstanding FA debts.
Act reference: FA(Admin)Act section 84A Setting off family assistance against debt owed, section 32AB Prohibited periods for claimant, section 28 Variation of instalment and past period entitlement determinations where income tax return not lodged