Changes for Family Tax Benefit customers

From 1 July 2012, customers will not be able to access FTB by fortnightly instalments for a current entitlement year where they have two consecutive years of confirmed zero entitlement to FTB, if their actual Adjusted Taxable Income (ATI) is too high. Families that can demonstrate in subsequent years, that they have income low enough to qualify them for FTB, can return to fortnightly instalments. 

Where families notify of particular changes in circumstance or special circumstances have been identified, exceptions will be applied that will allow payment of FTB via instalments to continue to customers who are affected by this change.

It is important to note, families who are precluded from accessing fortnightly instalments of FTB Part A may lose access to the Teen Dental Plan and the Lower Safety Net threshold.

Question: Who will be affected by this measure?

Answer: This measure only affects those families who have had two consecutive years of confirmed zero entitlement to FTB Part A and /or B due to their actual ATI being too high. These families will be prevented from receiving fortnightly instalments of FTB until they can demonstrate that they are again eligible for FTB.

For example: If you were a customer who received fortnightly instalments (or zero rate) in 2009-10 and 2010-11, but were found to be ineligible due to your ATI being too high, this change will affect you.

Question: Who will not be affected by this change?

Answer: Families who claim FTB by lump sum, families on income support payments and those who have had a significant change in circumstances which meets the special circumstances criteria, will not be excluded from fortnightly instalment payments of FTB.  

Question: When will the changes be implemented?

Answer: 1 July 2012

Question: How will I know if I am affected by this change?

Answer: A letter will be sent to you prior to 1 July 2012, if you are identified as a customer who will be precluded from fortnightly instalments of FTB.

Question: Do I need to do anything?

Answer: No. However, if you are a customer who receives a letter advising you that you are precluded from instalment payments, and you meet the circumstances outlined in the letter you should contact Centrelink and advise of these circumstances to prevent your fortnightly instalments of FTB from being stopped. 

If your income for 2011-12 is low enough to ensure you are eligible for FTB Part A, submit your tax returns as soon as possible to enable you to resume fortnightly instalments.

To ensure you do not become affected by this measure, it is important that you keep your income estimate updated and correct as possible.