Changes to family assistance payments

From 1 July 2009 changes were made to family assistance payments. Please select from the headings to learn more about Centrelink payment and policy changes.

Better targeting and delivery of Family Tax Benefit

Continuous adjustment to reduce overpayments of Family Tax Benefit

Since 1 July 2009, Family Tax Benefit (FTB) payments are continuously adjusted to help prevent reconciliation overpayments. Your FTB rate will be automatically adjusted if you notify a change to your income estimate that indicates you have been overpaid.

All FTB customers who have a potential overpayment due to an increase in their income estimate will be affected by this measure.

There will be no changes to your obligations or reporting arrangements. You still need to advise of any changes to your estimate of family income or changes in family circumstances.

Streamlining administration

This measure removes payment and service delivery of FTB from the Australian Taxation Office (ATO) and ceases Family Assistance Office (FAO) operations in ATO shopfronts.

Since 1 July 2009:

• you are no longer able to receive an FTB reconcilliation top-up with your Tax Refund
• you are no longer able to claim FTB as a lump sum via the ATO.

From 1 July 2009 claims through the ATO will not be accepted, regardless of the financial year they apply to.

Family Tax Benefit - cease fortnightly payments for recipients who do not lodge a tax return

From January 2010, you may no longer receive your Family Tax Benefit on a fortnightly basis if you or your partner do not lodge your income tax return or advise the Family Assistance Office you are not required to do so within the required timeframe.

Although you may remain eligible for Family Tax Benefit, the only payment method available will be a lump sum through the Family Assistance Office once you and/or your partner’s actual annual income has been verified.

This may also apply for any outstanding income tax returns you have failed to lodge for past years you were in receipt of Family Tax Benefit. You will be contacted by the Family Assistance Office if you could be affected by this change.

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Expanded definition of income

Total net investment losses

Since 1 July 2009, total net investment losses are included as income and used to work out your family assistance. If you expect to make a loss from rental property income, investment income or both, you need to give details of the total amount of losses. Total net investment losses are those that derive from investment earnings, not capital losses.

The changes were implemented 1 July 2009, and customers who are affected by this change include:

• Family Tax Benefit, Child Care Benefit and Baby Bonus customers who have net losses due to financial investments
• all dependent Youth Allowance, ABSTUDY Living Allowance and Assistance for Isolated Children (Additional Boarding Allowance) customers whose parents have net losses due to financial investments
• all Commonwealth Seniors Health Card customers who have net losses due to financial investments.

For a full list of benefits and payments that will be affected by these changes visit the changes to the definition of income could affect your payment page.

Family Tax Benefit, Child Care Benefit and Baby Bonus customers are required to estimate this income component at the new claim stage. They will also need to include this component when they update their income estimate for family assistance.

Dependent customers claiming Youth Allowance, ABSTUDY Living Allowance and Assistance for Isolated Children (Additional Boarding Allowance) for the 2011 calendar year will require this information from their parents to assess eligibility (except where the parent is exempt from the Parental Income Test).

Existing dependent Youth Allowance, ABSTUDY Living Allowance for Isolated Children (Additional Boarding Allowance) customers will require this information as part of the 2010 End of Year review commencing in September 2010.

Commonwealth Seniors Health Card holders will be required to provide this additional information to satisfy the Commonwealth Seniors Health Card income test requirements at the new claim stage or when providing an estimate.

Reportable superannuation contributions

Since 1 July 2009, any reportable superannuation contributions will now be included as income and used to work out your family assistance. reportable superannuation contributions include:

• discretionary contributions, for example voluntary salary sacrificed contributions, made on your behalf by your employer, above those required by law, an industrial award or the superannuation guarantee, and
• total superannuation contributions made by you as a self employed person, for which you can claim a tax deduction.

The changes were implemented 1 July 2009, and customers who are affected by this change include:

• FTB, Child Care Benefit (CCB) and Baby Bonus and working age who salary sacrifice toward superannuation
• income support customers under age pension age whose reported earnings include amounts salary sacrificed into superannuation. Where the customer is over age pension age, there is no change, as the salary sacrificed amount is already counted as income
• existing dependent Youth Allowance, ABSTUDY Living Allowance and Assistance for Isolated Children (Additional Boarding Allowance) customers who will require this information as part of the 2010 End of Year review commencing in September 2010
• Commonwealth Seniors Health Card (CSHC) holders who will be required to provide this additional information to satisfy the CSHC income test requirements at the new claim stage or when providing an income estimate.

Families customers are required to estimate this income component at the new claim stage, to assist them in receiving the correct rate of payment. They will also need to include this component when they update their income estimate for family assistance.

All non-means tested family payments, such as Maternity Immunisation Allowance and Double Orphan Pension are not affected by this measure.

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Moe information

• view Taxable income.