The income on which an individual's FTB is assessed will be either:
Indexed estimates and indexed actual incomes only apply where the individual is entitled to instalment payments. If the claim is for past period, an estimate may be applied for the partner if they have not lodged an income tax return or are not required to lodge.
FTB and/or CCB applicants/recipients may be paid based on their own ATI estimate if it is considered 'reasonable' by the FAO. Recipients being paid on the basis of an indexed estimate may choose to provide their own estimate in place of the indexed estimate or indexed actual income at any time, if it is considered to be reasonable by the FAO.
Where the actual income amount is not known, the estimate held by the FAO will be indexed by the indexation factor and used as a basis for payment. To calculate the new indexed estimate:
Note: A notice under subsections 20A(2) or 20B(2) advising recipients of the amount that will be used to assess their current or next financial year's payment may be issued to recipients:
The amount specified in the notice will be applied to a recipient's rate at least 14 days after the day on which the notice is given.
The indexed actual income is calculated by:
This is only applicable to recipients whose payments are based on an indexed estimate or an indexed actual income and should only be used where the indexed actual income (based on ATI for the most recent income year) is higher than the indexed estimate or indexed actual income being used to determine their FTB rate.
Act reference: FA(Admin)Act section 20A Indexed estimates, section 20B Indexed actual incomes
Last reviewed: 6 April 2009