A person making a past period claim (1.1.P.60) through the FAO may choose to be paid by direct credit or by cheque. Payment by direct credit should be encouraged, however there is no legislative restriction imposed when a person makes a past period claim.
Explanation: This is in contrast to instalment claims where bank account details for direct credit are required before the claim can be determined, unless an exemption is granted.
If the applicant is making a claim for instalments (1.1.I.100) and a past period at the same time, the lump sum for the past period is paid by direct credit unless an exemption is granted.
Explanation: The applicant is required to provide bank account details for the instalment claim. The claims are treated as one claim and determined together.
Act reference: FA(Admin)Act section 24(1) Other payments of family tax benefit
Policy reference: FA Guide 4.3.3 Instalments Paid by Direct Credit
______________________________________________________
Last reviewed: 2 January 2009