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Under section 29 of the A New Tax System (Family Assistance) (Administration) Act 1999, the Secretary may decide that a recipient has no entitlement to FTB if they fail to provide information or produce documents as required by the Secretary within a specified period. This means the recipient's FTB entitlement may be cancelled. The date of effect of the cancellation is the day after the end of the recipient's latest entitlement period.
Where the recipient provides the information before the end of the income year following the income year in which the cancellation took effect, the FAO must vary the decision to cancel FTB. The date of effect of this variation is the date of the original cancellation decision. The variation reinstates the determination that applied before the cancellation.
Example 1: John failed to provide requested information to the FAO. FTB entitlement was cancelled on 30 September (income year 1). He provides the requested information to the FAO on 1 October (income year 2). As John provided the requested information before the end of income year 2, ending 30 June, his FTB entitlement is reinstated from 30 September (income year 1).
Example 2: Kerry failed to provide requested information to the FAO. As a result, Kerry's FTB entitlement was cancelled on 30 September (income year 1). Kerry then provides the requested information to the FAO on 1 October (income year 3). As Kerry did not provide the requested information before the end of income year 2, her FTB entitlement can only be adjusted from the beginning of income year 2.
Note: Example 2 only applies to beneficial variations.
Act reference: FA(Admin)Act section 29 Variation of instalment entitlement determination where failure to provide information, section 154 General power to obtain information, section 158 Written notice of requirement
Where the FAO specifies that the request for information is voluntary, the recipient's FTB entitlement cannot be cancelled if the recipient does not provide the information.
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Last reviewed: 2 January 2009
