5.2.2 Information Required - Instalment Claims

Introduction

This section contains one topic that outlines the obligations of an FTB instalment recipient (1.1.I.100) to provide notification of any changes in circumstances that may affect their entitlement (1.1.E.30) to or their rate of FTB.

An instalment recipient must notify the FAO of anything that happens or is likely to happen that would:

• make them ineligible for FTB, or
• reduce their FTB rate.

This includes a change of address which must be notified within 14 days of the event.

This section covers information required in the following circumstances:

• change in care arrangements,
• changes in income (1.1.I.20), and
• increase in the ATI (1.1.A.20) of an FTB child.

Act reference: FA(Admin)Act section 7 How to claim, section 25 Obligation to notify change of circumstances, section 25A Secretary's power to approve a manner of notification

Policy reference: FA Guide 5.2.1.10 Change of Circumstances - General Provisions, 5.2.1.20 Change of Eligibility Circumstances, 5.2.1.30 Change of Rate Circumstances

Change in care arrangements

FTB recipients must report any change in care arrangements for an FTB child, whether in relation to a change to a written care arrangement (1.1.C.05), or to arrangements that are based on a verbal agreement or an established pattern of care (1.1.P.70). If 2 or more instalment recipients share the care of an FTB child the notification of a change in the care arrangements by one recipient may affect the FTB entitlement of the other carer. Once notified, the FAO should contact each individual to confirm the change in care arrangements.

Explanation: If one parent/carer reports a change in care arrangements and that is confirmed by the other parent/carer, FTB entitlements should be reassessed from the date the change occurred. If one or more individuals disagree that a change has occurred, the FAO must investigate whether a change has occurred before FTB entitlements are reassessed.

Note: From 1 July 2010, an assessment of care that is determined by either the FAO for FTB purposes or the CSA for child support purposes will have effect for the other agency in relation to care periods that begin on or after this date. This means that where a care assessment has been determined by the CSA, that care assessment will be used by the FAO to assess eligibility for, and the rate of, FTB. For individuals who receive FTB from the FAO and also have a child support assessment with the CSA, changes in care can be advised to either agency.

Act reference: FA(Admin)Act section 25 Obligation to notify change of circumstances, section 25A Secretary's power to approve a manner of notification

Policy reference: FA Guide 5.2.1.10 Change of Circumstances - General Provisions, 5.2.1.20 Change of Eligibility Circumstances, 5.2.1.30 Change of Rate Circumstances

Changes in income

An instalment recipient (1.1.R.07) must notify the FAO if there is or is likely to be any increase or decrease in their or their partner's, (1.1.P.30) income (1.1.I.20).

Example: The recipient must notify the FAO where their:

• estimate of ATI may go above or below the lower income free area (1.1.I.40) for FTB Part A or the income free area for FTB Part B, or
• estimate of income is above or below the higher income free area (1.1.H.10), or
• maintenance (1.1.M.10) income increases or decreases.

Act reference: FA(Admin)Act section 20 Determination of rate to be based on estimate, indexed estimate or indexed actual income, section 25 Obligation to notify change of circumstances

Increase in ATI of an FTB child

An instalment recipient must notify of an increase in an FTB child's ATI in order to minimise the risk of overpayment. The recipient must contact the FAO with the relevant details:

• when the child's estimated ATI for the income year exceeds the child income limit amount (1.1.C.80), or
• when a change in circumstances occurs which will increase the child's ATI above the yearly child income limit amount (assuming the circumstance continues to apply).

An FTB child may receive increased income from such sources as:

• a dividend from a family trust, or
• casual employment, such as a newspaper delivery round, or
• child support (1.1.C.20) paid directly to the child by a paying parent.

Act reference: FA(Admin)Act section 20 Determination of rate may be based on estimate, indexed estimate or indexed actual income, section 25 Obligation to notify change of circumstances, section 25A Secretary's power to approve a manner of notification

Policy reference: FA Guide 1.1.C.80 Cut-out amount (FTB) 5.2.1.10 Change of Circumstances - General Provisions, 5.2.1.20 Change of Eligibility Circumstances, 5.2.1.30 Change of Rate Circumstances, 7.1.2 FA Debts - Individuals & ACOs

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Last reviewed: 1 July 2010