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This chapter explains the FAO internal review process and covers:
An internal review can be initiated by:
Act reference: FA(Admin)Act section 105 Secretary may review certain decisions on own initiative, section 109A Review of certain decisions may be initiated by applicant
The FAO may review an FA decision where there is sufficient reason to do so. The decision maker may affirm, vary or set aside the original decision.
Example: Reconciliation of entitlement is one example of a review initiated by the FAO.
Act reference: FA(Admin)Act section 105 Secretary may review certain decisions on own initiative, section 104 Decisions that may be reviewed by the Secretary on own initiative
Generally, where the review is initiated by the FAO, the date of effect of a review decision that is favourable to the individual affected by the decision is the date from which full effect is given to the review decision (full arrears).
However, if the review decision:
Explanation: For decisions in all cases listed above, full arrears are payable as long as the review decision is made before the end of the income year following the income year in which the notice of the original decision was given. Otherwise, arrears can only be paid back to the beginning of the previous income year.
The limitation on the date of effect does not apply in the following circumstances:
Act reference: FA(Admin)Act section 107 Date of effect of certain decisions made under section 105
Generally, an individual affected by a decision made by an officer under FA law can request a review. The decision can be reviewed by the original decision maker or by an ARO (1.1.A.140).
Explanation: If an individual has asked the original decision maker to review a decision, and the FAO officer affirms that decision but the individual is still not satisfied with the outcome, then the individual has the right to request a review by an ARO. If an individual asks for a review by someone other than the original decision maker, the review should be performed by an ARO or a delegate of the Secretary appointed under A New Tax System (Family Assistance) (Administration) Act 1999 section 109A.
The decision maker may affirm, vary or set aside the original decision.
From 1 July 2010, an assessment of shared care that is determined by either the FAO for FTB purposes or the CSA for child support purposes has effect for the other agency in relation to care periods that begin on or after this date.
An individual who is affected by a care percentage decision is able to seek review of that decision with the FAO or the CSA, whether or not they receive FTB. However, the agency that made the original decision would undertake the review.
Explanation: Where a care percentage decision has been made by the FAO, this decision is applied to the child support assessment of the payee and the payer. Both the payee and the payer can approach either the CSA or the FAO to seek review of the decision. In this situation, if the CSA was approached by one of the parties, as the FAO has made the care percentage decision, the CSA would receive the request for review and facilitate a transfer of the review request to the FAO, the original care percentage decision maker. The FAO would conduct the review and apply any new care percentage decision to any FTB entitlement for the relevant child. This decision would also be transferred to the CSA and applied to the child support assessment for that child.
Act reference: FA(Admin)Act section 109A Review of certain decisions may be initiated by applicant
Generally, an application for a review by an individual in relation to FA should be lodged within 52 weeks after the individual is notified of the original decision. This time limit does not apply to FTB by instalment decisions, and some other decisions. However, there are time limits for full arrears to be payable depending upon the circumstances. (For more information, refer to 'Date of effect of a favourable decision for a review initiated by an affected individual'.)
The table below indicates decisions other than instalment decisions where a 52 week time limit may not apply.
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If these circumstances apply... |
Then the time limit to request a review is... |
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special circumstances that prevented the individual from making a review application, |
extended past 52 weeks to such further period as determined appropriate by the FAO. |
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FTB past period decision, |
the later of the end of the income year after the income year in which the past period occurred or 52 weeks after the original decision was made. |
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determination of entitlement or no entitlement to FTB by single payment in substitution because of the death of another person, |
to the end of the income year after the income year in which the death occurred. |
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decision that relates to a period involving 2 income years, |
the later of the end of the income year after the income year in which the period ended or 52 weeks after the original decision was made. |
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decision relating to an assessment of taxable income by the ATO (including FTB by instalment cases) and the individual lodged their income tax return before the end of the income year following the income year to which the assessment relates, |
there is no time limit. |
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review of an assessment of taxable income by the ATO and the individual initially lodged their income tax return before the end of the income year following the income year to which the assessment relates, |
the later of 13 weeks after the individual receives notification of the review from the ATO or 52 weeks after the original decision was made. |
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review of child support entitlement, |
the later of 13 weeks after the individual receives notification of the review from the CSA or 52 weeks after the original decision was made. |
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determination of a weekly limit of hours (CCB) in relation to a specified period, |
to the end of the income year after the income year in which the determination ceased to have effect. |
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weekly limit of hours, CCB% or schooling % decision, |
to the end of the income year after the income year in which the decision took effect. |
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CCB rate decision in relation to a specified period, |
to the end of the income year after the income year in which the period subject to the rate ended. |
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determination of entitlement or no entitlement to CCB for grandparent carers, |
to the end of the income year after the income year in which the determination took effect. |
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determination of no entitlement to CCB by fee reduction, |
to the end of the income year after the income year in which the determination took effect. |
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determination of entitlement or no entitlement to CCB for care provided by a registered carer, |
to the end of the income year after the income year in which the determination ceased to have effect. |
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determination of entitlement or no entitlement to CCB by single payment/in substitution because of the death of another person for care provided by a registered carer, |
to the end of the income year after the income year when the death occurred. |
Act reference: FA(Admin)Act section 108 Decisions that may be reviewed under section 109A, section 109D Review applications-time limits applicable to review of certain decisions, section 109E Date of effect of certain decisions relating to payment of family tax benefit by instalment
Provided the individual requests the review within the prescribed timeframe as described above, and the outcome of the review is in their favour, the decision takes effect from the date of the previous decision if:
Arrears payable as a result of the review are backdated to the date of effect.
However, for a review decision relating to FTB by instalment, where the request for review is made more than 52 weeks after notice was given of the original decision, then the date of effect is generally the later of:
Explanation: For FTB by instalment cases, full arrears are payable as long as the review request is made before the end of the income year following the income year in which the notice of the original decision was given. Otherwise, arrears can only be paid back to the beginning of the previous income year.
This limitation on the date of effect does not apply where the request for review is the result of:
Act reference: FA(Admin)Act section 109E Date of effect of certain decisions relating to payment of family tax benefit by instalment
A request for a review of a decision in regard to eligibility for or entitlement to FA (other than baby bonus) or a CCB percentage to the extent that the decision was based on an estimate of the individual's taxable income cannot be made until after the end of the income year and where the individual is required to lodge a tax return, after the ATO has made an assessment of the individual's taxable income for that year.
A request for a review of a decision in regard to eligibility for or entitlement to FTB to the extent that the decision was based on an estimate of maintenance income for an income year cannot be made until after the end of that income year.
Explanation: This restriction only allows a review of a decision to the extent that it is based on an income estimate to occur after actual income is available so that correct entitlement can be determined.
This restriction does not preclude the individual from providing a revised estimate of income at any time during the income year. If a revised estimate is provided and considered reasonable, the rate paid can be varied from the date the revised estimate is provided.
If an FTB instalment claim is rejected due to the income estimate being too high and the income estimate subsequently decreases, the individual can lodge a new claim which contains a revised estimate and, if eligible, be paid prospectively from the date of the new claim. However, the individual will need to wait until their actual income is known to be paid for the past period (i.e. period from the date the first rejected claim is lodged up to the date the new claim is lodged).
Where a claim for baby bonus has been rejected because of the income estimate, the individual's eligibility for baby bonus can be reviewed if they provide a revised estimate within 52 weeks of being notified of the rejection. The revised estimate must include the applicant's income and, if the individual was partnered on the day the claim was initially lodged, the income of the person to whom they were partnered on the day the claim was lodged. This means that if the individual has separated since lodging the claim, their former partner's income for the 6 month income test period needs to be included in the revised estimate.
Act reference: FAAct section 36 When an individual is eligible for baby bonus in normal circumstances
FA(Admin)Act section 108 Decisions that may be reviewed under section 109A, section 109A Review of certain decisions may be initiated by applicant, section 31A Variation of instalment entitlement determination to reflect revised adjusted taxable income estimates
Policy reference: FA Guide 4.4.2.20 Change in Income Related Circumstances, 4.2.2.20 Specific Requirements for Past Period Claim
If an unfavourable decision is made and the decision depends upon the exercise of discretion, the individual's entitlement to FA may continue during the review process.
Act reference: FA(Admin)Act section 109G Secretary may continue payment etc pending outcome of application for review
The reviewer must:
Act reference: FA(Admin)Act section 106 Notice of review decision to be given, section 109B Notice to be given of decisions under section 109A, section 109H Notification of further rights of review
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Last reviewed: 2 July 2012
