This topic identifies FA recipients who are affected by reconciliation.
FA recipients who receive FA on the basis of ATI, maintenance income and/or child care usage may be subject to reconciliation. ATI, maintenance income and/or child care usage may be relevant for FTB by instalment, CCB by fee reduction, FTB or CCB for a past period.
Certain FTB recipients are not subject to reconciliation of ATI - either because all the relevant actual ATI is known when their FTB claim is determined or because their FTB entitlement is not subject to the income test. These include:
Act reference: FAAct Schedule 1 clause 28B Adjusted taxable income exceeding $150,000, Schedule 1 clause 38L Application of income test to pension and benefit recipients and their partners
FA(Admin)Act section 32C Relevant reconciliation time-member of a couple, income tax return lodged within 2 years
Certain CCB recipients will not have their entitlement for the relevant income year reconciled based on actual income. They are:
CCB recipients who elected to receive zero rate during the year and any entitlement after the end of the financial year will not have their entitlement reconciled.
From 2006-07 and 2007-08, individuals who have received CCB for approved child care services will have their CCTR entitlement determined after the CCB reconciliation has taken place. Their CCTR entitlement will be paid directly into their nominated bank account.
From July 2008, individuals who have received CCB as reduced fees for approved child care will have their CCR entitlement determined as a quarterly payment when usage/attendance information is received from child care services. Determination of an individual's CCR annual entitlement can only take place after the CCB reconciliation and a determination of entitlement to CCB or no entitlement has been made. Individuals who have received CCB for approved child care as a lump sum will have their CCR entitlement determined after the CCB reconciliation has taken place. Their CCR entitlement will be paid directly into their nominated bank account.
Act reference: FA(Admin)Act section 58 Variation where failure to provide tax file number, section 14 Restriction on determining claim where income tax assessment not made
Policy reference: FA Guide 4.6.4 More Choice for Families - CCB, 184.108.40.206 No CCB as Reduced Fees - Any CCB Entitlement at End of Year, 220.127.116.11 Rounding Down CCB%, 18.104.22.168 Payments Affected by Reconciliation, 22.214.171.124 Reconciliation Process, 126.96.36.199 Verification of Adjusted Taxable Income, 188.8.131.52 FTB Reconciliation Due to Maintenance Income, 184.108.40.206 CCB Reconciliation & Child Care Usage/Attendance Information
Last reviewed: 1 July 2013