6.4.1.20 Payments Affected by Reconciliation

Summary

This topic describes the FA payments and amounts included in reconciliation.

Payments affected by reconciliation

FTB and CCB are reconciled.

The reconciliation of FTB covers all components that make up the payment comprising:

• FTB Part A standard rate,
• rent assistance,
• large family supplement,
• multiple birth allowance,
• FTB Part B standard rate and
• FTB Part A and Part B supplements (included at time of reconciliation, subject to certain conditions being satisfied - see 6.4.1.30 for further details).

Payments of CCB for registered care and for periods for which a recipient receives SCCB are not reconciled.

Explanation: There is only one rate of CCB for registered care. SCCB is an entitlement based on special circumstances. Both CCB for registered care and SCCB are not income tested and therefore not reconciled.

From 2006-07 and 2007-08, the payment of CCTR takes place after the CCB reconciliation.

From July 2008, the payment of CCR takes place as either:

• a quarterly payment when attendance information is received from child care services, or
• an annual lump sum payment after the CCB reconciliation has occurred and a determination of entitlement to CCB or no entitlement because of nil amount was made.

From July 2011, the payment of CCR takes place in one of the following ways:

• as a weekly payment, in arrears, to an individual's bank account following a week of care for which CCB fee reductions have been calculated,
• as a weekly payment in arrears to an approved child care service following a week of care for which CCB fee reductions have been calculated. The child care service will pass on the weekly rebate amount by reducing the individual's child care fees for that week,
• as a quarterly payment to the individual's bank account, when attendance information is received from child care services, or
• as an annual lump sum payment after the CCB reconciliation has occurred and a determination of entitlement to CCB or no entitlement because a nil amount was made.

The following payments are not reconciled:

• FTB advances,
• baby bonus,
• maternity immunisation allowance,
• disadvantaged persons health card,
• FTB payments to ACOs (1.1.A.80),
• double orphan pension, and
• Economic Security Strategy (ESS) payments.

Amounts reconciled

FTB or CCB paid in respect of a recipient's entitlement for the relevant income year (1.1.R.23) are included in reconciliation.

This includes:

• payments made in respect of a period in the relevant income year but not received in that year, and
• bereavement payments of FTB made for a period during the relevant income year.

This excludes:

• arrears payments received in the relevant income year in respect of a period in a previous income year,
• reissued returned payments,
• amounts paid in respect of periods in the relevant income year already raised as debts, and
• periods in the relevant income year where SCCB is paid.

FTB advances

The reduction of a person's FTB Part A rate due to receipt of an FTB advance is part of the rate calculation process for FTB. Reconciliation compares the individual's FTB entitlement based on an estimate with their rate based on ATI. The FTB Part A amounts that are compared in this process are the amounts as reduced by the FTB advance repayment, but the advance payment itself is not taken into account in this process.

The initial receipt of an advance will not be affected by variations to FTB Part A entitlement applicable to the advance assessment day (1.1.A.55) in the reconciliation process if the variation is caused by the individual or child's actual ATI (1.1.A.20) or maintenance income only. However, variations to FTB entitlement applicable to the advance assessment day as a result of changes in other circumstances may affect the individual's entitlement to an advance amount issued, whether these changes are identified as a result of the reconciliation process or otherwise.

Act reference: FAAct Schedule 1 Part 5 Division 4 Reduction for FTB advance

FA(Admin)Act section 35A Entitlement to FTB advance, section 35C Amount of FTB advance, section 71A Debts arising in respect of FTB advances

Policy reference: FA Guide 1.2.8 FTB Advance - Description, 1.2.8.20 Variations to FTB Advance Repayment Period

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Last reviewed: 2 July 2012