Note: From 2012-13 there are changes to the timing of lodgement of tax returns (or notification of not required to lodge) in order to receive top-up or supplement payments under reconciliation conditions (22.214.171.124).
This topic outlines how Centrelink will follow up on individuals and/or their partners, who are required to lodge an income tax return for the relevant income year (1.1.R.23). It discusses:
The non-lodger process prompts individuals who receive FTB and/or their partners who are required to lodge an income tax return do so before the end of the relevant lodgement period.
In March/April of the lodgement year (1.1.L.30) (the year following the relevant income year), individuals who receive FTB (and/or their partners) who have not lodged an income tax return or advised Centrelink they are not required to lodge are advised that:
Individuals may be reminded by Centrelink again before the end of the lodgement year to either lodge their income tax return or contact Centrelink to advise they are not required to lodge.
If an individual who receives FTB and/or their partner fail to lodge an income tax return by the end of the lodgement year or fail to inform Centrelink that they and/or their partner are not required to lodge an income tax return, a debt will be raised against them. The debt may comprise all the FTB (including LFS and MBA) they received for the relevant income year.
Other FA payments such as the baby bonus are not raised as a debt as there is no requirement to lodge an income tax return to receive these payments.
Note: A non-lodger decision is a variation of the individual's determination made by the Secretary that the individual is/was not entitled to FTB for the financial year for which they and/or their partner have not lodged a tax return.
Individuals who receive FTB (and their partners, if any) may not be able to receive FTB based on an estimate if they have outstanding non-lodger debts as a result of non-lodger decisions for FTB received in relation to previous income years because they have not lodged their requisite income tax returns or failed to inform Centrelink that they are not required to lodge.
Act reference: FA(Admin)Act section 28(2) Consequence of section applying, section 32AA Non-payment of family tax benefit for non-lodgement of tax returns, section 71A Debts arising in respect of FTB advances
Individuals will be selected for the non lodger process if they and/or their partner have not met reconciliation conditions and being reconciled for the relevant income year.
An individual can have their entitlement reconciled at any time from July of the lodgement year if adequate income information is available to do so.
Policy reference: FA Guide 126.96.36.199 Verification of Adjusted Taxable Income
Last reviewed: 12 August 2013