6.4.4.10 Reconciliation - Current Partners

Summary

This topic discusses the treatment of current partners in the reconciliation process. It details:

• the impact of a current partner on the timing of reconciliation,
• the impact of one partner not lodging an income tax return, and
• the assessment of ATI for periods when the recipient was partnered.

A current partner for the purposes of reconciliation is a person with whom the recipient was partnered for part of, or for the entire claim period, during the relevant income year (1.1.R.23) and with whom they were still partnered on 30 June of that year. It applies to both instalment recipients and recipients who have made a past period claim after the end of the income year.

Impact of a current partner on the timing of reconciliation

If both the recipient and their current partner are not required to lodge a tax return, reconciliation can occur immediately following the end of the relevant income year provided all the other conditions for reconciliation are met.

If the recipient and/or their current partner are required to lodge tax returns for the relevant income year, reconciliation can only occur after their income tax return(s) have been lodged and all the other conditions for reconciliation are met.

Example: An FTB recipient, Rachel is partnered to Steve throughout the last financial year. Both are required to lodge income tax returns. Steve lodges a return by 1 October this year and actual maintenance income and child-care usage are available at that time. Rachel has not yet lodged her income tax return. No reconciliation of Rachel's FTB entitlement can be carried out until Rachel lodges her income tax return.

Policy reference: FA Guide 6.4.1.30 Reconciliation Process, 6.4.3.10 Valid Reasons for Not Lodging a Tax Return

Tax return(s) not lodged by March/April of lodgement year

In instances where the recipient and/or their current partner are required to lodge an income tax return but have not done so by March/April of the lodgement year, the recipient will be subject to the non-lodger notice process.

Policy reference: FA Guide 6.4.3 Requirement to Lodge an Income Tax Return

Assessment of ATI

For recipients with a current partner or an ex-partner, assessment of their family assistance entitlement is carried out by including:

• only the recipient's ATI (1.1.A.20) for any period they were single, and
• both the recipient's and partner's (1.1.P.30) ATI for any period they were a member of a couple.

Example: Gayle receives FTB for the whole of the last financial year. She is partnered to Gordon for the period 1 July to 30 September, single for the period 1 October to 31 December, and partnered to Brian for the period 1 January to 30 June. Gayle's actual ATI for this year is $10,000, Gordon's income is $20,000 and Brian's income is $8,000. The ATI for Gayle's FTB for each period is as follows.

Note: FTB Part B is generally assessed on the secondary earner's income for members of a couple. From 1 July 2008, however, an income limit of $150,000 is applicable to the primary income earner in a couple family, and to recipients who are single.

Policy reference: FA Guide 6.4.3 Requirement to Lodge an Income Tax Return

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Last reviewed: 30 April 2012