$600 per child payment

if you're not getting fortnightly payments, and you have high-ish individual and combined incomes, you might not be eligible for ftb rebecca. this year, your accountant can claim it for you on you tax return (make sure you ask) - but for future years, if you qulify, you have to do your claim through centrelink/FAO direct

Ahhh more than likely then we wont be eligible as I dont get any form of c.link payment and never have so far and DH's and my combined income is what could be called high I guess. Wish they worked it out on income AFTER rent, food, electricity and now fuel!! ha ha ha

if that were the case, it owuld be awesome for parents

but cost of living would blow out astronomically - damn that thing that links interest rates to national spending/inflation lol

Cost of living out here is huge anyway!! LOL

Do they pay the supplement after the return has been processed or just lodged ? Mine has been procvessed by DF only did his last week.. so i assume its after the return has been processed ..

return has to be processed so that the actual taxable income can be ascertained - it can take up to three weeks from when you receive your notice of assessment from ATO until ATO send that information to FAO

I sent in Andrews tax return on the 2nd via Etax, and I lodged the online claim that said I didn't have to lodge a tax return for this financial year on the 1st.

Andrew got his tax return back on the 11th so 9 days and I got the FTB supplements on the 14th. So they were definitely processing prior to the 16th ;)

the 16th was the start of "bulk" reconcilliation Kat - when they started mass processing those that didn't need to lodge tax returns (and have both notified), or single people on income support for at least 300 days during the financial year. the start of ACTUAL processing was July 2nd, but very few were done that early - you're lucky that ATO processed that quickly - you must have gotten in before the rush! the processing turn around for those that have to lodge tax returns is definitely dictated by the ATO and the communication FAO receive from them.


FWIW - NO reconcilliation of payment can occur until you've been paid all your ftb entitlement for the previous financial year - so if your last FTB payment was any time before July 3rd, you'd have to wait until after your next payment (14 days later) to be completely finalised with payments for 2008 - from that date, if all the info is known for both yourself and your partner, reconcilliation can occur. this timing is the reason that bulk reconcilliation doesn't start until mid July each year - and it can take up to a month to process everyone that falls under that process

I lodged both mine and DH tax returns on the 9th centerlink received my total on the 11th and I got my tax return on the 18th.........Centerlink still have not received dh total for the year yet the ATO say it has been sent to them, not has he received his return and they told me to call back on Wensday if not received as that is the 14 day point and they would then escalate it, I didnt receive the $600 per child in my tax so howlong after centerlink recives DH totals should I have to wait for that? sorry for all the questions, am sure glad I dont work for centrelink or the ATO at this time of the year.

yeah, be glad hun - everyone is going through the same thing

some ATO claims take longer to process - i don't know why, but i think it's something to do with deductions - when they're more complex, it takes longer. anyhoot - once ATO process HIS return, they will send the info to Centrelink/FAO. as has been mentioned before, it can take up to three weeks for that info to be transferred to FAO from ATO - AFTER your notice of assessment from ATO has been generated (it doesn't always take that long, as you can see by Kat's situation - but that's the time frame that they give).

once that info has been received - given that your tax return has been received without the FAO payment, FAO will process your payment and deliver your entitlement to the bank within two working days

The ONLY exception is if there is something on your file that flags it to need manual processing (so changes in shared care percentage, first return to work after birth of youngest child etc) - if that occurs, it can take several weeks as there are a limited number of staff trained for this activity and they churn through them as quickly as they can - please - this is an exeption, NOT a rule - not many files go through this process! if you're registered for online services you can check every couple of days - you'll see the payment once it's been processed. it DOES NOT NECESSARILY get paid at the same time as your normal FTB payment

BG,

My turn to ask a couple of questions. Please tell me to bugger of if you've had enough and I'm the straw that broke the camel's back with all this FTB malarky.

Ok, I have already done my tax return through e-tax. I got my refund in 9 days, and it included my tax refund plus my FTB entitlement (I claimed my FTB through the tax system). My questions are:

Did my FTB entitlement that came with my tax refund include my 30% child care rebate?
Do I get a further $600 per dependent child after my DH does his tax return in August? (I have 100% care of two kids - 2yo and 14yo)

without seeing everything, it's hard to say for sure Sushee - i would think you would have received only FTBB and the $325 supplement for that payment at this stage, if your income was under the income thresholds. if you've received FTBA entitlement, be very wary, as it shouldn't have been paid until your partner does his tax. you won't have received the FTBA supplements at this stage at all (unless you've somehow been listed as single instead of partnered on your tax return and subsequent ftb claim). you should receive a letter of explanation from FAO, and it will say "you've been paid x amount, but you have not been paid y amount as we don't have sufficient information at this stage"

the 30% rebate doesn't get processed until september at the earliest - as the child care providers are given a window of time to get usage statements into FAO and processed.

Hmmm. I definitely said I was partnered in my return, and I assume that the FTB payment was part A and some part B (for the period prior to when I returned to work). This happened last year as well, where I estimated my DH's income for the year by adding a couple of thousand to what was on his group cert, and got paid FTB as part of my tax return. Then when he put in his return in August (he has to wait to see what he got paid in dividends on our managed fund, which is in his name) I got some more money - I think it was the $600 per child.

I assume I got a fair bit back this year because I was returned to work in Jan. Do you think I'll need to pay anything back though? I reckon my estimate of DH's income is pretty spot on. I haven't spent any of the money as yet anyway, so may hang on to it in case I do need to pay some back.

So once DH puts in his return, I should still get the supplement of $600 then after DH does his tax in August? Or not at all? And also the 30% rebate in September? Wow, if that's true, we might just be able to breathe financially this coming year.

yup - i'm not sure what the ATO lump sum claim asks - but if it asks for an estimate of partner income, you'd be paid based on that (no wonder they won't do that anymore after this year - too confusing!) - then when DH does his return, you'll get the difference of what you've been underpaid (if you over estimated his income) and the supplements

IF however, you underestimated his income, you'd not get the full amount of the supplements as they'd use those to correct any over payment

and yes, you do get paid your 30% rebate in september

and even better, in October, they start paying the quarterly 50% rebates for child care!

I don't think I would have underestimated DH's income. The crap share market performance this year likely means he'll get no dividend payments, so I reckon we're going to be right in that regard.

I'm surprised I have more money coming up because I got a fair bit back. I suspect it's because I was unemplyed for the better part of last financial year, so it was a nice surprise. I assumed that because it was rather large, that the FTB component of my return would have included the 30% rebate. But it didn't actually say what the breakdown was so I didn't know for sure. In fact all it says is 'FTB' on my assessment - no explanation, no details.

you'll get a letter from FAO soon hun - and it will tell you what has been paid - well you should! you'll probably find they've paid you what you'd have received in fortnightly installments based on your actual income, and DH's estimate - so supplements won't have been paid at all yet

so, yes, you'll likely get more back

So I think I am as confused as most everyone is. My DH & I get FTB Part A and Part B in fortnightly payments and so what I have read we get $600 and $500 supplements after we both lodge our tax returns as we have had Olivia for the full financial year and I underestimated our income. Is that right?

you'll get 667 ftba supplement and ftbb supplement 324...

Thank you so much BG. You're a legend for helping us all out. A HUGE THANK YOU!!!!!

Another confused one here! :doh:

Ok DH and I received FTB B and A until I went back to work in Jan 08. At that point I rang ATO and told them I was returning to work but because I work different hours every week and therefore cannot accurately estimate my income, I opted to stop the fortnightly payments and be assessed at the end of financial year.

So now we are doing etax and on both our forms it says that we have already received our entitlements for the financial year? So wondering if I should call again to tell them I haven't received anything since Jan 08 (and pray I'm not on hold for five thousand years like last time!) or should I complete the relevant sections on etax concerning FTB and hopefully they will realise that I haven't been paid since Jan 08?

Hope that makes sense.............has anyone else been in this situation? TIA !

Im so confused! I get ftba and ftbb paid fortnightly and also parenting payment. I also worked as a casual. I dont remember giving a wage estimate though? I report my earnings every fortnight to centrelink. BG I know you've said before that as long as i report every fortnight then it should be fine...But what if i dont remember giving an estimate at the beginning of financial year?

Im sorry BG, this must be doing your head in! You'd deal with it every day as it is...im sure :p!

BG, thank you for all of your replies you sure are very patient.

If you don't mind could I ask one question. sorry if it seems really stupid. This being the first time of dealing with FAO. Will I recieve a letter/statement detailing how much of FT-A I have recieved or do I just need to calculate this myself? Part -B I opted to wait till tax time.

TIA Hansie

Sangie - your payment would have been listed as "current, paid at nil rate" from when you returned to work - so you're still listed as receiving payment, but not actually getting anything, to stop overpayments - once FAO receive your taxable income details, they'll calculate what you're entitled to as a daily rate, work out what you were overpaid at start of year, deduct that from what you're entitled to for balance of the year, and pay you a top up, plus supplements (if you're entitled to them).


K - if you're SINGLE and on INCOME SUPPORT (parenting payment/newstart/disability etc) - you're automatically entitled to the maximum rate of FTBA and B - so an income estimate is not required

Hansie, when your payments are reconciled through FAO, you'll get a letter with something along the lines of:

"we have checked your payments agains the information received from ATO and you were entitled to $XXXX.XX. you have already received $YYYY.YY through the year, so the balance owed to you by the government is $ZZZZ.ZZ. this amount includes FTB supplements of $xxx.xx"

for that, it is basically saying we've worked out that you are due to get however much of both FTBA AND FTBB (X), you've already received, in fortnightly installments Y (which, in your case, is your FTBA), and you're going to receive a top up of Z. the total of your supplements (x) is listed - but not broken down

the letter will tell you HOW the payment is delivered (either via ATO or to your bank account number) - and, if you owe moneys for a previous year FTB or CCB debt, or owe taxes, some of this may not be received. if it pays FTB/CCB debts, that will be on the letter - it won't advise if it has paid a tax debt as FAO are unable to see that.

just as an aside, seeing this thread is going ballistic at the moment (and cos someone is bound to ask eventually!)

for anyone that has UNDERESTIMATED their income and has ended up with a debt to FAO - be aware - your TAX RETURN can, and usually is, garnished to pay this - even if it's a previous year debt. this ONLY applies to current or previous year FTB reconcilliation (end of year) debts

Thanks BG! Very much appreciated..............now just to get those etax forms filled out :wall:

Thank you so much for all the info BG! The jigsaw pieces are slowly fitting together.

im trying to do my tax online. does anyone know if you have to pay tax on the parenting payment? my centrelink tax summary says that i didnt pay tax on it and now in my estimate, im paying tax on it??

Just been on the phone to the ATO and FAO! OMG they do your head in! I was telling THEM stuff that i've learnt from BG!! Aaaaaaarrrrrrrrggggggggghhhhhhhh!!!!

Ok, so i do pay tax on it.

BG Last question from me, i promise! Do i still get the ftba & ftbb $600 and $300 or whatever it is payment that everyones talking about? Even though i receive them both fortnightly and have no reconciliation to do because im on pp?

Toby, in answer to your questions - YES, parenting payment is taxable - but it's not automatically taxed by centrelink - you have to request it. as a result, you may end up with a tax liability to ATO once you have submitted your details as you'll be in a higher income bracket

in regards to the supplements - yes, even though you get your payments each fortnight, you are entitled to the supplements ($667 per child FTBA, and $324 per family ftbb) - if you qulify for payment, you qualify for supplements. your payment DOES still get reconciled - but there will be nothing to reconcile against. basically reconcilliation looks at what FTB you've received, compared to what you're entitled to (looks at things like actual income - unless you're single, on income support payment for most of the year - and maintenance - which i know you're not getting - but i'm doing a generic answer!) - and then makes sure you're paid appropriately for the FULL financial year

now, as a generic explanation of FTB and the supplements:

your FTB is calculated based on a number of factors (inome estimate, maintenance entitlement, current status as an income support customer) - and is worked out to a daily rate. in most cases, this is paid fortnightly. the supplements are part of that daily entitlement that is held back until the end of the financial year, and, when your daily entitlement is confirmed.

FTB is effectively a tax refund that you get for having dependent children - but how many people would benefit from it once their tax is done at the end of the financial year? do they benefit from a lump sum, and having nothing to live on fortnight to fortnight? most families NEED that money each fortnight, not at tax time - so the government pay it out in installments, based on your BEST GUESS of your income for the current financial year - and at tax time, they got and check your best guess against your actual circumstances for the year. this is the process known as reconcilliation

the reason??? how many people struggle to know exactly what their income will be? how many know that they will or won't get a pay rise? how many know exactly what dividends they'll get? how much of a loss their investment property will generate each year??

in all honesty, i've not ONCE seen someone estimate their income accurately to the dollar for the full financial year. and the government are aware of that. what they did, rather intelligently for the government :p , was to say (in a very simplified way)

ok, for each child in this age group, the tax reduction should be X number of dollars - but instead of giving them X dollars divided into 26 fortnights, we'll give them Y dollars divided up over the fortnights, and hold onto Z amount (supplements) until the end of the financial year. that way, if they underestimate their income, when we work out their actual income, there is something of a safety net in place, and not as many people will end up with small debts.

it means if you overestimate, you get money back, if you underestimate, you're less likely to get a debt. and realistically, KNOWING that there is money you're entitled to waiting for you - it's a HUGE incentive for people to get their financial issues for that year finalised through ATO - so it works in more ways than one!!!

this is the way i explain things when i'm at work - it's simplistic, but realistically - people don't need to know the in's and out's of the way it works - they just need to know how it applies to THEM - and this is the easiest way i can explain it!

I've said it before...YOU ARE THE BEST!
X x x x x x x x x x x x

:dance:I get it now I FINALLY GET IT!!!!:dance:

Thanks so much BG. You're awesome!!!!

BG, I swear I must have gotten you on the phone yesterday! the lady I got was very cleart in her explaination and I finished the call actully knowing something new! She told me that FAO had the details from the ATO and were getting ready to show the ATO a figure, so it should be back soon! Unfortunately she couldnt estimate how much we would get back because of my overestimation before my phone cut out!

So how much do you get back if you overestimate? do you get a percentage of the amout you estimated, or the full amount you overestimated by? I overestimated our joint income by about $4000, so would I get a percentage of that or the full $4000?

it would only be a percentage of that $4k - and would depend on the bracket your incomes fall into for last financial year. would also depend on whether you over estimated both your incomes, or whether you overestimated one and not the other.

Okay so I also have to phone the ATO in order to get my supplement? I should have just lodged a nil return online but I couldn't figure out how to do that. I might just wait until I get back to Oz after the 1st. Confusing stuff :doh:

no, you don't have to contact ATO - the ATO contact FAO and FAO produce your supplements. if you've already notified FAO that you won't be be lodging a tax return and what your income is, you just need to wait until your DP's information is transferred to FAO from ATO. it will happen automatically - it's just a waiting game

do u only get the payment if u have had ur child fo rthe whole finacial yr or would they give u a certain % of the 600 fo rthe amount of the yr they have been born? if that makes sense

the payment is a daily amount, so you get it for the number of days that child has been in your care in the financial year, so in your case, it would be about six or seven weeks worth of entitlement

kool thanks for that info

Sorry if this has already been asked, but if I have already gotten my FTBA & FTBb supplements, do I still need to lodge a tax return, or notify that I don't need to lodge one, since I was only on centrelink benefits for the whole year (FTBa & FTBb + parenting payment single) and taxable income was less than $18,252? I tried to notify of non lodgement through the centrelink website but it wouldn't let me

you don't need to notify c'link - just the ATO