thread: Centrelink debt and tax return

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1
    Registered User

    Dec 2006
    In my own private paradise
    15,272

    It depends whether you ticked the box allowing your tax return to be used to pay off any FAO debt.

    I had a debt last year of a lot more than $600 and still got both my and DH's tax returns. I just made up a payment arrangement with Centrelink, I think it was $60 a fortnight and it was paid off really quickly.
    I think the box PP are referring to is to repay your partners debt. If you have a debt yourself I think they will automatically withhold your refund. Refer to pages 9 & 11 of the individual tax return here.
    this is correct. if YOU have a debt, and YOUR return arriving at FAO is the one to trigger reco, you have no choice. your partner does though. if your information arrives before your partner though, your tax money won't be held up indefinitely waiting for reco to occur when your partner return arrives. this would be what happened with your Tinks - your information would have arrived several days before your other halfs, and you tax money released back to ATO to release to you before ATO gave FAO your partners return. had it been the other way around (his first), you would have had your return with held to pay against your FAO debt

    I had a PPP overpayment debt, I DID NOT tick the box on my tax return, and they withheld TWO YEARS worth of my tax returns regardless.
    there is no provision for FTB or ATO top ups to be used to pay against a debt raised against PPP - FAO reco payments are still paid even if PP debts exist. if you've had ATO payments with held against PPP debts, it would have been from a mercenary agent, not FAO



    I just checked online and my ccr has been reco and I get money bank thus thurs. I wonder if I will get my entire tax back since I user estimated my ftb

    My income has been updated to the actual but DH hasn't. Weird considering same accountant did both on same day one after the other
    your online services will never show the specifics of DH's income for privacy reasons - what you will see is your information, and then the total family income at the bottom of the actual income.




    In general:
    CCB/CCR top ups can be used to pay current and previous year CCB/CCR debts only
    FTB reco top ups can be withheld to pay current and previous year FTB reco, CCB/CCR or ATO debts
    ATO tax returns can be withheld to pay current and previous year ATO, FTB reco, CCB/CCR debts

    there is no choice in this - it is automatically actioned - you always have the right to appeal, but you have to show how legislation is wrong or unforseen hardship.



    DMB, without seeing the specifics, it sounds like you are still getting a top up to come to you - whether it comes from ATO or from FAO is hard to say - most likely, your debt for an 11/12 year would be paid from any reco payment you are entitled to in the first instance (as FAO and CCR/CCB would reconcile at same time) and only what is left to be paid would come from your tax return. if it was a previous year debt (10/11 or earlier) it would be deducted from whichever lump sum was available first (generally your tax return)

  2. #2
    Registered User

    Dec 2007
    1,794


    DMB, without seeing the specifics, it sounds like you are still getting a top up to come to you - whether it comes from ATO or from FAO is hard to say - most likely, your debt for an 11/12 year would be paid from any reco payment you are entitled to in the first instance (as FAO and CCR/CCB would reconcile at same time) and only what is left to be paid would come from your tax return. if it was a previous year debt (10/11 or earlier) it would be deducted from whichever lump sum was available first (generally your tax return)
    Ok, that makes sense.. The past financial year is the only debt. So as my tax return was at least double what is owing, I will wait for it to come..
    Last edited by Doing my best; August 7th, 2012 at 02:02 PM.

  3. #3
    Registered User

    Dec 2007
    Victoria
    7,260


    there is no provision for FTB or ATO top ups to be used to pay against a debt raised against PPP - FAO reco payments are still paid even if PP debts exist. if you've had ATO payments with held against PPP debts, it would have been from a mercenary agent, not FAO
    This is incorrect. This is what I was told by THREE CL employees while I was dealing with this, but that is exaclty what happened - it was the FAO that withheld it, and paid it against a PPP debt. I fought it, and it was overturned and returned to me, but it was made clear that they acted correctly, and they had the right to withhold it, for the PPP debt, despite my being informed three times that this was not the case. It was escalated a couple of times and the senior people I dealt with all confirmed that the inormation I had received was incorrect. I made a complaint about it, and was informed again that the three people I had spoken to had given me incorrect or out of date information, and this would be addressed in training of call centre staff, but ultimately the FAO could withhold any monies from the tax return to pay against ANY FAO debt.