that's not actually quite correct clover. The $500 loan is on a person's income support payment (e.g. parenting payment, newstart, austudy...or $1000 per year on Age pension, DSP and Carer's payment) once every 12 months if the person has no outstanding debts with Centrelink and is repaid automatically at $38.50 per fortnight for 13 fortnights. The FTB advance payment is available from January and July and the maximum is approx $360-$380 - the amount decreases after each fortnight has elapsed after the qualification date (1st Jan or 1st July). You are correct about setting up the FTB loan to pay automatically with your first FTB payment after 1st of Jan and 1st of July. The $500 advance from your income support payment must be applied for every 12 months via web, phone, or in person.
I've always been told you can choose to have the FTB one either every 12 months at the full amount on Jan 1st, or every 6 months on 1st Jan & 1st july for the halved amounts.
I've actually had it paid in the full amount a few years ago. Seperate to my parenting payment advance.