Hey Ladies,
I just got off the phone to CL and now a little bit confused!
I rang up to update my Income for next year... Now my thinking was, that I would leave my income at 0, and put OH income to what it's meant to be. Then come Jan when I start working (because I graduate this year) - Put my income up to what I expect to get in the months.
I thought of doing it this way, because we need the income this year to survive off. and next year when the payments drop it will be subsidized with my pay from work. But the lady said that I can't do it that way, because of CCB and Rebate and it will end up in one big mess.
She also mentioned something about because this is the first time of going back to work after having a child, my FTB will be quarantined, what does this mean? Something about it staying at the max rate? I'm not to sure?!/
I'm sure you can do it that way, but you'll have to repay any overpayments (which you obviously realise). Lots of people get it wrong and fix it later
I think maybe you do continue getting the FTB for a while after first returning to work? Not sure exactly on that one.
What happens is, if this is your first time working since having a baby, centrelink will allow you to receive the max rate of ftb for the period in the financial year you DIDN'T work.
So, if you start work in Jan, you're entitled to the first 6 mths of the financial year at the rate you were already receiving. Your earnings will only affect the remaining years ftb.
Ok, I understand the ftb part, So basically if the max rate for ftb is $100, next year when I start work I will still get that amount for the rest f the financial year.
I didn't think I would be over paid. Since I would be telling them when I start work, so my payments will be reduced and everything will be right in the world of centrelink.
My thinking is, if I tell them now that next year I'll earn 25grand in 6 months, that will mean my payments will be extremely reduced (starting from this July) which will put a huge strain on me financially now, where as if I tell them in Jan, I can cope with the payments for this six months, and starting from Jan the payments can be cut off/or reduced dramatically so I didn't get over paid?
I'm sure they have software that works this out - I'd just do what you planned to do, so long as you're confident you can cover it later.
Say you would be entitled to $50/week on 0 income, but only $10/week on [x] income and you set your income at 0. You'd receive $50/week for 26 weeks, then you set your income higher and the payments would adjust down to the equivilent of $10/week for the whole year. Your annual payments should be $520, but you've already been paid $1,300, so you'd owe them the difference in the 2nd half of the year.
ETA - it really depends how much of a difference it is. You might get reduced, or you might have to pay back
I did this, we needed the money cash flow wise, my payments did reduce/ disappear when I did go back to work and let them know and I did have to pay back about 1000 in the end, I was fine with that and had expected it so made sure when I did start earning again we saved so would have money to pay it back. When I spoke originally to clink on phone they gave same advice as to you, but we needed the money before I started back at work (I am main earner) and getting no money due to possibility I would earn in second half of year seemed silly to me - I didnt have a job to go back to as had been made redundant so in theory I might not have made any money that tax year.
That's strange, cause I have always adjusted my figure as needed. I only work casually, and I always seem to end up with long term contracts (but can never predict them, LOL).. And each time, I just ring and up and advise my wage, and it just reduces my fortnightly payment.
We did exactly what you were talking about last year as DH was on a low wage (training) till Sept, so 3 months and we needed that higher FTB or FTA (whichever it is we get) and CCB, so we kept him at his lower wage till he is training was finished, then I adjusted his figure and they just reduced our payment to collect the over-payment..
I suspect the reason why I, and the OP were given that info by CLink - is that they don't like to suggest to people to get into debt (as really that is what it can end up, as like MadB says is an interest free loan but you can end up in debt to CLink), and also administratively is probably more work, working it all out for them - but it is certainly fine to do.
Complicated Questions...
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