given it's ftba and RA only, the income test won't apply - what you need to do is contact the ATO and work out what portion is taxable, and that is what will apply to ftb purposes. you will, if it's a large payment, probably lose ftba and RA for the balance of this year, and may even find that you have to pay some of what you've received back. it will really depend on how the compensation is structured.