I think what it is saying is that these types of claims can no longer be made through the ATO, so they will have to be made through FAO. I think... The legislation seems to be about ceasing ATO involvement in FTB payments, not ceasing the payments themselves.
I think this is pretty much how BG explained it in another thread..

eta: found it here https://www.bellybelly.com.au/forums...-question.html