Family Tax Benefit A and B both include a supplement payment. This typically gets paid after you (and your partner, if you have one) have lodged your tax return for the year and actual income is reconciled against the family assistance you have received.
If it turns out that you have been overpaid, the supplement will first be used to help offset any overpayment of Family Tax Benefit or Child Care Benefit. If you’ve been underpaid, you’ll receive a nice top-up payment along with your supplements.
How much is the Family Tax Benefit Supplement in 2013?
It was announced in the Budget that the indexation for both FTB Part A and FTB Part B supplement payments has been paused further until 1 July 2017. This means that the payment amounts will not be increasing but will remain at the current rates:
The maximum amount of FTB Part A supplement is $726.35 per child. The maximum amount of FTB Part B supplement is $354.05. Remember, these are the maximum benefit amounts; your payment might differ depending on your personal entitlement and circumstances.
What’s holding up my Family Tax Benefit Supplement payment?
• If you are not required to lodge a tax return, have you notified Family Assistance? (you can do this using their online services).
• If your child is turning four, they might need a health check in order to qualify for the FTB Part A supplement. If you did this, have you notified Family Assistance? (again, you can do this via online services).
• Payments may be withheld if your child’s immunisation is not up-to-date and you do not have an approved exemption. Immunisation requirements affect eligibility for the FTB Part A supplement from the 2012/13 financial year onwards.
Tick, Tock – One year to get it done
Being public accountants, it’s pretty typical of us to have couple’s turn up with years worth of tax returns who suddenly need everything done that very hour because Centrelink have finally cut off their benefits and now it’s an emergency (they fail to understand that even if it’s lodged that day, the Tax Office will still take a couple of weeks to issue the required Notice of Assessments).
Well, now there is even more reason to get a wriggle on. Last weeks Federal Budget announced a lump sum and income reconciliation period for Family Tax Benefit and Child Care Assistance of just 12 months from the end of the financial year. This begins with the 2012-13 year – yep, right away. According to the Budget papers, extensions will be approved only in “exceptional circumstances”. This is going to save the Government $562 million over the next 5 years.
Usually the laggers are those who have a self-employed spouse whose record-keeping skills leave a lot to be desired. As a result, the spouses’ tax return gets put off and put off. Now more than ever, you simply can’t afford to let that happen.