Tax time means over one million Australian families will start to have their family payments balanced.
If your clients received Family Tax Benefit (FTB) and/or child care payments for the 2017–18 financial year, they will need to lodge a tax return or will need to let the Department of Human Services know they don’t need to. This is required so the Department can ensure families receive the right amount of assistance.
If your client has a partner, the Department will also need to know the same information about them.
Every family’s set of circumstances is different, but the process to balance family payments is simple. Your clients don’t need to call us. We will balance their payments based on their actual income and personal circumstances, and that of their partner if they have one, against the estimate they provided for their family payments.
If they didn’t receive the full amount they were entitled to for the financial year, they may receive a top up. But if they were paid too much, they may need to pay back their overpayment.
If your client, or their partner, need to lodge a tax return, we will receive a notification from the Australian Taxation Office (ATO) with their taxable income to balance their payments.
If your client, or their partner, don’t need to lodge a tax return, they can let us know from 3 July 2018 using the Centrelink mobile app or their Centrelink online account through myGov.
If your client is not sure if they need to lodge a tax return, there is a helpful tool – ‘Do I need to lodge a tax return’ at ato.gov.au. The Department of Human Services’ website also has helpful hints and information at humanservices.gov.au/balancing.
If your client does incur a debt as a result of balancing their family payments, they can talk to the Department. It’s important they do contact us if they’re worried. We can work with them to set up a repayment plan they can afford.
FTB payments can be balanced after your client has received their last payment for the 2017-18 financial year – between 4 July 2018 and 17 July 2018. Child care payments are balanced after FTB payments, from 23 July 2018, to ensure child care services has lodged all the attendance for the financial year.
Don’t forget to remind your clients to follow the Family Update Facebook and Twitter accounts for important updates on social media.