5.2.1.30 Change of Rate Circumstances

Summary

An individual (1.1.P.80) is required to provide information regarding all circumstances that may affect the rate of FA they receive. This topic covers:

• rate circumstances affecting FA,
• rate circumstances affecting FTB,
• rate circumstances affecting only FTB Part A,
• rate circumstances affecting only CCB, and
• effect on the rate of CCB by fee reduction of not supplying some types of information.

Rate circumstances affecting FA

An individual must notify the FAO if:

• they commence or cease providing care for an FTB or regular care child,
• they become or cease being a member of a couple (1.1.M.50).

An individual should notify the FAO if there are changes in their, or their partner's (1.1.P.30):

• taxable income (1.1.T.20),
• reportable fringe benefits,
• target foreign income (1.1.T.05), including tax-exempt foreign employment income,
• total net investment loss (1.1.T.53),
• tax free pension or benefit,
• reportable superannuation contributions (1.1.R.35), or
• deductible child maintenance expenditure (3.2.7).

Act reference: FAAct Schedule 3 Adjusted taxable income

Policy reference: FA Guide 2.1.1 FTB Child & Regular Care Child, 3.2.3 Adjusted Fringe Benefits, 3.2.6 Tax Free Pensions or Benefits, 3.2.7 Deductible Child Maintenance Expenditure

Rate circumstances affecting FTB

An individual who receives FTB by instalment must notify the FAO if:

• they and/or their partner leave Australia (1.1.A.120) even for a short time, or return to Australia,
• their FTB or regular care child:
  • leaves Australia even for a short time, or return to Australia,
  • commences or ceases receiving an income support payment (1.1.I.50),
  • commences or ceases having an ATI (1.1.A.20) the same as or more than the child income limit amount (1.1.C.80),
  • commences or ceases being their partner,
  • is prevented from being in their care without their consent, or is in their care to a reduced extent due to another person's non-compliance with a care arrangement (1.1.C.05),
  • becomes or ceases being an Australian resident (1.1.A.130),
  • who is not and Australian resident commences or ceases living with them,
  • dies,
  • is aged 16 to 18 years and ceases or recommences full-time secondary study (1.1.F.53, 1.1.F.60), or
• the shared care percentage for their FTB or regular care child changes.

Policy reference: FA Guide 1.1.S.27 Senior secondary school child (FTB), 2.1.1.10 FTB Child

Rate circumstances affecting only FTB Part A

An individual who receives FTB must notify the FAO if:

• their FTB child is aged 19 to 20 years and ceases or recommences full-time secondary study (1.1.F.53, 1.1.F.60),
• their FTB child turns 21 and ceases or recommences full-time study (1.1.F.60),
• their FTB child ceases or changes course where they were undertaking full-time study (1.1.F.60) in a course of study which they commenced on or before 31 December 2011 and were aged 22 to 24 on that date,
• they are, or are not, taking reasonable maintenance action, or
• there is a change in the amount of their maintenance income.

If the individual receives RA as part of their FTB Part A rate, they must notify the FAO of any changes to the amount of rent paid.

Act reference: FA(Admin)Act section 25 Obligation to notify change of circumstances

FAAct Schedule 1 clause 7 Standard rate

Policy reference: FA Guide 1.1.S.27 Senior secondary school child (FTB)

Rate circumstances affecting only CCB

An individual receiving CCB as reduced fees must notify the FAO if:

• they, or their partner, gain or lose an exception to the 24 or 50 hour weekly limit of CCB, or
• they, and/or their partner now meet or no longer meet the work, training, study test, or
• their FTB child or regular care child, for which they claim CCB:
  • becomes a school child,
  • enters or leaves child care, or
  • dies.

Effect on rate of CCB by fee reduction of not supplying some types of information

The following table shows the effect on an individual's rate of CCB by fee reduction if they do not supply some types of information.

Policy reference: FA Guide 4.1.1 TFN Requirements

_______________________________________________________

Last reviewed: 9 February 2012