In this section of the FTB tax claim you must provide details of your family profile—the make-up or composition of your family at a point in time—during the FTB claim period, to enable the Family Assistance Office (FAO) to calculate your rate of FTB. You may have more than one family profile during the FTB claim period.

Your family profile would have changed if you

For example, if you were married and subsequently separated, you would complete FAMILY PROFILE 1 for the first period while you were married and then complete FAMILY PROFILE 2 for the 2nd period while you were single.

If your family profile was the same for the whole income year only complete FAMILY PROFILE 1.

For example, if you had the same spouse for the whole income year.

For each family profile period you need to write the details of your spouse—if you had one—and those of your dependent children relevant to that period.

Enter the date your claim begins. If your claim is for the full income year write 01/07/2000 (1 July 2000).

Do not write any details for periods you have already been paid through the FAO.

If you claimed a direct payment through the FAO for part of the year, enter the date from which you are claiming tax delivery on the FTB tax claim.

If you cancelled a direct payment during the income year enter the date you were paid to. If you are unsure what this date should be, ring the FAO on 13 6150.

If you are claiming for a period from when your first child came into your care write the date the child came into your care. For example, if your first child was born during FAMILY PROFILE 1 write their date of birth.

Enter the date FAMILY PROFILE 1 of your FTB tax claim ends. If your FTB tax claim is for the full income year and you were single or had the same spouse, and agreed percentage—for the whole income year enter 30/06/2001. If your claim is for less than the whole income year enter the date FAMILY PROFILE 1 of your FTB tax claim ends.

This date is the day before you began or ceased a relationship with a spouse or your agreed percentage changed or the date you departed permanently overseas. If you began or ceased a relationship with a spouse during the claim period enter the date of the day before this happened.

If your agreed percentage changed during the year enter the date of the change. You will need to complete FAMILY PROFILE 2 if you are claiming FTB after this date, to take this change into account .

EXAMPLE

John and Zoe lived together with their 3 children from 1 July 2000 until 30 September 2000 when they separated.

John would complete FAMILY PROFILE 1 start date as 01/07/2000 and end date as 30/09/2000

This is the number corresponding to the details you have supplied in your FTB tax claim for the spouse relevant to FAMILY PROFILE 1 .If you had a spouse during FAMILY PROFILE 1 this spouse should be spouse 1 .Enter the spouse number - if you did not have a spouse for this family leave it blank

Agreed percentage has nothing to do with a shared care arrangement you may have in place with an ex-spouse.

If you choose to split your family FTB entitlement with your spouse you agree with your spouse what percentage you will each claim. This is called an ‘agreed percentage ’.

You can only agree to split your family FTB entitlement with your spouse:

A blended family is a family where

If you are a member of a blended family,you can agree to split your family FTB entitlement with your spouse.

If you have decided NOT to split your family FTB entitlement with your spouse, do NOT complete the Agreed Percentage item.

If you choose to split your family FTB entitlement with your spouse, you both must claim your FTB the same way —either both claiming with your tax returns or both claiming fortnightly payments from the Family Assistance Office

If you have chosen to claim FTB as a blended family and through the tax system —you both must lodge tax returns —decide with your spouse what percentage of the FTB amount you will receive and enter your agreed percentage on the form. The amount must be a whole percentage.

Your spouse must also complete an FTB tax claim and lodge it with their tax return. All the dependant and family profile details must be completed exactly as in your claim for the period you are claiming as a blended family. Your spouse ’s agreed percentage will be 100 per cent minus the percentage you have claimed.

For example, if you have claimed 60 per cent of the total FTB your spouse will claim 40 per cent.

If you separated from your spouse during the year and have agreed to split your family FTB entitlement with your ex-spouse for the period prior to your separation —that is, the period you were together —write your agreed percentage in the usual manner. The amount must be a whole percentage. If you have not agreed to split your family FTB entitlement with your ex-spouse for this family profile leave the agreed percentage box blank.

EXAMPLE

John and Zoe agreed to share the FTB payable for their children for the period they were together (the period prior to their separation which was 01/07/2000 to 30/09/2000 ), John claiming 30 per cent and Zoe claiming 70 per cent. John would enter 30 in the agreed percentage box, Zoe would enter 70

If your dependent child ’s circumstances change during a family profile period it can change the rate or eligibility to Part A and/or Part B.

There is provision within each family pro . le period to cover a change of circumstances for each dependent child. This allows for a child to come into your care or leave your care during your specified family profile period.

This is the number corresponding to the details you have provided in your FTB tax claim for your dependant.

On your FTB tax claim write at O the number that relates to the dependant details you have provided. For example, if you cared for Dependant 1 during this family profile, enter ‘1 ’ in the box . Ensure that the details you provide here are for the dependant number you have entered

For Dependant 1, enter the date you started to care for Dependant 1, if it was during the family profile period. If you started to care for this dependant before the start of this family profile write the date this family profile begins.

If you cared for this dependant for the whole of the family profile and there were no circumstance changes for this dependant enter the date of the day before the circumstance change.

If there was change of circumstance for Dependant 1 enter the date of the day before the circumstance changed.

Use the child status codes

to identify your dependent child ’s circumstances and write the dates when those codes applied.

If your dependent child:

you will need to provide dates and child status codes —where applicable —to identify their circumstances.

Child status codes

You may need to print up to 2 codes or none at all depending upon your dependant ’s circumstances.

If both A and B apply to a period print B .

If none of the codes applies leave the boxes blank.

If your dependant does not study full time, leave the first of the child status codes boxes blank.

Part A is only paid for a dependant aged 21 to 24 if they are studying full time. If your dependant is aged 21 to 24 and studying full time you must print code ‘S ’to receive the correct amount of Part A.

Part B is generally based on the age of the youngest child in the family, who must be 18 years or under. If the child is aged 16 to 18 years they must be studying full time. If they are aged 18 they may be eligible for Part B until the end of the calendar year in which they turn 18.

If your dependant is aged 16 to 18 and studying full time you must print code ‘S ’to receive the correct amount of Part B.

If your dependant is studying full time enter ‘S ’

If your dependant commenced full-time study during the family profile period and was aged

at the time enter the date they commenced full-time study.

If they ceased studying full time enter the day they stopped studying full time. Enter ‘S’ in the first of the child status codes boxes

If your dependant was aged 21 to 24 and was not engaged in full-time study they are not a dependant for FTB purposes. Do not enter any further details for this child in the family profile.

For the purposes of FTB, a child is studying full time if they are undertaking at least three-quarters of the standard full-time load for tertiary students. This differs depending on whether the courses attract a Higher Education Contribution Scheme (HECS) fee. For a HECS course, a full-time load is measured against the standard student study load for the course. A student is considered full time for the period that they had a HECS loading of 0 .375 for a semester.

Formal, regular consultation with supervisors can be included in the measure of study load if it is a normal requirement of the course. Non-class work is not included in measuring study load.

If the student is studying at a secondary school, they must be attending full time OR be undertaking a concessional study load.

If the student is studying at an institution other than a secondary school OR by correspondence

or distance education, they must be enrolled in and studying at least 75 per cent of the normal full-time study load for their course OR undertaking a concessional study load.

Full-time study is a set amount of work that is accepted by the school as being full time for any given period.

The qualifying period is the period of time that begins on the date the child ceases to be in your care,and ends at the EARLIEST of:

If your dependent child left your care without consent enter the date of the day before they left.

On the following enter the date they left your care and then the earliest of the above dates. Write A in the 2nd of the child status codes boxes at the right of the date on that line.

If you are still taking reasonable steps to regain care and the qualifying period has not expired by 30 June 2001 you may need to leave til date and claim the remainder of the qualifying period in next year’s tax claim or through the Family Assistance Office (FAO).

If your dependant died during the income year you may be entitled to receive a bereavement payment. The bereavement payment is payable for 14 weeks from the date of death; other eligibility rules apply. If

Enter your dependant ’s date of death at the til date and print B in the second of the child status codes boxes

If you shared the care of this dependant with someone who is not your spouse —for example, your ex-spouse —calculate your shared care percentage.

*If the number of nights of care does not accurately reflect the time the child is in your care you should ring the FAO on 13 6150 for further information.

If your shared care percentage is greater than 10 per cent, round to the nearest whole percentage. You cannot claim FTB for this dependant if your shared care percentage is less than 10 per cent.

Enter your shared care percentage on the form.

If your shared care percentage changed during the family profile period enter the date of the day before the change occurred and the shared care percentage. Enter in the from date on the 2nd line the date the new care arrangement started (if your shared care percentage is greater than 10 per cent). If care ceased do not write any further detail for this dependant.

Enter at the til date box, the date of the day before the next change in circumstances or the date of the end of the family profile period.

This section will provide advice on:

FTB claims through the tax system will be paid on actual income if available but if the spouse or ex-spouse has not lodged, estimates will be used. If actual income is not available, the FTB will be reconciled when the current spouse lodges (provided there are no ex-spouse’s relevant to reconciliation or there is an ex-spouse but it is after 1 November) and re-reconciled when ex-spouses lodge.

The ex-spouse’s actual income amounts will be compared with the estimate provided in the FTB tax claim. If the actual amount is less than the estimate the client will receive an FTB top-up. If it is more no debt will be raised. An ex-spouse’s actual income can only result in an FTB top up or a zero amount, it is not possible for an ex-spouse’s actual income to result in a debt for the claimant.

Where possible, the reconciliation outcome will be reflected in the Notice of Assessment.

Example 1

The spouse (Angela) lodges after the claimant (Jason) with consent provided.

When Jason lodges his tax return and FTB claim his details will be passed to the Family Assistance Office from the stored tax return data. A check of stored tax return data will show that his spouse, Angela, has not lodged and her relevant details will be taken from the FTB tax claim and sent to the Family Assistance Office.

The Family Assistance Office will calculate the FTB entitlement based on Jason’s actual ATI and the estimate supplied of Angela’s ATI and send the ATO the result for inclusion in Jason’s Notice of Assessment. When Angela lodges her tax return, her relevant details will be sent to the Family Assistance Office with any consent details. Any FTB debt (to the value of the available refund) will be included in Angela’s Notice of Assessment.

An FTB top-up payment would be issued directly to Jason by the Family Assistance Office or they will advise him of a debt.

Example 2

Example 2

The spouse (Luke) lodges after the claimant (Kate) without consent provided.

When Kate lodges her tax return and FTB tax claim her details will be passed to the Family Assistance Office from the stored tax return data. A check of stored tax return data will show that her spouse, Luke, has not lodged and the relevant estimates will be taken from Kate’s FTB tax claim and sent to the Family Assistance Office. The Family Assistance Office will calculate the FTB entitlement based on Kate’s actual ATI and the estimate supplied of Luke’s ATI and send the ATO the result for inclusion with Kate’s Notice of Assessment.

When Luke lodges his tax return, his relevant details will be sent to the Family Assistance Office. The Family Assistance Office reconciles the FTB entitlement on the actual figures (compared to estimates for ex-spouses) and if there was an FTB debt or an FTB top-up payment this would be issued directly to Kate by the Family Assistance Office.

For those clients who receive direct payments and are required to lodge a tax return the required income information is sent to the Family Assistance Office for reconciliation on lodgement.

For those clients and ‘consenting’ spouses the ATO send to the Family Assistance Office the required income details. The ATO will hold the Notice of Assessment for the required timeframe where the claimant has lodged a tax return and where the claimants spouse has indicated that they give consent. In which time the Family Assistance Office sends back a result that could be a FTB top-up, zero, or a debt. If the Family Assistance Office fail to send a result back within the required timeframe the Notice of Assessment will issue and the Family Assistance Office will issue the client an FTB notice.

Where possible, an FTB debt will be offset to the value of the client’s or ‘consenting’ spouse’s tax refund. The ATO will send a result back to the Family Assistance Office where an FTB debt could not be fully absorbed. Where an FTB debt could not be fully absorbed by the tax refund the Family Assistance Office will collect the outstanding amounts.

The ATO will pay an FTB top-up to the client with the Notice of Assessment. The only exception to these rules is where processing times are not met or, reconciliation cannot be completed at the time of the client’s/consenting spouse’s lodgement.

Example 1

Where the spouse (Karen) lodges before the direct payment claimant (Tim).

Karen lodges her tax return on the 23^rd of July. Her details are recorded and sent to the Family Assistance Office to be stored. Karen’s Notice of Assessment will not be held as she lodged her tax return before Tim. When Tim lodges his tax return the Family Assistance Office will reconcile the entitlement of FTB based on the actual income figures recorded for Karen and Tim. Any FTB top-up or FTB debt will be reflected in Tim’s Notice of Assessment. If Tim’s FTB debt is more than his tax refund the remaining amount will be recovered by the Family Assistance Office.

Example 2

The spouse (Jessica) lodges after the claimant (Brendan) with consent provided.

Brendan lodges his tax return on the 8^th of August. His details are recorded and sent to the Family Assistance Office. Jessica lodges her tax return on the 25^th of August and has indicated that she gives consent for any FTB debt incurred by Brendan to be offset from her tax refund. When Jessica lodges her tax return her information is sent to the Family Assistance Office who reconcile the FTB entitlement using the actual income figures provided. The result will be included in Jessica’s Notice of Assessment. If Jessica has incurred a debt, Brendan’s FTB debt will be sent directly to him. If Jessica has a tax refund then any FTB debt will be offset against the refund amount. If an FTB top-up payment is due the payment will be paid directly to Brendan.

Example 3

The spouse (Jeff) lodges after the claimant (Jenny) without consent provided.

Jenny lodges her tax return on the 30^th of August, her details are stored and also sent to the Family Assistance Office. When Jeff lodges his tax return on the 16^th of September his details are sent to the Family Assistance Office with the actual income figures provided. The Family Assistance Office reconciles the FTB entitlement on the actual figures and if there is a FTB top-up or debit this will be issued directly to Jenny. Jeff is not a consenting spouse as he has not indicated on his tax return that he is giving consent.

A tax delivery client will have the outcome of their FTB claim reflected in their Notice of Assessment (provided the data is returned to the ATO within the required timeframe). Three new fields are available on the notice to cater for FTB amounts.

These are:

If an overpayment is recovered by offsetting against the refund, field B will only show the amount actually recovered. That is, if the full amount of the overpayment is offset against the refund then the full amount of the overpayment will be shown. If there is only sufficient refund for a partial offset of the FTB overpayment only the amount offset against the refund will be shown. A message advising the client of a partial offset will appear.

If the client has a tax debt and, consequently an offset of the overpayment is not possible, the overpayment will not be shown and a message will appear on the Notice of Assessment.

For a tax delivery client, information will be sent to the Family Assistance Office from the tax return and the claim form. The Family Assistance Office will send the ATO the FTB entitlement. In most cases the entitlement is included on the Notice of Assessment. The ATO is responsible for collecting tax debts as a result of excess amounts of withholding but is not responsible for collecting FTB overpayments that are not fully absorbed by a tax refund.

The following are a number of possible scenarios that could result in a debt:

For reconciliation purposes the hierarchy of debts is that FTB debts will be taken from a tax refund after tax debts but before CSA debts.

Where consent is successful the taxpayer has consented to absorb their spouse’s (the claimant’s) FTB overpayment. The Family Assistance Office will reconcile the FTB payment and send the result back to the ATO. The Family Assistance Office reconciles the FTB claimant’s entitlement not the taxpayer (spouse). The FTB debt will be offset against any refund the taxpayer is entitled to, to the value of the refund. The amount will be shown on the taxpayer’s (consenter’s) Notice of Assessment as an "FTB overpayment consent offset"—see Sample Notice of Assessment. Any amount that cannot be absorbed will be returned to the Family Assistance Office for recovery action on the original claimant.

A taxpayer indicates on their Tax Return if they wish to give consent