What is reconciliation?
Reconciliation is the process of comparing the amount of Family Tax Benefit and/or Child Care Benefit you were paid throughout the year based on your estimated family income with the amount you should have been paid based on your family's actual income.
To do this, we use your family's taxable income details as supplied by the Australian Taxation Office, and other income details you have supplied. If you are claiming Child Care Benefit we also need details of your child care usage for the year. This will be supplied by your child care provider(s).
If you were paid less than you were entitled to because you over estimated your income, you will receive a top-up payment. Where possible, top-up payments of Family Tax Benefit will be paid with your tax refund from the Australian Taxation Office.
If you were paid too much, you will have to repay the amount you should not have received. Your or your partner's (if they give their consent) tax refund may be used to recover overpayments of Family Tax Benefit. Overpayments can be recovered from the Family Tax Benefit Supplement payments.
Overpayments of Child Care Benefit can now also be recovered from tax refunds. The Family Assistance Office will write to you to let you know your repayment options.
After reconciliation you will be paid a supplement for each Family Tax Benefit Part A child.
The Child Care Tax Rebate is determined after the reconciliation of Child Care Benefit as it is based on out of pocket expenses.
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