Family Assistance

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Income estimation

Why do I need to estimate my income?

If you choose to get Family Tax Benefit as fortnightly payments and/or Child Care Benefit as reduced fees, we need you to estimate how much income you will earn for the whole income (financial) year. We will then use your family income estimate to work out how much family assistance you should be paid during the year.

After the end of the income (financial) year, and once you have lodged your tax returns, we will compare the amount you should have received, based on your actual income with the amount you actually did receive based on your estimated income. This process is called Reconciliation.

When there is a change in your income estimate or maintenance income during the year your Family Tax Benefit rate may be adjusted automatically to help prevent an overpayment when reconciliation occurs at the end of the financial year . This automatic adjustment does not apply to Child Care Benefit. However, you can reduce the chance of overpayment by telling the Family Assistance Office to adjust your Child Care Benefit to account for an increase in your income.

Note: You and your partner must either lodge a tax return or tell the Family Assistance Office that you are not required to lodge a tax return (the Australian Taxation Office can tell you whether you are required to lodge a tax return). If you do not do either of these things, any Family Tax Benefit you have received will become a debt and will have to be repaid.

What will happen if my income estimate is too high?

You may get a top-up payment after the end of the income (financial) year for the family assistance you did not receive throughout the year. You may also reduce your risk of being overpaid. In order to receive a top-up you and your partner must lodge your tax returns (if required to do so) within 24 months after the end of the income year.

If you are entitled to other benefits such as Rent Assistance or a Health Care Card, you can still get these entitlements but you should discuss your options with the Family Assistance Office on 13 6150*.

For more information on how you can get paid, see What payment options do I have?

What will happen if my income estimate is too low?

If your family income estimate is too low, you could be at risk of being overpaid. An overpayment may occur because you have received more family assistance than you were entitled to receive and you would be required to pay it back.

If you incur an overpayment, some of your FTB payment may be withheld each fortnight until all your debt has been repaid. Also, any top-ups such as FTB supplements and income tax returns (for you and your partner, if you had one and they consent) may also be used to pay off outstanding debts.

To ensure your income estimate is accurate, please ensure you take into account all the adjusted taxable income components for you and your partner, if you have one.

Your adjusted taxable income includes your:

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You may also incur an overpayment if you fail to notify the Family Assistance Office of a change in your circumstances. Changes in your personal circumstances may affect the amount of FTB you are entitled to receive and it is therefore very important that you notify the Family Assistance Office of such changes as soon as they occur.

Some of the changes that could affect your entitlement include:

Where do I go for more information?

If you have difficulty estimating your income, the Family Assistance Office can assist you if you contact them on 13 6150 or attend your local Family Assistance Office located in Medicare offices and Centrelink Customer Service Centres.

*Calls to 13 numbers cost 25 cents from anywhere within Australia. Calls to 1800 numbers are free of charge. Calls from public pay phones or mobile phones will be charged at a higher rate.

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