Reconciliation
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 family’s estimated 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 attendance 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, plus any supplements you may have been entitled to.
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 and Child Care Benefit. Overpayments can also be recovered from the Family Tax Benefit Part A Supplement and Family Tax Benefit Part B Supplement payments.
When does reconciliation occur?
For most families, reconciliation of Family Tax Benefit will occur when information needed to calculate your entitlement is received, such as your Actual Taxable Income from the Australian Taxation Office. You will need to lodge a tax return with the Australian Taxation Office for this to happen.
For families who do not need to lodge a tax return, reconciliation will generally occur after the end of the financial year once you have notified the FAO and the ATO that you are not required to lodge a tax return. For more information on lodging tax returns, visit the Australian Taxation Office.
Reconciliation of Child Care Benefit will occur when both income and child care attendance details are available.
Lodging your tax returns
If you receive Family Tax Benefit, you and your current partner must lodge your tax return/s or tell the Family Assistance Office that you are not required to do so. 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. The Australian Taxation Office can tell you whether you are required to lodge a tax return. For further information, visit Family Tax Benefit and lodging your income tax return on the Centrelink website.
Contact us for more information.
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