Changes to Family Tax Benefit
1 July 2009
From 1 July 2009, there are three key changes to Family Tax Benefit.
The first change is, when you update your income details with the Family Assistance Office your Family Tax Benefit will automatically be adjusted for the remainder of the year. At the moment you can choose whether or not you have your payments adjusted when your income increases. This new change will help reduce overpayments and the need for families to pay back Family Tax Benefit overpayments.
The second change is that you will no longer be able to claim Family Tax Benefit through the Australian Tax Office. This means:
- you will no longer be able to lodge a lump sum claim for Family Tax Benefit through the Tax Office. Lump sum payments will need to be lodged directly through the Family Assistance Office; and
- Family Tax Benefit top-up payments will not be included on the notice of assessment you receive from the Tax Office; and
- the option to reduce your Pay As You Go tax deductions in anticipation of your Family Tax Benefit entitlement ceased on 1 July 2008.
The third and final change takes effect from January 2010. You will not be able to receive your Family Tax Benefit on a fortnightly basis if you have not lodged your outstanding income tax returns.
If you or your partner do not lodge your income tax return or advise the Family Assistance Office that you are not required to do so within the required timeframe, you may not be eligible to receive Family Tax Benefit each fortnight. This may also be the case for any outstanding income tax returns you have failed to lodge.
You will only be able to start receiving Family Tax Benefit again after lodging your outstanding tax returns, and by lodging a new claim through the Family Assistance Office.
It is necessary to lodge your tax return to balance your Family Tax Benefit entitlement once your actual annual income is known.
How can I claim Family Tax Benefit now?
You can make a claim online or by filling out a paper claim form in person at a Family Assistance Office, located in Medicare offices or Centrelink Customer Service Centres.
Has the way I get my Family Tax Benefit changed?
The way you get your Family Tax Benefit has not changed. You can still get your Family Tax Benefit by:
- making a claim for fortnightly payments to be paid throughout the financial year, based on an estimate of your income, or
- making a claim for a lump sum after the end of the financial year. Remember, you and your partner (if you have one) must both lodge your income tax return for the same financial year as your claim to receive your Family Tax Benefit.
To find out more, you can contact your local Family Assistance Office located in Medicare offices and Centrelink Customer Service Centres.
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