The Family Tax Benefit (FTB) is a crucial financial support provided by the Australian government to assist families with the costs of raising children. With the end of the financial year approaching, it’s essential to understand the deadlines and requirements for claiming FTB as a lump sum, especially for the 2023–24 financial year.
What is the Family Tax Benefit?
The FTB is divided into two parts:
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FTB Part A: Provides payments per child, based on the family’s income and the age of the children.
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FTB Part B: Offers additional assistance to single-parent families and some couple families with one main income earner.
Eligibility criteria include having a dependent child, meeting income and residency requirements, and ensuring the child meets immunization and education conditions.
Claiming FTB as a Lump Sum
Families have the option to receive FTB payments as a lump sum after the end of the financial year. This approach can be beneficial for those with fluctuating incomes or who prefer to avoid the risk of overpayment.
Key Points:
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Deadline: To claim FTB as a lump sum for the 2023–24 financial year, you must lodge your claim by June 30, 2025.
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Income Confirmation: You must confirm your family’s income for the relevant financial year. If you or your partner are required to lodge a tax return, it must be submitted by the deadline. If not required, you must notify Centrelink accordingly.
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Balancing Process: After lodging your tax return, the Australian Taxation Office (ATO) shares your income details with Centrelink, which then balances your FTB payments to ensure you received the correct amount.
Consequences of Missing the Deadline
Failing to lodge your FTB lump sum claim or confirm your income by the June 30, 2025 deadline can result in:
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Loss of Entitlement: You may forfeit your FTB payments for the 2023–24 financial year.
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Debt Recovery: If you’ve received FTB payments based on estimated income and your actual income exceeds the estimate, you may incur a debt that needs to be repaid.
Special Circumstances and Extensions
In certain situations, you may be granted an extension to the deadline if special circumstances prevented you from lodging your claim on time. However, such extensions are limited and must be applied for promptly.
How to Lodge Your FTB Lump Sum Claim
Online:
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Log in to your myGov account.
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Link your Centrelink account if not already linked.
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Navigate to ‘Make a claim’ and select ‘Families’.
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Follow the prompts to complete your claim.
In Person:
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Visit a Services Australia service center for assistance.
By Mail:
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Download and complete the Claim for Family Tax Benefit form (FA100) and mail it to the address provided on the form.
Tips to Ensure a Smooth Claim Process
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Keep Records: Maintain accurate records of your income, tax returns, and any correspondence with Centrelink.
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Update Information: Promptly report any changes in your family circumstances, such as income changes, address updates, or changes in care arrangements.
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Seek Assistance: If you’re unsure about any aspect of the claim process, contact Centrelink or consult a financial advisor.
Frequently Asked Questions
Q1: What happens if I miss the June 30, 2025 deadline for claiming FTB as a lump sum?
A1: Missing the deadline may result in the loss of your entitlement to FTB for the 2023–24 financial year. It’s crucial to lodge your claim and confirm your income by this date.
Q2: Can I receive FTB payments fortnightly instead of as a lump sum?
A2: Yes, you can choose to receive FTB payments fortnightly throughout the financial year. However, this requires estimating your income, which may lead to overpayments or underpayments that are adjusted after income confirmation.
Q3: What should I do if my income changes during the year?
A3: You should promptly update your income estimate with Centrelink to ensure your FTB payments remain accurate and to avoid potential debts.By understanding the requirements and deadlines associated with the Family Tax Benefit, you can ensure that you receive the financial support you’re entitled to without any complications. Remember to lodge your claim and confirm your income by June 30, 2025, to secure your benefits for the 2023–24 financial year.