Family Tax Benefit Changes 2015

There are a number of changes to Family Tax Benefit starting from 1 July 2015. These include:

•Large Family Supplement will be paid to families receiving Family Tax Benefit Part A for 4 or more children;

•Family Tax Benefit Part B primary earner’s income limit will be $100,000. Families where the higher income earner earns $100,000 or less will continue to receive Family Tax Benefit Part B; and

•The higher income test free area for Family Tax Benefit Part A will remain at $94,316 — the additional amount for the second child or subsequent children will not apply. This means that families with more than 1 child will not receive an add on amount per child.

There is nothing you have to do. If you are affected by the changes, your payment will change automatically from 1 July 2015.

You need to be eligible for Family Tax Benefit Part A to receive some other payments and services, such as Extended Medicare Safety Net Concessional and Family Tax Benefit Part A threshold and the Child Dental Benefits Schedule. If the above changes mean that you are no longer eligible for Family Tax Benefit Part A, you may no longer be eligible for some other payments and services.

2014-2015 FAMILY PAYMENTS

At the start of each financial year, CentreLink asks you to estimate your family income. This is so they can work out how much Family Tax Benefit or Child Care Benefit to pay you.

At the end of the financial year, they balance your family assistance payments. This means they compare the amount of Family Tax Benefit and Child Care Benefit for approved care they paid you, (based on the estimate you gave them), against the amount you are entitled to receive (based on your actual family income for that financial year).

You and your partner must lodge your 2014–2015 tax returns with the ATO, or tell CentreLink if you don’t need to lodge a tax return, by 30 June 2016. This will ensure you receive your full 2014–2015 family payment entitlements, including supplements.

The Family Tax Benefit balancing process can commence as soon as:

•CentreLink receives both you and your partner's actual income details from the ATO, or you tell CentreLink that either you or your partner don’t need to lodge a tax return;

•You receive your last Family Tax Benefit payment for the financial year—this will be some time in the first 2 weeks of July 2015 (depending upon your payment cycle); and

•CentreLink have received information about child support, if relevant.

The Child Care Benefit and Child Care Rebate balancing process will commence at the end of July 2015. This is to ensure that all attendance information has been submitted by your child care providers.

If you have chosen to receive Child Care Rebate only, your payments will be balanced automatically without you or your partner having to lodge a tax return.

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