Australian families who received the Family Tax Benefit (FTB) in the 2023-24 financial year are being strongly advised to act quickly as the deadline for income reporting approaches.
Services Australia has issued a critical reminder to confirm income details by June 30, 2024, to avoid losing out on payments or potentially owing money back.
Why Income Reporting Is Crucial for FTB Recipients
It’s essential for families to report their income by the June 30 deadline to receive their full Family Tax Benefit entitlement. This includes the possibility of receiving top-up payments or supplements.
Services Australia has highlighted that failing to confirm your income could lead to missed payments or, in some cases, a debt repayment.
“Don’t miss out,” Services Australia urged. “If you didn’t confirm your family income, you may have missed out on top-ups and supplements. You may also get a debt and have to repay the amount you received during the financial year.”
Understanding the Family Tax Benefit (FTB)
The Family Tax Benefit offers financial support to eligible families with children, helping to ease the cost of raising them. The amount families receive is determined by several factors:
- Adjusted taxable income
- Number of children
- Age of the children
- Income test results
The base rate for FTB Part A is $71.26 per child per fortnight. The maximum rate can go up to $288.82 per child, depending on the child’s age. Families can opt to receive payments either fortnightly or as a lump sum at the end of the financial year.
How the Income Balancing Process Works
Before families receive their final FTB payment, Services Australia performs an income balancing process. This step ensures that families have received the correct amount of financial support based on their income for the year.
“This is so we can check we paid you the right amount of Family Tax Benefit and Child Care Subsidy,” Services Australia explained. “We balance these separately.”
If the balancing process shows that families have been underpaid, they may be eligible for a top-up or supplement. However, if the balancing indicates they have been overpaid, families may need to repay the excess amount.
How to Report Your Income
Families have two methods to report their income:
- Lodge a tax return with the Australian Taxation Office (ATO), which will automatically send the income information to Centrelink.
- Report directly via the Centrelink online account through myGov or the Centrelink app.
It’s important to note that even if the ATO grants an extension for submitting tax returns, the Centrelink deadline remains June 30, 2024.
If you had a partner during the 2023-24 financial year, their income must also be reported to ensure your claim is complete.
The Importance of Meeting the Deadline
As the deadline approaches, Services Australia stresses the importance of confirming income details on time. Timely income reporting could lead to significant additional payments, potentially totaling hundreds or even thousands of dollars. Failing to meet the deadline could result in lost entitlements or, worse, a debt repayment.
Key Points to Remember
| Key Fact | Details |
|---|---|
| Income Confirmation Deadline | June 30, 2024 |
| FTB Part A Base Rate | $71.26 per child per fortnight |
| Maximum FTB Part A Rate | Up to $288.82 per child depending on age |
| Reporting Methods | Tax return via ATO or Centrelink online account through myGov |
| Important Note | Partner’s income must also be reported |
It’s crucial for families receiving Family Tax Benefit to report their income by June 30, 2024, to ensure they don’t miss out on additional payments or supplements.
Missing the deadline could lead to financial setbacks, including debts. Be sure to take action as soon as possible to avoid any issues and maximize the benefits you are entitled to.
FAQs
What happens if I miss the June 30 deadline?
If you fail to report your income by June 30, you may miss out on top-up payments or supplements, and could even have to repay money already received.
Do I need to report my partner’s income?
Yes, if you had a partner during the 2023-24 financial year, their income must also be reported to complete your FTB claim.
How do I submit my income details?
You can submit your income details through myGov, the Centrelink app, or by lodging your tax return with the ATO, which will automatically forward the details to Centrelink.