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Part time work and actual income for FTB


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#1 Steggles

Posted 30 November 2012 - 06:21 PM

Ok, I am confused trying to figure out the best situation for our family. I currently don't work, however will be returning 2 days next year. What I am confused about is - if my income is under the tax free threshold ($18,200 so when i lodge my tax it will all be refunded) however I have to report to FTO that it is approx 17k will I then receive 17k worth of backdated FTB/A? I have no idea and I am lost!

TIA original.gif

#2 JRA

Posted 30 November 2012 - 06:54 PM

If you earn $17K, you are right you wont have to pay tax, but why would you expect FTO to refund $17K worth of FTB. If your income is $17K, that will be added to your partners income for FTB-A, and assuming he earns more will be used to determine if you can get FTB-B


ETA: if that is all you are earning, $17K, you wont be paying tax during the year to get it refunded.

Edited by JRA, 30 November 2012 - 06:55 PM.


#3 Julie3Girls

Posted 30 November 2012 - 07:02 PM

You simply put in your estimate of how much you are expecting to earn for the year.

If you expect to earn $17K,  that's what you tell them. How much tax you do or don't have to pay has nothing to do with FTB.

Your income estimate gets added to your partners income to work out how much, if any, FTB-A you receive.

$17K will also put you over the limit for FTB-B, so you won't get any of that.

#4 ZombieMum

Posted 30 November 2012 - 07:19 PM

The tax you may or not pay, has nothing to do with the Family Tax Benefits that you receive.
Any income you and your DP earn, absolutely has something to do with Family Tax Benefits. wink.gif

For each $1 you earn, you could possibly lose 20 cents or 30 cents in FTB A, depending on your total family adjusted income.


1) FTB B - is based on the lower income earner and the age of the youngest child, so you should expect to pay this back on $17,000.

2) FTB A - is based on the total family income, and the number of children, and their ages. Childcare Benefit % is also calculated by these variables.


Now, depending on where your current family income is, will determine how much FTB A you will lose.

There is Maximum payment rates, and there is also Base rates.

QUOTE
Income test
If your family’s adjusted taxable income for this financial year is $47 815 or less, your payment will not be affected by the income test.

If your adjusted taxable income is more than $47 815 for this financial year, your payment will reduce by 20 cents for each dollar above $47 815 until your payment reaches the base rate of Family Tax Benefit Part A.

Your Family Tax Benefit Part A will stay at that rate until your family’s adjusted taxable income reaches $94 316 a year (plus $3796 for each Family Tax Benefit child after the first). Family Tax Benefit Part A will reduce by 30 cents for every dollar over that amount until your payment reaches nil.

If your family income is close to the limit cut-off, you should check your eligibility after the end of the financial year, once your actual income is known.

http://www.humanservices.gov.au/customer/e...b-a-income-test

Oh Don't forget to include medicare, and the medicare surcharge (if applicable) when working out what comes out of your pay.



If you are renting - then your rent assistance will be affected by an increase in your working income.

If you are returning to work in the next couple of months - then you will probably end up paying back a lot of the FTB A that you've already received for this financial year, unless you had already informed Family Assistance Office in July that you planned on earning around $17,000.

#5 Steggles

Posted 30 November 2012 - 07:24 PM

Thanks all, will sit down and work out the actual figures.

I was just confused as we have previously overestimated DHs income and recieved an adjustment as his actual income was less than reported once the ATO reported back to the FTO. I have no idea about these things original.gif

#6 Julie3Girls

Posted 30 November 2012 - 07:32 PM

Basically, Family assistance rely on you providing a reasonably accurate estimate of your income.

They calculate how much FTB you are entitled to for the year based on that estimate.

At the end of the year, they get your actual income from the ATO, and calculate what you SHOULD have been paid.
Then compare that to what you have been paid, and either pay you more (if you overestimated and your actual income is lower), or send you a bill (if you underestimate and your actual income is higher)

If you are currently getting FTB-A, based just on your partner's income, then once you add your $17k estimate, it might been you have been getting paid too much FTB-A for the first half of the financial year.  If you let them know as soon as possible, they can adjust your payments so you don't end up with a debt at the end of the financial year.

Oh, and if you are returning to work for the first time since having a child, let them know.  It can quarantine your FTB-B payments (the one based on just the secondary income), and you might not have to pay it back.

#7 ZombieMum

Posted 30 November 2012 - 08:11 PM

What Julie3Girls said.

QUOTE (Steggles @ 30/11/2012, 08:24 PM) <{POST_SNAPBACK}>
Thanks all, will sit down and work out the actual figures.

I was just confused as we have previously overestimated DHs income and recieved an adjustment as his actual income was less than reported once the ATO reported back to the FTO. I have no idea about these things original.gif


Ok I guess I can understand how you might have been a little bit confused.

So let's say you told Centrelink/Family Assistance that your DP would earn $70,000, but he normally earns $60,000. During the year the FTB you receive are based on $70,000. When tax returns are done, you receive a top up payment as your family earnt $10,000 less - but the top up payment isn't $10,000, it's closer to $2,000.

Now if you start working, you've told Centerlink that your family was going to earn $70,000. Your DH still earns just $60,000, but you also earn $20,000 that you don't tell Centrelink about until you start working in January, so actual total family income ends up being $80,000 - so you earnt $10,000 more as a family.

For 6 months before you worked, the FTB that you received was based on $70,000 - so you've been paid too much FTB. Centrelink should hopefully adjust your amount when you update your income details in January.

At the end of the year, you might still have to pay some FTB back to Centrelink, depending how much they adjusted your FTB.

The online family assistance calculator is pretty easy to plug figures to work out each scenario.

#8 Steggles

Posted 30 November 2012 - 08:42 PM

Thanks ZM - I am so tired - might have a play with numbers tomorrow! Shouldn't try and make sense of anything half asleep! Appreciate everyones help original.gif





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