Jump to content

Part time work and actual income for FTB


  • Please log in to reply
7 replies to this topic

#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 FeralZombieMum

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 FeralZombieMum

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





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Get your FREE Baby & Toddler Show ticket!

Get your free ticket to the Sydney Essential Baby & Toddler Show for September 25-27 - register online now.

A solo birth, a wasp swarm and a forest fire: mum and baby's amazing story of survival

Desperate, out of petrol and low on food, a new mother lit a fire in the hope of attracting attention.

Boy found on swing died of hypothermia and dehydration, autopsy finds

The story was chilling and heartbreaking: a three-year-old boy was found dead in a Southern Maryland park, his mother pushing him on the swing.

Child's play and laughter help battle fatigue

Feeling fatigued? Uh-huh, thought as much. Join the queue.

Dad shares entertaining 'how to hold a baby' clip

For many new dads, their own child is the first baby they have ever held. So one dad has posted an instructive YouTube video titled "How to Hold a Baby".

The Australian baby with 100,000 Facebook fans

She may be only eight months old, but Egypt has already amassed more than 100,000 fans and received a letter from royalty - Hollywood royalty that is.

Public welcome outside church for Princess Charlotte's christening

Duke and Duchess of Cambridge have invited well-wishers to see Princess Charlotte outside church in Sandringham on day of her baptism.

Tongue tie: what you need to know

Tongue and lip tie can lead to many problems for babies - and their parents. Here are the signs of tongue tie and how it's treated.

My daughter is small but that doesn't matter

My daughter may be small, but it's my job as her parent to refocus back where it belongs - on who she is as a person

Wet wipes linked to rise in allergic reactions

The government has issued a health warning after a rise in allergic skin reactions has been linked to a preservative found in some wet wipes.

Gay couple in their 80s first to wed in Dallas after Supreme Court ruling

Love may have won, but it came with quite the wait.

William Tyrrell's family marks birthday with cake and renewed appeal

The family of missing boy William Tyrrell will mark his fourth birthday on Friday making a cake to share with friends and family as NSW police renewed their public appeal for information on his disappearance.

What all parents should know about safe babywearing

A picture of Ryan Reynolds always gets the girls talking, and a recently shared photo has done exactly that - but this time, it's for all the wrong reasons.

Baby's head shape reveals potentially fatal condition

Thinking her baby just had an unusually shaped head, a mother was shocked to discover it was instead linked to a dangerous condition.

'Help - my toddler hits me!'

My toddler has started hitting when he gets frustrated, is feeling ignored, or just thinks it might be fun.

Why IVF success rates may not be what you think

Transparency, accountability and responsibilityare essential measures to protect IVF vulnerable patients.

On the 10th anniversary of my son's death

This day marks a significant day. Today marks 10 years since I lost my son Kai.

Mother-in-law 'from hell' inspires survival guide

The happily ever after Nicola Milan had imagined wasn't to be – and she blames her mother-in-law.

Name your baby Quinoa, win a $10K gift card

Choosing a name for your little bundle of joy is always a major decision. It can be something traditional, trendy, creative … or inspired by the menu of your favourite chain restaurant.

Owning a pair of nail scissors does not make me a hairdresser

It's been a whole year since sleeping in until 10am. A whole year since having a peaceful shower.

The 83 children who were tragically let down in the last decade

Over a 10-year period, 83 children died from domestic violence abuse in NSW, with three quarters of the victims aged five years or under, the NSW Ombudsman has revealed.

Expert Q&A: Gross motor skill development in toddlers and preschoolers

Dr Katie Heathershaw answers questions about jumping, toe walking, riding a bike and being pigeon toed.

Is it reasonable to expect your partner to give up drinking in pregnancy?

From the moment that I fell pregnant with my son, I realised just how much my life had already started to change.

Stroke victim joins class action against makers of popular contraceptive pill

"I was terrified I would always be this way. The pill needs to come with a much higher warning."

Sexy time

Why you should get excited about scheduling sex

Unfortunately, the belief that sex should always be spontaneous is a myth. It just isn't.

When newborn photoshoots get messy

When it comes to newborn photoshoots, it is all about the timing.

Orphaned baby daughter Ayla wakes from coma

Former All Black Jerry Collins' critically injured orphaned daughter has awoken from her coma and is able to bottle-feed.

Dad takes miraculous catch while feeding baby

One American father has taken multitasking to a new level at a Cubs-Dodgers baseball game at Wrigley Field.

'Samuel is our firstborn, and he will never be forgotten'

Having lost their firstborn at one day old, the Carrolls were overjoyed to welcome their daughter Isobel into the world a year later.

Channel 10's Sarah Harris expecting first child

The Studio host Sarah Harris doesn't mind if her first baby is a boy or girl, but she does hope it is born with one thing in particular.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

27 funny ultrasound pictures

Ultrasounds give you a look at your growing baby ... and sometimes what appears to their womb-buddy, or your bub in an amusing position.

The top 6 misleading parenting terms

From 'morning sickness' to 'the terrible twos', there are many parenting terms that are misleading.

When 'good' nannies go bad

While most nannies take pride in their work, there can be some who have a hidden side.

Woman hospitalised for skinny jeans injury

Beware: skinny jeans might be bad for your health.

Gauze seeding: the bacteria-breeding birth trend

A number of women having caesarean deliveries are now taking steps to give their baby a better 'microbiome' start in life.

Jimmy Fallon writes new children's book for dads

Jimmy Fallon, host of NBC's The Tonight Show, recently wrote a children's book about every father's secret wish for their baby's first word to be "dada" - not "mama".

28 names for babies born in winter

Looking for some baby name inspiration for a bub born during the colder months? Here are 28 options from around the world to consider.

The horrible act that sparked a brawl at child's birthday party

The uncle of the seven-year-old girl at the centre of the brawl at child's birthday party in Sydney's west has described the events leading up to the alarming show of violence.

Babies 'benefit from iPads at a young age': study

More often than not, you'll read that screen time for children should be kept to a minimum - but some scientists are now challenging this way of thinking.

Do mums really just obsessively talk about their children?

Natalie Reilly describes three main types of conversations mothers have. And, surprise, they're not all about kids.

Why some dogs might attack babies or young kids

A baby's smell, the noises it makes and even its gaze can contribute to the potential for a dog attack.

Mum demands refund for 'beargina' christening cake

It was meant to be a tasteful cake to help celebrate a three-year-old's christening.

5 things no one warns you about after giving birth

How many times have you been warned about all the sleepless nights you have to 'look forward to' when you become a parent?

Police officer sang nursery rhyme as heartbreaking photo was taken

A police officer arrived at a devastating scene on Thursday: a car crash resulting in all passengers being thrown from the vehicle.

Don't worry, working mums: Just leave Dad in charge at home

Want to open the boardroom doors for women? Encourage - heck, praise - dads who stay home with their children.

Hilaria Baldwin shares post-baby selfie

Just two days after giving birth, actor Alec Balwin's wife posted a post-baby picture on social media.

'Help - my child won't ever do what I ask!'

Compliance is part of the parent-child relationship, but so is resistance. It's all natural.

Postnatal depression support gets $23 million boost in NSW

The Baird government will include $22.8 million in Tuesday's NSW budget to expand a program designed to help parents at risk of postnatal depression (PND).

'I'm just as tired, scared and stressed as you': stay-at-home dad's plea

I'm really lucky to have two great kids, but I found it really tough with so much being aimed at the mothers and not the fathers.

 

FREE TICKET

Get your FREE ticket to the Baby & Toddler Show

Get your free ticket to the Sydney Essential Baby & Toddler Show for September 25-27 - register online now.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.