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





0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

Why we tend to hold our babies on our left side

On which side of your body do you carry or cradle your baby? If you answered "left" then you're not alone.

Taking fish oil in pregnancy may prevent childhood asthma

Women who took omega-3 fatty acid supplements (fish oil supplements) in pregnancy reduced the risk of their children developing asthma by almost one third.

Mum, dad and son all share a birthday

Luke and Hillary Gardner never have a problem remembering each other's birthday.

Mum shares the bittersweet truth about pregnancy after miscarriage

A mother's candid and heartfelt reflections about pregnancy after miscarriage are providing comfort to other women.

16 simple ways to make your baby smarter

What's the best way to mentally stimulate your baby? It doesn't take a genius - just a loving, involved parent.

Your blood pressure could predict baby's sex even before conception

The average blood pressure of mother could suggest a baby's sex before it even exists, a study has found.

The breastfeeding photo that says it all

Ashley Rockill was lucky enough to have her birth photographer on hand to capture a precious moment.

13 pregnancy superstitions from across the globe

In honour of Black Friday, let's explore 13 of the strangest pregnancy superstitions from across the globe.

I'm a stay-at-home mum, and I'm sending my son to daycare

When you become a mum you give birth to a beautiful baby, but you also give birth to guilt.

Mum gives birth to 'Incredible Hulk' 6.4kg baby

An American mother was shocked when she gave to a 6.4kg (14lb 1oz) baby last month.

Mum demands $530 for daughter's shoes after playdate

A mum has made a pretty bold move by demanding $532 for a pair of her daughter's shoes that were damaged at another family's house. 

A toddler's guide to helping around the house

If a toddler was to write a guide to 'help' you with the household chores, it would go something like this.

The breast pump you can use on the go

The game-changing breast pump promises to make life easier all round.

'Mum, don't be mad but I've just had a baby'

A teen mum has shared her birth story – and her shock at not knowing she was pregnant until her baby's head emerged.

No, Senator, childcare workers don't just wipe noses and stop fights

The only thing childcare workers spend their time doing is "wiping noses and stopping the kids from killing each other"? Not quite.

'I wanted to be the birth mum so much'

When people say "aren't you lucky that there are two of you, that you can switch?" I give them a tight smile.

6 myths about breastfeeding toddlers

Although breastfeeding a toddler isn't for everybody, if you choose to nurse beyond babyhood you can expect some strong reactions.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

From our network

Your child's fine motor skills: what you should know

There is less of a focus on fine motor skills, but they're just as important as others. (SPONSORED)

5 ways music helps your toddler's development

There are at least five other compelling reasons to get musical around your toddler. (SPONSORED)

 

Baby Names

Unusual Celeb Baby Names

Click through the gallery to read the details and see some of the most memorable monikers in show biz families.

 
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.