FTB end-of-year reconciliation: don't lose your supplement

what is FTB reconciliation?

during the year, Services Australia pays your Family Tax Benefit based on an estimate of your family income. you provide this estimate when you first claim FTB, and you can update it during the year.

after the financial year ends (30 June), Services Australia waits for your actual income information — which comes from your tax return lodged with the ATO. once they have confirmed figures for both you and your partner (if applicable), they do a reconciliation: comparing what you received during the year with what you were actually entitled to.

there are three possible outcomes:

• you were underpaid — your actual income was lower than estimated, so you receive a top-up payment plus the supplement
• you were paid correctly — your estimate was accurate. you receive the supplement with no adjustment
• you were overpaid— your actual income was higher than estimated, and you received more FTB than you were entitled to. you'll need to repay the difference, and the supplement may be used to offset the debt

supplement amounts for 2025-26

the FTB supplements are held back during the year and only released after reconciliation:

for a family with two children receiving both Part A and Part B, the supplements alone are worth up to $2,281.25per year. that's real money you forfeit if you don't lodge your tax return on time.

the Part A supplement is income-tested — it reduces to zero once family income exceeds $80,000. the Part B supplement is not separately income-tested beyond the Part B income test itself.

use our Family Tax Benefit calculator to estimate your total FTB entitlement including supplements.

deadlines and what happens if you miss them

the key deadline is straightforward: you (and your partner, if you have one) must lodge your tax return or confirm your income with Services Australia by the end of the lodgment year. for the 2025-26 financial year, that means lodging by 30 June 2027.

if you don't need to lodge a tax return (because your income was below the tax-free threshold, for example), you still need to confirm this with Services Australia through a non-lodgment advice. you can do this through myGov or by calling Centrelink.

what happens if you miss the deadline:

• your FTB supplements are forfeited — you won't receive the Part A or Part B supplement for that year
• your FTB rate may drop to the base rate while Services Australia waits for your income information
• in some cases, FTB payments can be suspended or cancelled entirely

the ATO can grant extensions for late lodgment in certain circumstances, but this doesn't automatically extend the Services Australia deadline. if you're running late, call Centrelink (136 150) and explain the situation — they may be able to note your file.

what happens if you were overpaid

if your actual family income was higher than you estimated, reconciliation will show you were overpaid. Services Australia will calculate the difference and raise a debt.

how the debt is typically handled:

• supplement offset — the FTB supplement is used first to reduce the debt. if your overpayment is less than the supplement, you keep the remainder
• ongoing deductions — if you still receive FTB, Services Australia will deduct a portion from your fortnightly payments until the debt is repaid
• lump sum repayment — you can choose to pay the debt in full or set up a payment arrangement

overpayment debts don't attract interest, but they do need to be repaid. the most common cause is underestimating income — particularly when one partner gets a pay rise, bonus, or overtime that wasn't factored into the original estimate.

there's a small buffer built into the system. if your overpayment for the year is less than $1.00, it's written off automatically. for larger amounts, the debt stands.

how to avoid reconciliation surprises

most reconciliation headaches come from inaccurate income estimates. here's how to stay on top of it:

1. update your income estimate whenever something changes — new job, pay rise, partner returning to work, investment income, salary sacrifice changes. log into myGov and update the estimate immediately
2. overestimate slightly rather than underestimate — it's better to get a top-up at reconciliation than to face a debt. if you're unsure, round your estimate up by 5-10%
3. lodge your tax return early— the sooner you lodge after 1 July, the sooner reconciliation happens and the sooner you get your supplement. don't wait until the deadline
4. check both partners have lodged— reconciliation can't complete until both partners' income is confirmed. a common issue is one partner lodging on time and the other forgetting
5. keep records of changes— if you update your income estimate during the year, note what you changed and when. this helps if there's a query during reconciliation

frequently asked questions