FTB End of Year Reconciliation: Understanding the Balancing Process

Each year after the end of the financial year, Services Australia reviews your Family Tax Benefit payments through a process called reconciliation. This is when your actual income is compared to your estimates, and any differences are balanced out. Understanding this process helps you prepare for potential top-ups or debts—and avoid surprises.

What is FTB Reconciliation?

Throughout the financial year, Centrelink pays your Family Tax Benefit based on the income estimate you provide. This estimate is your best guess of what you'll earn over the year. However, actual income rarely matches estimates exactly—life brings pay rises, bonuses, job changes, and unexpected income that's difficult to predict.

Reconciliation is the annual check-up that compares your estimated income to your actual adjusted taxable income (ATI) once you and your partner lodge your tax returns. If you earned more than estimated, you may have been overpaid and could owe money back. If you earned less, you'll receive a top-up payment. Either way, reconciliation ensures you receive exactly the amount you were entitled to based on your actual circumstances.

The process also confirms your eligibility for the FTB supplements—additional year-end payments that are only paid after reconciliation is complete. These supplements provide a meaningful boost to families who remain eligible.

When Does Reconciliation Happen?

Reconciliation typically occurs after you (and your partner, if applicable) lodge tax returns for the relevant financial year. Services Australia receives your income information directly from the Australian Taxation Office, so you don't need to report your actual income separately. The process is automatic once the ATO shares your data.

For most families, reconciliation happens between July and October following the end of the financial year, depending on when tax returns are lodged. If you use a tax agent who lodges later in the year, your reconciliation will occur later. Families must have their returns lodged before the end of the following financial year to complete reconciliation and receive any supplements owing.

If you or your partner didn't need to lodge a tax return (for example, because income was below the tax threshold), you'll need to notify Centrelink through a non-lodgement advice. This confirms your income for reconciliation purposes without requiring an actual tax return.

Understanding Your Reconciliation Outcome

After reconciliation, you'll receive a letter from Services Australia explaining the outcome. There are three possible results: a top-up payment (you were underpaid during the year), a debt (you were overpaid), or a balanced result (your payments matched your entitlement). The letter will detail the calculations so you can understand how the result was determined.

A top-up is good news—it means you received less FTB than you were entitled to, and you'll receive the difference as a lump sum. This often happens when families overestimate their income to be safe, or when income unexpectedly decreased during the year. The top-up is usually paid within a few weeks of reconciliation.

A debt means you received more FTB than you were entitled to. This commonly occurs when actual income exceeded estimates, or when circumstances changed (like children leaving care) and weren't reported promptly. The debt will need to be repaid, though payment plans are available if the amount is significant.

The FTB Supplements

One of the most valuable aspects of reconciliation is the payment of FTB supplements. For 2026-27, the FTB Part A supplement is $916.15 per family (regardless of how many children you have), and the FTB Part B supplement is $430.70 per family. These supplements are only paid after reconciliation confirms your eligibility and actual income.

To receive the FTB Part A supplement, children must meet immunisation requirements. If your children aren't fully immunised and don't have an approved exemption, you may lose some or all of the Part A supplement. This is one reason to ensure children's immunisations are up to date throughout the year.

For families who owe a debt from reconciliation, the supplements may be used to offset the debt before any remaining amount is paid to you. This can be disappointing if you were counting on the supplement payment, but it does reduce the debt you need to repay from other funds.

Checking Your Reconciliation Status

You can check the status of your FTB reconciliation through your myGov account linked to Centrelink. Navigate to the payments section where you'll see information about whether reconciliation is complete and the outcome. If you're waiting for reconciliation, the system will show this too, often with an explanation of what's needed (such as your partner's tax return).

If there's a delay in your reconciliation, the most common cause is a missing tax return or non-lodgement advice from you or your partner. Checking with the ATO that your return has been processed can help identify any holdups. Sometimes it takes a few weeks for ATO information to be shared with Centrelink.

Preparing for Next Year's Reconciliation

The best way to prepare for a smooth reconciliation is to maintain accurate income estimates throughout the year. Update your estimate whenever your circumstances change materially, and keep records of your income to make estimates easier. The more accurate your estimate, the closer your fortnightly payments will match your actual entitlement.

Consider lodging your tax return early in the new financial year. This triggers reconciliation sooner, meaning you receive any top-up faster or can start addressing any debt earlier. Early reconciliation also means earlier payment of your supplements if eligible.

Key Takeaways

• Reconciliation compares your income estimate to actual income after tax returns are lodged
• You may receive a top-up, owe a debt, or have a balanced result
• FTB supplements are only paid after reconciliation is complete
• Immunisation requirements must be met for the FTB Part A supplement
• Lodge tax returns early to trigger faster reconciliation
• Accurate income estimates throughout the year minimise surprises

FTB reconciliation is an important annual process that ensures fairness in the system. By understanding how it works and keeping your estimates accurate throughout the year, you can avoid the stress of unexpected debts and look forward to receiving your supplements with confidence. Think of reconciliation as the final chapter of each financial year's FTB story—one that ends best when you've been honest and proactive throughout.