Offsetting against your Family Tax Benefit debt
If Services AustraliaExternal Link determines you have been overpaid Family Tax Benefit, this may result in a debt.
In these circumstances, and if you have no other tax liabilities, we may use your income tax refund to reduce that debt. This is called offsetting.
For more information about offsetting in these circumstances, see PS LA 2011/21 Offsetting of refunds and credits against taxation and other debts (under ‘Family tax benefit’).
When we may consider reversing the offsetting decision
There are limited circumstances where we may consider reversing the decision to offset your income tax refund against your Family Tax Benefit debt. These circumstances may include where, at the time of offsetting, you:
- were experiencing serious hardship
- had a payment plan in place with Services Australia
- had a Family Tax Benefit debt that was temporarily written off because you were unable to pay the debt.
Reversal of decision to offset
If you want us to consider reversing the decision to offset, you'll need to provide relevant information and evidence that was not known to us, or considered, at the time.
You can do this by phoning 1300 788 347.
Your Family Tax Benefit debt will remain outstanding with Services Australia if we decide to refund your income tax credit after it’s been offset. We will tell Services Australia we have reversed our decision to offset and your Family Tax Benefit debt will be reinstated.
The decision to offset your income tax refund against your Family Tax Benefit debt isn't reviewable by the Administrative Review Tribunal.
You may be able to apply for judicial review by the:
- Federal Circuit and Family Court (Division 2) under the Administrative Decisions (Judicial Review) Act 1977
- Federal Court under
- the Administrative Decisions (Judicial Review) Act 1977
- section 39B of the Judiciary Act 1903.