Family Tax Benefit
Taxation
Published
3 Jul
2024
Authored by: Darrel Causbrook
Taxation
Published
3 Jul
2024
Authored by: Darrel Causbrook
The Family Tax Benefit is a two-part government payment that assists families with the costs associated with raising children. The first tax benefit, Part A, is per eligible child you care for, the second, Part B, is paid out per family for single-parent families, non-parental carers, and for some families that only have the one main source of income. In addition to the Family Tax Benefit, you may also be eligible for child support payments if you are a parent or carer separated from the other parent. Further eligibility requirements for both the Family Tax Benefit and child support payments are outlined below.
You may also be able to attain additional forms of financial support if you are a parent or carer of a child or children with disabilities or certain medical conditions.
Family Tax Benefits payments are not available for every family. Depending on your eligibility requirements you may not be entitled to receive them at all, conversely, you may also be eligible to receive both Part A and Part B payments.
The eligibility criteria for both Family Tax Benefit A and B is as follows:
To qualify for Family Tax Benefit Part B, you must also be either a single parent, a non-parent caregiver, a grandparent caregiver, or part of a couple where only one person is the primary earner.
There are different age requirements to be eligible for Part B as well; the child under care must not be older than 13 years old if you are in a couple and must not be older than 15 years old if you are single, unless you're single and they meet the study requirements, then the cut-off age is 18 years old.
The starting rate for Family Tax Benefit Part A stands at $68.46 for each child every two weeks. This is the foundational amount, and depending on your situation, you might receive more or less than this. The highest amount you can currently get for each child every two weeks is:
In addition to the Family Tax Benefit Part A, you may also be eligible for an extra payment called the FTB Part A supplement. This payment is made once a year and is determined after we've reconciled all your payments at the end of the financial year. For the 2022-23 financial year, the supplement can go up to $817.60 for each child who meets the eligibility criteria. In the following year, 2023-24, it could be as high as $879.65 per eligible child. The specific amount you receive depends on factors such as how many children you're responsible for, whether you share caregiving, your family's income, and the number of days you qualified for FTB Part A during the year.
Similarly to Part A, the amount of the Part B payment you may receive will be determined by your circumstances, and therefore the amount won't be the same for everyone who applies. The maximum rate you can receive currently per family, per fortnight is:
If you receive FTB Part B, you might also be eligible for the FTB Part B supplement, which is an annual payment. This supplement is calculated and issued after we've balanced your payments, typically at the conclusion of the financial year.
For the 2022-23 financial year, the FTB Part B supplement can be as much as $397.85 per family. In the following financial year, 2023-24, it could go up to $430.70 per family. The precise amount you'll receive depends on factors such as whether you share caregiving responsibilities, your family's income, and the number of days you were eligible for FTB Part B during the year.
The income thresholds for Part A adjusted family taxable income are:
The income thresholds for Part B adjusted family taxable income are:
You can apply for the Family Tax Benefit by accessing Centrelink on the myGov website. If you haven't done so already, you will need to link Centrelink to your myGov account, to learn more about how to do this visit this website. If you have a myGov account and it is linked to Centrelink, you will be able to start your claim by answering the relevant questions on the Services Australia website. You will then reach the following box where you will be able to make your claim:
Depending on your family's situation, you can choose to have your payments made every two weeks or as a lump sum at the close of the fiscal year, following the verification of your income through your tax return submission.
If you choose to receive your payments fortnightly it is important that you provide Centrelink with accurate family income estimates when you are in the process of submitting your application. You will also need to update Centrelink if your family's circumstances change.
The reason for this is that Centrelink will check that the income you received during the financial year matches the estimate you provided to them, as this estimate is what makes you eligible for receiving the payments in the first place, and will dictate what amounts you are eligible to receive.
In the event that you receive too much Family Tax Benefit because the estimate you gave Centrelink turned out to be lower than the amount of income you actually received over the course of the relevant financial year, you may be required to pay some of the excess payments back. Conversely, if the income estimate you provided to Centrelink was higher than what you actually received in that year, you may be entitled to an additional lump sum payment to cover any additional Family Tax Benefit you may be entitled to.
You can make a claim online by using your myGov account. Your myGov account must be linked to Centrelink in order to process your claim.
If you don't have a myGov account you can create one and link it to Centrelink by following the steps on the Services Australia website, which you can find here.
If you can’t claim online you can either:
It is important that you manage your obligations if you receive the Family Tax Benefit.
If your circumstances change you must let Services Australia know. By circumstances we mean things like, a change to any of the following:
There are time limits around confirming your income. For example, you have one year from the end of the financial year in question to confirm your income for Family Tax Benefit or to claim Family Tax Benefit as a lump sum. Learn more about the time limits around confirming your income at the Services Australia website here.
In addition to the Family Tax Benefit payments, there are two other payments you may be eligible for. These are the Newborn Supplement and the Newborn Upfront Payment, which were designed to help families care for their newborn baby, or a recently adopted child, or child aged under one year who has been entrusted into the care of the applicant for a continuous period of 13 weeks minimum.
These two additional supplements are available to any family that is eligible for Family Tax Benefit FTB Part A, in the event that Parental Leave Pay is not paid for that child.
A Multiple Birth Allowance is available to certain families who have at least three children born during the same multiple birth (i.e. triplets). These families may be eligible for the Multiple Birth Allowance until the children reach 16 years of age, or if at least three of the children are in full-time study.
With rising living costs the costs associated with raising children have also increased. If you think you might be eligible to claim the family tax benefit, but need help with assessing your requirements, or need other assistance with making a claim, please reach out to us.
Causbrooks gives you a client manager supported by a team of knowledgeable small business experts. We’re here to take the guesswork out of running your own business.
Get in touch with us to set up a consultation or use the contact form on this page to inquire whether our services are right for you.
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.
The Family Tax Benefit is a two-part government payment that assists families with the costs associated with raising children. The first tax benefit, Part A, is per eligible child you care for, the second, Part B, is paid out per family for single-parent families, non-parental carers, and for some families that only have the one main source of income. In addition to the Family Tax Benefit, you may also be eligible for child support payments if you are a parent or carer separated from the other parent. Further eligibility requirements for both the Family Tax Benefit and child support payments are outlined below.
You may also be able to attain additional forms of financial support if you are a parent or carer of a child or children with disabilities or certain medical conditions.
Family Tax Benefits payments are not available for every family. Depending on your eligibility requirements you may not be entitled to receive them at all, conversely, you may also be eligible to receive both Part A and Part B payments.
The eligibility criteria for both Family Tax Benefit A and B is as follows:
To qualify for Family Tax Benefit Part B, you must also be either a single parent, a non-parent caregiver, a grandparent caregiver, or part of a couple where only one person is the primary earner.
There are different age requirements to be eligible for Part B as well; the child under care must not be older than 13 years old if you are in a couple and must not be older than 15 years old if you are single, unless you're single and they meet the study requirements, then the cut-off age is 18 years old.
The starting rate for Family Tax Benefit Part A stands at $68.46 for each child every two weeks. This is the foundational amount, and depending on your situation, you might receive more or less than this. The highest amount you can currently get for each child every two weeks is:
In addition to the Family Tax Benefit Part A, you may also be eligible for an extra payment called the FTB Part A supplement. This payment is made once a year and is determined after we've reconciled all your payments at the end of the financial year. For the 2022-23 financial year, the supplement can go up to $817.60 for each child who meets the eligibility criteria. In the following year, 2023-24, it could be as high as $879.65 per eligible child. The specific amount you receive depends on factors such as how many children you're responsible for, whether you share caregiving, your family's income, and the number of days you qualified for FTB Part A during the year.
Similarly to Part A, the amount of the Part B payment you may receive will be determined by your circumstances, and therefore the amount won't be the same for everyone who applies. The maximum rate you can receive currently per family, per fortnight is:
If you receive FTB Part B, you might also be eligible for the FTB Part B supplement, which is an annual payment. This supplement is calculated and issued after we've balanced your payments, typically at the conclusion of the financial year.
For the 2022-23 financial year, the FTB Part B supplement can be as much as $397.85 per family. In the following financial year, 2023-24, it could go up to $430.70 per family. The precise amount you'll receive depends on factors such as whether you share caregiving responsibilities, your family's income, and the number of days you were eligible for FTB Part B during the year.
The income thresholds for Part A adjusted family taxable income are:
The income thresholds for Part B adjusted family taxable income are:
You can apply for the Family Tax Benefit by accessing Centrelink on the myGov website. If you haven't done so already, you will need to link Centrelink to your myGov account, to learn more about how to do this visit this website. If you have a myGov account and it is linked to Centrelink, you will be able to start your claim by answering the relevant questions on the Services Australia website. You will then reach the following box where you will be able to make your claim:
Depending on your family's situation, you can choose to have your payments made every two weeks or as a lump sum at the close of the fiscal year, following the verification of your income through your tax return submission.
If you choose to receive your payments fortnightly it is important that you provide Centrelink with accurate family income estimates when you are in the process of submitting your application. You will also need to update Centrelink if your family's circumstances change.
The reason for this is that Centrelink will check that the income you received during the financial year matches the estimate you provided to them, as this estimate is what makes you eligible for receiving the payments in the first place, and will dictate what amounts you are eligible to receive.
In the event that you receive too much Family Tax Benefit because the estimate you gave Centrelink turned out to be lower than the amount of income you actually received over the course of the relevant financial year, you may be required to pay some of the excess payments back. Conversely, if the income estimate you provided to Centrelink was higher than what you actually received in that year, you may be entitled to an additional lump sum payment to cover any additional Family Tax Benefit you may be entitled to.
You can make a claim online by using your myGov account. Your myGov account must be linked to Centrelink in order to process your claim.
If you don't have a myGov account you can create one and link it to Centrelink by following the steps on the Services Australia website, which you can find here.
If you can’t claim online you can either:
It is important that you manage your obligations if you receive the Family Tax Benefit.
If your circumstances change you must let Services Australia know. By circumstances we mean things like, a change to any of the following:
There are time limits around confirming your income. For example, you have one year from the end of the financial year in question to confirm your income for Family Tax Benefit or to claim Family Tax Benefit as a lump sum. Learn more about the time limits around confirming your income at the Services Australia website here.
In addition to the Family Tax Benefit payments, there are two other payments you may be eligible for. These are the Newborn Supplement and the Newborn Upfront Payment, which were designed to help families care for their newborn baby, or a recently adopted child, or child aged under one year who has been entrusted into the care of the applicant for a continuous period of 13 weeks minimum.
These two additional supplements are available to any family that is eligible for Family Tax Benefit FTB Part A, in the event that Parental Leave Pay is not paid for that child.
A Multiple Birth Allowance is available to certain families who have at least three children born during the same multiple birth (i.e. triplets). These families may be eligible for the Multiple Birth Allowance until the children reach 16 years of age, or if at least three of the children are in full-time study.
With rising living costs the costs associated with raising children have also increased. If you think you might be eligible to claim the family tax benefit, but need help with assessing your requirements, or need other assistance with making a claim, please reach out to us.
Causbrooks gives you a client manager supported by a team of knowledgeable small business experts. We’re here to take the guesswork out of running your own business.
Get in touch with us to set up a consultation or use the contact form on this page to inquire whether our services are right for you.
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.
Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!