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.
Who can get the Family Tax Benefit?
What eligibility criteria apply for Family Tax Benefit Part A and B?
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:
This depends on your family income and the number of children in your care
You pass the residency rules:
You live in Australia and have one of the following:
a permanent visa
a Special Category visa
a certain temporary visa (e.g. a Partner Provisional or Temporary Protection visa)
Newly-arrived Australian residents will usually have to wait one year before they can receive FTB payments, although there are some exemptions. For more information see the Services Australia website here
You care for the child for at least 35% of the time
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.
How much is family tax benefit A and B?
Part A amounts
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:
$213.36 for a child 0 to 12 years
$277.48 for a child 13 to 15 years
$277.48 for a child 16 to 19 years who meets the study requirements
$68.46 for a child 0 to 19 years in an approved care organisation.
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.
Part B amounts
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:
$181.44 when the youngest child is 0 to 4 years of age
$126.56 when the youngest child is 5 to 18 years of age.
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.
What are the income thresholds for family tax benefit Part A and B?
The income thresholds for Part A adjusted family taxable income are:
$62,634 or less: You may be eligible for the maximum payment.
Between $62,634 and $111,398: Your Part A payment reduces by 20c per dollar earned above $62,634. Annual income limits where you may no longer be eligible to receive any payment may also apply, depending on how many children you have and their ages.
Above $111,398: Your Part A payment reduces by 30c per dollar earned above $111,398. until it reaches nil. Annual income limits where you may no longer be eligible to receive any payment also apply depending on how many children you have and their ages.
The income thresholds for Part B adjusted family taxable income are:
Single-parent family must earn $112,578 or less.
Partnered parent family: the primary earner must earn $112,578 or less. Secondary earner can earn up to $6,497. Payments reduce by 20c per dollar above $6,497.
Grandparent single carers must earn $112,578 or less.
Partnered grandparent carers: the primary earner must earn $112,578 or less and secondary earner up to $32,303 a year if the youngest child is younger than 5, or up to $25,149 if the youngest child is between 5 and 18 years of age.
How can I apply for the Family Tax Benefit?
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.
Accurate family income estimate
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.
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.
Multiple birth allowance
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.
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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.