What is Family Tax Benefit?

Family Tax Benefit (FTB) is a two-part payment from Services Australia (Centrelink) designed to help Australian families with the cost of raising children. It's income-tested, meaning the amount you receive depends on your family's combined income.

FTB is split into two distinct payments:

• FTB Part A: Paid per child and designed to help with the general costs of raising children
• FTB Part B: Paid per family and provides extra support for single-parent families or families with one main income earner

FTB Part A Explained

FTB Part A is the main family assistance payment and is paid for each eligible child in your care. The amount varies based on the child's age and your family's adjusted taxable income.

FTB Part A Eligibility

To receive FTB Part A, you must:

• Have a dependent child aged 0-15 years, or 16-19 years if in full-time secondary study
• Care for the child at least 35% of the time (shared care arrangements are supported)
• Be an Australian resident
• Meet the income test requirements
• Meet immunisation and health check requirements for children under 20

FTB Part A Payment Rates 2024-25

FTB Part A is paid at different rates depending on the child's age:

FTB Part A Income Test

FTB Part A uses a two-tier income test. Your payment reduces as your family's adjusted taxable income increases:

FTB Part B Explained

FTB Part B is paid per family (not per child) and is designed to provide extra assistance to single-parent families and families with one main income earner. It recognises that when one parent stays home or works limited hours, the family has reduced earning capacity.

FTB Part B Eligibility

To receive FTB Part B, you must:

• Be a single parent, OR
• Be a member of a couple where the primary earner's income is below $117,194 (2024-25)
• Have a dependent child under 13 years (or under 18 in single parent families)
• Meet Australian residency requirements

FTB Part B Payment Rates 2024-25

FTB Part B Income Test for Couples

For couples, FTB Part B has a unique income test structure:

• Primary earner test: The higher earner must have income under $117,194 for any FTB Part B to be paid
• Secondary earner test: The lower earner can earn up to $6,789 before Part B starts reducing
• Reduction rate: Part B reduces by 20 cents for each dollar the secondary earner earns over $6,789

Combined FTB Part A and Part B: What You Could Receive

Here's an example of the combined FTB payments a family might receive:

FTB Supplements

In addition to regular FTB payments, you may be eligible for annual supplements:

FTB Part A Supplement

Immunisation Requirements

To receive full FTB Part A, your children must meet immunisation requirements. This is part of the "No Jab, No Pay" policy.

What You Need to Know

• Children must be fully immunised according to the National Immunisation Program Schedule
• Immunisation status is automatically checked through the Australian Immunisation Register
• Children with approved medical exemptions are considered up to date
• Conscientious objection is NOT a valid exemption

How to Claim Family Tax Benefit

You can claim FTB in two ways: fortnightly payments throughout the year, or as a lump sum after the financial year ends.

Option 1: Fortnightly Payments (Recommended)

Option 2: Lump Sum Claim

You can claim FTB as a lump sum after the financial year ends. This must be done within 12 months of the end of the financial year (by 30 June of the following year).

• Suitable if your income varies significantly throughout the year
• Avoids the risk of overpayment and debt to Centrelink
• You must lodge your tax return first
• Payment is based on actual income, not estimates

Reporting Changes to Centrelink

If you receive fortnightly FTB payments, you must report changes within 14 days to avoid overpayments:

Common Mistakes to Avoid with FTB

1. Underestimating Your Income

If you estimate your income too low, you'll receive higher fortnightly payments but face a debt at reconciliation. Common sources of forgotten income include:

• Bonuses and overtime
• Investment income (dividends, interest)
• Rental property income
• Capital gains
• Partner's income (for Part A)

2. Not Lodging Tax Returns on Time

3. Not Updating Shared Care Arrangements

If you share care of a child with an ex-partner, both parents' care percentages must add up correctly. Changes in care arrangements should be reported immediately.

4. Missing Immunisation Deadlines

Children must be immunised according to schedule. Check the Australian Immunisation Register through Medicare online or the Express Plus Medicare app.

5. Not Claiming All Supplements

The FTB supplements are paid automatically, but only after you lodge your tax return. Don't forget to lodge to receive these extra payments.

Other Family Payments You May Be Eligible For

In addition to FTB, Australian families may qualify for other Centrelink payments:

Frequently Asked Questions

Can I receive FTB if I'm on a visa?

You may be eligible for FTB if you're an Australian resident, including permanent residents and some temporary visa holders. New Zealand citizens on Special Category Visas may also qualify under certain conditions.

What if my income changes during the year?

You should update your income estimate with Centrelink as soon as possible. This helps avoid overpayments and debts at reconciliation. You can update your estimate any time through myGov.

Can both parents claim FTB for the same child?

Yes, if you have shared care arrangements. FTB is split according to each parent's care percentage. You need at least 35% care to receive any FTB for a child.

What happens if I receive an overpayment?

At the end of the financial year, Centrelink compares your estimated income with your actual income (from your tax return). If you received more FTB than entitled, you'll need to repay the difference. This can be taken from future FTB payments or your tax refund.

Can I still receive FTB if I travel overseas?

FTB can be paid for up to 6 weeks while overseas. After 6 weeks, payments will stop until you return to Australia. You must notify Centrelink before you travel.

What's the income limit for receiving any FTB Part A?

There's no fixed cut-off as it depends on the number of children and their ages. Generally, families with one child may receive some FTB Part A up to around $150,000 income, while families with more children may receive payments at higher incomes.

Key Takeaways