Raising a family in Australia comes with its financial challenges, but the government’s Family Tax Benefit (FTB) system is designed to help ease that burden. Whether you’re a new parent or have been receiving payments for years, understanding how this support works can make a real difference to your family’s budget.
What is Family Tax Benefit?
Family Tax Benefit is financial assistance provided by the Australian government to help families with the cost of raising children. It’s not just for low-income families – many working families also qualify for this support. The payment recognizes that raising children is expensive and that families need extra help to cover essentials like food, clothing, healthcare, and education.
The beauty of FTB is that it’s designed to grow with your family. Whether you have one child or several, whether they’re toddlers or teenagers, there’s likely some level of support available.
Types of Family Tax Benefit Payments
Family Tax Benefit Part A
This is the main payment that most families receive. FTB Part A helps with the general costs of raising children and is available for each eligible child in your care. The amount you receive depends on your family income and the ages of your children.
For families earning under $58,108 annually, you could receive the maximum rate of up to $6,537.85 per child aged 0-12 years, or up to $8,500.35 for children aged 13-19 years.
Family Tax Benefit Part B
FTB Part B provides extra help for single parents and families with one main income earner. This payment is particularly valuable for families where one parent stays home to care for children or works part-time.
The maximum annual rate for FTB Part B is $4,862.40 for families with a child under 5 years old, and $3,584.85 for families where the youngest child is 5-18 years old.
Who Can Apply for Family Tax Benefit?
Basic Eligibility Requirements
To receive Family Tax Benefit, you need to meet several key criteria:
- You must be the primary carer of a dependent child under 16 years (or under 20 if they’re studying full-time)
- You must be an Australian resident for tax purposes
- Your child must be an Australian resident or hold a qualifying visa
- You must pass the income test (though this varies significantly based on family circumstances)
Income Thresholds You Need to Know
Your family income plays a crucial role in determining your FTB entitlement. For 2024-25, the key income thresholds are:
- FTB Part A: Full payment for families earning up to $58,108, then reduces by 20 cents for every dollar over this amount
- FTB Part B: Available for families where the primary earner makes up to $110,333 and the lower-income partner earns less than $6,725
How Much Money Can Your Family Receive?
FTB Part A Payment Rates
| Child’s Age | Maximum Annual Rate |
|---|---|
| 0-12 years | $6,537.85 |
| 13-15 years | $8,500.35 |
| 16-19 years (studying) | $8,500.35 |
FTB Part B Payment Rates
| Youngest Child’s Age | Maximum Annual Rate |
|---|---|
| Under 5 years | $4,862.40 |
| 5-18 years | $3,584.85 |
How to Apply for Family Tax Benefit
Getting Started with Your Application
Applying for Family Tax Benefit is straightforward, and you have several options:
Online through myGov: This is the fastest method. Link your Centrelink account to myGov and complete your application online. You’ll need your tax file number, bank details, and information about your children.
By Phone: Call the Families and Childcare Line on 136 150 between 8am-5pm Monday to Friday. Have all your documents ready before calling.
In Person: Visit any Services Australia office with the required documents. This option is helpful if you need extra support with your application.
Documents You’ll Need
Before applying, gather these essential documents:
- Birth certificates or adoption papers for all children
- Proof of identity (driver’s license or passport)
- Bank account details
- Income information (recent payslips or tax returns)
- Medicare cards for all family members
Important Tips for Managing Your FTB Payments
Estimate Your Income Carefully
One of the most important aspects of receiving Family Tax Benefit is providing accurate income estimates. If you underestimate your income, you might receive overpayments that you’ll need to repay later. It’s better to slightly overestimate and receive a refund at tax time.
Update Your Details Promptly
Life changes quickly with families. Make sure to update Services Australia within 14 days of any changes to:
- Your income or employment status
- Your relationship status
- Your children’s living arrangements
- Your bank account details
Consider Fortnightly vs Annual Payments
You can choose to receive your FTB as fortnightly payments throughout the year or as a lump sum after you lodge your tax return. Fortnightly payments help with regular budgeting, while annual payments might suit families who prefer managing larger amounts once yearly.
Maximizing Your Family Tax Benefit
Understanding the Reconciliation Process
Every year, the government reconciles your FTB payments against your actual income from your tax return. This process ensures you’ve received the correct amount. If you’ve been overpaid, you’ll need to repay the difference. If you’ve been underpaid, you’ll receive the extra amount.
Multiple Child Bonus
Families with multiple children receive additional support through higher payment rates and supplementary benefits. The Multiple Birth Allowance provides an extra $160.14 per fortnight for each child after the first in a multiple birth (twins, triplets, etc.).
Rent Assistance Integration
If you’re paying rent, you might also be eligible for Rent Assistance, which can be paid alongside your Family Tax Benefit. This additional support can provide up to $157.20 per fortnight for families with children.
Special Circumstances and Additional Support
Separated Parents
When parents separate, Family Tax Benefit arrangements need to be updated. The parent with primary care (where the child lives more than 35% of the time) typically receives the payment. Both parents might be eligible if care is shared equally.
Students and Young Adults
FTB can continue for children aged 16-19 who are studying full-time in secondary school or approved courses. This extended support recognizes that many families continue supporting older children through their education.
Common Mistakes to Avoid
Many families miss out on their full Family Tax Benefit entitlement due to simple mistakes:
- Not updating income estimates: Your circumstances change, so should your estimates
- Missing deadlines: Lodge your tax return by June 30 to avoid payment disruptions
- Forgetting to claim: You can backdate claims up to 52 weeks in some circumstances
- Not linking Medicare: Ensure your children are covered under your Medicare card for health care benefits
Frequently Asked Questions
Q. Can I receive FTB if I work full-time?
A. Yes, many working families receive Family Tax Benefit. Your eligibility depends on your total family income, not your employment status.
Q. How often are FTB rates updated?
A. Family Tax Benefit rates are reviewed annually and typically increase each July in line with indexation adjustments.
Q. What happens if I receive too much FTB during the year?
A. You’ll need to repay any overpayments, but Services Australia offers flexible repayment options including deductions from future payments.
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