Family Tax Benefit PART A and PART B

Family Tax Benefit PART A and PART B

What is the Family Tax Benefit?

There are two types of Family Tax Benefit - Part A and Part B.

FAMILY TAX BENEFIT PART A

Family Tax Benefit Part A (FTB A) is paid for each child. The payment is income tested and the amount you receive is based on your family's individual circumstances.

You may be eligible for FTB A if you have:

  • a dependent child who is 15 years old or 
  • a dependent child who is 16-19 years old and who meets the study requirements:
    • is in full time secondary study in an approved course leading towards a year 12 or equivalent qualification
    • has an acceptable study load, or
    • has been granted an exemption by the Department of Human Services

To receive FTB A you must also:

  • Meet an income test (see below)
  • Meet residency requirements
  • Care for the child at least 35 per cent of the time

How much FTB A can I receive?
FTB A is based on your family's annual income over the full financial year (i.e. from 1 July to 30 June) and the number of children you have as well as their ages and for those who share care the percentage of time you have your children.

This payment is either made fortnightly or through the tax system as a lump sum payment at the end of the financial year. 

The maximum amounts of FTB A you can receive per child are updated on 1 July each year.

Current rates are as below:

 

For each child

Per fortnight

0 to 12 years

$182.84

13-15 years

$237.86

16-19 years (who meets study requirements)

$237.86

0-19 years in an approved care organisation

$58.66

The base rate for FTB Part A in 2018-19 is $58.66 for each child per fortnight. However, the base rate isn’t the minimum rate of FTB Part A. You might get less depending on your family’s circumstances.

Income Test
As mentioned above you have to pass the income test in order to receive FTB A. Currently if you earn less than $53,728 your payment won't be affected, and you will receive the maximum rate of FTB A. This is also the case if you or your partner receive an income support payment. 

For families which earn between $53,728 and $94,316 the rate reduces for each dollar earned above $53 728 until it reaches the base rate of FTB A, at which point it won’t reduce further. 

If your family’s income is over $94,316, one of two tests will be applied to work out how much FTB A you will receive.

  1. The first test reduces the maximum rate of FTB Part A by 20 cents for every dollar of income earned over $53,728 then 30 cents for each dollar of income over $94,316. This applies until your payment is nil.
  2. The second test reduces the base rate of FTB Part A by 30 cents for each dollar of income you earn over $94,316. This applies until your payment is nil.

If your family’s income is close to the annual income limit, you should check your eligibility after the end of the financial year once you know your family’s actual income. 

Maintenance Action Test

If you or your partner have a child from a previous relationship you need to try and obtain child support to receive more than the base rate of FTB A by applying for a child support assessment. Generally speaking the more child support assistance you receive the less FTB A you will receive. You can learn more about this by visiting the Department of Human Services

Family Tax Benefit Part A Supplement
You may also receive the FTB A Supplement of up to $737.30 per child at the end of the financial year. To receive this lump sum payment you need to lodge your tax return or advise the ATO that you are not required to file a tax return within the required timeframe. Once the ATO has confirmed your income details you will receive a letter to tell you whether you are eligible and how much supplement you will receive.

To receive the FTB Part A supplement for 2018-19, your child also needs to meet:

If you receive FTB Part A you may also be eligible for additional payments including:

If you have care of triplets or quadruplets, you may be eligible for Multiple Birth Allowance. The rate is $158.06 a fortnight for triplets or $210.56 a fortnight for quadruplets or more.

FAMILY TAX BENEFIT PART B

Family Tax Benefit Part B (FTB B) gives extra help to single parents, non-parent carers,  grandparent carers and families with one main income. 

You may be eligible for Family Tax Benefit Part B if you:

  • Are a member of a couple with one main income and care for dependent children under the age of 13 
    • Care for the child at least 35 per cent of the time. 
    • Meet residence requirements
    • Meet the income test
    • Are a single parent or non-parent carer, a grandparent carer and care for a dependent child under age 18 (note the child must meet study requirements described above if they’re between 16-18).

How much Family Tax Benefit Part B can I receive?
FTB B is paid per family and the payment rate is based on family income and an income test. For parents who share caring responsibilities the percentage of care is also taken into account and payment rates may change if you’re a parent returning to work. 

Family Tax Benefit Part B rates are updated on 1 July each year, the maximum amount you can currently receive per family is shown in the table below: 

Age of youngest child

Per fortnight

0 - 5 years

$155.54

5 - 18 years

$108.64

Family Tax Benefit Part B Supplement
You may also receive a supplement of up to $357.70 per family at the end of the financial year if you submit your tax return within the required timeframe or inform the ATO you do not need to lodge a return. The amount of supplement you receive may vary according to your family's income or circumstances.

Income Test
This income test for Family Tax Benefit Part B is updated on 1 July each year. 

Single parent or carer families

You can earn up to $100,000 to receive the full amount of FTB B, however you won’t be eligible if your adjusted taxable income is more than $100,000. 

Two parent or carer families

If the primary earner in a two parent family earns more than $100,000 you won’t be eligible for FTB B. Secondary earners can earn up to $5621 each year before it affects your FTB B and if you’re the secondary earner and your partner earns $100,000 or less you’ll still receive some FTB B if your income is below: 

  • $27,686 a year, if your youngest child is younger than five years old
    • $21,572 year, if your youngest child is five to 18 years old. 

Two parent or carer families can only receive FTB B if the youngest child is 12 or younger, unless they are a grandparent carer. Also you can’t receive FTB Part B while you’re receiving Parental Leave Pay.

If you receive FTB Part B fortnightly, the Department of Human Services will adjust your payments to make sure you don’t receive too muchFTB Part B.

More information about Family Tax Benefit
For more information call 13 6150 or visit the Department of Human Services.

This child care article was last updated on Monday, 16 July 2018



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