Raising children can be financially challenging, but Australia’s Family Tax Benefit (FTB) program provides critical support to families.
Divided into FTB Part A and FTB Part B, the program helps families with dependent children manage daily costs like education, healthcare, and childcare. For 2024, Centrelink has updated payment rates and income thresholds, ensuring families continue to receive the support they need.
Let’s explore eligibility requirements, payment amounts, income tests, and practical tips to maximize your FTB benefits.
What is Family Tax Benefit (FTB)?
The Family Tax Benefit is a financial support system administered by Centrelink. It’s designed to assist families with children by covering some of the expenses associated with raising them.
FTB Part A
- Who It’s For: Families with dependent children aged 0-15 years or 16-19 years (if studying).
- What It Covers: Daily living expenses for children.
FTB Part B
- Who It’s For: Single-income families, including single parents and two-parent households with one primary income earner.
- What It Covers: Additional support for lower-income families.
FTB Payment Amounts for 2024
| Feature | FTB Part A | FTB Part B |
|---|---|---|
| Eligibility | Families with dependent children | Single or primary-income families |
| Payment Rates (Fortnight) | Up to $222.04 (0-12 years), | Up to $188.86 (youngest under 5), |
| Up to $288.82 (13-19 years) | Up to $131.74 (youngest 5-18 years) | |
| Annual Supplement | $916.15 per child | $448.95 per family |
| Income Test Threshold | Full rate if ≤ $65,189 | Primary earner ≤ $100,900 |
Understanding FTB Part A
Eligibility Criteria
- Children: Aged 0-15 years or 16-19 years if enrolled in approved studies.
- Residency: Both the child and parent must be Australian residents.
- Income: Families earning $65,189 or less qualify for the maximum payment. Payments are reduced for incomes above this threshold.
Payment Details
- Ages 0-12: Up to $222.04 per fortnight.
- Ages 13-19: Up to $288.82 per fortnight.
Example:
The Smith family has two children aged 8 and 14. Their combined income is $70,000, which exceeds the threshold. As a result, their FTB Part A payments are reduced based on Centrelink’s income test calculations.
Annual Supplement
Eligible families receive an annual supplement of $916.15 per child, paid at the end of the financial year if all conditions are met, including immunisation and health checks.
Understanding FTB Part B
Eligibility Criteria
- Single Parents: Automatically qualify without an income test.
- Two-Parent Families:
- Primary earner income must be $100,900 or less.
- Secondary earner can earn up to $5,767, with payments reduced by 20 cents per dollar above this threshold.
Payment Details
- Youngest Child Under 5: Up to $188.86 per fortnight.
- Youngest Child Aged 5-18: Up to $131.74 per fortnight.
Example:
The Johnson family has one child aged 3. The primary earner makes $90,000 annually, and the secondary earner earns $6,000. The secondary earner’s income exceeds the $5,767 threshold by $233, reducing their payments slightly.
Annual Supplement
A family eligible for FTB Part B receives $448.95 per family at the end of the financial year.
Income Tests and Reporting
Income plays a crucial role in determining FTB eligibility and payment amounts.
Income Test for Part A
- Families earning $65,189 or less receive the full rate.
- Payments decrease as income rises, with reductions depending on the number of children and their ages.
Income Test for Part B
- Single parents face no income limits.
- For two-parent families, the primary earner’s income must be $100,900 or less.
Tips to Maximize Your FTB Benefits
- Update Your Income Regularly: Report changes promptly to avoid overpayments or penalties. Use Centrelink’s online portal via myGov to update details.
- Plan for the Annual Supplement:
- Ensure all health checks and immunisation requirements for your children are met to qualify for the supplement.
- Understand Residency Requirements:
- Ensure you and your children meet the residency conditions to avoid interruptions in payments.
- Use the Payment Finder Tool:
- Centrelink’s Payment Finder tool can estimate your eligibility for various benefits, helping you maximize financial support.
- Avoid Overpayment:
- Keep your family situation updated, especially if your child leaves school or your income changes significantly.
Penalties for Overpayments
Overpayments often result from incorrect income reporting or changes in family circumstances. If overpaid, Centrelink may:
- Reclaim the excess amount.
- Reduce future payments until the debt is cleared.
Additional Resources for Families
Besides the Family Tax Benefit, Centrelink provides other supports:
- Child Care Subsidy (CCS): Reduces childcare costs.
- Parenting Payment: For low-income parents with young children.
- Health Care Card: Offers discounts on prescriptions and healthcare services.
Explore Services Australia’s website for detailed guidance on these programs.
The Family Tax Benefit continues to play a vital role in supporting Australian families. By staying informed, updating your details regularly, and understanding eligibility rules, you can ensure you receive the maximum benefit while avoiding penalties or overpayments.
