Family Tax Benefit

 

Family Tax Benefits are cash benefits paid by the government to help families with the costs of raising dependent children. Until 2009 the benefits were managed within the income tax system.

Individuals have 12 months after the relevant income year to lodge a claim.

All claims, assessments and payments are currently managed by the Family Assistance Office, now part of the Department of Human Services. A claim can be lodged up to 97 days before the expected day of entitlement.

Federal Budget 13 May 2014

The Federal Budget 2014-15 contained a number of measures, only some of which have been enacted at the time of writing.

  • Enacted: Primary earner income limit for the FTB Part B to be reduced from $150,000 p.a to $100,000 p.a. – takes effect 1 July 2015
  • Enacted: FTB Part A Large Family Supplement to be limited to families with 4 or more children – takes effect 1 July 2015
  • Enacted: FTB Part A per child add-on to the higher income free threshold for each additional child to be removed – takes effect 1 July 2015
  • Enacted: The Clean Energy Supplement indexation has ceased and will continue to be paid at the rate applicable on 1 July 2014.
  • Indexation to be paused of the maximum and base rates of FTB Part A and the rate of FTB Part B for 2 years from 1 July 2015 – see progress of the Bill through parliament here. December 2014 update: It is proposed that the indexation pause be extended by a further 1 year – see MYEFO
  • Indexation of the FTB Part A and FTB Part B end-of-year supplements to cease and return to $600 pa for each FTB Part A child and $300 pa for each FTB Part B family – see progress of the Bill through parliament here.
  • From 1 July 2015, the FTB Part B to be limited to families whose youngest child is younger than 6 years of age. Transitional arrangements: Those already eligible on 30 June 2015 to remain so for 2 years – see progress of the Bill through parliament here.
  • From 1 July 2015 a proposed new allowance of $751.90 per child aged between 6 and 12 years for single parents on the maximum rate of FTB Part A whose youngest child is between 6 and 12 years of age from the point when they become ineligible for the FTB Part B – see progress of the Bill through parliament here.

Further information: Budget papers and see also Parliamentary Library Budget Review

Categories of benefit

The Family Tax Benefits are divided into Family Tax Benefits A and B:

  • Family Tax Benefit ‘A’ is paid for dependent school-age children to the age of 19 years
  • Family Tax Benefit ‘B’ provides additional benefits to families with one main income earner, including sole parent families with at least one child who is under 16, or a full time student under 18.

Benefits are generally paid fortnightly, apart from a supplement which is payable annually on confirmation of income, usually by tax return lodgement.

A Family Tax Benefit Part A Supplement is payable on an annual basis and (since 1 July 2012) is conditional upon:

  • children being immunised during the financial years in which they turn one, two and five years of age
  • a health check for recipients of certain income support payments which includes the Parenting Payment, Newstart, and payment from the Department of Veterans’ Affairs
Family Tax Benefit Part B Supplement is also payable on an annual basis subject to confirmation of income.

Basic Eligibility

Basic eligibility for Family Tax Benefits depends on age of the student, dependency, Australian residence and visa requirements and is subject to income tests.  There is no assets test. The general requirements are:

  • You have a dependent child/student up to the age of 19
  • You must have at least 35% of the care of the child in a shared care situation
  • You must be living permanently in Australia, although temporary absences of up to 13 weeks generally do not affect payments. Resident New Zealander Special Category Visa holders are included.
  • There are income tests on family income, child income of the child and on the receipt of maintenance payments.

Normally only one person in the family can claim the Family Tax Benefit at any time, even if both are eligible. In limited circumstances such as blended families or claims for a past period prior to separation, the benefit may be shared.

For more specific information:

Other benefits

If you are eligible for the Family Tax Benefits, you may also be eligible for:

  • large family supplement – an additional amount payable to families for a third and each subsequent child. From 1 July 2015, the large family supplement will no longer be paid for the third child but families with four or more children will continue to receive the large family supplement.
  • multiple birth allowance for three or more children of the same birth
  • private rental assistance
– The Baby Bonus (which ended 1 March 2014) may also be available.
See further at DSS rates guide

Review of departmental decisions

Decisions made about Family Tax Benefit entitlements are reviewable on request. Simple clerical errors may be able to be rectified with a telephone call, but otherwise a written review request should be made using the form provided by the Department (follow the link below). With some exceptions, and in order to preserve your rights and entitlements, a review request should be lodged within 13 weeks of the disputed decision.

A Departmental review is free, and can be made as a request to the original decision maker, or escalated to an Authorised Review Officer.  Escalation of a matter beyond the departmental review process to a court or tribunal will involve costs, and may also be subject to shorter time limits.

You have the right to request copies of information held in your Departmental file under Freedom of Information procedures, which would normally be required in any substantial matter of dispute. You can also request assistance from the Commonwealth Ombudsman, although limited in potential outcomes.

If you are dissatisfied with a decision see Reviews and appeals

This is generalised information relating to individuals and not advice.  Only the Department of Human Services can assess, approve and pay Family Tax Benefits based on your specific circumstances.

See also – Family Tax Benefit

This page was last modified on 17 February 2015