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 Department of Human Services. A claim can generally be lodged up to 97 days before the expected day of entitlement.

‘No jab, No pay’ policy

The ‘No jab, No pay’ vaccination requirements provide for Family Tax Benefit Part A fortnightly payments to be reduced for each child who does not meet immunisation requirements.

This affects all children under the age of 20.

Compliance with the vaccination requirements is associated with eligibility for Family Tax Benefit Part A and child care fee assistance.

See further policy and requirements here.

Categories of FTB benefit

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

  • Family Tax Benefit ‘A’ is paid for dependent 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

Following an amendment to the rules, the supplement will no longer be payable to families with income over $80,000.  If an individual and partners’ adjusted taxable income is more than $80,000 for the year (starting from 1 July 2016), then the Part A supplement is reduced to nil.

Family Tax Benefit Part B Supplement is also payable on an annual basis subject to confirmation of income.

Basic Eligibility for FTB

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. Basic coverage is for students up to secondary school level, and ceases after completion or cessation of year 12 or equivalent or if still studying, on reaching age 19 – up to 31 December. See in detail here.
  • The child cannot be receiving another pension or benefit  (such as youth allowance)
  • You must have at least 35% of the care of the child in a shared care situation
  • You must be living permanently in Australia. 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.

New Residents Waiting Period

From 1 January 2019 the waiting period for newly arrived residents to receive a range of benefits has been extended. The new waiting periods will apply generally to visas granted on or after 1 January 2019.

Examples of adjusted waiting periods include:

BenefitVisa on or after 1 Jan 2019Before 1 Jan 2019
Commonwealth Seniors Health Cardwaiting period 4 years2 years
Low Income Health Care Card4 years2 years
Parenting Payments4 years2 years
Carer Payments2 years2 years
Dad and Partner Pay2 yearsno waiting period
Parental Leave Pay2 yearsno waiting period
Family Tax Benefit Part A1 yearno waiting period
Family Tax Benefit Part Bno waiting periodno waiting period

Details of further benefits affected along with exemptions and NZ residents are set out here.

 

Social Services Legislation Amendment Bill 2017

(April 12, 2017) The government has passed legislation which contains the following measures:

  • annual (1 July) indexation of certain social security benefits and allowances (other than student payments) and the income test free area for parenting payment single paused for three years
  • the usual 1 January indexation of the income free areas and other means test thresholds for student payments will be paused for three years
  • enablement of automation of the regular income stream review process (for income support recipients with an income stream) by requiring income stream providers to transfer a dataset to the Department of Human Services on a regular basis.
  • waiting periods –  extend and simplify the waiting period for certain working age payments
  • family tax benefit CPI indexation paused for 2 years – indexation of the FTB child rates for family tax benefit Part A, Part B, and an approved care organisation’s standard rate are to be paused from 1 July 2017, and resumed on 1 July 2019

For further detailed information see Explanatory Memorandum to the Bill

 

FTB Changes taking effect 1 July 2016

  • For FTB – part B couples – eligibility is limited to youngest child aged 12 and under
  • Cessation of large family supplement
  • Temporary travel overseas commenced after 30 June 2016 – payments limited to 6 weeks

See further information about these changes here.

Other recently enacted measures

Social Services and Other Legislation Amendment (2014 Budget Measures No. 6) Bill 2014

  • Various Budget 2014 measures, including those referenced below

Social Services Legislation Amendment (No Jab, No Pay) Bill 2015

  • children fully meet immunisation requirements before their families can access child care benefit, child care rebate or the family tax benefit Part A supplement from 1 January 2016 with limited exceptions.

 

Federal Budget 13 May 2014

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

  • 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.

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

 

Adjusted Taxable Income Formula

The government has adjusted the formula for the inclusion of the value of fringe benefits in Adjusted Taxable Income.

The meaning of ‘adjusted fringe benefits total’ is modified so that the gross value rather than adjusted net value (previously 51%) of reportable fringe benefits is used, except for PBIs, hospitals and charities.

‘adjusted fringe benefits total’ is a component of Adjusted Taxable Income

This affects eligibility for:
family tax benefits, stillborn baby payment,child care benefit, Youth Allowance, Abstudy and Isolated Children’s Allowance
parental leave pay and dad and partner pay
low income superannuation contribution payment
net medical expenses offset
dependant (invalid and carer) (DICTO) tax offset
Notional dependent’s offset for the Zone & overseas personnel tax offsets

For details of the amending legislation see Budget Savings (Omnibus) Act 2016 (Schedule 15). The measures received royal assent on 16 September 2016 and according to its terms therefore take effect from 1 January 2017 for family assistance payments and for income tax tests from 1 July 2017.

Review of FTB 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

For more  information and how to claim:

 

 

This page was last modified 2019-01-03