Family Tax Benefit Part A

Family Tax Benefit Part A is available to assist with cost of raising student children to the completion of year 12 schooling or the age of 19 years.

Benefits can be paid in a lump sum annually, or fortnightly apart from the supplementary benefit which is only be paid annually on confirmation of taxable income.

Recent and proposed amendments:

A package of amendments to the Family Tax Benefit payments system was introduced to parliament in December 2015. For further details see here.

Arising from amendments first announced in the 2014 Budget, from 1 July 2015 the FBT Part A per-child add-on to the higher income free area for each additional child after the first is removed.

Increases in the Family Tax Benefit which were to commence 1 July 2013 did not proceed. The Baby Bonus was removed from 1 March 2014 and replaced with a means-tested increase in Family Tax Benefit Part A payments by $2,000 for first-born, and $1,000 for subsequent children.

Dependent Children

To be eligible for Family Tax Benefit Part A your child must be one of the following

  • under 16 years of age
  • aged 16 or 17 years and has completed a Year 12 or equivalent qualification, or
  • aged 16–19 years (up to the end of the calendar year they turn 19) and:
    • is undertaking full-time education or training in an approved course leading to a Year 12 or equivalent qualification
      • has an acceptable study load, or
      • has been granted an exemption from this requirement

From 1 July 2015 the FBT Part A per-child add-on to the higher income free area for each additional child after the first is removed.

Current Family Tax Benefit – Part A amounts per fortnight

Current Base Rates per fortnight

FTB Part A supplement – current rate – paid annually

See current FTB rates

Along with up-to-date tax return lodgement, and applicable to children under 7, payment of the supplement is subject to immunisation or an approved exemption recorded in the Australian Childhood Immunisation Register, before 30 June.

From 1 January 2016, ‘conscientious objection’ is removed as an exemption category for Child Care Benefit, Child Care Rebate and the Family Tax Benefit Part A supplement, and the immunisation requirements extended to children of all ages.  See Social Services Legislation Amendment (No Jab, No Pay) Bill 2015.

Clean Energy Supplement Part A

The CES became part of the maximum rates of FTB Part A and FTB Part B on 1 July 2013. The CES components are equivalent to 1.7% of the applicable standard FTB rates, including supplements.

see current FTB rates

Large Family supplement

The supplement is paid for the fourth and each subsequent child. From 1 July 2006 to 30 June 2015 it was paid if the individual had 3 or more FTB children.

Multiple Birth Allowance

Income Test- Adjusted Taxable Income

Income tests are based on an expanded definition of income, referred to as “Adjusted Taxable Income, which is the common formula used for almost all income government income-tested benefits.

Adjusted taxable income (“ATI”)  is the sum of:

 + taxable income

+ the value of any adjusted fringe benefits
+ target foreign income
+ total net investment losses
+ the amount of certain tax free pensions or benefits
+ reportable superannuation contributions (not super guarantee amounts)

Less: Deductible child maintenance

To substantiate income, the Department may rely on a previous taxable income, or alternatively can request that you provide a reasonable estimate. Income thresholds are indexed annually each financial year.

Family Income Test

From 1 July 2013 families with Adjusted Taxable Income below a threshold amount will have their Family Tax Benefit Part A  unaffected by the income adjustment.

  • Income above this level reduces the benefit amount payable by 20% of the excess, until the benefits payments reach the Base Rate, with no further reduction until income reaches the next level:
  • Incomes above an upper level plus an additional amount for each child reduces the payment by 30% of the excess, until a nil benefit is reached.

For details of current income thresholds and how they apply see DHS

Child Income Limit

From 1 July 2013 until 30 April 2014 a child (age 5-19 not a full time student or otherwise exempt) with an Adjusted Taxable Income over a threshold of $14,078 was generally be excluded from Family Tax Benefits.

Maintenance income

Child or spouse maintenance payments reduce the Family Tax Benefit Part A payments by 50% of the excess over allowable thresholds.

Indicative family Adjusted Taxable Income levels at which the benefits reduce to the Base rate and higher levels which negate benefits entirely are calculated by the Department and published here.

There is also an online calculator which can be used to estimate Family Tax Benefit entitlements here.

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.

current FTB rates

See also

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This page was last modified on 3 December 2015