Family Tax Benefit Rate Calculator
Calculate your estimated Family Tax Benefit (FTB) Part A and Part B payments based on your family situation.
Comprehensive Guide to Calculating Family Tax Benefit Rates in Australia
The Family Tax Benefit (FTB) is a vital payment system in Australia designed to help families with the cost of raising children. Administered by Services Australia, FTB consists of two parts: Part A (paid per child) and Part B (paid per family). Understanding how to calculate your potential FTB rate can help you better plan your family budget and ensure you’re receiving all the support you’re entitled to.
What is Family Tax Benefit?
Family Tax Benefit is a two-part payment system that provides financial assistance to families with dependent children. The payment amounts vary based on several factors including:
- Number and age of children
- Family income
- Family situation (single parent or couple)
- Care arrangements
- Eligibility for other government payments
FTB Part A vs Part B: Key Differences
| Feature | FTB Part A | FTB Part B |
|---|---|---|
| Payment basis | Per child | Per family |
| Primary purpose | General cost of raising children | Support for single parents and families with one main income |
| Income test | Yes (family income) | Yes (primary earner’s income) |
| Age limit | Up to 19 (if in full-time secondary study) | Youngest child under 13 (or under 18 for single parents) |
| Maximum rate (2023-24) | $212.70 per fortnight per child (0-12) $272.56 per fortnight per child (13-19) |
$182.34 per fortnight |
How FTB Part A is Calculated
FTB Part A is calculated based on several factors:
- Base Rate: The maximum payment rate depends on the child’s age:
- 0-12 years: $212.70 per fortnight
- 13-15 years: $272.56 per fortnight
- 16-19 years (if in full-time secondary study): $272.56 per fortnight
- Income Test: The payment reduces as family income increases:
- For families with income over $59,597 per year, the payment reduces by 20 cents for each dollar over this amount
- For families with income over $104,533 per year, the payment reduces by 30 cents for each dollar over this amount
- The payment cuts out completely when income reaches $122,338 plus $4,126 for each child after the first
- Shared Care: If you share care of your child, your payment will be proportional to your care percentage
- Supplements: Eligible families may receive:
- FTB Part A Supplement: up to $868.60 per child per year
- Multiple Birth Allowance: $1,895.50 per year for triplets or more
How FTB Part B is Calculated
FTB Part B provides additional support to single parents and families with one main income earner. The calculation considers:
- Eligibility: You may be eligible if you’re:
- A single parent or grandparent carer with a child under 18
- A member of a couple with a child under 13 (or under 18 if in secondary study) and one partner earns $100,000 or less
- A member of a couple where the primary earner earns $100,000 or less and you care for a child under 13
- Payment Rates:
- Maximum rate: $182.34 per fortnight
- For families with a youngest child under 5: $182.34 per fortnight
- For families with a youngest child 5-18: $131.56 per fortnight
- Income Test:
- Payment reduces when the primary earner’s income exceeds $100,000
- For every dollar over $100,000, the payment reduces by 20 cents
- Payment cuts out completely when income reaches $170,000
Income Test Thresholds and Reduction Rates
The income test is one of the most important factors in determining your FTB rate. Here’s a detailed breakdown of how income affects your payments:
| Income Range | FTB Part A Reduction | FTB Part B Reduction |
|---|---|---|
| Below $59,597 | No reduction | No reduction (if under $100,000 for primary earner) |
| $59,598 – $104,533 | 20 cents per dollar over $59,597 | No reduction (if under $100,000 for primary earner) |
| $104,534+ | 30 cents per dollar over $104,533 | 20 cents per dollar over $100,000 (primary earner) |
| $122,338+ (plus $4,126 per additional child) | No payment | $170,000+ (no payment) |
Shared Care Arrangements and FTB
When parents share the care of their children, the FTB payment is divided according to the care percentage. The care percentage is determined by the number of nights the child is in your care over a year.
Here’s how shared care affects your payment:
- 100% care: Full payment rate
- 80-89% care: 80% of the full rate
- 65-79% care: 65% of the full rate
- 50-64% care: 50% of the full rate
- 35-49% care: 35% of the full rate
- 14-34% care: Base rate only (no supplement)
- Less than 14% care: No payment
For example, if you have 65% care of your child, you would receive 65% of the FTB payment you would get if you had 100% care.
FTB Supplements and Additional Payments
In addition to the regular fortnightly payments, eligible families may receive supplements:
- FTB Part A Supplement:
- Up to $868.60 per child per year
- Paid after the end of the financial year when your income is confirmed
- Requires you to lodge your tax return
- FTB Part B Supplement:
- Up to $424.70 per family per year
- Paid after the end of the financial year
- Requires income confirmation
- Multiple Birth Allowance:
- $1,895.50 per year for triplets or more
- Paid in addition to FTB Part A
- Newborn Upfront Payment and Newborn Supplement:
- Lump sum payment for newborns or newly adopted children
- Up to $673.35 for first child, $336.65 for subsequent children
How to Maximize Your Family Tax Benefit
To ensure you’re receiving the maximum FTB you’re entitled to, consider these strategies:
- Report income accurately: Make sure your reported income is correct, as both overestimating and underestimating can affect your payments.
- Update your details promptly: Notify Services Australia about any changes in your circumstances, such as:
- Changes in income
- Changes in care arrangements
- Changes in relationship status
- Children starting or leaving school
- Consider the timing of income: If your income is close to a threshold, you might strategically time when you receive certain income to maximize your benefit.
- Claim all eligible children: Make sure all eligible children are included in your claim.
- Lodge your tax return on time: This ensures you receive any supplements you’re entitled to.
- Consider salary sacrificing: In some cases, salary sacrificing to superannuation can reduce your assessable income for FTB purposes.
Common Mistakes to Avoid
When dealing with Family Tax Benefit, there are several common mistakes that can lead to overpayments or underpayments:
- Not reporting income changes: Failing to update your income when it changes can result in debts if you’ve been overpaid.
- Incorrect care percentages: Providing inaccurate information about shared care arrangements can affect your payment rate.
- Missing deadlines: Not lodging your tax return on time can delay or prevent you from receiving supplements.
- Not claiming all eligible children: Forgetting to include all dependent children in your claim.
- Ignoring review letters: Services Australia periodically reviews FTB recipients. Ignoring these reviews can lead to payment suspensions.
- Assuming you’re not eligible: Many families assume they earn too much to qualify, but the income thresholds are higher than many realize.
Recent Changes to Family Tax Benefit (2023-24)
The Australian government regularly reviews and updates FTB rates and eligibility criteria. For the 2023-24 financial year, several important changes were implemented:
- Indexation increases: FTB rates were increased by 3.7% in line with inflation, effective from 1 July 2023.
- Income test thresholds: The higher income free area for FTB Part A was increased to $122,338 plus $4,126 for each additional child after the first.
- Part B income threshold: The primary earner income threshold for FTB Part B remains at $100,000, but the payment now cuts out at $170,000 (up from $168,650).
- Supplement increases: The FTB Part A supplement increased to $868.60 per child, and the Part B supplement to $424.70 per family.
- Newborn payments: The Newborn Upfront Payment and Newborn Supplement amounts were increased in line with indexation.
How to Apply for Family Tax Benefit
Applying for FTB is a straightforward process that can be done online, by phone, or in person at a Services Australia service centre.
- Online application:
- Create or log in to your myGov account linked to Centrelink
- Navigate to the ‘Payments and Claims’ section
- Select ‘Make a claim’ and then ‘Family and parental payments’
- Follow the prompts to complete your application
- Phone application:
- Call the Families line on 136 150
- Have your personal details and supporting documents ready
- Follow the instructions provided by the customer service representative
- In-person application:
- Visit a Services Australia service centre
- Bring identification documents and any supporting paperwork
- Speak with a customer service officer to complete your application
When applying, you’ll need to provide:
- Your tax file number (and your partner’s, if applicable)
- Your children’s birth certificates or adoption papers
- Details of your income and assets
- Information about any child care arrangements
- Details of any other government payments you receive
Appeals and Reviews
If you disagree with a decision about your FTB, you have the right to ask for a review. The process typically involves:
- Internal review: You can ask Services Australia to review the decision. This must be done within 13 weeks of receiving the decision notice.
- Authorised Review Officer (ARO): If you’re still unhappy after the internal review, you can ask for an ARO to review the decision.
- Administrative Appeals Tribunal (AAT): As a last resort, you can appeal to the AAT for an independent review.
It’s important to act quickly if you want to dispute a decision, as there are time limits for each stage of the review process.
Alternative Support for Families
In addition to FTB, Australian families may be eligible for other forms of assistance:
- Child Care Subsidy (CCS): Helps with the cost of approved child care
- Parenting Payment: Income support for parents or guardians
- Dad and Partner Pay: Up to 2 weeks of government-funded pay for eligible working dads or partners
- Parental Leave Pay: Up to 18 weeks of government-funded pay at the national minimum wage
- Low Income Health Care Card: Provides concessions on health care and some other services
- Energy Supplement: Helps with energy costs (being phased out for some recipients)
Tax Implications of Family Tax Benefit
It’s important to understand how FTB interacts with the tax system:
- FTB payments are not taxable income
- You don’t need to declare FTB on your tax return
- However, FTB is taken into account when calculating:
- Child support payments
- Some other government benefits
- HECS/HELP repayment thresholds
- If you receive an FTB supplement, it will be paid after you lodge your tax return and your income is confirmed
Case Studies: FTB in Different Family Situations
Case Study 1: Single Parent with Two Children
Sarah is a single mother with two children aged 5 and 8. She earns $60,000 per year as a part-time teacher.
- FTB Part A: Approximately $320 per fortnight ($160 per child)
- FTB Part B: Approximately $182 per fortnight (maximum rate as a single parent)
- Annual supplements: $1,737.20 (Part A) + $424.70 (Part B) = $2,161.90
- Total annual benefit: Approximately $13,000
Case Study 2: Couple with One Income
Mark and Lisa have three children aged 2, 6, and 10. Mark earns $90,000 as the sole income earner while Lisa stays home with the children.
- FTB Part A: Approximately $450 per fortnight ($150 per child)
- FTB Part B: Approximately $182 per fortnight (maximum rate as primary earner is under $100,000)
- Annual supplements: $2,605.80 (Part A) + $424.70 (Part B) = $3,030.50
- Total annual benefit: Approximately $16,500
Case Study 3: High Income Family
David and Emma have one child aged 3. David earns $140,000 and Emma earns $80,000.
- FTB Part A: Approximately $50 per fortnight (reduced due to high income)
- FTB Part B: $0 (income exceeds threshold)
- Annual supplements: $868.60 (Part A only)
- Total annual benefit: Approximately $1,868
Frequently Asked Questions
Q: Do I need to apply for FTB every year?
A: No, once you’re receiving FTB, you don’t need to reapply each year. However, you must lodge your tax return each year to continue receiving payments and any supplements.
Q: Can I receive FTB if I’m on Parenting Payment?
A: Yes, you can receive both payments, but your FTB may be affected by your Parenting Payment.
Q: How often is FTB paid?
A: FTB is typically paid fortnightly, but you can choose to receive it as a lump sum after the end of the financial year.
Q: What if I separate from my partner?
A: You must notify Services Australia within 14 days of any change in your relationship status, as this can significantly affect your FTB payments.
Q: Can I get FTB if my child is in boarding school?
A: Yes, you may still be eligible for FTB if your child is in boarding school, but the amount may be affected depending on your child’s age and the care arrangements.
Expert Tips for Managing Your Family Tax Benefit
To make the most of your FTB payments, consider these expert recommendations:
- Set up a dedicated savings account: Consider depositing your FTB payments into a separate account earmarked for child-related expenses.
- Use the payments for long-term benefits: While FTB can help with day-to-day expenses, consider using some of it for your children’s future, such as education funds.
- Stay informed about changes: FTB rates and rules change regularly. Subscribe to updates from Services Australia or follow reputable financial news sources.
- Use the online estimators: Services Australia provides online tools to estimate your payments before you apply.
- Consider professional advice: If your financial situation is complex, a financial advisor specializing in government benefits can help you optimize your payments.
- Keep good records: Maintain records of your income, expenses, and any changes in circumstances that might affect your payments.
- Be aware of payment options: You can choose to receive FTB fortnightly or as a lump sum. Consider which option works best for your financial management style.
Where to Get Help and More Information
If you need assistance with your Family Tax Benefit, these resources can help:
- Services Australia:
- Website: servicesaustralia.gov.au
- Phone: 136 150 (Families line)
- Financial Information Service: Free financial education and information service provided by Services Australia
- Registered tax agents: Can provide advice on how FTB interacts with your tax situation
- Community legal centres: Can provide free legal advice about your rights and entitlements
- Family relationship services: Can help with issues related to shared care arrangements
For the most accurate and up-to-date information, always refer to the official Services Australia website or contact them directly.
Important Considerations for 2024-25
Looking ahead to the 2024-25 financial year, there are several factors that may affect FTB rates and eligibility:
- Indexation: FTB rates are typically indexed in July each year in line with inflation. With current economic conditions, we may see a significant increase in 2024.
- Cost of living adjustments: The government may introduce additional cost-of-living relief measures that could affect FTB recipients.
- Policy changes: Always stay informed about potential policy changes announced in the federal budget.
- Income reporting: With the ATO’s increased data-matching capabilities, it’s more important than ever to accurately report your income.
- Digital services: Services Australia continues to expand its digital services, making it easier to manage your payments online.
As always, the most reliable source for the latest information is the official Services Australia website.
Comparing FTB with Other Countries’ Family Payments
Australia’s Family Tax Benefit system is just one approach to supporting families. Here’s how it compares to similar programs in other countries:
| Country | Program Name | Key Features | Maximum Payment (approx. AUD) |
|---|---|---|---|
| Australia | Family Tax Benefit | Two-part payment (A per child, B per family), income-tested, paid fortnightly | $212.70 per child per fortnight (Part A) |
| United Kingdom | Child Benefit | Universal payment (though high earners pay tax charge), paid weekly or monthly | $30.60 per child per week |
| Canada | Canada Child Benefit | Income-tested, tax-free monthly payment, more generous for lower-income families | $450 per child per month |
| New Zealand | Working for Families | Income-tested, includes several different payments, paid weekly | $180 per week (for first child) |
| United States | Child Tax Credit | Partially refundable tax credit, paid annually with tax return (though 2021 had monthly payments) | $2,000 per child per year |
While Australia’s FTB system is more targeted than some universal programs (like the UK’s Child Benefit), it provides more substantial support to lower-income families compared to systems like the US Child Tax Credit.
The Future of Family Payments in Australia
As Australia’s economic and social landscape evolves, so too does the family payment system. Some potential future developments might include:
- Increased targeting: Further focusing payments on those most in need
- Simplification: Reducing the complexity of the current two-part system
- Integration with childcare support: Better aligning FTB with the Child Care Subsidy
- More frequent adjustments: Moving from annual to more frequent indexation
- Digital delivery: Enhanced online services and mobile apps for managing payments
- Early childhood focus: Additional support for families with very young children
Any changes would likely be designed to balance fiscal responsibility with adequate support for families, particularly those facing financial hardship.
Final Thoughts
The Family Tax Benefit system plays a crucial role in supporting Australian families with the costs of raising children. While the calculation process can seem complex, understanding how the system works can help you maximize your entitlements and better plan your family budget.
Remember that your individual circumstances will determine your exact payment amount, and these can change over time. Regularly reviewing your situation and staying informed about any changes to the FTB system will help ensure you receive all the support you’re entitled to.
If you’re ever unsure about your eligibility or payment amounts, don’t hesitate to contact Services Australia for personalized advice. The FTB system is designed to help families, and making sure you receive your correct entitlement can make a significant difference to your family’s financial wellbeing.
For the most accurate and personalized information, always refer to the official Services Australia Family Tax Benefit page or consult with a financial advisor who specializes in government benefits.