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Family Tax Benefits

 

Family Tax Benefit (FTB) has two parts, Part A and Part B.  You may be eligible for Part A, Part B or both.  FTB is not asset tested, but is income tested.  FTB is tax free.

 

Part A is paid for each dependent child you care for where the dependent child is aged under 15, and for those dependent children aged 16 to under 20 who are studying full-time.

 

Part B is designed to give extra help to families with one main income.  Family Tax Benefit Part B is paid per family not per child.  Part B can be paid until the youngest child turns 16 or until the end of the calendar year in which the youngest child turns 18 - provided the child is studying full-time and is not receiving a social security payment such as youth allowance or an education allowance such as ABSTUDY.

 

Note:

If you are entitled to more than the basic rate of FTB, you may be entitled to a Health Care Card and/or rent assistance. 

 

From 1 July 2009, FTB will no longer be claimable from the ATO Ė all claims will be administered by Centrelink or Medicare.  However, payment will be suspended if the familyís tax lodgements are not up to date within 18 months of the end of each financial year.    


FTB Part A - Rates & Limits

 

To receive the maximum rate of Family Tax Benefit Part A your annual adjusted taxable family income can be up to:

 

2016/2017       - $51,903

 

If your income is more than the above limit a year, your payment will reduce by 20 cents for each dollar above the income limit, until your payment reaches the base rate of Family Tax Benefit Part A.

 

The full FTB Part A Base Rate is paid between the annual family income levels in the table below and an annual family income of $94,316 (plus $3,796 for each FTB child after the first).  After that it will reduce by 30 cents in each dollar.  

 

Income limit at which annual Family Tax Benefit Part A may no longer paid:

 

2016/2017 
 

Number of children 0-12 years

Number of children 13-15 years or secondary student 16-19 years

No children

One

Two

Three

No children

-

$99,536

$115,085

$146,676

One

$99,536

$107,785

$139,376

$170,966

Two

$104,755

$132,076

$163,666

$195,257

Three

$124,766

$156,366

$187,957

$219,548

 

 

FTB Part A supplement income test

 

To be eligible for the supplement, your family's adjusted taxable income must be $80,000 or less. This applies from the 2016-17 financial year onwards.

 

FTB Part B - Rates & Limits

 

Single parent or carer family

 

If you are a single parent or carer family with an annual adjusted taxable income of more than $100,000, you will not be eligible for FTB Part B.

 

If your income is at or below this limit, you will continue to get the maximum rate of FTB Part B.

 

Two parents or carers family

If there are 2 parents or carers in your family and the primary earner has an annual adjusted taxable income of more than $100,000, you will not be eligible for FTB Part B. This is regardless of the lower income of the other parent or carer.

If the primary earnerís income is at or below this limit, FTB Part B will be assessed based on the secondary earnerís income. The secondary earner can earn up to $5,475 each year before it affects the rate of FTB Part B for which you are eligible.

Payments are reduced by 20 cents for each dollar of income earned over $5,475.

If you are the secondary earner and your partner earns $100,000 or less, you can still get some FTB Part B if your income is below:

  • $27,886 a year, if your youngest child is younger than 5 years of age, or
  • $21,663 a year, if your youngest child is 5 to 18 years of age

You and your partner cannot receive FTB Part B during your Parental Leave Pay period, but it may be paid after your Paid Parental Leave period ends.

We will automatically adjust your payments to avoid or reduce a projected FTB overpayment. This applies if you get your payment in fortnightly instalments.

Maximum rates of FTB Part B

 

Year

Age of youngest child is under 5 years

Age of youngest child is 5 to 15 years (or 16 - 18 years if a full-time student)

Per fortnight (excl. supp)

Annual Supplement

Per annum (incl. supp)

Per fortnight (excl. supp)

Annual Supplement

Per annum (incl. supp)

2016/2017

$155.54

$354.05

$4,409.20

$108.64

$354.05

$3,186.45

 

The amount of Family Tax Benefit Part B will reduce by 20 cents per annum for each dollar earned above the income limit.

 

 
         

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