“Although Australians no longer have tax deduction claims for most children related expenses that can be seen in countries like the United States, it does not mean there is no support. Australian government offers the Family Tax Benefit (FTB) which is a payment that helps eligible families with the costs of raising children.” – Roland Blazevic
The Family Tax Benefit consists of two parts; FTB- Part A and Part B.
FTB Part A
It is paid per-child and the amount paid is based on the family’s circumstances. It is available for families with an adjusted taxable family income below certain levels.
Are you eligible?
You may be eligible for FTB Part A if you care for a dependent child who is:
- 0 to 15 years of age, or
- 16 to 19 years of age and meets the study requirements
- You live in Australia on the day you claim FBT Part A
You must also:
- meet an income test
- meet residence requirements, and
- care for the child at least 35% of the time
- meet immunisation requirements
What must your children’s study requirements be to be eligible for FTB Part A?
Children aged 16 to 19 meet the study requirements if they:
- are in a full-time secondary study in an approved course leading towards a year 12 or equivalent qualification
- have an acceptable study load, or
- have been granted an exemption from us
FTB Part B
It is paid per-family and gives extra help to single parents, non-parent carer, a grandparent carer and some couple families with one main income.
You may be eligible if:
- You’re a member of a couple with one main income and care for a dependent child aged under 13, or
- You’re a single parent or non-parent carer, or a grandparent carer and care for a dependent child aged under 18. The child must meet study requirements if they’re aged 16 to 18
- You live in Australia on the day you claim FBT Part A
You must also:
- Meet an income test
- Meet residence requirements, and
- Care for the child at least 35% of the time
What must your children’s study requirements be to be eligible for FTB Part B?
Children aged 16 to 19 meet the study requirements if they:
- Are in a full-time secondary study in an approved course leading towards a year 12 or equivalent qualification
- Have an acceptable study load, or
- have been granted an exemption from us
How often do you get paid?
FTB can be paid either fortnightly or as a lump sum at the end of the financial year.
What is the income test?
As a general rule for both FTB Part A and Part B, the Australian Department of Human Services (ADHS) will use your adjusted taxable income to assess your eligibility for payments or services. Taxable income is your gross income minus allowable deductions such as wages, business investments and such. In other words, you are tested based on the income you have to pay tax on.
There are different types of income to take in consideration:
- taxable income
- foreign income
- tax-exempt foreign income
- total net investment losses
- reportable fringe benefits
- reportable superannuation contributions
- certain tax-free pensions or benefits, and
- superannuation income stream benefits, including both taxable and non-taxable components
*Please note that your partner’s income may also affect your adjusted taxable income.
Are there any other eligible payments for parents?
Families who are eligible for FTB may also be eligible for other payments and supplements. These may include:
Family Tax Benefits comes with many variables depending on the circumstance you may be in. To find out more, including details on your individual eligibility, requirements and how to apply, contact us on 9417 3511 or email us at enquiries@respl.com.au and we will guide you through the process.
