Family Tax Benefit Part A vs Part B: Understanding Payment Structures and Eligibility

How Payment Rates and Income Tests Work

Payment rates for Family Tax Benefit are set by the government and depend on your family’s income, how many children you have, their ages, and whether you receive other payments like Youth Allowance or child support. The means test, or income test, is used to work out how much you can receive.

FTB Part A

For FTB Part A, the maximum rate is paid to families with lower incomes. As your family income increases, your payment reduces based on the income test. For example, if you have one dependent child under 13, the maximum rate per fortnight is different from the rate for a child aged 13 to 19. Families with more children or a dependent child with a disability may receive higher payments, and there’s a yearly payment called the FTB Part A supplement, which is paid after the end of the financial year if you meet the eligibility rules.

FTB Part B

FTB Part B has a different income test. Single parents can receive the maximum rate as long as their income is under the set limit. For couples, the payment depends on the income of the secondary earner. If the secondary earner’s income goes above a certain amount, the payment will reduce. The maximum rate is paid if your youngest child is under five, and a lower rate applies if your youngest child is aged five to 18. Grandparent carers and non-parent carers may also be eligible for the maximum rate, depending on their circumstances.

How to Claim Family Tax Benefit and Manage Your Payments

You can claim Family Tax Benefit online through your myGov account, which links to the Services Australia website. This makes it easy to update your details, check your payment rates, and see if you’re eligible for other payments or support. When you claim, you’ll need to provide details about your family’s income, how many children you have, their ages, and whether they’re in full-time secondary study.

Payments are usually made as a fortnightly payment, but you can also choose to receive a lump sum at the end of the financial year. This can be helpful if your family income changes during the year or if you want to avoid overpayments. If you receive child support, this may also affect your FTB Part A payment rate, as Services Australia uses your child support assessment as part of the income test.

If your family’s circumstances change, such as a new baby, a change in your main income, or if your child leaves full-time secondary study, it’s important to update your details with Services Australia. This helps make sure you receive the right payment and avoid any debts or overpayments.

Extra Support and Allowances

In addition to the main FTB payments, eligible families may receive extra support. For example, the Multiple Birth Allowance is available if you have triplets or more, and there are extra payments for families with a dependent child who needs additional care. If you care for a child at least 35% of the time but are not their parent, you may be eligible as a non-parent carer.

There are also rules about immunisation and Healthy Start for School requirements. If your child doesn’t meet these, your payment may be affected. Families who receive Youth Allowance care for older children may also see changes in their FTB payment rates.

Understanding the Key Differences Between FTB Part A and Part B

While both parts of the Family Tax Benefit provide financial assistance to families, there are some key differences:

• FTB Part A is available to a wider range of families, including couples and single parents, and is based on how many children you have, their ages, and your family income.

• FTB Part B is mainly for single parent families or couples with one main income earner, and the payment rate depends on the age of your youngest child and the income of the secondary earner.

• Both payments have income tests, but the rules and thresholds are different.

• You can claim both FTB Part A and Part B if you meet the eligibility rules, but you can’t receive Parental Leave Pay and FTB Part B for the same period.

• Payments can be made fortnightly or as a lump sum after the end of the financial year.

What to Do Next

If you think you might be eligible for Family Tax Benefit, you can check your eligibility, payment rates, and claim online using your myGov account or by visiting the Services Australia website. Make sure to keep your details up to date, especially if your family’s income or circumstances change during the year.

Remember, the Family Tax Benefit is there to help with the cost of raising children and to support families with caring responsibilities. Whether you’re a single parent, a grandparent carer, or part of a couple with one main income, understanding how FTB Part A and Part B work can help you get the support you need.

Conclusion

Family Tax Benefit Part A and Part B offer important financial assistance to Australian families, each designed for different situations and needs. By understanding the eligibility rules, payment rates, income tests, and how to claim, you can make sure your family receives the right support. If you’re unsure about your situation or want to speak to someone about your options, the Services Australia website has resources to help, or you can contact their team directly.

Take a moment to review your family’s income, how many children you have, and your caring responsibilities. Keeping your details up to date and understanding your entitlements can help you manage the cost of raising children and make the most of the support available.