What Is Family Tax Benefit Part A? Payment Rates, Eligibility, and How to Apply

FTB Part A Payment Rates (2024-25 Financial Year)

The maximum payment rates for Family Tax Benefit Part A depend on the age of your children. For the 2024-25 financial year, the rates are:

Maximum Fortnightly Rates

• $222.04 per fortnight for each child aged 0 to 12 year

• $288.82 per fortnight for each child aged 13 to 15 years

• $288.82 per fortnight for each child aged 16 to 19 years who meets the study requirements

• $71.26 per fortnight for each child in an approved care organisation

Base Rate

The base rate of FTB Part A is $71.26 per fortnight for each eligible child, regardless of age. This is the minimum amount you may receive before income testing potentially reduces your payment further.

FTB Part A Supplement

In addition to regular payments, eligible families may receive the FTB Part A supplement after the end of the financial year. For the 2024-25 financial year, this supplement is up to $916.15 per child. To qualify for this supplement, your family’s adjusted taxable income must be $80,000 or less.

Eligibility Criteria for FTB Part A

To be eligible for Family Tax Benefit Part A, you must meet several criteria related to your child, your residence status, and care arrangements.

Child Requirements

You can get FTB Part A if you care for a dependent child who is aged 0 to 15, or aged 16 to 19 and meets the study rules.

A child aged 16 to 19 must be in full-time secondary study, have an approved study load, or have an exemption.

Residence Rules

To qualify for FTB Part A, you must be living in Australia and an Australian citizen, hold a permanent visa, hold a Special Category visa, or hold a temporary visa (such as a partner provisional or temporary protection visa).

Your child must also meet these residence rules or be living with you. Newly arrived residents generally have to wait one year (52 weeks) before becoming eligible for FTB Part A, though exemptions may apply.

Care Requirements

You must care for the child at least 35% of the time to be eligible for FTB Part A. If you share care of your child, your payment rate will be adjusted based on the percentage of time you care for the child.

Immunisation and Health Check Requirements

Your child needs to meet immunisation requirements and Healthy Start for School requirements (if applicable). FTB Part A payments may be reduced if your child doesn’t meet these requirements.

Income Tests and Thresholds

The amount of FTB Part A you receive depends on your family’s income. Multiple income tests determine how much you’ll get.

Income $65,189 or Less

If your family’s adjusted taxable income is $65,189 or less per year, you may receive the maximum rate of FTB Part A. This represents the threshold for full payment eligibility.

Income Between $65,189 and $115,997

For families with income in this range, FTB Part A reduces by 20 cents for each dollar earned above $65,189 until it reaches the base rate of $71.26 per fortnight per child.

Income Over $115,997

If your family’s income exceeds $115,997, your FTB Part A payment reduces further by 30 cents for each dollar over this amount until the payment reaches zero.

Income Thresholds Where FTB Part A Stops

The income limit at which FTB Part A payments stop entirely depends on how many children you have and their ages. For example:

• For one child aged 0-12: payments stop at $122,190 family income

• For two children aged 0-12: payments stop at $128,383 family income

• For three children aged 0-12: payments stop at $140,014 family income

For families with more children or children in different age brackets, the income limits are higher.

How to Apply for FTB Part A

There are several ways to apply for Family Tax Benefit Part A, with the online method being the most efficient.

Applying Online Through myGov

To apply online, sign in to your myGov account. Select “Make a claim or view claim status,” then choose “Make a claim.” Under “Families,” select “Get started.” Next, choose “Apply for Family Assistance Payments (including Paid Parental Leave)” and follow the prompts. If you do not have a myGov account or have not linked Centrelink to your account, you will need to do this first.

Required Information and Documentation

When applying, you’ll need to provide your family’s income details, your partner’s residence details if applicable, tax file numbers for you and your partner, bank account details in your name or a joint account, details about your child including their name and date of birth, proof of birth or adoption if not already established, and details of shared care arrangements if applicable.

Alternative Application Methods

If you can’t apply online, you can call the Centrelink families line or print and complete the Claim for an annual lump sum payment of Family Tax Benefit form.

Payment Options and Considerations

Fortnightly Payments vs. Lump Sum

You can choose to receive FTB Part A as:

• Fortnightly payments throughout the year, or

• An annual lump sum after the end of the financial year

The lump sum option may be preferable if your income fluctuates or if you’re close to the income thresholds, as it can help avoid potential overpayments that would need to be repaid.

Balancing Payments

After the end of the financial year, Services Australia will reconcile your payments based on your actual income. If you received less than you were entitled to, you may get a top-up payment. If you received more, you may need to repay the excess.

Additional Supplements and Benefits

Rent Assistance

If you receive more than the base rate of FTB Part A and pay private rent, you may be eligible for Rent Assistance to help with housing costs.

Energy Supplement

This is paid automatically with FTB Part A to help with household energy costs.

Multiple Birth Allowance

Families with triplets or more children born during the same multiple birth may be eligible for Multiple Birth Allowance until the children are 16 years of age (or up to 18 if still studying full-time):

• For triplets: $152.88 per fortnight or $3,985.80 per year

• For quadruplets or more: $203.56 per fortnight or $5,307.10 per year

Newborn Supplement and Upfront Payment

If you have a new baby or adopt a child, you may receive the Newborn Supplement and Newborn Upfront Payment. The Upfront Payment is $532, with the total supplement worth up to $2,127.23 for a first child and up to $1,064.35 for subsequent children.

Common Questions and Considerations

What Happens If My Income or Circumstances Change?

You must notify Services Australia promptly if your circumstances change, such as:

• Income increases or decreases

• Relationship status changes

• Care arrangements for your children change

• You or your child leave Australia

Failure to report changes could result in overpayments that you’ll need to repay.

Tax Implications

FTB Part A payments are not taxable and don’t need to be declared as income on your tax return. However, your taxable income affects how much FTB you receive, so it’s important to lodge your tax return on time each year.

Conclusion

Family Tax Benefit Part A provides crucial financial support to Australian families raising children. Understanding the eligibility criteria, payment rates, and application process can help ensure you receive your full entitlements. With payment rates updated for the 2024-25 financial year, now is an excellent time to review your circumstances and ensure you’re receiving the correct amount.

As financial circumstances can be complex, we recommend consulting with a professional tax advisor who can provide personalized advice based on your specific situation. At ACT Tax Group, we specialize in helping families navigate government benefits and optimize their tax positions.