What Is Family Tax Benefit Part B? Extra Support for Single Parents and One-Income Families
Published on June 16, 2025
Juggling family finances can be challenging, especially when you’re raising children on a single income or as a single parent. The rising costs of childcare, education, and daily expenses can put significant pressure on families with limited income sources. Family Tax Benefit (FTB) Part B is an Australian government payment specifically designed to provide extra support and financial assistance to single parents, grandparent carers, and families with one main income earner. This tax benefit recognises the unique financial challenges these families face and offers targeted help to ease the burden.
What Family Tax Benefit Part B Is and How It Works
Family Tax Benefit Part B is a government payment that provides additional financial assistance to families with particular needs. Unlike Family Tax Benefit Part A, which helps with the general costs of raising children, FTB Part B specifically targets families that may have reduced capacity to earn income because they’re either single parents or have only one main income earner. This tax benefit acknowledges that some parents and carers have different abilities to engage with the workforce due to their caring responsibilities and the age of their youngest child.
FTB Part B is paid per family rather than per dependent child, with payment rates depending on the age of your youngest child and your family situation. The benefit can be received as a fortnightly payment throughout the year or as a yearly payment after the end of the financial year. This flexibility allows eligible families to choose the payment option that best suits their financial needs and management style.
For many Australian families, Family Tax Benefit Part B provides essential support that helps cover everyday expenses, allowing parents to better focus on raising children while maintaining financial stability. The payment is also indexed regularly to keep pace with the cost of living, ensuring that the support remains meaningful for recipient families.
Optimise Your Tax Position with Professional Planning
Our tax planning services help you organise your financial affairs, minimise tax liabilities, and ensure full compliance with Australian tax laws.
Eligibility Requirements for Family Tax Benefit Part B
Understanding if you qualify for Family Tax Benefit Part B is the first step toward accessing this extra support. The eligibility criteria differ slightly depending on your family situation, but there are several core requirements that apply to everyone.
Single Parents and Carers
If you’re a single parent or a single carer (including grandparent carers and non-parent carers), you may be eligible for FTB Part B if you care for a dependent child aged under 18. For children aged 16 to 18, they must meet the acceptable study load, which typically means being a full-time secondary student or in an approved course that leads to an equivalent qualification. Single parents with an annual adjusted taxable income (family’s income) of $117,194 or less automatically qualify for the maximum rate of FTB Part B.
For single grandparent carers, special provisions apply. You can receive FTB Part B until the end of the calendar year your youngest child turns 18 (provided they meet full time secondary study requirements if aged 16-18), and you’ll get the maximum rate if your income is $117,194 or less.
Couple Families with One Main Income
For couple families, the eligibility rules are more specific. You may qualify for FTB Part B if you’re a member of a couple with one main income and care for a dependent child aged under 13. The benefit is designed to support families where one parent may have reduced work capacity because they’re caring for young children.
For partnered carer families, a two-part income test determines eligibility and payment rates. The primary earner (the parent with the higher income) must earn $117,194 or less per year. If they meet this income limit, we then look at the secondary earner’s income to calculate the part B payment.
Additional Eligibility Requirements
Regardless of your family structure, you must also:
Care for the child at least 35% of the time
Meet Australian residency requirements
Not be receiving Parental Leave Pay for the same period (you can’t get both simultaneously)
These requirements ensure that Family Tax Benefit Part B targets those who are actively caring for children and have established ties to Australia.
How Income Tests Affect Your Family Tax Benefit Part B Payment
The amount of FTB Part B you receive depends on your family’s income, with different income tests applying to different family situations. Understanding these tests can help you estimate your potential payment.
Single Parent Income Test
For single parents and single carer families, the income test is straightforward. If your annual adjusted taxable income is $117,194 or less, you can receive the maximum rate of FTB Part B. This simple approach recognises the financial challenges single parents face and provides them with certainty about their entitlement.
Couple Family Income Test
For couple families, the income test has two parts. First, the primary earner earns $117,194 or less annually. If the higher income earner exceeds this threshold, the family is not eligible for FTB Part B regardless of the secondary earner’s income.
If the primary earner’s income is under the threshold, we then look at the secondary earner’s income. The secondary earner can earn up to $6,789 each year before it affects the FTB Part B payment. After this threshold, payments reduce by 20 cents for each dollar earned above $6,789.
Partnered carer families can still receive some FTB Part B if the secondary earner’s income is below:
$33,653 a year if the youngest child is under 5 years of age
$26,207 a year if the youngest child is 5 to 13 years of age
This sliding scale ensures that assistance is progressively targeted toward families with greater financial need while still providing some support to those with moderate secondary incomes.
How Payment Reductions Work
Understanding how payment reductions work can help you plan your finances. For every dollar the secondary earner earns above $6,789, the FTB Part B payment reduces by 20 cents. This gradual reduction means that even if you earn somewhat more than the threshold, you may still receive partial payments.
For example, if the secondary earner earns $10,000 per year, that’s $3,211 above the $6,789 threshold. The payment would reduce by 20% of $3,211, which is $642.20 per year. This means the family would still receive a substantial portion of the maximum rate of FTB Part B.
Current Payment Rates for Family Tax Benefit Part B
The payment rates for FTB Part B vary based on the age of your youngest child. These rates are regularly updated to reflect changes in the cost of living.
Maximum Fortnightly Rates
For the 2024-25 financial year, the maximum fortnightly payment rates are:
$188.86 when your youngest child is 0 to 4 years of age
$131.74 when your youngest child is 5 to 18 years of age
These rates reflect the understanding that younger children often require more intensive care, which may further limit a parent’s capacity to work full-time.
Annual Supplement
Families who qualify can get an extra Family Tax Benefit Part B payment on top of their usual amount. For the 2024-25 year, this extra payment can be as much as $448.95 per family. It is given after the end of the financial year, once you have either submitted your tax return or let Services Australia know you do not need to submit one.
The supplement amount depends on your share of care for your child, your family’s income, and the number of days you were eligible for Family Tax Benefit Part B during the year.
This payment can help with family costs, especially when extra expenses come up at the start of a new school year.
Confused if your income affects your FTB Part B payments?
Let us help you estimate your entitlements and avoid surprises.
Special Provisions for Parents Returning to Work
FTB Part B includes special provisions for parents who are returning to the workforce after taking time off to care for a child. If you’re returning to work for the first time after caring for a newborn or a child who has recently come into your care, you may be eligible for extra support.
For eligible families, the maximum rate of FTB Part B can be paid for the period of the financial year before you or your partner commenced or returned to work. This provision helps ease the transition back to work by maintaining financial assistance during this adjustment period.
To qualify for this assistance:
The person returning to work must be the lower income earner in the couple
They must be starting or returning to work for the first time after their child’s birth or since the child entered their care
You need to notify Services Australia about your return to work within 12 months from the end of the financial year in which you returned. This can be done through your Centrelink online account linked to the Services Australia website.
How to Apply for Family Tax Benefit Part B
Applying for FTB Part B is a straightforward process, but ensuring you have all the necessary documentation ready can make it even smoother.
Step-by-Step Application Process
Check if you’re eligible for FTB Part B using the criteria outlined earlier
Gather your required documentation (identification, child’s birth certificate, income details)
Apply through your myGov account linked to the Services Australia website
Navigate to the “Families” section and select “Apply for family assistance payment”
Complete the application form, providing all requested information
Submit your application and wait for confirmation
You can apply for FTB Part B as early as three months before your child is born, which can help you prepare financially for your new arrival.
Required Documentation
To complete your application, you’ll typically need:
Proof of identity (passport, driver’s license, Medicare card)
Your child’s birth certificate or other proof of care
Details of your current address and living arrangements
Information about your income and your partner’s income (if applicable)
Having these documents ready before starting your application can significantly speed up the process.
Managing Your Family Tax Benefit Part B
Once you start to receive FTB Part B, there are several important things to keep in mind to ensure you receive the correct amount and avoid potential issues.
Keeping Your Details Up to Date
It’s crucial to keep your family’s income estimate up to date so that Services Australia can pay you the right amount. If your circumstances change-for example, if your income earned increases or decreases significantly, or your relationship status changes-you should update your details as soon as possible.
This helps ensure you receive the correct payment amount and reduces the risk of overpayments that may need to be repaid later. Updates can be made through your Centrelink online account linked to the Services Australia website.
Tax Return Requirements
You and your partner (if applicable) must lodge an income tax return or inform Services Australia that you’re not required to lodge one within 12 months after the end of the relevant financial year. If you don’t meet this requirement, any FTB Part B you’ve received may need to be repaid.
Additionally, you may be prevented from receiving FTB Part B by fortnightly payment if you have outstanding income tax returns or related debts. Staying up to date with your tax obligations is essential for maintaining your payments.
Other Payments and Additional Support
Alongside Family Tax Benefit FTB, some families may be eligible for other payments such as Child Care Subsidy, Youth Allowance, or Multiple Birth Allowance. These payments provide further assistance for eligible childcare, education, and living expenses. If you’re a partnered grandparent carer or part of carer families, you may also be able to access additional support depending on your circumstances.
If you’re unsure about your eligibility for Family Tax Benefit Part B, other payments, or how to combine these supports, the Services Australia website is a helpful resource. You can also reach out to our team for guidance tailored to your situation.
Conclusion
Family Tax Benefit Part B provides valuable financial support to single parents, grandparent carers, and one-income families across Australia. By understanding the eligibility requirements, means test, income tests, and payment rates, you can determine if this benefit could help your family and how much you might receive.
At ACT Tax Group, we understand that applying for government benefits like Family Tax Benefit Part B can sometimes feel overwhelming. Our approachable team is here to help you understand your entitlements, estimate your maximum rate, and ensure you’re receiving all the financial assistance available to you. We can assist with updating your details, clarifying residency requirements, and making sure you meet all the steps to receive FTB Part B.
Lukasz Klekowski
