Income test for family tax benefit

Income test for Family Tax Benefit Part A

The income test for Family Tax Benefit Part A is a guide only, and is updated on 1 July each year.

The income test does not apply if you or your partner gets an income-support payment, such as a pension, benefit, or allowance or a Department of Veterans’ Affairs service pension.

Income test

If your family’s adjusted taxable income for this financial year is $47 815 or less, your payment will not be affected by the income test.

If your adjusted taxable income is more than $47 815 for this financial year, your payment will reduce by 20 cents for each dollar above $47 815 until your payment reaches the base rate of Family Tax Benefit Part A.

Your Family Tax Benefit Part A will stay at that rate until your family’s adjusted taxable income reaches $94 316 a year (plus $3796 for each Family Tax Benefit child after the first). Family Tax Benefit Part A will reduce by 30 cents for every dollar over that amount until your payment reaches nil.

If your family income is close to the limit cut-off, you should check your eligibility after the end of the financial year, once your actual income is known.

Maintenance-income test

If you get more than the base rate of Family Tax Benefit Part A, a maintenance income test may also apply.

The maintenance-income test applies if you or your partner receives or is entitled to receive child-support or spousal maintenance and you’re eligible to get more than the base rate of Family Tax Benefit Part A. If you or your partner is permanently blind and on specific pension payments, you may be exempt from the maintenance-income test.

Maintenance-income-test free areas (per year)

If you get more child-support / spousal maintenance than the amounts below, it may reduce your Family Tax Benefit Part A by 50 cents in the dollar, until it reaches the base rate of Family Tax Benefit Part A.

 

Status Child support received (per year)
Single parent or member of a couple, receiving maintenance $1 445.40
Couple, both receiving maintenance $2 890.80
For each additional child, add $481.80

We may automatically adjust your regular payments to avoid or reduce a projected Family Tax Benefit overpayment. This will apply to you if you get your payment in fortnightly instalments.

Annual-income limit for payment of base rate:

For financial year: 2012–2013

Number of children aged 0–12 years Number of children of 13–15 years or secondary students of 16–19 years

Nil

1

2

3

Nil

$69 496

$91 177

$112 858

1

$62 853

$84 534

$106 215

$127 896

2

$77 891

$99 572

$121 253

$142 934

3

$92 929

$114 610

$136 291

$157 972

Note: Income limits are indicative only, please contact us for a more accurate assessment based on your circumstances.

Income limits will be higher if you are eligible for Rent Assistance.
Children aged 16 or more who have completed Year 12 are eligible for the base rate only.

Maximum adjusted taxable income limit

These are the annual income limits at which Family Tax Benefit Part A including the supplement stops.

For financial year: 2012–2013

Number of children aged 0–12 years Number of children of 13–15 years or secondary students of 16–19 years

Nil

1

2

3

Nil

$101 458

$112 603

$146 530

1

$101 458

$112 396

$139 887

$173 813

2

$112 396

$133 244

$167 170

$201 097

3

$126 601

$160 527

$194 454

$228 381

Note: Income limits are indicative only, please contact us for a more accurate assessment based on your circumstances.
Income limit is higher if families are eligible for Multiple Birth Allowance. Families with income approaching these amounts may elect to be paid the Family Tax Benefit at a lower rate or at the end of the income year to reduce or avoid overpayment. Different income limits apply to families with children aged 16-21 who are not secondary students.

 

Income test for Family Tax Benefit Part B

This income test for Family Tax Benefit Part B is updated on 1 July each year.

Family Tax Benefit Part B is for families (single parent or couple) in which the primary earner has an adjusted taxable income of $150 000 or less per year.

If you are a single-parent family with an annual adjusted taxable income of more than $150 000, you will not be eligible for Family Tax Benefit Part B. If your income is at or below this limit you will continue to get the maximum rate of Family Tax Benefit Part B.

If you are a two-parent family in which your primary earner has an annual adjusted taxable income of more than $150 000, you will not be eligible for Family Tax Benefit Part B. This is regardless of the lower income of the other parent.

If the primary earner’s income is at or below this limit, Family Tax Benefit Part B will be assessed on the basis of the second earner’s income. Secondary earners can earn up to $5037 each year before it affects the rate of Family Tax Benefit Part B.

Payments are reduced by 20 cents for each dollar of income earned over $5037.

If you are the secondary earner and your partner earns $150 000 or less, you can still get some Family Tax Benefit Part B if your income is below:

$25 623 a year, if your youngest child is under five years of age, or
$19 929 a year, if your youngest child is 5–18 years of age.

You and your partner cannot receive Family Tax Benefit Part B during a Paid Parental Leaveperiod, but it may be paid after the Paid Parental Leave period ends.

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

 

Payment rates of Family Tax Benefit Part A

The amount of Family Tax Benefit Part A you get paid depends on your actual family income, how many children you have, and how old they are.

Maximum payment rates

These are the maximum amounts of Family Tax Benefit Part A you can get for each child, these rates are updated on 1 July each year.

For each child Per fortnight
0–12 $169.68
13–15 $220.64
16–19, secondary student $220.64
16–17, having completed secondary study $54.32
18–21, having completed secondary study $72.80
In an approved care organisation
Up to 21 years old $54.32

Approved care organisations provide residential care for young people—for example, for young people who are homeless, are refugees, or have a disability.

Note: because the Family Tax Benefit Part A supplement is paid after the end of the financial year, the amount is not included in the fortnightly figures.

Base rate of Family Tax Benefit Part A

These are the base amounts of Family Tax Benefit Part A you can get for each child.

For each child Per fortnight
under 18 years $54.32
18–19 years, secondary student* $54.32
18–21 years $72.80

*For full-time secondary students who were FTB children before 1 January 2012 and who turned 18 before that date, the base rate remains at $72.80 per fortnight.

Note: Family Tax Benefit Part A supplement is paid after the end of the financial year once your income details are confirmed by the Australian Taxation Office. The amount is not included in the fortnightly figures.

Family Tax Benefit Part A supplement

You can also get Family Tax Benefit Part A Supplement of up to $726.35 for each child, when your payments have been balanced after the end of the financial year. This will happen after you and your partner have lodged your tax returns and your income details are confirmed by the Australian Taxation Office. The amount of supplement payable may depend on your family income or circumstances.

If your child is turning four years old and you receive an income support payment from Centrelink or the Department of Veterans’ Affairs, your supplement may be withheld if your child does not get a health check to ensure they are healthy, fit and ready to learn when they start school.

The supplement may also be withheld if a child is not fully immunised at age one, two and five. To meet the immunisation requirements, children will need to be ‘fully immunised’, be on a recognised immunised catch up schedule, or have an approved exemption.

Large Family Supplement

You may get $11.76 a fortnight for your third and each subsequent child.

Multiple Birth Allowance

You may get $140.84 a fortnight for triplets or $187.80 a fortnight for quadruplets or more for whom you get Family Tax Benefit Part A. You do not need to lodge a separate claim for this payment.

Child support

To receive more than the base rate of Family Tax Benefit Part A for a child from a previous relationship, you or your partner must take reasonable action to obtain child support. To apply for child support from the other parent of the child, you or your partner should contact your nearest us on 131 272.

If there is anything that makes it difficult for you or your partner to apply for child support from the other parent, or you or your partner are unsure of what to do, you should contact us to discuss the situation.

Shared care

If you share the care of your child, there are special rules about how much Family Tax Benefit you can be paid. It is important to tell us if shared-care arrangements change.

Payment adjustments and reviews

When you or your partner lodges your tax return/s or advises that you aren’t required to lodge them, your annual entitlement, based on your actual income, will be compared with the entitlement you received on the basis of the estimate you had given.

If you overestimate your actual annual family income during the year, you may get a top-up after the end of the year.

If you underestimate your annual family income during the year and you have been paid too much, you’ll have to repay any Family Tax Benefit you shouldn’t have received.

Payment rates of Family Tax Benefit Part B

The amount of Family Tax Benefit Part B you get usually depends on the age of your youngest child.

You (and/or your partner) cannot receive Family Tax Benefit Part B during a Paid Parental Leave period. Use our Online Estimators to estimate or compare the Family Tax Benefit you may get, based on your current or proposed circumstances.

Maximum rate of Family Tax Benefit Part B

These are the maximum amounts of Family Tax Benefit Part B you can get per family. These payment rates are updated on 1 July each year.

Age of youngest child Maximum rates of payment
Each fortnight Each year
under 5 $144.34 $4117.20
5–18 $100.66 $2978.40

Note: payment-per-year figures include the Family Tax Benefit Part B supplement ($354.05 per family for the 2012–13 financial year), but the fortnightly figures do not. The supplement can only be paid after the end of the financial year.

Family Tax Benefit Part B supplement

You can get a Family Tax Benefit Part B supplement of up to $354.05 per family after the end of the financial year, when your payments have been balanced. This will happen after you and your partner have lodged your tax return/s. The amount of supplement payable may vary depending on family income or circumstances. (If you and/or your partner aren’t required to lodge a tax return, you must tell us.)

Income test

An income test is used to work out how much Family Tax Benefit Part B you can get.

Shared care

If you share the care of your child, there are special rules about how much Family Tax Benefit you can be paid. It is important to tell us if shared-care arrangements change.

Payment adjustments and reviews

When you and your partner lodge your tax returns or advise that you aren’t required to lodge them, your annual entitlement, based on your actual income, will be compared with the entitlement you received on the basis of the estimate you had given.

If you overestimated your annual family income during the year, you may get a top-up after the end of the year.

If you underestimated your annual family income during the year and you’ve been paid too much, you’ll have to repay any Family Tax Benefit you shouldn’t have received.

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