Raising children in Australia can be financially demanding. To alleviate some of these costs, the Australian government provides the Family Tax Benefit (FTB), a two-part payment system designed to support families.
In 2025, eligible families may receive up to $6,442.25 annually through this program. Understanding the eligibility criteria, payment rates, and application process is crucial for families aiming to maximize their benefits.
Overview of the Family Tax Benefit
The FTB is divided into two components: Part A and Part B, each catering to different family circumstances.
Family Tax Benefit Part A (FTB Part A)
FTB Part A assists families with the everyday costs of raising children. The payment amount varies based on the family’s income and the age of each child.
Payment Rates for 2025:
| Age of Child | Maximum Fortnightly Payment | Annual Supplement |
|---|---|---|
| 0 to 12 years | $222.04 | $916.15 |
| 13 to 15 years | $288.82 | $916.15 |
| 16 to 19 years (studying) | $288.82 | $916.15 |
Income Thresholds:
- Base Rate Income Limit: Families with an annual income up to $65,189 may receive the maximum rate.
- Tapering: Payments reduce as income exceeds this threshold.
Family Tax Benefit Part B (FTB Part B)
FTB Part B provides additional assistance to single-parent families and families with one main income earner. The payment is determined by the age of the youngest child.
Payment Rates for 2025:
| Age of Youngest Child | Maximum Annual Payment |
|---|---|
| Under 5 years | $4,923.85 |
| 5 to 18 years | $3,434.65 |
Income Limits:
- Single Parents: No income test applies.
- Couples: The primary earner’s income must be $100,900 or less per year.
Eligibility Criteria
To qualify for FTB Parts A and B, applicants must:
- Have a dependent child or a full-time secondary student aged 16 to 19 who isn’t receiving certain payments like Youth Allowance.
- Provide care for the child for at least 35% of the time.
- Meet Australian residency requirements.
- Ensure the child meets immunization and health check requirements.
Application Process
Families can apply for the Family Tax Benefit through:
- Online Application: Via a myGov account linked to Centrelink.
- In-Person Application: At a local Services Australia office.
Required Documentation:
- Proof of identity (e.g., passport, driver’s license).
- Tax File Number (TFN).
- Birth certificates or school enrollment records for children.
Payment Options and Important Dates
Families can choose to receive payments:
- Fortnightly: Regular payments throughout the year.
- Lump Sum: After the financial year ends, upon lodging a tax return and confirming income.
The Australian financial year runs from July 1 to June 30. After this period, Services Australia will balance payments to ensure accuracy, typically after tax returns are lodged.
Additional Benefits
Families receiving the Family Tax Benefit may also be eligible for:
- Rent Assistance: For those renting privately and receiving FTB Part A.
- Health Care Card: Automatically issued to families receiving the maximum rate of FTB Part A, granting access to reduced-cost prescription medicines and other concessions.
FAQs
What is the maximum annual payment for FTB Part A in 2025?
Eligible families can receive up to $6,442.25 per child annually through FTB Part A.
How does shared care affect FTB payments?
If care is shared, payments are adjusted based on the percentage of care provided.
How are FTB payments affected by income?
Payments are income-tested and may reduce or cease as family income increases beyond specified thresholds.