Family Tax Benefit Explained: Part A, Part B and How Much You Could Receive
Family Tax Benefit explained: Part A, Part B, and how much you could receive
Family Tax Benefit is one of the most significant government payments available to Australian families- and one of the most misunderstood. Here's a plain-English breakdown of how both parts work, who qualifies, and what the income thresholds mean for your household.
Last updated: April 2026 · Services Australia-aligned 9 min read
In this article
- What is Family Tax Benefit?
- FTB Part A - the per-child payment
- How the Part A income test works
- FTB Part B - the per-family payment
- End-of-year supplements
- How it works in practice - scenarios
- How to claim and what to watch out for
- Frequently asked questions
What is Family Tax Benefit?
Family Tax Benefit (FTB) is a two-part government payment administered by Services Australia, designed to help with the cost of raising children. It can be paid fortnightly throughout the year, or as a lump sum after the end of the financial year once your tax return is lodged and your income is reconciled.
The two parts serve different purposes and have different eligibility rules- many families receive both, but they are calculated and assessed separately.
| Part | Paid | Purpose | Max rate 2025-26 |
|---|---|---|---|
| Part A | Per child | General cost of raising children | $227.36/fn (0-12) $295.82/fn (13-19) |
| Part B | Per family | Support where one parent earns less or isn't working | $193.34/fn (youngest <5) · $134.96/fn (youngest 5-13) |
|
$5,911 max Part A per year |
$5,027 max Part B per year |
$938 Part A supplement |
$460 Part B supplement |
FTB Part A - the per-child payment
Part A is the more widely accessed of the two payments. It is paid per eligible child and is income-tested against your household's Adjusted Taxable Income (ATI). The amount you receive depends on your income, the number of children you have, and their ages.
Eligibility
To receive FTB Part A you must:
- Have a dependent child aged 0-15, or aged 16-19 in full-time secondary study
- Care for the child at least 35% of the time
- Meet Australian residency requirements
- Have children who are up to date with their immunisations (or have an approved exemption)
- Have a household income below the relevant cut-out threshold
Payment rates 2025-26
| Rate type | Child age | Per fortnight | Per year |
|---|---|---|---|
| Maximum rate | 0-12 | $227.36 | $5,911 |
| Maximum rate | 13-19 | $295.82 | $7,691 |
| Base rate | All ages | $72.94 | $1,896 |
The base rate is the minimum fortnightly payment- once income testing reduces your payment to the base rate, a second income test kicks in and can reduce it further until payments stop entirely.
How the Part A income test works
This is where most families get confused- and understandably so. Part A uses two separate income tests, and Services Australia automatically applies whichever one gives you the higher payment.
Method 1- starts from the maximum rate
If your household Adjusted Taxable Income (ATI) exceeds $65,189, your payment reduces by 20 cents for every dollar above that threshold- until it reaches the base rate of $72.94 per fortnight per child.
Method 2- starts from the base rate
If your household ATI exceeds $94,316, your payment reduces from the base rate by 30 cents for every dollar above that threshold, until it reaches zero. The income level at which Part A cuts out entirely depends on the number and ages of your children- for a single child aged 0-12 it's approximately $107,000; for two children under 13 it's around $118,000.
Part A payment zones- household ATI
| Income range | What you receive |
|---|---|
| Under $65,189 | Maximum rate |
| $65,189 - ~$94,316 | Reduces by 20¢ per $1 above $65,189 (Method 1) |
| ~$94,316 - ~$107,000+ | Base rate only, then reduces by 30¢ per $1 (Method 2) |
| Above cut-out (varies by children) | No Part A payments |
FTB Part B- the per-family payment
Part B provides additional support to families where one parent or carer has a significantly lower income, or is not working. Unlike Part A, it is paid once per family- not per child- and the amount depends on the age of your youngest child and how income is split between earners.
Payment rates 2025-26
| Youngest child's age | Max per fortnight | Max per year |
|---|---|---|
| Under 5 | $193.34 | $5,027 |
| 5-13 (couples) or 5-18 (single parents) | $134.96 | $3,509 |
Single parents
Single parents and single carers can generally receive the full rate of Part B automatically if their Adjusted Taxable Income is below $120,007. You can continue to receive Part B until the end of the calendar year in which your youngest child turns 18, provided they are in full-time secondary study from age 16 onwards.
Partnered families- a two-step income test
Couples can only receive Part B if their youngest child is under 13. The assessment works in two steps:
Primary earner income test
The higher-income partner must earn below $120,007. If they earn more than this, the family receives no Part B regardless of the other partner's income.
Secondary earner income test
The lower-income partner can earn up to $6,935 before payments are affected. Above this, Part B reduces by 20 cents per dollar earned. Payments cut out entirely once the secondary earner's income reaches approximately $34,438 (youngest child under 5) or $26,828 (youngest child 5-13).
Part B and parental leave don't overlap
You cannot receive FTB Part B on the same days you receive government-funded Parental Leave Pay. If you have a parental leave period, your FTB payment is adjusted for the overlapping days. This is worth factoring into your planning when a baby arrives.
End-of-year supplements
In addition to regular fortnightly payments, eligible families may receive a lump sum supplement after the end of the financial year, once tax returns are lodged and income is reconciled. Both supplements are only available if your family's Adjusted Taxable Income is below $80,000.
| Supplement | Amount | Requirement |
|---|---|---|
| Part A supplement | Up to $938.05 per child | Family ATI under $80,000 · Tax return lodged |
| Part B supplement | Up to $459.90 per family | Family ATI under $80,000 · Tax return lodged |
The supplements are designed to act as a top-up for any underpayment during the year- for example, if your estimated income was higher than your actual income and your fortnightly payments were reduced accordingly. Both supplements are paid automatically after reconciliation; you don't need to claim them separately.
How it works in practice- scenarios
Scenario 1
Single parent, one child aged 3, income $52,000
| Part A- income below $65,189 → maximum rate | $5,911/yr |
| Part B- single parent, youngest under 5 → full rate | $5,027/yr |
| Part A supplement (income under $80k) | $938/yr |
| Part B supplement (income under $80k) | $460/yr |
| Estimated total FTB | ~$12,336/yr |
Scenario 2
Couple, one child aged 2, combined income $95,000 (primary earner $85k, secondary earner $10k)
| Part A- income above $65,189 → reduced rate (approx) | ~$2,300/yr |
| Part B- secondary earner $10k exceeds $6,935 → partial | ~$4,400/yr |
| Supplements- income above $80k | Not eligible |
| Estimated total FTB | ~$6,700/yr |
Scenario 3
Couple, two children aged 4 and 7, combined income $130,000 (both working)
| Part A- reduced rate based on income (2 children) | ~$3,800/yr |
| Part B- both parents working, secondary earner above cut-out | Not eligible |
| Supplements- income above $80k | Not eligible |
| Estimated total FTB | ~$3,800/yr |
Note: These are indicative estimates only. Actual payments depend on exact income, child ages, care arrangements, and Services Australia's reconciliation at year end.
How FTB rates change over time
Most FTB payment rates and income thresholds are indexed to inflation (CPI) each year on 1 July, which means the real value of payments is broadly maintained over time as the cost of living rises. The projections below assume 2.5% CPI growth per year- the midpoint of the RBA's target band- which is the standard assumption used in long-run financial planning.
There is one important exception: the $80,000 income cap for end-of-year supplements has not been indexed since it was introduced and remains fixed. As household incomes and the income free area both grow over time, an increasing number of families will find themselves above this threshold and ineligible for the supplement. By the early 2030s, the Part A income free area alone is projected to approach $80,000- meaning even families receiving the maximum fortnightly rate may lose access to the supplement entirely.
FTB Part A- projected maximum fortnightly rates per child
| Financial Year | Max rate (0-12) /fn | Max rate (0-12) /yr | Max rate (13-19) /fn | Base rate /fn |
|---|---|---|---|---|
| 2025-26 ✦ Current | $227.36 | $5,911 | $295.82 | $72.94 |
| 2026-27 projected | $233.04 | $6,059 | $303.22 | $74.76 |
| 2027-28 projected | $238.87 | $6,211 | $310.80 | $76.63 |
| 2028-29 projected | $244.84 | $6,366 | $318.57 | $78.55 |
| 2029-30 projected | $250.96 | $6,525 | $326.53 | $80.51 |
| 2030-31 projected | $257.24 | $6,688 | $334.69 | $82.52 |
| 2031-32 projected | $263.67 | $6,855 | $343.06 | $84.59 |
| 2032-33 projected | $270.26 | $7,027 | $351.64 | $86.70 |
| 2033-34 projected | $277.02 | $7,202 | $360.43 | $88.87 |
| 2034-35 projected | $283.94 | $7,382 | $369.44 | $91.09 |
FTB Part B- projected maximum rates per family (per fortnight)
| Financial Year | Youngest child under 5 /fn | Youngest child under 5 /yr | Youngest child 5+ /fn | Youngest child 5+ /yr |
|---|---|---|---|---|
| 2025-26 ✦ Current | $193.34 | $5,027 | $134.96 | $3,509 |
| 2026-27 projected | $198.17 | $5,153 | $138.33 | $3,597 |
| 2027-28 projected | $203.13 | $5,281 | $141.79 | $3,687 |
| 2028-29 projected | $208.21 | $5,413 | $145.34 | $3,779 |
| 2029-30 projected | $213.41 | $5,549 | $148.97 | $3,873 |
| 2030-31 projected | $218.75 | $5,687 | $152.69 | $3,970 |
| 2031-32 projected | $224.22 | $5,830 | $156.51 | $4,069 |
| 2032-33 projected | $229.82 | $5,975 | $160.43 | $4,171 |
| 2033-34 projected | $235.57 | $6,125 | $164.44 | $4,275 |
| 2034-35 projected | $241.46 | $6,278 | $168.55 | $4,382 |
End-of-year supplements and the fixed $80,000 cap
| Financial Year | Part A supplement /child | Part B supplement /family | Income cap (fixed) | Part A free area (indexed) |
|---|---|---|---|---|
| 2025-26 ✦ Current | $938 | $460 | $80,000 | $65,189 |
| 2027-28 projected | $986 | $483 | $80,000 | $68,489 |
| 2029-30 projected | $1,035 | $508 | $80,000 | $71,956 |
| 2031-32 projected | $1,088 | $533 | $80,000 | $75,599 |
| 2033-34 projected | $1,143 | $560 | $80,000 | $79,426 ⚠ |
| 2034-35 projected | $1,172 | $574 | $80,000 | $81,412 ⚠ |
⚠ By 2033-34, the indexed income free area approaches and then exceeds the fixed $80,000 supplement cap. Families at the maximum Part A rate will increasingly find themselves above the supplement threshold unless the cap is legislatively increased.
Projections assume 2.5% CPI growth per annum. Actual rates depend on annual indexation decisions by the Australian Government and are confirmed each July. These figures are indicative only.
How to claim and what to watch out for
How to claim
Link Centrelink to your myGov account, then navigate to Payments and Claims → Make a claim → Family Tax Benefit. You'll need to provide your income estimate for the financial year and proof of birth or entry into care for any new children. You can also apply by visiting a Services Australia service centre or calling 136 150.
The income estimate trap
FTB is paid based on your estimated income for the year and then reconciled at tax time against your actual income. If your actual income is higher than you estimated- because of a bonus, a pay rise, or additional work- you may need to repay the difference. Keeping your income estimate updated in myGov throughout the year is the single most important thing you can do to avoid an unexpected debt at tax time.
Frequently asked questions
Can I receive both Part A and Part B?
Yes - many families receive both. They are assessed separately and you can be eligible for one without being eligible for the other. It's worth checking eligibility for both even if you assume you only qualify for one.
Does FTB affect my tax return?
FTB payments themselves are not taxable income. However, your tax return is used to reconcile your actual income against your estimated income, which determines whether your fortnightly payments were correct. Lodging your tax return promptly is also required to receive the end-of-year supplements.
What is Adjusted Taxable Income (ATI)?
ATI is a broader measure of income than your taxable income alone. It adds back certain items including reportable fringe benefits, reportable employer super contributions, total net investment losses, and tax-free government pensions. In most cases ATI is close to taxable income, but for some households- particularly those with salary packaging or investment losses- the difference can be significant.
What if my child is in shared care?
FTB can be split between separated parents based on the percentage of care each provides. You must care for the child at least 35% of the time to be eligible. Services Australia determines the split based on the actual care arrangement- formal or informal.
Are FTB rates indexed each year?
Yes. Most FTB payment rates and income thresholds are indexed to inflation annually on 1 July. The exception is the $80,000 income cap for supplements, which has not been indexed and remains fixed. As household incomes grow over time, more families may find themselves above this threshold and therefore ineligible for the supplement.
Is there anything else I might be eligible for at the same time?
Potentially yes. Families receiving FTB Part A above the base rate may also be eligible for Rent Assistance if they pay private rent, and Energy Supplement. Families with newborns not receiving government Parental Leave Pay may be eligible for the Newborn Supplement and Newborn Upfront Payment. Childcare Subsidy (CCS) is a separate payment and must be claimed independently.
Canwi models FTB in your financial plan
Canwi automatically calculates your Family Tax Benefit entitlement based on your household income, the number of children in your plan, and their ages. FTB is modelled as an annual payment and adjusts dynamically as your income and family situation changes in your plan. If you add a parental leave event, Canwi adjusts your FTB to account for the overlapping days automatically.
General information only. This article provides general information about Family Tax Benefit based on Services Australia guidelines current as at 1 July 2025. Rates, thresholds, and eligibility rules are subject to change. Individual entitlements depend on personal circumstances. This article does not constitute financial, legal, or social security advice. For personalised guidance, contact Services Australia on 136 150 or visit servicesaustralia.gov.au.
