Family Tax Benefit Explained (Part A, Part B and How to Claim)
Confused by Family Tax Benefit in Australia? Learn what FTB Part A and Part B are, who qualifies, and how to avoid a Centrelink debt.
By Timothy Hirou GaschereauPublished 11 min read
If you have ever Googled family tax benefit and ended up on the ATO website wondering why you could not find it there, you are not alone. Thousands of Australian parents make the same detour every year. The short version: Family Tax Benefit has nothing to do with the ATO. It is a Centrelink payment, run by Services Australia, to help with the everyday cost of raising kids.
The word “tax” in the name is genuinely confusing. It is not a tax refund, not a deduction, and it does not go on your tax return (though your tax return does affect how much you get). Think of it as a government payment with a misleading name. If you have dependent children and meet the income and residency rules, there is a real chance you are entitled to something. Let us break it down.
🎯 The essential: Family Tax Benefit is a Centrelink payment, not an ATO product. It has two parts: Part A (paid per child, based on family income and the child's age) and Part B (extra help for single parents and single-income couples). Children must meet immunisation rules to get Part A. The big trap: it is based on your ESTIMATED income, so under-estimating creates a debt you repay later. Keep your estimate current in myGov. This is general info, not advice.
What Family Tax Benefit actually is (and is not)
Family Tax Benefit (FTB) is a two-part payment from Services Australia (Centrelink) to help eligible families with the cost of raising children. It is not an ATO product, not a tax refund, and not assessed by the tax office. There are two separate parts, and a family can receive one or both:
- FTB Part A: paid per child, based on your family income and the child's age.
- FTB Part B: extra support for single-parent families and couples where one partner earns much less (or nothing).
These are separate payments people often confuse with FTB:
- Child Care Subsidy: helps with approved childcare costs. Separate claim, separate rules.
- Parenting Payment: income support for the primary carer of a young child.
- Newborn Upfront Payment and Newborn Supplement: a lump sum and short-term payment for a new baby, delivered through FTB Part A.
FTB Part A: help for every eligible family
Part A is the broader of the two. It is paid per child, so a family with three eligible kids gets it three times over. The amount depends on your family's adjusted taxable income and the child's age, across two tiers: a maximum rate for lower incomes (higher for kids aged 13 and over), and a lower base rate for higher incomes, up to a ceiling where it cuts out entirely.
We are not quoting dollar figures here because rates are indexed and updated regularly. Always check the current rates on the Services Australia website. After the financial year, eligible families may also get an FTB Part A supplement as a top-up, subject to a separate income limit.
FTB Part B: extra help for single-income families
Part B is designed for two situations: single-parent families, and couples where one partner earns much less than the other (or nothing at all). For couples, the income test works differently to Part A:
- The secondary earner (the lower-income partner) has their income tested: as it rises, Part B reduces.
- The primary earner's income must also be below a threshold to receive any Part B at all.
Single parents are not subject to a secondary-earner test (there is no secondary earner); their own income is assessed. The amount depends on the age of your youngest child, and there is a Part B supplement after the year ends, subject to an income limit.
Who is eligible: children, care, residency, immunisation
| Requirement | What it means |
|---|---|
| Dependent child | Under 16, or 16 to 19 in approved full-time secondary study |
| Care | You care for the child at least 35% of the time (shared care may split the payment) |
| Residency | You meet Australian residency rules (some visa holders may qualify) |
| Immunisation | Child is up to date on the National Immunisation Program, or has an approved exemption |
The immunisation rule (“No Jab, No Pay”) catches families off guard: if your child's vaccinations are not up to date, your FTB Part A can be reduced or withheld. Check your child's immunisation history on the Australian Immunisation Register via myGov.
How FTB is paid: fortnightly, lump sum, and supplements
You have two main options for receiving your payment:
- Fortnightly instalments throughout the year, based on your estimated annual family income. Most popular, because it smooths cash flow.
- Annual lump sum after the financial year ends, once your actual income is confirmed. Suits families who prefer certainty over convenience.
End-of-year supplements for both Part A and Part B are paid separately after the year, once income is confirmed, and are subject to income limits, so not every family receives them.
The income-estimate trap: how to avoid an FTB debt
This is the section we wish more families read before they had a problem. FTB paid fortnightly is based on your estimated family income. At year end, Services Australia compares that estimate against your actual income and reconciles the difference:
- Under-estimate (you earned more than you told Centrelink): you were overpaid, and the difference becomes a debt you must repay, often at tax time. The most common FTB headache.
- Over-estimate (you earned less): you were underpaid and get a top-up, but you missed that cash flow during the year.
Practical steps: update your income estimate in myGov whenever your circumstances change (a pay rise, a partner returning to work, extra shifts), review it every few months, and if unsure, slightly over-estimate rather than under-estimate. You will get a top-up later rather than a bill.
How to claim, and related payments to know about
You can claim through myGov (linked to your Centrelink account, easiest for most people) or in person at a Centrelink service centre. Timing matters: fortnightly payments can only be backdated 28 days, so claim early. For a lump sum, you have up to 12 months after the financial year ends. If you are expecting a baby, you can claim before the birth to avoid delays.
While you are at it, three separate-but-related payments are worth knowing: the Child Care Subsidy (approved childcare costs), Parenting Payment (income support for a primary carer), and the Newborn Upfront Payment and Supplement (delivered through Part A). For current rules and thresholds, Services Australia is the authoritative source, so always check there rather than relying on figures in any article, including this one.
| Feature | FTB Part A | FTB Part B |
|---|---|---|
| Who it is for | All eligible families with kids | Single parents and single-income couples |
| Amount depends on | Family income and child's age | Youngest child's age and secondary earner's income |
| Income test | Total family income | Primary and secondary earner's income separately |
| Paid per | Each eligible child | Family unit (not per child) |
| Supplement | Yes, after year end | Yes, after year end |
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❓ Frequently asked questions
Is Family Tax Benefit taxable income?
+
No. FTB payments are not taxable income and do not need to be declared on your tax return. However, your taxable income and your partner's are used to calculate how much FTB you are entitled to, which is why lodging your tax return promptly each year matters.
What is the difference between FTB Part A and Part B?
+
FTB Part A is paid per child and is available to a broad range of families, based on total family income and the child's age. FTB Part B is an extra payment for single-parent families and single-income couples, tested on the secondary earner's income (for couples) rather than total family income. You may be eligible for one or both.
Can I get Family Tax Benefit if I work?
+
Yes. FTB is income-tested, so working does not disqualify you. Many working families receive FTB, particularly Part A. The amount reduces as your income rises and cuts out entirely above the upper threshold. Use the payment estimator on the Services Australia website to check.
How much can I earn and still get Family Tax Benefit?
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Income thresholds are updated regularly, so exact figures change. As a structure: FTB Part A has a lower threshold (below which you get the maximum rate), a taper band, and an upper threshold (above which it cuts out). FTB Part B has a separate test on the primary and secondary earner's income. Check the current thresholds on Services Australia.
Is Family Tax Benefit the same as the Child Care Subsidy?
+
No. They are completely separate payments with separate eligibility rules and separate claims. FTB helps with the general cost of raising children; the Child Care Subsidy specifically reduces the out-of-pocket cost of approved childcare. You can receive both, but you claim them separately.
How do I claim Family Tax Benefit?
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The easiest way is through myGov, linked to your Centrelink account. You can also claim in person at a Centrelink service centre. Claim early: fortnightly payments can only be backdated 28 days, so every week you delay is a week you will not recover. If you are expecting a baby, you can claim before the birth.
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Sources
This article is general information only, not financial advice. Family Tax Benefit rates, thresholds and rules are set by Services Australia and change with indexation each year. Always check your personal eligibility and current figures on the Services Australia website.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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