The Family Tax Benefit (FTB), provided by Centrelink, is a crucial support program for Australian families. Designed to ease the financial burden of raising children, the FTB program is divided into FTB Part A and FTB Part B, each targeting specific family needs based on income levels, number of dependents, and family structure. For 2024, these benefits offer significant support to eligible families, ensuring the well-being of children across Australia.
Australia Centrelink Family Tax Benefits 2024
| Feature | FTB Part A | FTB Part B |
|---|---|---|
| Eligibility | Families with dependent children (0-15 years or 16-19 if studying) | Single parents or two-parent families with one main income |
| Payment Amount (per fortnight) | Up to $222.04 (0-12 years), $288.82 (13-19 years) | Up to $188.86 (youngest child under 5), $131.74 (youngest child 5-18) |
| Annual Supplement | Up to $916.15 per child | Up to $448.95 per family |
| Income Test Threshold | Max rate if income ≤ $65,189 | Max rate if income ≤ $100,900 for primary earner |
Understanding Family Tax Benefit Part A
FTB Part A provides financial support for families with dependent children under 15 or, if meeting certain study conditions, up to 19 years of age. It is available for eligible Australian residents who meet specific income and residency requirements.
Eligibility Criteria for Part A
To qualify for FTB Part A:
- Children must be aged 0-15 or 16-19 if enrolled in approved education.
- Families must meet the income and residency requirements.
- Residency requirements demand that the child and parent are Australian residents on the claim date.
Payment Rates and Income Test for Part A
As of July 1, 2024:
- For children aged 0-12 years: up to $222.04 per fortnight.
- For children aged 13-19 years: up to $288.82 per fortnight.
To receive the maximum rate, a family’s adjusted taxable income should be $65,189 or less. Beyond this limit, the payment reduces based on income. For example, if a family’s income exceeds the threshold, FTB Part A payments gradually decrease, depending on the number of children and their ages.
Practical Example for FTB Part A Income Test
Example: The Smith family has two children aged 8 and 14. Their combined adjusted income is $70,000, above the $65,189 threshold, meaning they will receive a reduced FTB Part A rate. Each fortnight, the Smith family will receive a partial benefit based on Centrelink’s calculations.
Annual Supplement for Part A
Families eligible for FTB Part A can also receive an annual supplement of $916.15 per child. This supplement is granted at the end of the financial year if families meet all requirements.
Family Tax Benefit Part B: Tailored Support for Single-Income Families
FTB Part B is designed for families with one main income earner, such as single parents or couples where one partner works primarily as the household’s caregiver. This benefit provides additional support for lower-income families, including grandparent carers and specific two-parent households.
Eligibility and Payment Rates for FTB Part B
FTB Part B payments differ based on the age of the youngest child:
- Youngest child under 5 years: up to $188.86 per fortnight.
- Youngest child aged 5-18 years: up to $131.74 per fortnight.
The annual supplement for FTB Part B is $448.95 per family and is issued after the financial year ends, ensuring the family meets income and residency requirements.
Income Test for FTB Part B
FTB Part B is subject to an income test primarily affecting two-parent households:
- Single parents: No income test applies.
- Two-parent households: The primary earner’s income must be $100,900 or less. The secondary earner can earn up to $5,767 before payments are affected, with a 20-cent reduction for each dollar above this threshold.
Practical Example for FTB Part B Income Test
Example: The Johnson family has one child aged 3, and the primary earner makes $90,000 annually. They qualify for FTB Part B because their income is under the $100,900 threshold, and the family can receive the full rate for their child.
Tips for Maximizing Your Family Tax Benefits
- Keep Income Reporting Accurate: Since FTB payments are based on income, accurately reporting your income can prevent overpayment or underpayment. Families can use Centrelink’s online services or the myGov portal to update their income.
- Plan for the Annual Supplement: The annual supplement acts as a bonus payment to those who maintain eligibility through the financial year. To qualify, ensure that immunisation and health check requirements are met for your child.
- Understand the Residency and Health Requirements: Meeting residency and health requirements (like immunisation) ensures that families receive the full benefit without interruptions or penalties.
- Use Centrelink’s Payment Finder Tool: Families can use the Payment Finder to get an estimate of the benefits they’re eligible for.
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Potential Penalties and Overpayments
Receiving incorrect or overpaid FTB payments can lead to penalties. Common causes of overpayment include:
- Underreporting income: Changes in income should be updated with Centrelink promptly.
- Change in family situation: If family circumstances change, such as a child leaving school, notify Centrelink to avoid receiving payments you’re no longer eligible for.
Overpayments can be reclaimed by Centrelink, and families may face a reduction in future payments until the debt is cleared.
Additional Support and Resources
For families seeking more support beyond the FTB, Centrelink offers several resources:
- Child Care Subsidy (CCS): To reduce child care costs for eligible families.
- Parenting Payment: For low-income parents with young children.
Families can also explore Services Australia’s website for detailed eligibility criteria and guidance on other support options.
Frequently Asked Questions (FAQs)
1. Can I claim both FTB Part A and Part B?
Yes, if eligible, families can claim both FTB Part A and Part B. Each payment targets distinct income situations and provides different types of support for families.
2. How are payments made?
Payments are generally made fortnightly and deposited into a nominated bank account. Alternatively, families can choose to receive a lump-sum payment at the end of the financial year.
3. What if my income exceeds the threshold mid-year?
If your income exceeds the eligibility threshold during the year, notify Centrelink. Payments may adjust based on your updated income, helping you avoid overpayment situations.
4. How does the immunisation requirement affect eligibility?
Children need to be up-to-date with immunisations to qualify for full benefits. Immunisation requirements align with government health standards to support child wellness.
5. Are grandparents eligible for Family Tax Benefit?
Yes, grandparents who act as primary caregivers are eligible for FTB. They can apply under similar criteria as biological parents, provided they meet income and residency requirements.
