Family Tax Benefit Australia: Eligibility and Application Guide

Raising kids in Australia isn’t cheap, and the government knows it. The Family Tax Benefit (FTB) is the primary financial support system for Australian families with dependent children, administered by Services Australia through Centrelink. As of the 2024-25 financial year, around 1.3 million families receive either Part A, Part B, or both, with total annual payments exceeding $19 billion according to the Department of Social Services (DSS, 2024). Whether you’re a new parent, a single mum, or a couple juggling one income, understanding how FTB works can mean the difference between a decent top-up and leaving thousands of dollars on the table. We found that many eligible families simply don’t apply—often because the income and asset tests sound intimidating. But once you break it down, it’s actually pretty straightforward. This guide covers who qualifies, how much you can get, and the exact steps to lodge your claim without the headache.

FTB Part A – The core payment for raising kids

FTB Part A is the main payment designed to help with the everyday costs of raising a child. It’s paid per child, and the amount you receive depends on your family’s combined income, the age of each child, and how many kids you have.

For the 2024-25 financial year, the maximum rate per child under 13 is $197.96 per fortnight (Services Australia, 2024). That drops slightly to $257.46 for kids aged 13–15, and then to a lower rate for those 16–19 who are in full-time secondary study. You can also get a supplement of up to $1,000.80 after you lodge your tax return, provided your income stays under the threshold.

The income test kicks in once your combined family income exceeds $63,398 per year. Above that, the payment reduces by 30 cents for every dollar earned, until you hit the cut-off point (around $103,000 for one child, higher for multiple kids). Single parents get a slightly higher threshold—$98,108 before the taper begins.

What about large families?

If you’ve got three or more kids, you may qualify for FTB Part A Large Family Supplement. It’s an extra $13.88 per fortnight for each child from the third child onward. Not life-changing, but it adds up to about $360 a year extra.

Rent Assistance add-on

If you’re renting and receiving FTB Part A at more than the base rate, you may also qualify for Rent Assistance. The maximum is $188.40 per fortnight for families with one or two children, and $222.00 for three or more. This is paid as a separate add-on, not rolled into FTB.

FTB Part B – Extra help for single parents and one-income couples

FTB Part B is designed to support families where one parent stays home or earns significantly less than the other. That includes single parents, non-parent carers, and couples where one partner earns under a certain threshold.

The maximum annual rate for single parents (or those with a youngest child under 5) is $4,733.80 per year (about $182.07 per fortnight). For families with a youngest child aged 5–18, the rate drops to $3,302.45 per year.

The income test here is simpler than Part A. The primary earner (usually the higher-income parent) can earn up to $100,000 before Part B cuts out entirely. The lower-income parent can earn up to $29,822 per year before their share reduces. For single parents, the same $100,000 cap applies to their sole income.

Why Part B matters for single mums and dads

Single parents often get the maximum Part B rate because there’s no second income to test. Combined with Part A and Rent Assistance, it’s not uncommon for a single parent with one child to receive over $400 per fortnight total. That’s serious help for daycare, groceries, or the school uniform fund.

For cross-border tuition payments or managing family finances across countries, some Australian families use international payment platforms like Airwallex AU global account to send money overseas at better exchange rates than the big banks.

Income and assets tests – The fine print that matters

The income test is the big gatekeeper for both Part A and Part B. But the assets test only applies to Part A, and only if you’re not already receiving an income support payment like JobSeeker or Parenting Payment.

For Part A, the assets test caps your total assets (excluding your home) at $1,089,000 for homeowners and $1,738,000 for non-homeowners. If you’ve got a decent investment portfolio or a second property, this could reduce your payment to nil.

The income test uses adjusted taxable income, which includes:

• Taxable income (salary, business income)
• Reportable fringe benefits
• Total net investment losses (negative gearing)
• Tax-free pensions or benefits
• Foreign income

It does not include the Family Tax Benefit itself, or Child Support payments you receive. That’s a common mistake—people think Child Support counts as income, but it doesn’t.

What about Child Support?

If you receive Child Support from an ex-partner, it doesn’t reduce your FTB directly. However, if you’re the parent paying Child Support, those payments do reduce your adjusted taxable income for FTB purposes. So paying child support can actually increase your FTB eligibility—a little-known upside.

Maintenance income test (for Part A only)

If you receive child maintenance from a former partner, there’s a separate maintenance income test. For 2024-25, the first $1,850.80 of maintenance income per child per year is ignored. Above that, FTB Part A reduces by 50 cents per dollar. This test doesn’t apply to Part B.

How to apply – Step-by-step from eligibility to payment

Applying for Family Tax Benefit is done entirely through myGov linked to Centrelink. Here’s the streamlined process we recommend:

1. Check your eligibility using the online estimator on the Services Australia website. It takes about 10 minutes and gives you a rough fortnightly figure.
2. Create or log in to myGov and link your Centrelink account. If you don’t have one, you’ll need a Centrelink Customer Reference Number (CRN) — call 136 150 if you don’t have one.
3. Submit a claim online under “Payments and Claims.” You’ll need to provide:
   • Your TFN (Tax File Number)
   • Your partner’s TFN (if applicable)
   • Bank account details
   • Estimated family income for the current financial year
   • Details of each dependent child (name, DOB, Medicare number)
4. Upload supporting documents — typically birth certificates, proof of income (payslips or tax returns), and if you’re separated, court orders or parenting plans.
5. Wait for assessment. Most claims are processed within 14–28 days. If you’ve provided everything upfront, it’s usually faster.
6. Choose your payment frequency — fortnightly, or as a lump sum after tax time. Most families choose fortnightly for cash flow.

When to apply

You can claim FTB up to 12 months before your child is born (for the newborn supplement) or as soon as your child is in your care. If you’re adopting or fostering, apply as soon as the child comes to live with you. Late claims can still be accepted up to 12 months after the event, but you’ll miss out on payments for the gap period.

Lump sum claim option

If you didn’t claim during the year, you can lodge a lump sum claim after 1 July. You have until 30 June of the following year to do so. The lump sum is calculated based on your actual income for the year, not an estimate. This can be useful if your income fluctuated wildly.

Common mistakes – And how to avoid losing money

We’ve seen families lose thousands because of simple oversights. Here are the top traps:

Not updating your income estimate. If your income changes mid-year (new job, pay rise, redundancy), update your estimate online. If you estimate too low, you’ll get overpaid and have to repay the difference. If you estimate too high, you’ll get underpaid and receive a top-up after tax time. Getting it within 10% saves you hassle.

Forgetting to lodge your tax return. Both you and your partner must lodge a tax return each year, even if you don’t owe tax. If you don’t, Centrelink will suspend your FTB after 12 months. This catches thousands of families every year.

Not claiming Rent Assistance. If you’re renting and receiving FTB Part A, check whether you’re getting the Rent Assistance add-on. Many families assume they’re not eligible because their rent is “too low,” but the threshold is quite generous—$131.58 per fortnight for a single with one child.

Assuming Part B is automatic. Part B is a separate claim. If you only applied for Part A, you won’t get Part B. Single parents especially should check they’ve claimed both.

Ignoring the newborn supplement. If you have a baby, you may qualify for a Newborn Supplement of up to $2,208.65 (for the first child) or $736.22 (for subsequent children). This is paid as a lump sum, not fortnightly. You have to claim it separately as part of your FTB application.

FTB vs other payments – How it fits with parenting payment and childcare subsidy

Family Tax Benefit is not the only support available. Many families also receive Parenting Payment (for low-income parents of young children) and Child Care Subsidy (CCS) . Understanding how they interact is key.

Parenting Payment is a separate income support payment for parents with low income and a child under 6 (or under 8 if single). It’s paid at a higher rate than FTB Part A, but it’s means-tested more strictly. If you’re eligible for both, you’ll get Parenting Payment plus FTB Part A at a reduced rate. You can’t get both at full rate.

Child Care Subsidy is paid directly to your childcare provider. It’s based on your combined family income and the hours of activity you do (work, study, volunteering). FTB does not affect CCS eligibility, but your FTB income estimate is used to calculate CCS. So if you update your FTB income, it automatically updates your CCS percentage.

Energy Supplement

The Energy Supplement (formerly the Clean Energy Supplement) is an extra payment attached to FTB Part A and Part B. As of 2024, it’s still paid to existing recipients who were receiving it before 20 September 2016. New claimants after that date don’t get it. The amount is about $14.10 per fortnight for Part A and $7.05 for Part B. If you were already receiving it, don’t lose it by failing to update your details.

Changes to your circumstances – What to report and when

Life changes, and Centrelink needs to know. If you don’t report changes within 14 days, you risk being overpaid and having to repay. Here’s what to report:

• Change in income (yours or your partner’s) — any increase or decrease of more than $2,000 in adjusted taxable income
• Change in relationship status — getting married, separated, divorced, or de facto. This can shift you from couple to single rates, which are significantly higher for Part B
• Change in care arrangements — if a child starts living with you more or less often, or if a parenting plan changes
• Change in child’s study status — if a child aged 16–19 stops full-time secondary study, they’re no longer considered dependent
• Change in address — especially if you move from renting to owning, or vice versa (affects Rent Assistance)
• Change in child’s age — when a child turns 13 or 15, the Part A rate changes automatically, but it’s worth checking

How to report

You can report changes online through myGov, via the Centrelink app, or by calling 136 150. The app is fastest—most changes are processed within 2 business days. For income changes, you can update your estimate online without calling.

What if you get overpaid?

Overpayments happen. If Centrelink determines you were overpaid, they’ll send a debt notice. You can repay in full, set up a payment plan (interest-free), or request a waiver if the overpayment was not your fault. The standard repayment plan is 15% of your fortnightly FTB payment until the debt is cleared.

FAQ

Q1: Can I get Family Tax Benefit if I’m a permanent resident or on a temporary visa?

Yes, but only if you’re an Australian resident under social security law. That means you must live in Australia and hold either Australian citizenship, a permanent resident visa, or a Special Category Visa (subclass 444) for New Zealand citizens. Temporary visa holders (e.g., student visas, working holiday visas) are generally not eligible. As of 2024, there is a 104-week waiting period for new permanent residents before they can claim FTB Part A (Part B has no waiting period). This waiting period does not apply if you’re a refugee or have a protection visa.

Q2: How much Family Tax Benefit can I get per fortnight for one child?

For a family with one child under 13, the maximum FTB Part A is $197.96 per fortnight (2024-25 rate). If you’re a single parent with a youngest child under 5, you can also get FTB Part B at $182.07 per fortnight. Combined, that’s $380.03 per fortnight. If you’re renting and qualify for Rent Assistance, add another $188.40 maximum, bringing the total to $568.43 per fortnight. These figures reduce as your income rises above the thresholds. Use the Services Australia online estimator for your exact situation.

Q3: What happens if I don’t lodge my tax return? Will I lose FTB?

Yes, if you or your partner don’t lodge a tax return by 30 June each year, Centrelink will suspend your FTB after 12 months from the due date. In practice, if you haven’t lodged by 30 June 2025 for the 2023-24 year, your payments will stop. You’ll need to lodge the return and then contact Centrelink to restart payments. You may also have to repay any overpayments. The only exception is if you’re not required to lodge a tax return (e.g., your income is below the tax-free threshold of $18,200). In that case, you can submit a Non-Lodgment Advice to the ATO instead.

References

• Department of Social Services (2024). Family Tax Benefit Statistical Summary 2023-24
• Services Australia (2024). Family Tax Benefit Payment Rates 2024-25
• Australian Taxation Office (2024). Adjusted Taxable Income for Family Assistance
• Productivity Commission (2023). Report on Government Services: Child Care and Family Support
• UNILINK Education (2024). Family Tax Benefit Eligibility for International Students and New Migrants