Family Tax Benefit (FTB) 007-07000000

Background

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This document outlines information on Family Tax Benefit (FTB).

Government intent

FTB is a payment to help families with the cost of raising children.

FTB components

FTB consists of the following parts:

FTB Part A

Paid for each FTB child in their care
Can include additional components depending on the family's circumstances: Large Family Supplement (LFS) (not payable from 1 July 2016), Multiple Birth Allowance (MBA), Newborn Supplement (NBS) and Rent Assistance (RA)

FTB Part B

Provides extra assistance to single parents, non-parent carers (including grandparent carers) and couples with one main income and is paid per family based on the age of the youngest child

Single Income Family Supplement (SIFS)

Paid after the end of the financial year. Note: SIFS is not payable to new recipients from 1 July 2017, however existing recipients may be eligible if they meet the grandfathering provisions

Basic requirements

Individuals and Approved Care Organisations (ACO) may be eligible for FTB for a dependent child in their care for at least 35% of the time. Different eligibility criteria applies.

A claim for FTB is required.

Individuals must choose a payment option of either fortnightly instalments or an annual lump sum.

Recipients are required to notify a change in their circumstances when receiving payments. Rules apply to how long payment can continue when a recipient goes overseas temporarily.

Rates of payment

The amount of FTB Part A is based on the actual family income, the number of children and how old they are.

The amount of FTB Part B is paid per family, based on the age of the youngest child.

Instalment payments are based on the recipient's reasonable estimate of their annual income. It is essential that estimates include all components of their assessable income. Online estimators are available. At the end of the financial year payment is reconciled to determine correct entitlement.