Calculating Family Tax Benefit (FTB) Part B 007-07070040

FTB Part B is paid per family and includes:

• standard Part B rate, which is based on the age of the youngest eligible FTB child and whether or not the customer is a grandparent carer. If the customer has shared care, the percentage of care will be used to calculate the Part B rate
• FTB Part B supplement, which is payable after the end of the financial year
• Energy Supplement Part B, for grandfathered customers

FTB Part B is not paid to:

• Approved Care Organisations (ACO)
• Members of a couple who's youngest FTB child has turned 13 years

Single customers

For single customers:

• receiving an income support payment, FTB Part B is not income tested
• not receiving an income support payment, FTB Part B is only payable if the customer's adjusted taxable income (ATI) does not exceed Part B primary earner income limit

Partnered customers

Partnered customers are subject to a two-part income test, the primary and the secondary earner.

Primary earner income test:

• The primary earner is the parent or non-parent carer with the higher income
• The Part B primary earner income limit does not apply when the customer or their partner receive an Income Support Payment (ISP), including employment income nil rate periods
• FTB Part B is only payable if the ATI of the primary earner does not exceed the Part B primary earner income limit, except for periods when the customer or their partner receive an ISP, including employment income nil rate periods
• If the primary earner's income exceeds this amount, FTB Part B is not payable

Secondary earner income test:

• The secondary earner is the parent or non-parent carer with the lower, or no income
• Partnered customers are subject to the secondary earner income test, regardless of who (the customer or their partner) receives the ISP

Return to work assistance is available for eligible FTB Part B customers if they or their partner started or returned to work for the first time after taking time off to care for a child. FTB Part B may be paid free of the secondary earner income test for the quarantine period. Eligibility is assessed once actual income is confirmed during FTB reconciliation or when an FTB lump sum claim has been finalised.

FTB Part B is not payable on days the customer or partner receive Parental Leave Pay (PPL).

• For children who were born or entered care before 1 July 2023, this includes the PPL period and any connected or not connected Flexible PPL days
• For children born or entering care on or after 1 July 2023, FTB Part B may be payable on non-PPL days such as weekends

If the customer claims PPL in a pre-birth claim, they may ask to pause the FTB Part B from the expected date of birth or entry into care, to avoid the risk of an overpayment. FTB Part B is adjusted once proof of birth is processed in the PPL post birth claim.

When the customer claims PPL as a post birth claim, FTB Part B will not be payable for any days the customer or partner receive PPL.

Customers should include PPL as part of their family income estimate which is used for calculating family assistance rates, including FTB Part B.