Family Tax Benefit (FTB) Part A and Part B supplements 007-11010030

There are important differences between the Part A and Part B supplements:

• The Part A supplement increases the maximum annual FTB Part A rate for each child, if eligible. FTB Part A supplement is subject to an income limit
• The Part B supplement increases the maximum annual rate of FTB Part B for a family

Supplements can only be paid after the end of the financial year.

Families receiving FTB via fortnightly instalments or who lodge a Lump Sum Claim after the financial year, will have supplements included in their FTB reconciliation or lump sum claim calculation if:

• Income lodgement requirements are met by the end of the lodgement year unless a special circumstances extension has been granted; and
• The family's adjusted taxable income (ATI) is below the FTB Part A supplement income limit

Note: This includes customers on income support payments.

The FTB supplements are a component of the person's reconciliation top-up or lump sum claim payment and may be used for automatic debt offsetting regardless of whether the person has a repayment arrangement in place.

Reconciliation letters will advise customers if the supplements have been included, the amount included, and any amounts used for debt offsetting or to recover overpayments.

Factors affecting supplement entitlement and payability:

• In shared care and blended family situations, the supplement amount is based on the share care percentages that apply for the child and/or the blended family percentage for the customer during the relevant financial year
• Supplements are calculated based on a daily entitlement during the financial year. If the person is only eligible for FTB for part of the year, the supplements will only be calculated for the number of days the person is entitled to FTB
• The relevant income test may reduce the person's Part A or Part B supplement entitlement. Customers not eligible for FTB Part A or Part B will not be eligible for the relevant supplement. Families whose adjusted taxable income (ATI) is more than the Part A supplement income limit will not be eligible for FTB Part A supplement. This includes customers on an income support payment

Historical Changes

• For financial years 2012-13 to 2017-18, FTB Part A supplement child immunisation requirements were linked to payment of the FTB Part A supplement.
• For financial years 2011-12 to 2017-18 Healthy Start for School requirements (if applicable) must be met for a child who turned 4 in the relevant financial year for Part A supplement to be included for the child.
• Prior to 1 July 2016, FTB Part A supplement was not subject to an income limit.