Rate of Family Tax Benefit (FTB) 007-07060000

Potential rate

Customers and staff can use the online rate estimator to give a potential FTB rate based on advised circumstances. Note: the estimator will not calculate the possible rate of Newborn Supplement (NBS) or Newborn Upfront Payment (NBU). See the Resources page for a link.

FTB instalment customers

For general FTB rate details go to the FTB Rate Explanation (REXFTB) screen.

• For Part A details, go to the REXFTBA screen
• For Part B details, go to the REXFTBB screen

Additional FTB rate details can be accessed via the below screens:

• FTBISPX - FTB Income Support Payment (ISP) Explanation screen
• FTBGENX - FTB General Explanation screen
• FTBCHGX - FTB Change Explanation screen
• REXFTB - FTB Rate Explanation screen

The person's ongoing rate depends on their FTB payment choices.

The ongoing rate is also subject to mandatory continuous adjustment if a potential overpayment due to increased income or maintenance income is identified.

From 1 July 2020, FTB will continue at a zero rate (CZR-ITH or CZR-IEU) for instalment customers, where the customer has provided a revised family income estimate that reduces the legislative rate of payment to nil. These periods will be automatically included in reconciliation from 1 July 2021.

Note: to be initially granted FTB a customer must eligible to a rate above nil.

FTB instalments may not be payable due to:

• Prohibition of FTB instalments due to non-lodgement of tax returns
• Zero rate entitlement for previous years

Child eligibility

To check child eligibility for FTB components, go to the Assessment Explanation (AXFTB) screen.

• If the Eligible FTB(A) field displays Base, Part A is limited to base rate for the child
• For a child to be included for Newborn Supplement (NBS), Large Family Supplement (LFS) (Note: LFS is no longer payable from 1 July 2016) and Multiple Birth Allowance (MBA), the Eligible FTB(A) field must be Yes or Base. For Rent Assistance (RA) it must be Yes
• To check child details recorded, 'S'elect the child from the Child Selection (CHS) screen and check the following:
• Child in Customer Care (CHC) screen
• Child Override/Claim (CHOC) screen for FTB CLM line
• Change Child (CCH) screen for proof of date of birth
• Student/Child Income Circumstances (CHSI) screen
• Child Miscellaneous Details (CHM) screen for foster child/ adopted child details
• Check details for MBA
• For Newborn Upfront Payment (NBU) details, go to the Assessment Explanation NBU (AXNBU) screen

For more information, see What to check when FTB rate has reduced.

After end of financial year

Part A and Part B supplements and Single Income Family Supplement (SIFS) are only included in the FTB reconciliation or lump sum claim calculation for eligible individuals.

For how to view details, see Customer enquires about FTB reconciliation or lump sum claim.

For an individual

FTB can include these components, which have separate eligibility criteria and income tests.

• FTB Part A (per child). Part A supplement is payable to eligible individuals after the financial year at reconciliation
• FTB Part B (per family). Part B supplement is payable to eligible individuals after the financial year at reconciliation
• Single Income Family Supplement (SIFS), after the end of the financial year (for 2012-13 to the 2016-17 financial years to new and existing customers and for the financial years 2017-18 onwards if the grandfathering provisions for SIFS are met)

For blended family couples, the total FTB rate for the family is calculated and then split according to their nominated percentages.

For an Approved Care Organisation (ACO)

FTB is not income tested. The FTB rate includes:

• Base Part A child rate for each FTB child in care (See Rates and thresholds for current FTB Part A rates. The References page contains a link to historical rates)
• The Energy Supplement Part A at base rate if the ACO is grandfathered for Energy Supplement

ACOs are not eligible for other FTB components or an FTB bereavement payment.

See Rates and thresholds for current FTB Part A and Part B rates.

An individual's maximum Part A rate can include:

• Standard Part A child rate for each FTB child based on the child's age and circumstances (See Rates and thresholds for current FTB Part A rates. The References page contains a link to historical rates). The Part A supplement is payable to eligible customers after the financial year at reconciliation
• Energy Supplement Part A (if the person is grandfathered for Energy Supplement)
• Multiple Birth Allowance (MBA). How to check details for MBA
• Newborn Supplement (NBS)
• Rent Assistance (RA) only if more than base rate Part A is payable. RA can be paid for an FTB child or Regular Care Child
• In some situations, RA is instead paid with primary payment

Any reduction due to income or maintenance income is apportioned between Part A components. Note: LFS, MBA and NBS are not affected by any income or maintenance income reduction under Method 1 as they are base rate components.

Calculation of Part A rate

• Under Method 1, the maximum rate can be reduced by:
• Shared care assessment
• The maintenance action test which can limit Part A for a child to base rate
• The income test (income support customers are exempt from the income test except those receiving zero rate due to employment income or the Home Equity Access Scheme)
• The maintenance income test, which is applied to the income tested rate. Maintenance income cannot reduce Part A below base rate
• Under Method 2, the base rate can be reduced by:
• Shared care assessment
• the income test until a nil rate reached (income support customers are exempt from the income test unless they are in an employment income nil rate period)

An FTB Part A rate reduction is applied to the rate that can be paid for a child who does not meet immunisation and/or Healthy Start for School requirements.

Part A may be limited to the base rate, for example, due to:

• Maintenance action test (for child)
• Customer or child overseas absences
• The person's payment choice

Part A may also be reduced to the base rate by income or maintenance income. Income can reduce Part A below base rate.

Base rate Part A can include:

• Base Part A child rate (See Rates and thresholds for current FTB Part A and Part B rates. The References page contains a link to historical rates)
• Energy Supplement Part A at base rate (if the person is grandfathered for Energy Supplement)
• Multiple Birth Allowance (MBA)
• Newborn Supplement (NBS)

For a child born or entrusted to care as part of an adoption process on or after 1 March 2014, NBS can be included in a person's:

• FTB Part A maximum rate (under Method 1 the NBS amount is not affected by any income or maintenance income reduction as it is a base rate component) or,
• FTB Part A base rate (under Method 2 the NBS amount can be reduced if the family's adjusted taxable income (ATI) is above the Part A higher income free area and they are subject to the income test)

For information about eligibility, payability and payments, see Eligibility for Newborn Supplement (NBS) and Newborn Upfront Payment (NBU).

NBS amount

This depends on whether the child is considered the person's first child (higher amount) or second/subsequent child (lower amount).

The higher NBS amount is paid for the child if the person is:

• the biological parent of the child and this is the birth mother's first newborn child (live birth)
• a non-parent of the child (for example, foster carer/ grandparent) and this is the first child entrusted to their or their partner's care
• claiming for an adopted child and this is the first child they or their partner have adopted
• claiming for multiple children (multiple birth, or for multiple children entrusted to care or adopted as part of the same process). Note: the higher amount is payable for each child, irrespective of other children currently or previously in care

The Resources page contains a link to the NBS/NBU maximum rate matrix.

Shared care: Each person caring for the child may be paid the full NBS amount if they each meet all eligibility criteria.

Blended Family: NBS is paid based on the blended family percentage being applied during the NBS period.

Reconciliation: NBS and NBU can be affected by FTB reconciliation.

If a person is not entitled to FTB Part A following reconciliation, they are not entitled to NBS or NBU and they will be recovered as a debt.

If the customer was paid more than their legislative rate of FTB, at reconciliation the difference between the NBS amount paid and their correct NBS rate will be calculated as an overpayment. They would still be eligible for the full NBU amount.

Multiple Birth Allowance (MBA) is paid automatically as a part of a person's FTB Part A rate where the person has 3 or more FTB children from the same birth.

To check the child assessment, go to the Assessment Explanation (AXFTB) screen.

• For a child to be included for MBA, the Eligible FTB(A) field must be Yes or Base
• 'S'elect the child from the AX screen and check the Eligible MUL field. This must be Yes for MBA to be paid

To check details recorded, 'S'elect relevant children from the Child Selection (CHS) screen:

• Go to the Child General Circumstances (CHG) screen. Children of the same multiple birth must be grouped by coding the same letter in the Multiple Birth Indicator field for each child, for example 'A' for all children of the first multiple birth. The event date is assumed to be the child's date of birth. Do not code 'Y'es or 'N'o in this field
• Go to the Child Education Details workflow. From 1 January 2012, a child aged 16-18 can be included for MBA if at least 3 children of the birth set are in full-time secondary study

An individual's Part B rate can include:

• Standard Part B rate for the family based on the age of the youngest FTB child if the person is single or a member of a couple or a grandparent carer (See Rates and thresholds for current FTB Part B rates. The References page contains a link to historical rates). Part B supplement is payable after the financial year at reconciliation
• Energy Supplement Part B (if the person is grandfathered for Energy Supplement)

Part B is income tested, except for single income support payment customers. The income test affects Part B components in the following order: Standard Part B, Energy Supplement Part B, Part B supplement (after end of financial year).

For more information, see Calculating FTB Part B.

Eligible FTB child: From 1 July 2016, FTB Part B is not payable to a member of a couple who has a youngest child aged 13 years or over, unless the person is a grandparent carer. Single customers and grandparent carers can continue to be paid up until the end of the calendar year in which the child turns 18. If aged 16-18 FTB Part B can only be paid if they are in full-time secondary study or an exemption applies. If completing secondary education, Part B is payable until 31 December, or for 28 days after the course end date if the end date is before November.

Parental Leave Pay (PPL): FTB Part B is not payable for any period or days the person or their partner receives PPL. If they are not eligible for FTB Part A (for example income over limit) this may result in FTB nil rate status (FTB/CUR-CZR) due to Parental Leave Pay (PPL)

Persons must have at least 35% actual care for the child to be assessed as their FTB child and included in all FTB component rate calculations.

Those with a Regular Care Child are entitled to ancillary benefits.

The shared care percentage used for family assistance assessment is used to calculate the maximum rate for the following:

• Part A child rate is multiplied by the shared care percentage
• Part B rate for the child is multiplied by the shared care percentage. The result is compared to the rate for each FTB child and the highest rate paid
• The Energy Supplement Part A and the Energy Supplement Part B are based on the maximum Part A and Part B rates payable
• Multiple Birth Allowance (MBA). Divide the rate by the number of children, multiply the rate for each child by the shared care percentage, then add amounts
• Part A and Part B supplement rates are multiplied by the shared care percentage

The following are not calculated by multiplying the shared care percentage:

• Newborn Supplement (NBS), the full amount may be paid to each eligible person caring for the child
• Rent Assistance (RA): To avoid disadvantaging those who share the care of all their FTB children (because of the higher rent thresholds that apply to persons with children), the relevant shared carer RA rate is payable. Note: RA can be paid for an FTB child or Regular Car Child
• Single Income Family Supplement (SIFS) can be paid with FTB to eligible persons if they have at least 1 FTB child in care

A blended family couple may choose to each claim and receive a percentage of the family's FTB.

If they both claim FTB, the total FTB rate for the family is calculated as usual, then the total amount is split according to the percentages nominated by the couple.

For more information, see Blended families and FTB.

FTB is calculated as an annual rate based on the family's circumstances during the financial year.

The daily rate of FTB is calculated by dividing the annual FTB rate by 365 and rounding to the nearest cent (rounding 0.5 cents upwards). If the result is less than half a cent, it is rounded up to 1 cent.

The fortnightly rate is obtained by multiplying the daily rate by 14.

If the Energy Supplement Part A or the Energy Supplement Part B are paid quarterly, the daily rate is paid for each day in the quarter that the Energy Supplement is payable.

FTB Part A and Part B rates and associated add-ons (except for Rent Assistance (RA) are generally indexed each year on 1 July in line with the changes in the Consumer Price Index (CPI) in the 12 months ending in the previous December.

Single Income Family Supplement (SIFS) is not indexed.

RA is indexed in March and September.

Additional child amounts for agreement countries are indexed on 1 January each year.

All FTB components are non-taxable payments.

They are not assessed as income under social security law, family assistance law or veterans' affairs law.

FTB Part A, Part B and associated add-ons are eligible payments for Centrepay deductions. This includes FTB advances, and Part A and Part B supplements, top-ups and lump sums.

SIFS cannot be used for Centrepay deductions.

An FTB Part A rate reduction is applied to the maximum amount payable for a child who:

• does not meet immunisation requirements from 1 July 2018. The child’s immunisation status can be viewed on the Child Immunisation Summary Guided Procedure
• turns 4 on or after 1 July 2019 and does not meet Healthy Start for School requirements before their fifth birthday

If an FTB Part A rate reduction reduces a customer’s FTB entitlement to zero, FTB will remain current at zero rate (FTB/CZR-INR).

FTB Part A, Part B and associated add-ons are income managed according to FTB rules:

• All fortnightly payments are income managed according to the applicable percentage
• All lump sums (including arrears, reconciliation results and quarterly Energy Supplement payments) are 100% income managed

SIFS is not income managed.

If FTB instalments are not payable due to either of the following provisions, all FTB components are not payable:

• Prohibition (non- lodger debt)
• Zero entitlement years

If an FTB debt is raised, it may include FTB add-ons paid for the debt period. FTB add-ons are not payments on their own. They are components of FTB and are raised as an FTB debt.

If FTB entitlement ceases, entitlement to FTB add-ons also ceases. If an FTB debt is raised because the customer had no entitlement for a period, they would also have no entitlement to FTB add-ons for the same period.

If FTB reconciliation results in a customer having lower or nil FTB entitlement, entitlement to add-ons is also adjusted. Per FTB reconciliation rules, FTB entitlement including add-ons can be used to offset an overpayment or an outstanding debt.

Review and appeal provisions in relation to all FTB components are those that apply for FTB under family assistance law.

See Initial contact about a decision and the review of decision process.