Income tests for family assistance and Paid Parental Leave scheme payments 007-07070000

For customers receiving FTB instalments, their annual income estimate is used to work out their rate during the financial year. For CCS customers, their annual income estimate is used to determine their percentage of CCS entitlement. Actual entitlement for FTB/CCS is worked out during the reconciliation process once their actual income is known.

• The maximum rate is payable if the customer or their partner receives income support payments (excluding employment income nil rate periods from 1 July 2018 and waiting periods) or if ATI is not above the Part A lower income free area
• If ATI is not above the Part A higher income free area, using the Method 1 calculation the customer's maximum rate reduces by 20 cents per dollar above the lower income free area until the base rate is reached
• If ATI is above the Part A higher income free area, the system automatically applies the most favourable outcome for the customer by calculating the FTB Part A entitlement using:
• the Method 2 calculation the customer's base rate reduces by 30 cents per dollar above the higher income free area amount until the rate is nil, and
• an above higher income free area Method 1 calculation
• FTB Part A supplement is subject to an income limit from the 2016-17 financial year. It was also subject to immunisation requirements for financial years 2012-13 to 2017-18 and Healthy Start for School (HSFS) requirements for financial years 2011-12 to 2017-18
• For the 2015-16 and earlier years, income above the Part A higher income free area (HIFA) may reduce the customer's Part A supplement entitlement. For more information, see Family Tax Benefit (FTB) Part A and Part B supplements
• The customer's rate may also be reduced to the base rate by the Maintenance Action Test and the Maintenance Income Test
• An FTB Part A rate reduction may be applied to the maximum rate payable for a child if the child does not meet immunisation or Healthy Start for School requirements

See Rates and thresholds for current FTB Part A income thresholds.

See Resources page for the formula when calculating the income limit at which Family Tax Benefit Part A may not be paid

The References page contains links to historical income test information.

• FTB Part B will not be paid throughout any period that PPL is being received
• The income test for single customers
• For single customers receiving an income support payment, FTB Part B is not income tested
• For single customers not receiving an income support payment, FTB Part B is only payable if the customer's adjusted taxable income does not exceed the Part B primary earner income limit
• Partnered customers
• From 1 July 2016, FTB Part B is not payable to a member of a couple if their youngest child is aged 13 years or over, unless the customer is a grandparent carer
• FTB Part B is only payable if the adjusted taxable income of the primary earner does not exceed the Part B primary earner income limit, except for periods when the customer or their partner receives an income support payment
• If the income of the primary earner does not exceed the limit (or if the customer or their partner receives an income support payment), the maximum FTB Part B rate is reduced by 20 cents for each dollar of ATI of the secondary earner above the Part B secondary earner income free area
• Customers may be quarantined from the secondary earner income test for a period if they or their partner returned to work after caring for a child during the relevant financial year
• Income above the Part B secondary earner income free area may also reduce the customer's Part B supplement entitlement. For more information, see Family Tax Benefit (FTB) Part A and Part B supplements

See Rates and thresholds for current FTB Part B income thresholds.

The References page contains links to historical income test information.

CCS is income tested. A family's CCS % is based on their estimated ATI. The Resources page of Combined family income for Child Care Subsidy (CCS) has a table showing the different CCS percentages based on a family’s combined income. The CCS percentage is then applied to the maximum hourly rate cap.

Customers claiming SBP for a stillborn child delivered on or after 1 January 2021 may be eligible if:

• the customer's (and their partner's) combined estimate of adjusted taxable income (ATI) for the 6 month period beginning on the day of delivery of the stillborn child does not exceed $72,400, or
• the income estimate does not meet the above criterion, but they are eligible for FTB Part A at a rate greater than nil for another child within 52 weeks of the stillbirth

To be eligible for PPL, a customer must meet the PPL income test. Updates to income details are a change in circumstances for PPL.

For children born or adopted on or after 1 July 2023, a family income test was introduced, in addition to the individual income test. If the customer does not meet the individual income test, then the family income test limit is applied. This applies to both single and partnered customers.

If the customer's ATI is above the limit for PPL, their entitlement to Newborn Supplement and Newborn Upfront Payment can be assessed as part of their FTB claim.

The References page contains links to historical income test information.

From 1 July 2019, the FTB Part A higher income free area (HIFA) will increase from $94,316 to $98,988. This is a one-off increase (not an indexation increase). The HIFA is paused up to and including the 2020-21 financial year.

From 1 July 2021, indexation of the following thresholds recommenced:

• FTB Part B primary earner income limit
• PPL income limit