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

FTB Part B is not paid to:

• Approved Care Organisations (ACO)
• members of a couple whose youngest FTB child has turned 13

FTB Part B includes:

• Standard Part B rate per family, based on the age of the youngest eligible FTB child and whether or not the customer is a grandparent carer. Shared care can affect the rate. The Part B supplement is payable after the end of the financial year
• Energy Supplement Part B where the customer is grandfathered

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 (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 Part B primary earner income limit does not apply when the customer or their partner receive an Income Support Payment (ISP)
• 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
• If the primary earner's income exceeds this amount, FTB Part B is not payable

Secondary earner income test:

• Partnered customers are subject to the FTB B income test for the secondary earner, 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 caring for a child. FTB Part B may be paid free of the secondary earner income test for the quarantine period. Eligibility is assessed at FTB reconciliation based on return to work details recorded.

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. This includes the PPL period and any connected and not-connected Flexible PPL days.

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