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

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This document outlines how the rate of Family Tax Benefit (FTB) Part B is calculated. FTB Part B is automatically included in an individual's FTB entitlement if FTB Part B eligibility requirements are met.

FTB Part B rate - Calculating the rate payable

Step

Action

1

Estimate FTB rate + Read more

To estimate the customer's potential Family Tax Benefit (FTB) rate, see Online estimator options.

FTB Part B is not payable:

  • on days the customer receives PPL (but may be payable on non-PPL days such as weekends)
  • to members of a couple whose youngest child is 13 years of age or over, unless the customer is a grandparent carer

Is the customer single and in receipt of an income support payment?

2

Primary earner income test + Read more

Is the primary earner's adjusted taxable income (ATI) above the Part B primary earner income limit and the customer is not in receipt of an income support payment (including an employment income nil rate period)?

  • Yes, FTB Part B is not payable. Procedure ends here
  • No, go to Step 3

Note: the FTB Part B primary income limit does not apply if the customer and/or partner are in receipt of an income support payment including employment income nil rate periods, however the secondary earner FTB B income test still applies.

3

Calculate the customer's maximum FTB Part B rate + Read more

Note: the References page contains a link to historical rates.

FTB Part B includes:

  • Standard Part B rate per family based on the age of the youngest eligible FTB child. Part B supplement is included at FTB reconciliation
    • For a child aged 13-18 years (if the customer is a single parent or a grandparent carer), Part B is payable if they are in full-time secondary study until the end of the calendar year they turn 18. If they complete secondary study, Part B is paid up to the end of that calendar year, or for 28 days after the course end date if the end date is before November
    • Shared care: The rate payable for the child is multiplied by the shared care percentage used for assessment. The result is compared to the rate for each FTB child and the highest rate is paid
  • Energy Supplement Part B where the customer is grandfathered. If shared care of relevant child, multiply by the shared care percentage

4

Is the customer a member of a couple? + Read more

5

Member of a couple + Read more

Is the secondary earner's adjusted taxable income (ATI) above the Part B secondary earner income free area?

  • Yes, go to Step 6
  • No, the customer's annual FTB Part B rate is the maximum rate calculated in Step 3

6

Secondary earner income test + Read more

The income reduction is applied to FTB Part B components in the following order:

  • Standard Part B rate
  • Energy Supplement Part B (once Standard Part B is reduced to nil)
  • Part B supplement (once Energy Supplement Part B is reduced to nil)

7

Blended families + Read more

For a blended family couple, and for separated couples who claim FTB for a past period before they separated multiply the total annual rate by the percentage each customer is to receive to obtain the annual rate for each customer.

8

Calculate daily rate + Read more

Daily rate = annual rate/365

The daily rate is rounded after adding any entitlement to FTB Part A

The total FTB rate is rounded to the nearest cent (rounding 0.5 cents upwards). If the rate is above nil and below half a cent, it is rounded up to 1 cent.