All families know that raising children isn’t cheap. Though having little ones is a true blessing, it can be difficult for many families to make ends meet when considering the costs of childcare, nappies, and so much more. The family tax benefit is a way to help families lower the costs of raising children.
Eligible families can get the family tax benefit from their child’s birth until their late teens. There are two parts to this benefit, Part A and Part B, and they work differently. There are also special supplements available for those who qualify that offer additional payments. The Family Tax Benefit (FTB) is typically available to low and middle-income families. In this guide, we’ll discuss who is eligible for Family Tax Benefit A and B.
What Is the Family Tax Benefit?
First, what is the Family Tax Benefit and how do the two parts differ? This is a two-part government payment. It’s specifically designed to help those who are eligible lower the costs of raising children. Not everyone is eligible, and eligibility is based on your child’s age, your income, and your family status.
The two parts of the Family Tax Benefit are:
- Part A: A payment made to the parents per child
- Part B: A payment made per family in addition to part A, usually for single parents or single-income households
Part B is sometimes more confusing since it only applies in specific situations. This is an extra form of support given to families that need it. For example, it’s commonly given to single-parent families, non-parent carers, or single-income families. Not all parents are able to work depending on their circumstances, so Part B helps fill this gap.
Both Part A and Part B of the Family Tax Benefit are available through Centrelink. Some extra supplemental funds might also apply when you lodge your taxes. It’s worth discussing your options with a tax professional if you think you might be eligible for either of these family payments.
Who Is Eligible?
Next, who is eligible for the Family Tax Benefit? Though these payments are undeniably helpful, not every family meets the criteria. They’re designed to help families that have the greatest need. For both A and B, you need to meet the following eligibility criteria:
- You care for a dependent child who is 0-15 years old or 16-19 years old (if they’re an active student)
- The highest income, if you’re a couple, must be $100,000 per year or less
- If you’re a single parent your income must be $100,000 per year or less
- You’re a permanent resident or citizen
- You care for the child at least 35% of the time
In order to be eligible for Part B, you must also be one of the following:
- A single parent
- Non-parent carer
- Grandparent carer
- Member of a couple with a sole income
Additionally, to be eligible for the Family Tax Benefit Part B, the child you’re caring for must be no older than 13 if you’re a couple or 15 if you’re single (depending on study requirements). As you can see, eligibility for both Part A and Part B of the Family Tax Benefit depends on your circumstances.
How Much Are Family Tax Benefit Payments
With these rules in mind, you’ll also want to know how much money each family is eligible for. While the payments range depending on your circumstances, there is an average you can use to understand how these payments work. Currently, Centrelink sets maximums each family can receive per child depending on their age. These are:
- Part A: $191.24 for children 0 – 12 years
- Part A: $248.78 for children 13 – 19 years
- Part B: $162.54 per family when the youngest child is 0 – 5 years
- Part B: $113.54 per family when the youngest child is 5 – 18 years
- Part B: $379.60 yearly supplement payment per family
As you can see, the amount varies depending on the type of Tax Benefit you qualify for. Though these amounts change yearly, they provide a great deal of relief for families in need. To apply for these payments, complete the claim form on the Centrelink website. You can choose to have all or some of your payments made fortnightly or in a lump sum yearly.
Get the Government Support You Need
No matter your income, raising children is expensive. Families of all backgrounds often need help from time to time. The Family Tax Benefit is designed to lower this burden for families, offering support per family or per child. Though eligibility rules can be complicated, this guide above lays everything out in straightforward terms.
Are you eligible for support? If you’re unsure or need help creating a family budget, talk to the professionals at Debt Busters. With over 15 years of helping Aussies through all types of situations, we’re here to help. Contact us today on 1300 368 322 to for an obligation free consultation.