Family Tax Benefit

Famil y Tax Benefit (FTB) is a payment that helps eligible families with the cost of raising children. It is made up of two parts:

·FTB Part A – is paid per-child and the amount paid is based on the family’s circumstances.

·FTB Part B – is paid per-family and gives extra help to single parents and some couple families with one main income.

FTB can be paid either fortnightly or as a lump sum at the end of the financial year.

Families who are eligible for FTB may also be eligible for other payments and supplements. These may include:

· FTB Part A supplement

· FTB Part B supplement

· Newborn Upfront Payment

· Newborn Supplement

·Energy Supplement –see Department of Human Services website

· Multiple Birth Allowance

Find out more, including eligibility requirements and how to apply, at the Australian Government Department of Human Services website.

Important changes to FTB

·The Schoolkids Bonus has ended. Final payments were made in 2016.

·From the 2016-17 entitlement year onwards, the FTB Part A supplement is subject to an income test. To be eligible for the FTB Part A supplement, family adjusted taxable income must be $80,000 or less.

·From 1 July 2017, FTB Part A and Part B rates will be maintained at the same level for two years.

FTB Part A supplement

The FTB Part A supplement is part of the annual rate of FTB Part A and is paid for each FTB child. The supplement is only available after the end of the financial year, after FTB has been reconciled, and is only paid to families with adjusted taxable income of $80,000 or less.

Payment of the supplement is conditional on you and/or your partner lodging a tax return (if required) or informing Centrelink that you and/or your partner are not required to lodge a tax return within the required timeframes.

Payment of the supplement may also be conditional on meeting specific requirements such as:

·Health check for four year old children: Families who receive income support and whose children turn four during the entitlement year need to ensure their children undergo a health check.

·Children aged from 12 months up to and including 19 years must meet immunisation requirements: Families need to ensure their children are fully immunised with the appropriate early childhood vaccination schedule or have an approved exemption to receive the Family Tax Benefit Part A end-of-year supplement. Continue reading about Health Checks and Immunisation.

·The FTB Part A supplement, as well as other FTB top-up payments, may be used to offset an individual's outstanding debts.

FTB Part B supplement

The FTB Part B supplement is part of the annual rate of FTB Part B per family. The supplement is only available after the end of the income year once FTB has been reconciled.

Payment of the supplement is dependent on you and/or your partner lodging a tax return (if required) or informing Centrelink that you and/or your partner are not required to lodge a tax return within the required timeframes.

The FTB Part B supplement, as well as other FTB top-up payments, may be used to offset an individual’s outstanding debts.

Newborn Supplement and Newborn Upfront Payment

The Newborn Supplement and Newborn Upfront Payment replaced the Baby Bonus on 1 March 2014 and aims to help families care for their newborn baby, recently adopted child or child aged under one year who has been entrusted into their care for a continuous period of at least 13 weeks.

The Newborn Supplement and Newborn Upfront Payment are available to families who are eligible for FTB Part A , where Parental Leave Pay is not paid for that child.