Family Tax Benefit (FTB) - Part B

Family Tax Benefit Part B – limited to families with children under six years

Eligibility for FTB Part B will be limited to families whose youngest child is younger than six years of age from 1 July 2015.  During the period between 1 July 2015 and 30 June 2017, existing recipients with a youngest child aged six years and over will not be affected until 1 July 2017. 

Reduction of primary earner income limit to $100,000 ($100,900 from 1 July 2021)

The primary earner income limit for FTB Part B will reduce to $100,000 from $150,000.($100,900 from 1 July 2021)  Families with primary earner income of more than that will no longer be eligible to receive FTB Part B.

This change applies automatically for new and existing recipients.

As part of this measure the Dependant (Invalid and Carer) Tax Offset income threshold will also reduce to $100,000.($100,900 - from 1 July 2021) 

 

Family Tax Benefit (FTB) has two parts, Part A and Part B.  You may be eligible for Part A, Part B or both.  FTB is not asset tested, but is income tested.  FTB is tax free.
 

From 1 July 2009, FTB will no longer be claimable from the ATO – all claims will be administered by Centrelink or Medicare.  However, payment will be suspended if the family’s tax lodgements are not up to date within 18 months of the end of each financial year. 

 

  

The components of adjusted taxable income are as follows:

> Taxable income

Add:

> Adjusted Reportable Fringe Benefits (1)

> Net rental property losses

> Certain tax free Centrelink or DVA payments (2)

> Target foreign income (3)

> Reportable employer superannuation contributions (From 1 July 2009)

> Deductible personal superannuation contributions (From 1 July 2009)

> Net financial investment losses (From 1 July 2009)

Subtract: deductible child maintenance expenditure. 

Notes:

(1) Reportable fringe benefits are ‘grossed down’ using the following formula:

Adjusted fringe benefits = reportable fringe benefits amount x 53.5% (1/4/2006 to 30 June 2017)

From 1 July 2017 they won't be grossed down anymore, except for FBT Concessional Bodies.

(2) These are the amounts of any of the following payments that you receive through:

Centrelink

> disability support pension paid to a person who is not old enough to receive the age pension

> carer payment where both the carer and the person being cared for are not old enough to receive the age pension

> wife pension where both the recipient and spouse, if applicable, are not old enough to receive the age pension. 

Department of Veterans' Affairs 

> invalidity service pension where the recipient is not old enough to receive the age pension

> disability pension, war widow's and war widower's pension

> partner service pension where both partners are under age pension age and the veteran receives an invalidity service pension, or the veteran has died and received an invalidity service pension at the time of death

> income support supplement paid on the grounds of invalidity if the person has not reached age pension age.

Bereavement payment, pharmaceutical allowance, rent assistance; remote area allowance or language, literacy and numeracy supplement are not included.

(3) Target foreign income is income:

> any income earned, derived or received from sources outside Australia

> a periodical payment by way of gifts or allowances from a source outside Australia

> a periodical benefit by way of gifts or allowances from a source outside Australia

provided that the amount has neither been included in your taxable income, nor received in the form of a fringe benefit.

Types of target foreign income include:

> regular receipts of money and gifts from relatives living overseas which are exempt from Australian tax

> income from foreign business interests and investments, which are exempt from Australian tax, including income received by migrants with business interests in their country of origin

> foreign source income received while you were a temporary resident that is exempt from Australian tax

Single parent families

Up to 30 June 2008, if you were a single parent you could get the maximum amount of Family Tax Benefit Part B regardless of your income, although shared care could affect your payment.

From 1 July 2015, FTB Part B is limited to single parents with an adjusted taxable income of less than $100,900 (From 1 July 2021), ($100,000 - 1/7/2016 to 30/6/2021), ($150,000 - 1/7/2008 TO 30/6/2015)

Two parent families

If you are a two parent family, the income of the parent earning the lesser amount must be equal to or less than the income limits below.
Prior to 1 July 2008, the income of the parent earning the higher amount was not taken into account.

From 1 July 2015, if the parent earning the higher amount earns more than $100,900 (from 1 July 2021) adjusted taxable income for that financial year, then the other parent will not be eligible for any Part B benefit, ($100,000 -1/7/2016 to 30/6/2021), ($150,000 - 1/7/2008 to 30/6/2015)

Income test for the parent earning the lesser amount

Income limits of lesser earning parent without Energy Supplement
Year	For full payment	Payment cut out if youngest child under 5	Payment cut out if youngest child is 5 to 18
2021/2022	$5,840	$28,945	$22,557
2020/2021	$5,767	$28,671	$22,338
2019/2020	$5,694	$28,197	$21,973
2018/2019	$5,621	$27,686	$21,572
2017/2018	$5,548	$27,613	$21,499
2016/2017	$5,475	$27,886	$21,663
2015/2016	$5,402	$27,467	$21,353
2014/2015	$5,329	$27,065	$21,043
2013/2014	$5,183	$26,390	$20,532
2012/2013	$5,037	$25,623	$19,929
2011/2012	$4,891	$24,912	$19,382
2010/2011	$4,745	$24,291	$18,907
2009/2010	$4,672	$23,817	$18,542
2008/2009	$4,526	$22,995	$17,904
2007/2008	$4,380	$22,302	$17,356
2006/2007	$4,234	$21,572	$16,790
2005/2006	$4,088	$20,951	$16,316
2004/2005	$4,000	$20,464	$15,936

Maximum rates of Family Tax Benefit Part B

Year	Age of youngest child is under 5 years			Age of youngest child is 5 to 15 years or 16 – 18 years if a full-time secondary student
	Per fortnight (excl. sup)	Annual Supplement	Per annum (incl. sup)	Per fortnight (excl. sup)	Annual Supplement	Per annum (incl. sup)
2021/2022	$162.54	$383.25	$4,620.90	$113.54	$383.25	$3,343.40
2020/2021	$161.14	$379.60	$4,580.75	$112.56	$379.60	$3,314.20
2019/2020	$158.34	$372.30	$4,500.45	$110.60	$372.30	$3,255.80
2018/2019	$155.54	$365.00	$4,419.95	$108.64	$365.00	$3,198.10
2017/2018	$155.54	$357.70	$4,412.65	$108.64	$357.70	$3,190.10
2016/2017	$155.54	$354.05	$4,409.20	$108.64	$354.05	$3,186.45
2015/2016	$152.88	$354.05	$4,350.77	$106.82	$354.05	$3,146.63
2014/2015	$150.36	$354.05	$4,274.15	$105.00	$354.05	$3,091.55
2013/2014	$146.44	$354.05	$4,171.95	$102.20	$354.05	$3,018.55
2012/2013	$144.34	$354.05	$4,117.20	$100.66	$354.05	$2,978.40
2011/2012	$140.00	$354.05	$4,004.05	$97.58	$354.05	$2,898.10
2010/2011	$136.36	$354.05	$3,909.15	$95.06	$354.05	$2,832.40
2009/2010	$133.56	$346.75	$3,828.85	$93.10	$346.75	$2,774.00
2008/2009	$128.80	$335.80	$3,693.80	$89.74	$335.80	$2,675.45
2007/2008	$125.02	$324.85	$3,584.30	$87.08	$324.85	$2,595.15
2006/2007	$120.96	$313.90	$3,467.50	$84.28	$313.90	$2,511.20
2005/2006	$117.60	$306.60	$3,372.60	$82.04	$306.60	$2,445.50
2004/2005	$114.66	$150.23	$3,139.58	$79.94	$150.23	$2,234.38

The amount of Family Tax Benefit Part B will reduce by 20 cents per annum for each dollar earned above the income limit.