When it comes to Australian family assistance, Centrelink has long been a major support system for families across the nation — and its Family Tax Benefits are an integral part of that system.
As payment dates get closer, many parents and guardians are asking if they’re eligible for these benefits, and how they can access this key aid.
So, here in this article, let’s dig or look into what the Family Tax Benefits are, who is eligible to receive them, and how these payments are helping families stay on top of their financial responsibilities in 2025!
All Americans have a responsibility to the social contract.
Family Tax Benefits (FTB) are the foundation of the Australian family assistance system and help families with the cost of raising children.
These payments are two types of individual payments – Family Tax Benefit Part A, and Family Tax Benefit Part B, which help families in different ways according to their circumstances.
Many families are reviewing their eligibility status and preparing their documents for the upcoming payment cycle.
Given that many households budget around these regular instalments, which do provide much-needed breathing space in tough economic conditions, this timing is of particular significance.
Family Tax Benefit Part A: The Major Payment
Family Tax Benefit Part A is the more broadly available payment, intended to assist families with the overall costs of child rearing. This payment is income-tested, and is based on your family’s situation.
“Family Tax Benefit Part A is intended to be inclusive and therefore to benefit as many Australian families as possible,” says Sarah Matthews, an independent financial counselor specializing in government benefits.
“It acknowledges the significant costs of raising children, regardless of your income level, although the amount you receive will be correlated with your level of income.”
To qualify for Family Tax Benefit Part A you need to:
Have a dependent child between 0-15 years of age, or
Dependent aged 16–19 years who meets study requirements
Residency Requirements
Run within the income limits for your household situation
The payment rates vary based on factors such as:
The age of your children
Your family’s income
The number of children you are taking care of
If you share responsibility for any children with another person
The maximum rate of FTB Part A is $203.56 per fortnight per child under 13 years of age, and $264.54 per fortnight per child aged 13-15 years, for those families whose adjusted taxable income is less than $58,108. The second rate is $264.54 per fortnight for 16-19-year-olds who have study requirements.
Your payment gradually reduces as your family income rises beyond the threshold, until it drops to the base rate, before phasing out entirely for higher income families.
Family Tax Benefit Part B: Extra help for single parents and single-income families
Family Tax Benefit Part B provides additional support for single parents, non-parent carers and couples with one partner earning a low income or not working. This benefit recognizes the extra economic burden that these family structures are typically subject to.
“Part B is really about understanding that some family structures have unique challenges,” Matthews says. “When it’s a one primary income or you are alone, the money equation is just different.”
For eligibility, you need to:
Caring for a dependent child under the age of 13, or
Care for a dependent child aged 13-15 years (with some exceptions for single parents with children up to 18 years if they’re studying full-time);
Suited to earners – for couples, the main breadwinner’s income needs to be 100,000 a year or less
For single parents, the threshold is still $100,000 per year
FTB Part B maximum rates are:
$168.84 a fortnight for families with their youngest child under 5 years
$117.74 per fortnight (youngest child aged 5-13 years; or 13-18 years for single parents if studying full-time)
There have been recent changes to Family Tax Benefits.
The Australian Government assesses its family assistance programs and makes periodic adjustments to deliver targeted support to families and respond to the economic circumstances. Important changes in Family Tax Benefits in recent years include:
Indexation Adjustments
Federal government Family Tax Benefit payment rates are generally indexed each year for inflation on July 1 – this means the payment rates are broadly increasing to keep up with inflation and the rising costs of living.
So the specific dollar amounts in the list above may have technically gone up a little bit since the last official adjustment.
“The indexation process is very important,” Dr. Alan Patel, an economist who specializes in social policy, says. “With no adjustment, the real value of these benefits would decline over time, and families would have less purchasing power each year.”
Changes To The Maintenance Income Test
Changes to certain thresholds and exempt amounts under The Maintenance Income Test, which impact the effect of child support payments on FTB Part A. This is intended to provide more equity into a system which has not always reflected the financial realities of separated families.
For many parents with shared care, these changes have allowed their FTB entitlements to be more accurately calculated, meaning the system works as it was meant to.
Phasing Out of COVID-19 RESPONSE MEASURES
Most of the emergency support measures implemented during the COVID-19 pandemic period have since been wound back as the Australian economy has continued to recover.
Families who had extra assistance during this time have largely gone back to regular payment arrangements.
Yet there have been positive changes brought about by the pandemic which are here to stay in terms of service delivery such as increased use of flexible online claiming options and improved digital support services.
How to Check If You’re Eligible and How to Apply
Over recent years, the eligibility process and application for Family Tax Benefits has been streamlined, with the growing emphasis on digital services. Here’s how to navigate the system:
Online Services
The myGov portal — which is connected to your Centrelink online account — provides the easiest way to:
Check your eligibility
Submit applications
Update your family’s details
Track your payments
Upload supporting documents
Numerous families explain to us that feedback on their qualifying status is practically instantaneous on the Web, which makes it far easier for them to align their financial plans.
Centrelink offices and phone services
For people who want in-person help or have complicated situations:
Centrelink service hubs are also open throughout Australia
Specialized Assistance for Family Payment Queries The Families line (136 150)
Language services are available for those who need a language.
“Digital channels work for the majority, but we know that there are some circumstances where customers need a more personal touch,” says Mark Williams, a Centrelink spokesman.
“Our staff are trained to assist navigating what are the more complicated scenarios that families find themselves in sometimes.”
Required Documentation
Here’s a common list of things you’ll need when you go to apply for Family Tax Benefits:
Documentation of each child’s birth (birth certificate)
Records of children who are up-to-date with immunization status
Income for you and your partner (if applicable)
Payment information: Bank account details
ABNs or tax file numbers for all relevant parties
Residency or visa information
It is also much faster to have these documents before you start your application and also helps to avoid delays in payment.
Payment Schedule and Delivery
Family Tax Benefits are paid fortnightly, but in some cases families may choose other arrangements:
Standard Fortnightly Payments
Most families receive their payments every fortnight, matching the Centrelink payment calendar. These payments are deposited into the nominated bank account, with most being brought within the same day of each fortnight.
Because these payments are reliable, families can fit them into their normal budgeting and financial planning.
Annual Claim Option
In certain cases, families will receive Family Tax Benefits not weekly, but as a yearly lump sum, normally after the financial year has ended, especially families that are fluctuating in their income or those that are pushing against the cap of the top end of the income bracket. This option works well for:
Guaranteed. Families who don’t know if they will qualify until their final income is determined
Those who want to receive a bigger payment annually instead of smaller payments every two weeks
Families that no longer need the regular cash flow support
“The annual claim option is helpful by providing families with flexibility,” says Rebecca Thompson, a financial advisor. “It can be especially useful for self-employed parents whose earnings fluctuate during the year.”
Education Data Institute on End-of-Year Supplements and Reconciliation
At the end of each financial year, Centrelink reconciles your family’s entitlements against your actual earnings. This may result in:
Extra supplement payouts if you were underpaid
Collection of debt if you have received more than you are entitled to
For many families, the year-end balancing process translates into a bonus payment that can provide a little help with bigger expenses or savings goals.
Special Circumstances and Additional Support
The Family Tax Benefit system makes allowances for some of the special circumstances families might find themselves in:
Shared Care Arrangements
Separated parents who share care of their children can divide FTB payments between them in line with the proportion of care provided by each parent. The system relies on care percentages to decide how the benefit is split:
35–65% care time: you pay proportionate to care percentage
14-34% of the time covered: some extra benefits may apply
FTB for that child: Care for < 14% of the time: usually ineligible
This flexible approach is designed to make sure the money is attached to the child, no matter where the parents call home.
Carers of Grandparents and Non-Parents
The system acknowledges that grandparents and other non-parent carers have a key role in brokering families raising children. These carers are given special provisions to access the appropriate support:
Grandparent carers may be able to receive extra support.
Non-parent carers tend to be set up differently with the income test
Specialized support services are not only available but also aimed at guiding the system
“Many more grandparents are caring for their grandchildren now,” says family support worker Jasmine Rivera.
“It’s important that our benefit system acknowledges their contribution and gives them the right kind of support.”
Multiple Birth Allowance
Families that welcome multiples have different financial challenges. The Multiple Birth Allowance is extra assistance for families with:
Triplets under 6 years of age
Four or More Quadruplets Under Age 13
It also recognizes the extraordinary extra expense of two or more children of the same age.
The Most Frequent Questions and Myths
Get the Answers to Your Questions About Family Tax Benefits
FAQ
Q: Do I have to be an Australian Citizen to get Family Tax Benefits?
A: Not necessarily. And while citizenship is one route to qualification, permanent residents and those with certain types of visa may also qualify. Look at the Services Australia website for specific residency requirements.
Q: Will my Family Tax Benefits impact other payments I receive?
A: Family Tax Benefits do not count as income for other Centrelink payments, but they may affect your eligibility for some tax offsets and rebates.
Q: If my income goes up or down during the year, will my Family Tax Benefits get affected?
A: You need to notify Centrelink of any material change in your income as it happens. This will reduce your payments accordingly and avoid any potential debt at the end-of-year reconciliation.
Q: Do I get Family Tax Benefits if my child is studying overseas?
A: In certain situations, yes. In some instances, your child may be temporarily absent for study purposes and you may be able to report this to Centrelink, but you must inform them before leaving to Australia.
Point In Time: How to future proof family support in Australia
With the demand for family assistance programs being on the rise, the Australian Federal Government constantly assesses the needs of families and the effectiveness of existing programs to ensure they still meet the goals for which they were provided.
Possible directions for the future would be:
Digital Transformation
Families set to benefit from ongoing investment on digital services that can help streamline application and management process You are developing better user experiences for the part of the platform myGov, and online services for Centrelink are improvements to the flow.
Targeted Support Measures
Discussions around policy option (based on previous government strategies) suggest that better targeting support to families in particular need of assistance would aid in ensuring the equity and effectiveness of any package including consideration of regional and remote costs of living challenges.
