Family Tax Benefit in Australia: Understanding Part A and Part B, Eligibility Criteria, and Overview of the Benefit

Updated on January 30, 2024

In this article, we aim to provide essential insights into Family Tax Benefit Australia, covering both Part A and Part B. We will delve into the details of what Family Tax Benefit entails and the eligibility criteria associated with it. This scheme is designed to support citizens in raising their children, offering financial assistance either in a lump sum or through separate installments. Government initiatives like the Family Tax Benefit play a crucial role in enhancing the well-being of eligible individuals, ensuring better facilities and nutrition for their young ones.

Family Tax Benefit Australia

The Family Tax Benefit is a program initiated by the Australian government to offer financial assistance in supporting the upbringing of children. This scheme is divided into two parts, namely Part A and Part B.

Payments under Part A are determined by the family’s circumstances and the number of children being cared for. On the other hand, Part B focuses on offering additional assistance to parents who are either raising the child alone or where both parents have only one source of income.

You can apply for the benefit at least three months before the birth of the child or as soon as you decide to take a child under your care.

Family Tax Benefit Part A

Under this scheme, the Family Tax Benefit is provided for each child, taking into account the family’s circumstances and the combined household income. To be eligible for this assistance, you must be caring for a child who is less than fifteen years old. If the child is between 16 and 19 years of age, they should meet the government’s study requirements.

The amount of assistance you receive under this part is contingent on the income disparities among different families and the age of the child. The government has established a base amount for every child under care, with a base fortnightly payment of $58.66 for each child. Additionally, the annual lump sum payment is set at $2255.

It’s important to note that the annual base amount mentioned also incorporates the Part A supplement, which stands at $726.35 for each child. This supplement is provided to families with a combined annual income of less than $80,000.

Family Tax Benefit Part B

This constitutes another aspect of the Family Tax Benefit. Eligible individuals may receive benefits under either one or both of these parts. Part B specifically offers additional assistance to single parents, couples with a single earner, or individuals who are not the biological parents of the child under their care.

If the individual applying for the benefit under this scheme is already receiving Parental Leave Pay, in that case, they will not be entitled to receive the benefit payment.

The amount under this part will vary for each individual and is determined by the age of the youngest child under their care. If the age of your youngest child is between 0 to 5 years, you will receive a maximum payment of $162.54 every fourteen days. If their age is between 5 and 18 years, then the benefit amount will be a maximum of $113.54.

Who is eligible to get Family Tax Benefit?

Before completing the application for the Family Tax Benefit, it’s crucial to ensure that you meet all the eligibility criteria. The eligibility criteria for both parts are outlined below:

1. You must be the primary caregiver of a child aged 0 to 15 years. If the child is between 16 to 19 years old, they must be enrolled in an educational institute.
2. The annual income of your household must be $100,000 or less.
3. You must be a permanent resident or citizen of Australia.
4. The child must be in your care for at least thirty-five percent of the time.

For Part B, there are additional specific eligibility criteria, including:

1. You must be a parent, grandparent, a couple with a single earner, or a non-parent.
2. If you are a single caretaker, the age of the child must not exceed fifteen.
3. If you are a couple caretaker, the child under your care must be below the age of thirteen.
4. It’s essential to ensure that the income calculated at the time of applying is not underestimated. Any changes in income must be promptly updated in the benefit records. Failure to do so may result in a debt from Centrelink, equivalent to a tax debt.