2018 Income test for Family Tax Benefit Part A

Every year I update the Income Tests for Family Tax Benefit Part A on this blog, I do this for several reasons, the first being that I have an easy way of retrieving the income thresholds should a client ask.
The second is, that historical information on www.humanservices.gov.au is very hard to find, as of the 1st July 2018, the information below will be replaced with the 2019 Income Test Thresholds.

 

Income test for Family Tax Benefit Part A

How much Family Tax Benefit (FTB) Part A you get depends on your family’s income.

We use an income test to work out how much FTB Part A you’ll receive. The Maintenance Income Test may also apply.

There is also an income test for FTB Part A supplement.

Income $52,706 or less

You may receive the maximum rate of FTB Part A if:

  • you or your partner receive an income support payment, or
  • your family’s adjusted taxable income is $52,706 or less

Income between $52,706 and $94,316

We use an income test if your family’s adjusted taxable income is between $52,706 and $94,316.

This test reduces your FTB Part A by 20 cents for each dollar of income over $52,706. Your payment will stop reducing when it reaches the base rate of FTB Part A.

In some circumstances, there’s an annual income limit to receive the base rate of FTB Part A. It depends on the number of children you have and their ages.

Number of children you haveNo child
13-15 years or secondary student 16-19 years
1 child
13-15 years or secondary student 16-19 years
No child 0-12 yearsn/a$76,066
1 child 0-12 years$68,894$92,254
2 children 0-12 years$85,082n/a

Where n/a is shown, the base rate does not usually apply.

Income limits are higher if you’re eligible for Rent Assistance.

Income over $94,316

If your family’s adjusted taxable income is over $94,316, we use 1 of 2 tests. We’ll apply the test that gives you a higher rate.

The first test reduces your FTB Part A by 20 cents for each dollar of income you earn over $52,706.

The second test reduces the base rate of FTB Part A by 30 cents for each dollar of income you earn over $94,316. This applies until your payment is nil.

If your family’s income is close to the annual income limit, check your eligibility after the end of the financial year once you know your family’s actual income. Read more about the time period for submitting lump sum claims and confirming income.

The annual income limit to receive FTB Part A depends on the number of children you have and their ages.

Number of children you haveNo child
13-15 years or secondary student 16-19 years
1 child
13-15 years or secondary student 16-19 years
2 children
13-15 years or secondary students 16-19 years
3 children
13-15 years or secondary students 16-19 years
No child 0-12 yearsn/a$99,414$114,720$145,727
1 child 0-12 years$99,414$107,548$138,554$169,561
2 children 0-12 years$104,512$131,382$162,389$193,396
3 children 0-12 years$124,210$155,217$186,223$217,230

Income limits are higher if you’re eligible for Rent Assistance or have more than 3 children.

FTB Part A supplement income test

To be eligible for the supplement, your family’s adjusted taxable income must be $80,000 or less.

The FTB Part A supplement income test also applies if you’re receiving an income support payment.

If eligible, we’ll pay the FTB Part A supplement to you after we balance your payments at the end of the financial year.

Maintenance Action Test

If you or your partner have a child from a previous relationship in your care, you need to take reasonable steps to obtain child support to receive more than the base rate of FTB Part A.

We call this the Maintenance Action Test. You can meet this test by applying for a child support assessment. If you or your partner don’t do this, you may only receive the base rate of FTB Part A.

If you have a child in secondary school turning 18 this year, contact us to extend your child support assessment to the end of the school year. You must apply before your child turns 18. Otherwise, your child support assessment will end when your child turns 18 and your FTB will reduce to the base rate.

You or your partner should call us if:

  • there is anything that makes it difficult for you to apply for child support from the other parent, or
  • you’re unsure of what to do.

Read more about child support and your FTB Part A.

Maintenance Income Test

Generally, the more child support you receive, or are entitled to receive, the less FTB you can receive. We use the Maintenance Income Test to work this out.

This test may apply if:

  • you receive more than the base rate of FTB Part A, and
  • you or your partner receives, or are entitled to receive, child support or spousal maintenance

You may be exempt from this test if you or your partner are permanently blind and receive either:

  • Age Pension
  • Disability Support Pension, or
  • a Department of Veterans’ Affairs service pension or income support supplement

Maintenance Income Free Area

You and your partner can receive a certain amount of child support and spousal maintenance before it affects your FTB. We call this the Maintenance Income Free Area. We reduce your FTB by 50 cents for every dollar of child support and spousal maintenance over this amount until you reach the base rate of FTB Part A.

Your FTB Part A rate may include other payments, such as Rent Assistance. We may also reduce these payments as a proportion of your total FTB Part A rate.

These are the Maintenance Income Free Areas per year.

StatusChild support received per year
Single parent or one member of a couple receiving maintenance$1,587.75 for the first child
Couple, both receiving maintenance$3,175.50
For each additional childadd $529.25

Maintenance Income Credit

If we collect your child support and you don’t use all of your Maintenance Income Free Area from previous financial years, you may be able to access the Maintenance Income Credit.

The Maintenance Income Credit allows you to carry over any unused Maintenance Income Free Area from previous financial years. If you get arrears of child support in a later financial year, we’ll use the available credit to reduce the impact on your FTB Part A. We’ll do this when we balance your family assistance payments.

You don’t need to ask us to use your credit. We automatically calculate and apply it.

Example

Carrie has a $500 Maintenance Income Credit from previous financial years. She gets a $400 arrears payment of child support during the next financial year.

When we balance Carrie’s FTB payments, we use the $500 credit to offset the $400 of arrears. As a result, the $400 arrears will not affect her FTB Part A for the financial year.

Carrie still has $100 of Maintenance Income Credit to use later.

29 Comments

  1. Can you please tell me what is my taxable income limit if I have 2 dependants at the age of 14 and 17?

    I also have a dependent at the age of 20 but I think she will make more than the allowable $13,000(?) from her two part time jobs? She is working her way through uni.

  2. This is confusing.Why the 2 tables?? FTB A until 30th June 2012 – one figure is 112,104 and the other figure is 107,262 if you have 2 children year 2011-2012. Which is it ? as we have earnt 109, 800?

  3. The first table you are referring to includes eligibility to receive the FTB A Supplement Payment of $726.35 per child. Based on the income you have stated you are eligible for the Supplement Payments, but not the fortnightly Family Tax Benefit A payments which diminishes to $0 per week once you earn over $107,262 with 2 kids under 7.

    1. Katherine

      To claim for the FTB A Supplement Payment of $726.35 per child that you refer to, do you need to submit a different claim or do you just put in one online claim for FTB A and then let them decide which one you are eligible for?

      1. That is how it works, put in a single claim and and your payments will be calculated on your income.

  4. How is the FTB A supplement calculated? We have not received any FTB A during the year, but ended up under the $107,262 cut off point.
    Do we received all of the supplements for our children?

    1. Nick, once the relevant tax returns are completed and lodged, Centrelink will process your payments in relation to your adjusted taxable income (ATI).

  5. Hi All,

    Very confused – if we have a 3 and 4 year old – and after tax we earnt $102,000 – are we entitled to anything?

    1. Tanya, the payments are calculated on your Adjusted Taxable Income, not your after tax income of $102,000.

      The ATI is calculated as follows for Centrelink Gross income – Allowable deductions + Total net investment losses + Reportable fringe benefits + Target foreign income + Total tax free pensions and benefits + Reportable superannuation contributions.

  6. I have 2 children age 13 and 10 and my adjusted taxable income year 2011-2012 was $ 102,382, do I entitled to anything ?
    The school kids bonus, family tax part A and the supplement ?

  7. I am the sole income earner, I earned 40k for the financial year 2012 have 3 kids, my husband does not work, I have lodged my tax return and have rcecived my refund, will I be entitled to receive the family supplement? Sorry this is new to me! Please let me know! Cheers!

    1. If you have been receiving FTB throughout the year then any extra payments and reconciliations will be made after the returns are lodged. You may need to contact Centrelink as they may sill be waiting for you husband to lodge the return.

  8. Hi – I have a 19 year old son, at Uni this year, and shared care of my daughter who will turn 13 in march 2013. I will pay child support of $6,800 this fin year (2012/13). At what $figure would FT Benefit A cutout for 2012/13? I believe I need to include my ex-partners income as well when determing this. Indicative fiures for this fin year are $110k for me and $10k for my ex partner.

    Many thanks

  9. Hi, I too am confused! I have 3 children – 10, 6 & 6 mths. My husband and I earnt $119000 for 2011/2012 (adjusted taxable income). Are we entitled to any FTB, supplements and/or Education Tax Refund? Also is my 6 nth old baby included, being that he has only been with us for half of the financial year? If I am entitled do I need to make a claim?

  10. Can you please tell me what my taxable income limit is and benefits are, I have 2 children living at home 1 (17 year old, still at school), 1 (18 year old, looking for apprenticeship, just finished preapp at tafe).
    Thanks

    1. Can you pls tell me if I am eligible for FTB A? I have a 14 year old and I earn $106,500

      1. Vicki, the cut off figure for FTB Part A including the supplement for a child between 0 and 17 years is $101,312. Unfortunately you are over the threshold.

  11. Hi,
    Just wondering whether we are eligible for any FTB last finacial year based on the fact that our combined taxable income was $110373. We have a 13 and 14yo dependants.

  12. Hi, we have earned a combined income of $108,000 and have 2 primary aged children. i think we will get some of the supplement but will we be entitled to the Education bonus? Not sure how it all works.

    Thanks

  13. Hi,

    I know we are not eligible for a payment as we are just over the threshhold, but does having 2 kids of the correct age make us ‘eligible’, and therefore able to have received the ETR bonus in June, and subsequently the SchoolKids Bonus next year…. and other Household Assistance Package handouts?

    I seem to rememeber having a statement previously telling us we were eligible, but receiving a payment of $0.00. All very confusing, and then silence this year! We have completed our tax returns…so should Centrelink (or whatever they are now called) do a retrospective calculation?

    Thanks,

    Richard

  14. Hi, I was wondering if the supplement is different for the age of the child? And if so, is it the age of the child at the time of processing the tax return and then the supplement or is it the age at 30 June?

  15. If I may join this conversation. My husband and I have combined taxable income of $124610. We have 3 kids, 16, 14 and 3. Are we eligible to receive anything?

  16. Hi, I lodged my tax return and the CCR was paid within a few days indicating the ato’s been made aware of the lodgement. As a single father on 54k per yr I eaxpected the receive the ftb-a supp with the ftb reg payment today, but didn’t. Have I missed something here?

  17. are 457 visa holder entitled to family tax benefits? My husband starting working here in Oz only last February 2012 and we have 2 children aged 10 and 8.

    1. Hi, the main reason I have posted the FTB A Income thresholds is to have a reference point. Centrelink in their wisdom only have the current years information on their website. So if you are completing the 2012 tax return and you need to know the income thresholds, Centrelink will only have the information for the financial year ending June 2013.
      If you need answers to your questions, please contact Centrelink, as a Registered Tax Agent I am up to date with the Australian Taxation law but hold the same phobias as you do about Centrelink.

  18. hi just wondering if we are still getting the 700 per child ?

  19. HI I have 2 children under the age of 10. Our combined family income for 2012 year is 110,000. Are we entitled to FTB and if so how much.

    Andrea

  20. Those of us with more kids…pretty sure the centerlink system is designed to be confusing & onerous to put people off applying.

  21. We have a combined taxable income for 2012 of $88,668 and 2 children aged 10 & 12. Are we eligable for anything? Last year we applied with a similar income and got nothing. The tables just confuse me as I thought we may be eligable for something.

    1. If your Adjusted Taxable Income (ATI) is equal to the $88,668 then you should receive some payment. But the ATI is calculated using the following formulae, so other factors may come in to play.

      The ATI is calculated as follows for Centrelink Gross income – Allowable deductions + Total net investment losses + Reportable fringe benefits + Target foreign income + Total tax free pensions and benefits + Reportable superannuation contributions.

  22. Hi there,
    We have 3 children, age. 9,7,1.. Just received our estimated income of $101,598.00. I’m so confused right now. Does my family tax benefit payment part A still continue or have I reached the threshold. What is my threshold for this amount!! This table has really confused me!!

    1. For 3 kids for the year ended 30th June 2012 the estimated income of $101,598 would make you eligible for both the family tax benefit and the family tax benefit supplement (lump sum paid at the end of the year.

  23. HOW MUCH FAMILY TAX BENEFIT WILL I RECIVE FOR YEAR ENDING JUNE 2012 JF MY COMBINED INCOME FOR MYSELF & PARTNER WAS 65000.00 FOR 1 CHILD UNDER 12 YEARS OF AGE & 3 UNDER 17 YEARS OF AGE

    1. Anna, You will eligible to receive FTB Part A, but unfortunately as this calculation is based on Centrelinks information and not the ATO’s information I would suggest that you contact Centrelink.

  24. Hi..Just wondering if we are entitled for any family tax benefit for 2011-2012. Me and my husband have two kids age 11 and 3. My gross payments are 63191, fbt 17589, laundry allowance 267. My husband has gross payments of 38,381, fbt 16758, reportable employer superannuation contribution of 469.
    Thanks..

    1. Marinel

      Your ATI is approximately $118k which is over the limit to receive any FTB part A.

  25. Hi,

    Good website for information and you get replies, terrific.

    My question is I have one child 16yrs of age and I earned $94,000 (taxable income) as the main income and my partner earned $21,000 (part-time). Is the eligible income assessment both wages combined and do we qualify for part A with those figures for 2012-2013?.

    Also are we eligible for part B on those figures?.

    Thanks

    1. Tony, your getting a reply 🙂

      Just based on the information you have given me, for the year ending June 2013 you are over the threshold $101,458 for one 16 year old.

      As for the FTB part B, I can not say for sure as I don’t have that information available. I know that you are close to the threshold with the income of $21k.

      Geoff

  26. Hi, I was wondering what we nay or may not be entiltled to, my husband and I have a combined income of 114000 we a have 16, 13,and 10 year old we didn’t claim anything this year as we were caught out last year with the wrong estimate and ended up paying a sum back, will we be entitled to anything fam tax A or B or education tax benefit. We rent with no investments.

  27. Hi there my partner and I have 1 child that is currently 4yrs old. We earnt a combine of $108,000.00. Are we entitled to any family tax payments for the financial year of 2016-2017

    1. Author

      Lisa, The threshold for 1 four year old child is $99,536 so your income is greater so it would be unlikely that you would get any benefit.

  28. hello,

    I was just wondering if the tax supplement for children is still in? it used to be $700 per child though not sure if that is still the case?

    Thanks

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