How Family Tax Benefit works in Australia

Family Tax Benefit (FTB) is a two-part payment from the Australian Government that helps with the cost of raising children. It is administered by Services Australia through Centrelink and is the largest family payment in the federal budget. About 1.4 million Australian families receive FTB each year.

Part A is paid per child and is based on your family's combined adjusted taxable income. Part B is a per-family payment for single-parent families and couple families where one person is the main earner. You can receive Part A, Part B, both, or neither depending on your circumstances. The calculator above gives a directional estimate using 2025-26 rates; the sections below explain the rules so you can sense-check the result.

FTB Part A: a per-child payment

Part A is paid for each dependent child up to age 19 who is an Australian resident in your care. Children aged 16-19 must be in approved full-time secondary study to qualify. The maximum rate depends on the child's age and your family's adjusted taxable income (ATI).

Source: Services Australia, rates current 1 July 2025 to 30 June 2026. Rates are reviewed each July and indexed to CPI.

Part A income test (Method 1 and Method 2)

Services Australia runs both income tests and pays you whichever gives the higher amount.

• Method 1 (max-rate test): If family ATI is $66,722 or less, you receive the maximum rate. Above that, the payment reduces by 20 cents per dollar of additional income, down to the base rate of $1,896.44 per child.
• Method 2 (base-rate test): Once family ATI exceeds $118,771, the base rate reduces by 30 cents per dollar of further income until it reaches zero.

Worked example: A family with two children aged 8 and 11 and ATI of $90,000 is over the $66,722 threshold by $23,278. Reduction is $23,278 × 0.20 = $4,656. Maximum rate for both kids is $11,822.72. Estimated Part A: $11,822.72 - $4,656 = $7,167 per year.

FTB Part B: a per-family payment

Part B is a single payment per family — not per child. The rate is determined by the age of the youngest eligible child. It is designed to support single-parent families and couple families where one parent is the primary earner.

For couples: the primary earner's income must not exceed $120,007. The secondary earner can earn up to $6,935 per year before Part B reduces by 20 cents per dollar. Couples only receive Part B while the youngest child is under 13.

For single parents: the secondary earner test does not apply. Part B is paid at the maximum rate based on youngest child's age, until the youngest reaches 18 (and meets study requirements after age 16).

End-of-year supplements

Both Part A and Part B include a top-up paid after the financial year ends and you have lodged tax returns. Most families miss this in their mental budget because it arrives months later.

• Part A supplement: up to $938.05 per child for 2025-26. Cliff edge — only paid if family ATI is $80,000 or less. Earn $1 over and the supplement is zero.
• Part B supplement: $459.90 per family for 2025-26. Same $80,000 cliff edge.

For a family with two children under the $80,000 threshold, that's an extra $2,336.10 arriving after the tax return is processed. The calculator above shows the base rate only — supplements are paid separately.

Adjusted Taxable Income (ATI)

FTB is assessed against your Adjusted Taxable Income, which is broader than the gross figure on your payslip. The calculator above takes a single income figure as a simplification — your actual ATI is usually higher.

ATI includes:

• Taxable income from all sources (wages, business, rental, investment)
• Reportable fringe benefits (e.g. salary packaging)
• Reportable employer super contributions and personal deductible super
• Total net investment losses (negatively geared property and shares add back in)
• Tax-free pensions and benefits
• Foreign income that is exempt from Australian tax

Less: child support paid to a former partner.

If you salary package, negatively gear, or make extra super contributions, your ATI for FTB purposes is meaningfully higher than your taxable income — and your real entitlement will be lower than this calculator suggests. Always reconcile with Services Australia before relying on a number.

Worked examples (2025-26)

How to claim FTB

1. Sign in to myGov and link a Centrelink online account if you haven't already. You'll need ID documents and either a Customer Reference Number (CRN) or a one-time linking code from a Centrelink service centre.
2. In Centrelink online, start a new claim for Family Tax Benefit. You'll need each child's birth certificate or proof of identity, your tax file number, and a current income estimate for the financial year.
3. Choose how you want to be paid: fortnightly through the year (most common) or as a lump sum after 30 June once you have lodged your tax return. The lump-sum option avoids reconciliation overpayments but defers the cash flow.
4. Update your income estimate in myGov whenever your circumstances change — pay rises, bonus payments, new jobs, partner income changes. Stale estimates are the leading cause of end-of-year FTB debts.

For precise calculations or eligibility queries, use the official Services Australia FTB page or call 136 150. This calculator is a directional estimate, not financial advice.