The Family Tax Benefit (FTB) is a government payment that helps families with the cost of raising children. Despite the name, it is not part of the tax system—it is a social security benefit, not a tax refund or deduction. FTB helps cover everyday expenses such as food, clothing, education and general child-rearing costs.
FTB is administered by Services Australia (Centrelink), not the ATO, which is why it does not appear in your income tax return.
FTB Part A and Part B: How They Work
The Family Tax Benefit has two components:
FTB Part A
The main payment, available to most eligible families. The amount you receive depends on:
- Your family’s income
- The number of children you care for
- The age of your children
FTB Part B
An extra payment for:
- Single parents, or
- Single-income families, usually where one partner stays at home or works part-time
Both parts are means-tested, meaning your income affects your eligibility and the amount you receive.
Eligibility Requirements for FTB
To qualify for the Family Tax Benefit, you must:
- Have at least one dependent child in your care aged 0–15, or a full-time secondary student aged 16–19
- Care for the child at least 35% of the time
- Ensure the child is an Australian resident
- Meet Australian residency rules yourself
- Fall within the income thresholds for FTB Part A and/or Part B
FTB Is Not a Tax Refund
One of the biggest misconceptions is that FTB works like a tax refund. It does not.
How a Tax Refund Works
A tax refund is money the ATO returns to you if you overpaid tax during the year.
How FTB Works
- FTB is separate from the tax system
- You do not receive FTB simply by lodging a tax return
- FTB does not appear on your tax assessment
- Payments come from Centrelink, not the ATO
Think of FTB as similar to benefits like Parenting Payment or the Child Care Subsidy—government assistance delivered through Services Australia.
How to Claim the Family Tax Benefit
You must apply for FTB through Services Australia, not through your tax return. You can claim by:
- Using your myGov account linked to Centrelink
- Calling the Families line
- Visiting a Centrelink service centre
New parents may receive a Newborn Child Declaration form in hospital, which can be used to claim FTB and other family payments.
Payment Options: Fortnightly or Annual Lump Sum
You can choose how you receive your Family Tax Benefit.
- Fortnightly Payments
- Paid every two weeks
- You estimate your family income for the year
- Centrelink adjusts payments at the end of the financial year (balancing)
- Overpayments may need to be repaid if your estimate was too low
- Annual Lump Sum
- Claim after 30 June using your actual income
- Helps avoid overpayments
- You must claim within one year after the relevant financial year
- Example: For 2024–25, the deadline is 30 June 2026
Important Things to Remember
- All Communication Comes from Centrelink
Approval notices, balancing letters, payment summaries and changes all come via your Centrelink online account—not your tax return.
- Payments Are Separate from Tax Refunds
Lump sums from FTB are paid directly into your bank account by Centrelink, entirely separate from any tax refund the ATO issues.
- Always Update Centrelink if Your Circumstances Change
This includes:
- Changes in income
- Changes in care arrangements
- New relationships or separations
- Moving house
- Becoming self-employed
Keeping your details updated helps you avoid overpayments or unexpected debts after year-end balancing.
Conclusion
The Family Tax Benefit is often misunderstood, especially when it comes to tax time. While its name suggests a connection to your tax return, FTB is not a tax refund or tax deduction, it is a Centrelink payment that supports families with the cost of raising children.
Eligibility is based on income, residency and care requirements, and payments are managed entirely through Services Australia. Whether you choose fortnightly payments or an annual lump sum, it’s essential to keep your details up to date to ensure you receive the correct amount. Understanding how FTB really works can help you avoid confusion and make the most of your entitlements.
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