3.1.1.20 Current FTB Rates & Income Test Amounts

Summary

This topic includes:

• FTB Part A standard rates,
• FTB Part A supplement,
• FTB Part B standard rates,
• FTB Part B supplement,
• the FTB Part B primary income earner limit (1.1.I.45),
• income free area,
• higher income free area,
• cut-out amount,
• LFS, and
• multiple birth allowance.

RA rates and thresholds and the MIFA are covered in the references below.

Policy reference: FA Guide 3.1.4.30 Rent Assistance, 3.1.7.10 Maintenance Income Test - General Provisions

FTB Part A standard rates (1.1.S.103)

The standard rate of FTB Part A is the maximum annual amount payable for all FTB children based on their age without including the supplements and without applying the maintenance income test or the relevant income test.

The table below shows the current standard rates of FTB Part A per year (not including the supplement).

Act reference: FAAct section 58(1) Annual rate of FTB for individuals, section 58(2) Annual rate of FTB to ACO, Schedule 1 clause 7 FTB Part A rate (Method 1) - Standard rate, Schedule 1 clause 26 FTB Part A rate (Method 2) - Standard rate

Policy reference: FA Guide 3.1.4 FTB Part A Rate Calculation - Method 1, 3.1.8 FTB Part A Rate Calculation - Method 2

FTB Part A supplement

The FTB Part A supplement is part of the annual rate of FTB Part A for each FTB child. The current maximum FTB Part A supplement is $726.35. The supplement is only available to an individual after the end of the financial year after FTB has been reconciled. Payment of the supplement is conditional on the individual and/or their partner lodging a tax return (if required) or informing Centrelink they are not required to lodge a tax return.

For some families, payment of the FTB Part A supplement may also be conditional on:

• completing a health check for any FTB child who turned 4 years in the income year and notifying Centrelink, and
• meeting immunisation requirements for any FTB child who turned 1, 2, or 5 years in the income year.

Note: The FTB Part A supplement, as well as other FTB top-up payments, may be used to offset an individual's outstanding FTB and/or CCB reconciliation debts.

Act reference: FAAct Schedule 1 clause 38A Rate of FTB Part A supplement, section 61A FTB Part A supplement to be disregarded unless health check requirement satisfied

Policy reference: FA Guide 1.1.H.05 Healthy start for school child health check, 1.1.I.10 Immunisation requirements (FTB, CCB, MIA)

FTB Part B standard rates

The standard rate of FTB Part B is the maximum annual amount payable for a child based on their age without including the supplement and without applying the income test.

The standard rate of FTB Part B is dependent on the individual's family situation. The table below shows the current standard rates of FTB Part B.

Act reference: FAAct Schedule 1 clause 30 FTB Part B rate - Standard rate

FTB Part B supplement

The FTB Part B supplement is part of the maximum rate and base rate of FTB Part B. The current maximum FTB Part B supplement is $354.05 per family. The supplement is only available after the end of the income year after FTB has been reconciled. Payment of the supplement is dependent on an individual and/or their partner lodging a tax return (if required) or informing Centrelink they are not required to lodge a tax return.

Note: The FTB Part B supplement, as well as other FTB top-up payments, may be used to offset an individual's outstanding FTB and/or CCB reconciliation debts.

Act reference: FAAct Schedule 1 clause 31A Rate of FTB Part B supplement

FTB Part B primary earner income limit (1.1.I.45)

To be eligible for FTB Part B a primary income earner (1.1.P.122) must have an ATI (1.1.A.20) of no more than $150,000 per annum. This means, if the primary earner's income is greater than $150,000, the family is no longer eligible to receive FTB Part B. Single parent families with an income of $150,000 or less may be entitled to the maximum rate of FTB Part B.

Income free area (1.1.I.40)

A family with income above the income free area will have their rate of FTB reduced by the income test. The following table shows the income free area per year for FTB Part A and FTB Part B.

Note: For FTB Part A, ATI includes a partner's (1.1.P.30) ATI for the relevant year if an individual is a member of a couple (1.1.M.50). For FTB Part B, the ATI of the secondary income earner (1.1.S.25) is only taken into account when the primary earner's ATI is at or below the income limit.

Act reference: FAAct Schedule 1 clause 38N FTB Part A rate - Income free area, Schedule 1 clause 33 FTB Part B rate - Income free area

Higher income free area (1.1.H.10)

The higher income free area only applies to FTB Part A. The basic amount is $94,316 for families with one FTB child. An additional amount of $3,796 applies for each FTB child after the first.

Act reference: FAAct Schedule 1 clause 2 Higher income free area

Cut-out amount (1.1.C.80)

Generally, the income cut-out amount for an FTB child is $13,775.00 per year. This means where applicable, a child ceases to be an FTB child if their ATI is greater than $13,775.00.

Act reference: FAAct section 22A(1) Exceptions, section 22A(2) - 'cut-out amount', section 35(3) - 'cut-out amount'

Policy reference: FA Guide 2.1.1.10 FTB Child, 3.2 Adjusted Taxable Income

Large family supplement

LFS is part of the maximum rate (1.1.M.26) of FTB Part A if the individual has 3 or more FTB children. The annual amount of LFS is $306.60 multiplied by the number of FTB children after the second child. This means LFS is paid for the third and each subsequent child.

Example: If an individual has 5 children they receive $306.60 x (5 - 2). This means the maximum annual amount of LFS payable is $306.60 x 3 = $919.80.

Note: Prior to 1 July 2006 LFS was paid if the individual had 4 or more FTB children.

Act reference: FAAct Schedule 1 clause 34 Eligibility for large family supplement, Schedule 1 clause 35 Rate of large family supplement

Multiple birth allowance

MBA is part of the maximum rate of FTB Part A if the individual has 3 or more FTB children from the same birth. It is payable until:

• the children turn 16 years of age, or
• if at least 3 of the children are senior secondary school children (1.1.S.27), until the end of the calendar year in which the first born of those children turns 18 years of age.

The following table shows the current annual rates of MBA.

Act reference: FAAct Schedule 1 clause 36 Eligibility for multiple birth allowance, Schedule 1 clause 37 Rate of multiple birth allowance

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Last reviewed: 2 January 2013