Centrelink Family Tax Benefits: Raising a family in Australia comes with many expenses, and the Centrelink Family Tax Benefit (FTB) is designed to help ease the financial burden. Whether you’re a new parent or managing a growing household, knowing how much you’ll receive from the government can make a big difference in your budgeting.
With March 2025 just around the corner, families want to know how much they’ll receive from Centrelink’s Family Tax Benefit and how they can maximize their payments. This guide provides all the details, including eligibility, payment rates, income thresholds, and practical tips to ensure you get the maximum benefit.
Centrelink Family Tax Benefits
| Feature | Details |
|---|---|
| Payment Types | FTB Part A & FTB Part B |
| FTB Part A Max Rate | $222.04 (0-12 yrs) & $288.82 (13-19 yrs) per fortnight |
| FTB Part B Max Rate | $169.16 (under 5 yrs) & $118.36 (5-18 yrs) per fortnight |
| Income Threshold | FTB A: $65,189 max for full rate; FTB B: $117,194 for primary earner |
| FTB Supplements | FTB A: $916.15 per child; FTB B: $448.95 per family |
| Official Link | Services Australia |
The Centrelink Family Tax Benefit is a vital support for Australian families, helping cover the costs of raising children. By understanding payment rates, income limits, and eligibility criteria, you can maximize your benefits in March 2025 and beyond.
For the latest updates, visit Services Australia and stay informed about your entitlements.
What is the Family Tax Benefit (FTB)?
The Family Tax Benefit (FTB) is a government payment that helps Australian families with the costs of raising children. It is split into two parts:
- FTB Part A: For families with dependent children, paid based on income and number of children.
- FTB Part B: For single parents and families with one main income earner.
Both payments are means-tested, meaning they depend on your family’s income.
FTB payments help cover everyday living expenses, including food, school supplies, clothing, medical costs, and childcare. The goal is to provide financial security to families while encouraging parents to work without being overburdened by high child-rearing costs.
FTB Part A: How Much Will You Receive?
1. Payment Rates (Effective March 2025)
- Children aged 0-12 years: $222.04 per fortnight per child
- Children aged 13-19 years: $288.82 per fortnight per child
If you have more than one child, these payments accumulate. For example, if you have three children aged 5, 10, and 16, your total FTB Part A payment would be $222.04 + $222.04 + $288.82 = $732.90 per fortnight before income testing.
2. Income Thresholds & Reduction Rates
- Families earning $65,189 or less receive the full FTB Part A rate.
- Payments reduce by 20 cents for every $1 earned above this until reaching the base rate ($71.26 per child).
- For incomes above $115,997, payments reduce by 30 cents per dollar until reaching $0.
Understanding the income threshold is critical. If your income fluctuates, ensure that you report changes to Centrelink immediately to avoid overpayments, which may need to be repaid later.
3. FTB Part A Supplement
At the end of the financial year, eligible families may receive a lump sum of up to $916.15 per child if their income is $80,000 or less. This acts as an additional safety net for families.
FTB Part B: How Much Will You Receive?
1. Payment Rates (Effective March 2025)
- Youngest child under 5 years: $169.16 per fortnight per family
- Youngest child aged 5-18 years: $118.36 per fortnight per family
This payment is especially beneficial for single parents or families where one parent stays at home to care for children.
2. Income Thresholds & Reduction Rates
- The primary earner must earn $117,194 or less to qualify.
- The secondary earner can earn up to $6,789 before reductions apply (20 cents per $1 over this limit).
3. FTB Part B Supplement
A yearly supplement of up to $448.95 per family is available after the financial year ends.
How to Apply for Family Tax Benefits
Applying for Centrelink Family Tax Benefits is straightforward:
- Check Your Eligibility – Visit Services Australia to review income limits.
- Set Up a myGov Account – Link it to Centrelink.
- Submit Your Application Online – Provide your income details and childcare arrangements.
- Provide Supporting Documents – Such as birth certificates and tax statements.
- Await Approval – Processing times vary but typically take a few weeks.
Tip: Payments can be backdated for up to 12 months if you were eligible but didn’t claim earlier.
Maximizing Your Family Tax Benefit Payments
To ensure you receive the highest possible payment, follow these strategies:
Keep Your Income Below Key Thresholds – Avoid exceeding the $65,189 FTB A threshold where possible. Lodge Your Tax Return on Time – This ensures you receive the annual supplement payments. Use Childcare Subsidies – Families using approved childcare may qualify for additional government support. Update Your Details – Report changes in income, family structure, or childcare usage to Centrelink immediately.
Families should also explore other Centrelink benefits, including rent assistance and childcare subsidies, which can further ease financial pressure.
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FAQs About Centrelink Family Tax Benefits
1. When Will the March 2025 Payments Be Made?
FTB payments are made every fortnight. Payments for March 2025 will follow Centrelink’s usual payment schedule.
2. Can I Receive Both FTB Part A and Part B?
Yes, if you meet both eligibility criteria. Single parents automatically qualify for both payments.
3. What Happens if I Earn More Than the Threshold?
Your FTB payments will reduce gradually. If your income exceeds $115,997, you may not receive FTB Part A at all.
4. Are FTB Payments Taxable?
No, FTB payments are tax-free and do not need to be reported as taxable income.
5. Can I Receive FTB if I Receive Paid Parental Leave?
Yes, but your income from Paid Parental Leave may affect your FTB eligibility.
