Family Tax Benefit (FTB) is a two-part government payment designed to help with the cost of raising children.
It’s administered by Services Australia and paid either fortnightly or as a lump sum after the end of the financial year.
Family Tax Benefit Part A is paid per child
Family Tax Benefit Part B is paid per family
Info
Within Canwi we currently calculate FTB as essentially a single payment at the end of the financial year.
You cannot get Family Tax Benefit on the same days as you get paid Parental Leave Pay (from the government). We adjust your FTB payment based on the overlapping days if you have a "Take Parental Leave" event added.
Family Tax Benefit Part A
Family Tax Benefit Part A is paid in two parts, regular fortnightly payments which are income tested and then a Supplemental Amount if your income at the end of financial year is under $80,000
How the Payment Rate is calculated for Family Tax Benefit
Your Household's Adjusted Taxable Income as well as the number and ages of children is used to determine how much Family Tax Benefit A you will receive.
Your FTB Part A rate is determined by:
Your household Adjusted Taxable Income (ATI)
The number of children
The ages of your children
As your income increases, your payment typically moves through four zones:
Below the income free area
→ You receive the maximum rateBetween the income free area and the base rate income limit
→ Payments gradually reduceBetween the base rate income limit and the high-income free area
→ You receive the base rate onlyAbove the high-income free area
→ No ongoing FTB Part A payments
The chart above shows how the annualised fortnightly payment changes as income moves through these thresholds and the chart below shows how the payment vary's across $5,000 increments of income in 2026.
Indexation
Thresholds (other than the 80k Cap on the Family Tax Benefit Part A Supplement) and payment rates are both adjusted in line with inflation each year.
The below is a depiction of how the Max Rate (for a child aged 0-12), and the base rate are projected to change over the next decade.
Family Tax Benefit Part B
Family Tax Benefit Part B (FTB B) provides extra financial support to families where one parent or carer has a lower income, or is not working.
Unlike FTB Part A, FTB Part B is paid per family, not per child.
Eligibility and payment amounts depend on:
Whether you are a single parent/carer or partnered
The age of your youngest child
How income is split between earners in the family
Single parent or single carer families
You may be eligible for FTB Part B if you are a single parent or single carer and your income is below the relevant threshold.
You won’t be eligible for FTB Part B if your Adjusted Taxable Income (ATI) is above the upper income limit
(e.g. $120,007 as at 2026)If your income is at or below this limit, you can generally receive the maximum rate of FTB Part B
How long you can receive FTB Part B
You can receive FTB Part B until the end of the calendar year your youngest child turns 18
If your youngest child is aged 16–18, they must be studying full-time in secondary school
Note: There are separate rules for single grandparent carers, which are not currently modelled in Canwi.
Partnered parent or partnered carer families
Partnered families may be eligible for FTB Part B only if their youngest child is under 13.
FTB Part B for partnered families uses a two-part income test.
Step 1: Primary earner income test
The primary earner is the parent or carer with the higher income
Your family won’t be eligible for FTB Part B if the primary earner’s ATI exceeds the upper income limit
(e.g. $120,007 as at 2026)
If the primary earner earns below this amount, eligibility then depends on the secondary earner’s income.
Step 2: Secondary earner income test
The secondary earner is the parent or carer with the lower (or no) income
The secondary earner can earn up to a low-income threshold before payments are affected
(e.g. $6,935 as at 2026)
Once income exceeds this threshold:
FTB Part B reduces by 20 cents for every dollar earned
You may still receive some FTB Part B while the secondary earner’s income remains below:
(e.g. $34,438 as at 2026) if the youngest child is under 5
(e.g. $26,828 as at 2026) if the youngest child is aged 5 to 13
Once income exceeds these amounts, FTB Part B generally cuts out.
Note: There are separate rules for partnered grandparent carers, which are not currently modelled in Canwi.
Assumptions & Limitations:
Currently calculated off Taxable Income - minor lift to use ATI
We assume you are the parents of dependents (not grandparents)
We assume that children are vaccinated
We assume that children will meet study requirements for the ages of 16-19
We assume you care for dependents at least 35% of the time
We assume you don't have foreign income
We assume you/children are living in Australia and will pass the Residence Rules
We assume that the thresholds do not change over time
We assume you don't get paid child support (i.e. no Maintainence Tests)
We assume you don't travel outside of Australia for more than 6 weeks