Family Tax Benefit is one of the most widely used forms of family financial assistance available in Australia. It helps eligible families with the ongoing cost of raising children — from everyday expenses through to larger family costs that tend to grow as children get older. Unlike one-off payments or childcare-specific subsidies, Family Tax Benefit is designed to provide regular financial support to families throughout the period they are raising dependent children, adjusted according to their income and family circumstances.
The payment comes in two distinct parts — Part A and Part B — each with its own purpose, eligibility criteria, and income test. Understanding the difference between them is an important first step, because many families are eligible for one but not the other, and some qualify for both. The amount you receive under each part depends largely on your family income and the number and age of your children.
Family Tax Benefit is administered by Services Australia through Centrelink. Most families now manage their claims entirely online through a linked myGov account, which is used to submit the initial claim, report income estimates, and receive correspondence. This guide walks through how the payment works, who tends to qualify, what the income test involves, how to apply, and what to do if you run into problems along the way.
Independent information notice: PublicAccess.au is an independent information website and is not affiliated with, endorsed by, or operated by Services Australia, Centrelink, or any Australian Government agency.
Family Tax Benefit is an Australian Government family assistance payment that helps eligible families meet the financial demands of raising children. It is not means-tested in the same binary way as some other Centrelink payments — rather, it tapers gradually with income, which means a wide range of families at different income levels may still receive some level of payment even if they are not on a particularly low income.
The payment is split into two separate parts: Family Tax Benefit Part A and Family Tax Benefit Part B. Each part operates independently of the other, has its own income test, and targets slightly different family situations. Part A is the more broadly available of the two, while Part B focuses on families where one parent has little or no income — particularly single-parent families and single-income couple families.
Family Tax Benefit is paid either fortnightly (directly into your bank account) or as a lump sum at the end of the financial year, depending on how you choose to claim and whether you are receiving a regular Centrelink payment. The fortnightly option is generally based on your estimated annual family income, and the end-of-year reconciliation process adjusts this against your actual income once tax returns are lodged.
Like all Centrelink payments, Family Tax Benefit is administered by Services Australia and claimed through a linked Centrelink account in myGov. If you haven't yet set up a myGov account or linked Centrelink to it, our myGov guide covers the process step by step. The Centrelink overview page also explains how the broader Centrelink system works for new claimants.
Family Tax Benefit Part A is designed to help families with the general costs of raising children. It is paid per child and is available to families across a reasonably wide income range, which means many middle-income families are also eligible — though the payment rate reduces as income increases.
To be considered for Part A, you generally need to have at least one dependent child in your care who meets the child eligibility requirements (see below), be an Australian resident, and have a family income below the relevant threshold. Part A is available to both single parents and couple families.
The child must generally be under 16 years of age, or between 16 and 19 and in full-time secondary education (or an equivalent). Once a child turns 16 and is no longer in qualifying education, they generally stop counting towards Part A eligibility. The number of children in your care and their ages affect how much Part A you receive.
Part A uses a two-step income test. The first test compares your adjusted taxable income against a lower threshold — if your income is below this, you receive the maximum rate. Above that threshold, the payment reduces at a set rate per dollar of additional income. A second, higher income cut-off then applies, below which you receive a base rate. Above the upper threshold, Part A cuts out entirely. This two-step structure means the transition from maximum to base to zero is gradual rather than sharp.
For more detail on how Part A works in practice: Family Tax Benefit Part A Explained.
Paid per eligible child. Available to a broad range of families — single parents and couples alike. Income test has a gradual two-step taper. Covers children up to 15, or up to 19 if in qualifying secondary education.
Learn more about Part A →Provides extra support for single-parent families and single-income couple families where the primary earner's income is below the threshold. Focuses on families where one parent has limited or no income. Includes a specific income test on the secondary earner.
Learn more about Part B →Family Tax Benefit Part B provides additional assistance to families where one parent is not in paid work or earns significantly less than the other. It recognises the financial pressure on families where one parent has stepped back from the workforce — either temporarily or longer term — to care for children.
Part B is available to single parents and partnered families where the primary earner's income is below a set threshold. For couple families, Part B is targeted at those where one partner earns the large majority of the family income and the other partner earns little or nothing. If both partners earn similar amounts above the income threshold, Part B is generally not available to them.
Single parents who meet the income test are generally eligible for Part B regardless of whether they are working, because their situation inherently involves one income supporting the household. The income test still applies — high-income single parents may have Part B reduced or phased out — but the threshold for single parents is applied differently than for couples.
For couple families, the Part B income test focuses on the secondary earner's income (i.e., the lower-income partner). There is a secondary earner income limit above which Part B reduces and eventually cuts out. The primary earner's income is also subject to a separate threshold. Understanding how these two tests interact is particularly important for dual-income couple families assessing whether they might qualify.
For a full breakdown: Family Tax Benefit Part B Explained.
Family Tax Benefit covers a broad range of family situations. The following sections outline who the payment is generally aimed at, though individual eligibility always depends on specific circumstances.
The core eligibility requirement is having at least one qualifying dependent child. Both the number of children and their ages affect how much you receive. Families with multiple children in eligible age ranges generally receive higher Part A amounts.
Single parents are eligible for both Part A and Part B, provided they meet the income and residency requirements. Part B is often particularly valuable for single-parent households where there is one income supporting the family.
Couple families can access Part A if they meet the income test. Access to Part B depends on whether one partner's income falls below the secondary earner threshold — dual-income families where both partners earn above that threshold generally won't qualify for Part B.
Families on low incomes are most likely to receive Part A at the maximum rate and Part B in full. Very low-income families may also be eligible for supplementary payments like Rent Assistance, depending on their housing situation and the base payment they receive.
Working families can still receive Family Tax Benefit — the income test tapers the payment gradually rather than cutting it off sharply once you start earning. Many working families, including some on moderate incomes, receive some level of Part A payment.
Receiving other Centrelink payments, such as Parenting Payment or JobSeeker, does not automatically disqualify you from Family Tax Benefit. In many cases, eligible families receive both Family Tax Benefit and another payment simultaneously, subject to individual income and circumstances.
The following sections break down the main eligibility requirements. Our free Family Tax Benefit Calculator can give you a general estimate of eligibility before you begin the formal application process.
You generally need to be an Australian resident and physically in Australia when you claim. Some visa subclasses may affect eligibility or involve waiting periods, so it's worth checking with Services Australia if your residency situation is not straightforward. Temporary visa holders should note that Family Tax Benefit eligibility is linked to specific visa categories.
The child must be a dependent child in your care who meets the age requirements. For Part A, children must generally be under 16, or 16–19 and in full-time approved secondary education. The child must live with you for a defined proportion of the time — shared care arrangements can result in a pro-rated payment split between separated parents.
Both Part A and Part B have their own income tests, assessed against your adjusted taxable income (and your partner's, if you have one). These tests are key determinants of your eligibility and the rate of payment. The income year used is the current financial year, which means you provide an income estimate when you first claim and it is reconciled against actual income at year-end when tax returns are lodged.
You need to have at least 35% care of the child to be eligible for Family Tax Benefit. In shared care situations — for example, where separated parents share custody — the percentage of care each parent has directly affects the proportion of Family Tax Benefit each is entitled to claim.
Changes in your family situation — such as having another child, a child turning 16, a change in relationship status, or a change in the child's education status — can affect your eligibility and payment rate. Reporting these changes promptly to Centrelink helps avoid both under- and overpayments.
The income test is the most important variable in determining how much Family Tax Benefit your family receives. Unlike a simple cut-off, both Part A and Part B use income assessment approaches that taper the payment gradually, which means small changes in income don't necessarily result in dramatic changes to your payment.
Centrelink uses a concept called "adjusted taxable income" rather than simply gross income. This starts with your taxable income as assessed by the Australian Taxation Office and then adds back certain items — such as reportable fringe benefits, total net investment losses, and employer superannuation contributions above a threshold. The aim is to capture a more complete picture of your financial resources than taxable income alone reflects.
For Family Tax Benefit purposes, the assessment typically looks at combined family income — meaning your income and your partner's income are added together. For Part B, there are separate thresholds for the primary and secondary earner, so the structure is slightly more nuanced than a simple combined-income test.
Family Tax Benefit Part A has a higher-income threshold than many people expect, which is why families across a fairly wide income range can still receive at least a base level of payment. Part B has stricter income thresholds, particularly for the secondary earner in a couple, which is why it is generally directed at single-income families and single parents. Because these thresholds are indexed periodically, always verify current figures with Services Australia.
When you claim fortnightly payments, you provide an estimate of your expected annual family income. Centrelink uses this estimate to calculate your fortnightly rate. At the end of the financial year, once tax returns are lodged, Centrelink reconciles your actual income against the estimate. If you earned more than estimated, you may have received more Family Tax Benefit than you were entitled to, which can result in a debt. If you earned less, you may receive a top-up payment. Keeping your income estimate as accurate as possible throughout the year reduces the size of any year-end adjustment.
For a more detailed explanation: Family Tax Benefit Income Test Explained.
Family Tax Benefit claims are submitted online through a linked Centrelink account in myGov. Having your documents and information ready before you begin makes the process significantly smoother. Here is the general process:
Preparing your documents before you start the claim reduces the chance of delays. Here are the main categories of documentation you are typically required to provide:
Family Tax Benefit payment rates are set by the Australian Government and reviewed periodically — typically in line with cost-of-living adjustments. Because rates change regularly, this guide deliberately does not quote fixed figures, which would quickly become outdated and potentially misleading.
What you actually receive depends on your family income, the number and ages of your children, whether you're eligible for Part A, Part B, or both, and whether you qualify for any supplementary amounts. The Part A rate is generally higher for larger families and for children in certain age ranges. Part B rates are consistent across most eligible family situations but are subject to the secondary earner income test for couple families.
Family Tax Benefit can also include a range of supplements — such as an end-of-year supplement for Part A and Part B recipients who meet additional conditions — that can add meaningful amounts to your total annual entitlement once reconciliation is completed.
Check current rates directly: Always verify current Family Tax Benefit payment rates and income thresholds with Services Australia, as figures are updated periodically. The Services Australia website is the authoritative source for current amounts.
Family Tax Benefit sits within a broader family of Centrelink and family assistance payments. Depending on your circumstances, you may be eligible for additional support alongside it.
Parenting Payment and Family Tax Benefit are separate payments, and many eligible families receive both. Parenting Payment is a primary income support payment for eligible primary carers with young children, while Family Tax Benefit is a family assistance payment available to a wider range of families regardless of employment status. Receiving one does not prevent you from being assessed for the other.
The Child Care Subsidy helps reduce the cost of approved childcare and is separate from Family Tax Benefit. It is means-tested separately and not affected by Family Tax Benefit payments. Many families who receive Family Tax Benefit also access the Child Care Subsidy when their children attend approved care services.
Depending on your circumstances, other support may be available alongside Family Tax Benefit — including Rent Assistance (if you receive a qualifying base payment and pay private rent), health care concession cards linked to certain payment types, and additional payments for some families dealing with multiple birth children or children with significant health needs. Centrelink assesses eligibility for many of these automatically when you submit a Family Tax Benefit claim.
Even well-prepared claims can run into complications. Understanding the most common issues means you can address them quickly and minimise disruption to your payments.
High volumes of claims, incomplete documentation, or verification requirements can slow down processing. Uploading all required documents at submission time — rather than waiting for a specific request — is the most effective way to avoid unnecessary delays.
Family Tax Benefit is calculated on your estimated annual income, and an incorrect estimate is one of the most common causes of end-of-year debts. If your income changes significantly during the year, update your estimate in your Centrelink account promptly to keep payments accurate.
A child turning 16 and leaving full-time education, an immunisation status issue, or a change in care arrangements can all trigger a review of your Family Tax Benefit entitlement. Keeping Centrelink informed of changes to your children's education or care status helps avoid unexpected payment stops.
If Centrelink cannot verify your identity or your children's details match the records they hold, a claim may be delayed pending manual verification. Ensuring all documents are current and that name spellings are consistent across all submitted documents reduces this risk.
Changes in family income, relationship status, or a partner's employment can cause Centrelink to recalculate your Family Tax Benefit rate mid-year. These adjustments are normal but can sometimes result in unexpected changes to fortnightly payment amounts. Reviewing your income estimate after any significant life change helps keep things stable.
If your actual income at year-end is higher than your estimate, the reconciliation process may reveal that you received more Family Tax Benefit than you were entitled to, creating a debt. Centrelink generally arranges repayment through reduced future payments or directly, depending on the circumstances. Keeping your income estimate updated throughout the year is the best way to avoid this situation.
Processing times for Family Tax Benefit claims vary based on claim volumes, the completeness of the application submitted, and whether any additional verification is required. Services Australia publishes general processing time estimates, but individual claims can take shorter or longer periods depending on the complexity of the family's circumstances.
Submitting a complete application — with all required documents uploaded at the time of submission — is the single most effective step you can take to speed up processing. If Centrelink sends a request for additional information through your myGov inbox, responding quickly keeps the claim moving forward. Missing or delayed information is the most common cause of extended processing times for Family Tax Benefit claims.
During particularly busy periods — for example, after the end of the financial year when many families submit or reconcile claims — processing times can extend beyond typical ranges. Plan accordingly if you are applying during those periods and have time-sensitive financial needs.
For more detail: Family Tax Benefit Processing Times Guide.
These free PublicAccess.au tools can help you estimate your eligibility and get a sense of potential entitlements before committing to a formal Centrelink claim:
Explore the full PublicAccess.au coverage of Family Tax Benefit and related family assistance topics:
Family Tax Benefit is an Australian Government family assistance payment administered by Services Australia through Centrelink. It helps eligible families with the financial cost of raising children and comes in two parts — Part A and Part B — each with different eligibility criteria and income tests.
Part A is paid per eligible child and is available to a wide range of families, including both single parents and couples, based on the number and age of children and family income. Part B provides additional assistance specifically for single-income families and single parents, with stricter income thresholds, particularly for the secondary earner in couple families.
Eligibility requires having at least one qualifying dependent child in your care, being an Australian resident, and having a family income below the relevant threshold. The specific eligibility conditions differ between Part A and Part B. Use our Family Tax Benefit Calculator for a general eligibility estimate.
Claims are submitted online through a Centrelink account linked to myGov. You'll need to set up a myGov account, link Centrelink to it, gather your documents, and complete the claim form. The application steps are detailed in the "How to Apply" section above.
You'll typically need proof of identity, birth certificates or proof of birth for your children, your estimated annual family income, relationship status details, your bank account information, and your partner's details if applicable.
Both Part A and Part B use adjusted taxable income for the assessment, which includes taxable income plus certain additions. For fortnightly payments, you provide an income estimate at the start of the year, and this is reconciled against your actual income after year-end tax returns are lodged. Part A has a two-step taper, while Part B focuses on the secondary earner's income for couple families.
Yes — single parents can apply for both Part A and Part B. Part B is often particularly beneficial for single-parent households because it is designed to support families where there is only one income. Income test thresholds still apply, so high-income single parents may receive reduced amounts or not qualify for Part B.
Yes. Family Tax Benefit has income thresholds that are set broadly enough that many working families — including some on moderate incomes — still receive some level of Part A payment. The payment tapers as income rises rather than cutting off sharply, which means partial payments are common for working families above the lower threshold.
Processing times vary. Submitting a complete application with all required documents at the time of lodgement, and responding promptly to any Centrelink requests for information, are the best ways to minimise delay. Check Services Australia for current processing time estimates.
Most recipients choose to receive Family Tax Benefit fortnightly as direct deposits into their bank account. Alternatively, some families choose to receive it as a lump sum at the end of the financial year, particularly if they prefer to wait for reconciliation. The fortnightly option is more common as it provides regular support throughout the year.
Yes, in many cases you can receive both. They are separate payments with different eligibility criteria — Parenting Payment is an income support payment for primary carers with young children, while Family Tax Benefit is a family assistance payment with broader eligibility. Receiving one does not automatically prevent you from being assessed for the other. See our Parenting Payment guide for more detail.
Our free Family Tax Benefit Calculator can give you a general indication of whether Part A, Part B, or both might apply based on your income and family circumstances. It's a useful starting point before committing to a formal Centrelink claim. Remember that official eligibility is determined by Services Australia.
Continue exploring related PublicAccess.au sections:
For current Family Tax Benefit rates, income thresholds, and the most accurate eligibility information, always use official Australian Government sources:
Family Tax Benefit is one of the most accessible forms of financial assistance available to Australian families, covering a broad income range and a wide range of family structures — from single parents and sole-income couples to working families with multiple children. Understanding the difference between Part A and Part B, how the income test and year-end reconciliation process work, and what to do when circumstances change are the three most important things to grasp before you apply.
The application process is managed entirely through myGov and your linked Centrelink account, which means getting those accounts set up and keeping them accurate is a prerequisite for a smooth experience. Keeping your income estimate updated throughout the year is equally important — it's the most practical step you can take to avoid an unexpected debt at year-end reconciliation.
We encourage you to use our Family Tax Benefit Calculator as a starting point, explore the related guides throughout this page, and then visit Services Australia for the definitive answer on your specific situation.
Final Disclaimer: PublicAccess.au provides independent informational content only and does not provide financial advice, legal advice, taxation advice, migration advice, government services, or official claim processing. Always verify important information through official Australian Government resources.