Family tax Benefits are financial support for eligible families, which is the cost of raising children. It consists of two parts: FTB Part A is paid per child and it is paid depending on the family’s circumstances.
On the other hand, FTB Part B is paid per family and gives additional support to eligible single parents and some couple families along with one main income.
What is Family Tax Benefit Part A?
Family Tax Benefit Part A facilitates you with the fund of raising children. This amount is paid to a parent, carer (including foster carer), guardian, approved care organisation or eligible grandparent. To qualify for FTB Part A, you must:
- have a dependent child with the age under 16, or
- have a dependent child of age between 16 and 20 years who has done a year 12 or equivalent qualification, or who is pursuing full-time education or who is exempt, or
- have dependent full-time students aged between 21-24, and
- have care of the child for at least 35% of the time, and
- satisfy the income test, and
- are an Australian resident, or a holder of a special category living in Australia, or are certain temporary visa holders.
A student or child can’t be dependent if they:
- are in your primary care for less than 35 per cent of the time
- receive a benefit or pension
- receive a labour market program payment such as a Youth Allowance
- they are aged 5 -15, not studying full-time and their annual income exceeds the child income limit
- are aged 16 to 20 and have neither done a year 12 or equivalent qualification or pursuing full-time education leading to a year 12 or equivalent qualification and are not exempt from this need
- are aged 16-21 and getting a prescribed education scheme payment such as ABSTUDY
- are aged above 19 and have an annual income that is over the child income limit, or
- are aged 21 and are not a dependent full-time student.
What is Family Tax Benefit Part B?
Family Tax Benefit Part B gives additional help to non-parent carers and single-parent families. Some families with one main income also benefit from this support. It identifies that you may not be able to work because of your circumstances or the age of your child.
Who Qualifies for Family Tax Benefit Tax Part B?
To qualify for Family Tax Benefit Part B, you must either;
- care for a dependent child of age under 13 years and be a member of a couple with one main income
- be a grandparent carer or a single parent of a dependent child of age under 18 years (satisfying study requirements if they are of age between 16-18 years)
You must also:
- at least 35 per cent of the time you must care for the child
- meet the Australian residence rules
- satisfy the income test for FTB Part B
You can’t get FTB Part B if you are getting Parental Leave Pay.
Is Family Tax Benefit Taxable?
All Family Tax Benefits are not taxable. You must not underestimate gross family income when you apply for family tax benefits. For more information, you get help from small business tax accountants.
When does Family Tax Benefit A Stop?
You will get paid for FTB Part A until your child finishes Year 12 or an equivalent qualification. FTB Part A stops based on when they finish their study. You will get paid for FTB Part A until the end of the calendar year in which your child turns 19.
How to Check How Much Tax I Have Paid in Australia?
If your employer reports through STP, you’ll get an income statement. You can get your income statement in ATO online services via myGov or the ATO app. Your income statement will show your salary, wages, super, and tax that has been withheld.