Time to read : 3 Minutes
It's no secret many families are financially challenged right now. And while it may seem as if there is not much relief from the rising cost of living or seemingly ever-increasing interest rate rises in sight, there may be some help available for those who know where to look.
Or, as do so many thousands of Australians, benefit from Compare Club doing the looking.
One such avenue is federal government entitlements. Today we're looking at the Family Tax Benefit.
Key points (TL;DR):
The Family Tax Benefit program by the Australian government aims to ease financial pressures for families with children.
Eligibility for this program includes certain conditions, such as age and education levels, as well as immigration and residency status.
This initiative offers significant financial aid in two formats, depending on family dynamics.
The Centrelink online platform simplifies the application process.
Calculated benefits based on reporting of personal income and changes ensure accurate payment to help with household costs and debt.
Okay, so what is the Family Tax Benefit?
Established by the Australian government, the Family Tax Benefit scheme presents a valuable financial solution for families with children.
The system serves to support the financial pressures faced in raising a family.
What do you get?
For starters, boosted financial wellbeing.
With two segments, Part A and Part B, the system provides considerable versatility to meet varied needs.
Benefit A is centred on per child assistance. You'll get up to $191.54 per fortnight, per child, based on income, family size, and children's ages.
Part B is an added incentive for single parents and single income families, offering up to $158.34 per fortnight to supplement and support these families.
How can I get it?
Eligibility for the Family Tax Benefit is subject to several conditions. Crucially, the claimant must be responsible for the financial care of one or more children or students under 20 years of age and not receiving any other assistance through specific social security payments.
To qualify for Family Tax Benefit A, the claimant must care for a dependent child who’s either:
0 to 15 years of age
16 to 19 years of age and meets study requirements
You must also satisfy an income test and residence rules, and care for the child at least 35% of the time.
To qualify for the FTB Part A supplement your taxable income must be $80,000 or less.
To qualify for the Family Tax Benefit B payment, you need:
to be a member of a couple with one main income and care for a dependent child aged under 13
to be a single parent, or a grandparent carer and care for a dependent child aged under 18.
The child must also meet study requirements if they’re aged between 16 and 18 years old, satisfy residence rules and you must care for the child at least 35% of the time.
You or your partner can’t get FTB Part B while getting Parental Leave Pay.
How do I apply?
Beginning your application for the program involves compiling the necessary documentation. These include:
your tax file number
banking details
residence, income, and relationship documents.
For an easy and user-friendly application process, the Centrelink platform offers a comprehensive digital journey.
Navigate through your Centrelink online account via myGov, fill in the necessary details, provide the supporting documentation, and click on the 'Submit' button – that’s pretty much it.
Also, should you be hit with any unexpected change in circumstances, be sure to update Centrelink as soon as possible. This ensures that you continue receiving accurate payment and prevents potential debts.
The Bottom Line
The Family Tax Benefit program is designed to provide financial assistance to families bearing the cost of raising children.
It's integral to understand eligibility to to maximise benefits received. However, remember that all scenarios differ and should be discussed with a professional for specialised advice.
Applying for financial assistance such as the Family Tax Benefit can be one small step forward towards a healthier financial future.
This article is part of a series covering the entitlements and rebates available to help ease the financial strain on many Aussie households. Do you have a question about money, insurance, superannuation or any other facet of finance? Why not email us and we'll do our best to answer them – or find someone who can.
Go deeper: Australians' financial and psychological wellbeing taking a beating
Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
