Family Payments Reform - continuing indexation pauses on upper income limits and supplements

Instead of rising as previously planned, the income limits for some family payments will remain the same for a further three years.

Description of the measure

Instead of rising as previously planned, the income limits for the following family payments will remain the same for a further three years:

  • Family Tax Benefit Part A—Higher Income Free Area of $94 316
  • Family Tax Benefit Part B—upper income threshold of $150 000
  • Baby Bonus—combined family Adjusted Taxable Income threshold of $75 000
    (for the six months after the birth or adoption of your child). Please note: Baby Bonus will cease on 1 March 2014 and be replaced with a higher rate of Family Tax Benefit Part A.
  • Paid Parental Leave scheme, including Parental Leave Pay and Dad and Partner Pay— income limit of $150 000.

Indexation will recommence on 1 July 2017.

This change applies automatically for people claiming these payments. There are no changes to when or how payments are paid.

Questions and answers

Who will be affected by this measure?

People who claim Family Tax Benefit Part A and/or Part B, Baby Bonus and Paid Parental Leave Scheme including Parental Leave Pay and Dad and Partner Pay—where the combined family adjusted taxable income is equal to or above the threshold.

Am I eligible for this measure?

This change applies automatically to people claiming Family Tax Benefit Part A and/or Part B, Baby Bonus, Paid Parental Leave Scheme including Parental Leave Pay and Dad and Partner Pay.

There are no changes to when or how payments are made.

When will this measure start and finish?

Indexation will recommence from 1 July 2017.

Page last updated: 9 March 2016

This information was printed Wednesday 28 September 2016 from humanservices.gov.au/corporate/budget/budget-2013-14/budget-measures/families/family-payments-reform-continuing-indexation-pauses-upper-income-limits-and-supplements It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.