Income test for Family Tax Benefit Part A

How much Family Tax Benefit (FTB) Part A you receive depends on your family’s income.

An income test helps us to work out your FTB Part A payment. There is also an income test for FTB Part A Supplement. The Maintenance Income Test may also apply.

Income $52,706 or less

If you or your partner receive an income support payment or your family’s adjusted taxable income is $52,706 or less, you may receive the maximum rate of FTB Part A.

Income between $52,706 and $94,316

We use an income test if your family's adjusted taxable income is between $52,706 and $94,316.

This test reduces your FTB Part A by 20 cents for each dollar of income you have over $52,706. Your payment will stop reducing when it reaches the base rate of FTB Part A.

This table shows the annual income limit to receive the base rate of FTB Part A for the 2017-18 financial year.

Number of children you have No child
13-15 years or secondary student 16-19 years
1 child
13-15 years or secondary student 16-19 years
2 children
13-15 years or secondary students 16-19 years
3 children
13-15 years or secondary students 16-19 years
No child 0-12 years n/a $76,066 n/a n/a
1 child 0-12 years $68,894 $92,254 n/a n/a
2 children 0-12 years $85,082 n/a n/a n/a
3 children 0-12 years n/a n/a n/a n/a

Where n/a is shown, the base rate does not usually apply.

Income limits will be higher if you are eligible for Rent Assistance.

Income over $94,316

If your family’s adjusted taxable income is over $94,316, we use 1 of 2 tests. We’ll apply the test that gives you a higher rate.

The first test reduces your FTB Part A by 20 cents for each dollar of income you have over $52,706.

The second test reduces the base rate of FTB Part A by 30 cents for each dollar of income you have over $94,316. This applies until your payment is nil.

If your family’s income is close to the annual income limit, check your eligibility after the end of the financial year once you know your family’s actual income. Read more about the time period for submitting lump sum claims and confirming income.

This table shows the annual income limit to get FTB Part A for the 2017-18 financial year.

Number of children you have No child
13-15 years or secondary student 16-19 years
1 child
13-15 years or secondary student 16-19 years
2 children
13-15 years or secondary students 16-19 years
3 children
13-15 years or secondary students 16-19 years
No child 0-12 years n/a $99,414 $114,720 $145,727
1 child 0-12 years $99,414 $107,548 $138,554 $169,561
2 children 0-12 years $104,512 $131,382 $162,389 $193,396
3 children 0-12 years $124,210 $155,217 $186,223 $217,230

Income limits will be higher if you’re eligible for Rent Assistance or have more than 3 children.

FTB Part A supplement income test

To be eligible for the supplement, your family’s adjusted taxable income must be $80,000 or less. This applies from the 2016-17 financial year onwards.

The FTB Part A supplement income test also applies if you are receiving an income support payment.

If eligible, we pay FTB Part A supplement after we balance your payments at the end of the financial year.

Maintenance Action Test

If you or your partner have a child from a previous relationship in your care, you need to take reasonable steps to obtain child support to receive more than the base rate of FTB Part A.

This is called the Maintenance Action Test. You can meet this test by applying for a child support assessment. If you or your partner don’t do this, you may only receive the base rate of FTB Part A.

Read more about the Maintenance Action Test.

Maintenance Income Test

Generally the more child support you receive, or are entitled to receive, the less FTB you can receive. We use the Maintenance Income Test to work this out.

This test may apply if:

  • you receive more than the base rate of FTB Part A, and
  • you or your partner receive, or are entitled to receive, child support or spousal maintenance

You may be exempt from this test if you or your partner:

  • are permanently blind, and
  • receive either:
    • Age Pension
    • Disability Support Pension, or
    • a Department of Veterans’ Affairs service pension or income support supplement

Maintenance Income Free Area

You and your partner can receive a certain amount of child support and spousal maintenance before it affects your FTB. This is called the Maintenance Income Free Area. We reduce your FTB by 50 cents for every dollar of child support and spousal maintenance over this amount until you reach the base rate of FTB Part A.

Your FTB Part A rate may include other payments, such as Rent Assistance. We may also reduce these payments as a proportion of your total FTB Part A rate.

These are the Maintenance Income Free Areas per year.

Status Child support received per year
Single parent or member of a couple, receiving maintenance $1,587.75
Couple, both receiving maintenance $3,175.50
For each additional child add $529.25

Maintenance Income Credit

If we collect your child support and you don’t use all of your Maintenance Income Free Area, you may be able to access the Maintenance Income Credit.

The Maintenance Income Credit allows you to carry over any unused Maintenance Income Free Area from previous financial years. If you get arrears of child support in a later financial year, we will use the available credit to reduce the impact on your FTB Part A when we balance your payments.

This gives you the same amount of FTB Part A over time as a person who gets regular child support payments.

You don’t need to ask us to use your credit. We automatically calculate and apply it.

Example

Carrie has a $500 Maintenance Income Credit. She gets a $400 arrears payment of child support during the next financial year.

When we balance Carrie's FTB payments, we use the $500 credit to offset the $400 of arrears. As a result, the $400 arrears will not affect her FTB Part A for the financial year.

Carrie still has $100 of Maintenance Income Credit to use later.

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Page last updated: 3 July 2017

This information was printed Monday 21 August 2017 from humanservices.gov.au/customer/enablers/income-test-family-tax-benefit-part 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.