Income test for Family Tax Benefit Part A

How much Family Tax Benefit (FTB) Part A you get 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 $51,903 or less

If you or your partner get an income support payment or your family’s adjusted taxable income is $51,903 or less, you may get the maximum rate of FTB Part A.

Income between $51,904 and $94,316

We use an income test if your family's adjusted taxable income is between $51,904 and $94,316.

This test reduces your FTB Part A by 20 cents for each dollar of income you have over $51,903. Your payment will stop reducing when it reaches the base rate of FTB Part A.

This table shows the annual income limit to get the base rate of FTB Part A for the 2016-17 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 $75,665 n/a n/a
1 child 0-12 years $68,365 $92,126 n/a n/a
2 children 0-12 years $84,826 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 $51,903.

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 2016-17 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 $99,536 $115,085 $146,676
1 child 0-12 years $99,536 $107,785 $139,376 $170,966
2 children 0-12 years $104,755 $132,076 $163,666 $195,257
3 children 0-12 years $124,776 $156,366 $187,957 $219,548

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 Income Test

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

This test may apply if:

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

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

  • are permanently blind, and
  • get 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 get 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 $1,565.85
Couple, both receiving maintenance $3,131.70
For each additional child add $521.95

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.

Page last updated: 15 March 2017

This information was printed Monday 27 March 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.