Income test for Family Tax Benefit Part A

In most cases, we work out your FTB Part A payment using 2 income tests. We will apply the test that gives you the highest rate of payment.

The first test reduces the maximum rate of FTB Part A by 20 cents for each dollar above $51,903 until your payment reaches the base rate of FTB Part A.

The second test reduces the base rate of FTB Part A by 30 cents for each dollar above $94,316 until your payment is nil.

If your family income is close to the annual income limit, you should check your eligibility after the end of the financial year once your actual income is known.

Your FTB Part A payment will not be affected by the income test if:

  • you or your partner gets an income support payment such as a pension, benefit, allowance or a Department of Veterans’ Affairs service pension, or
  • your family’s adjusted taxable income for this financial year is $51,903 or less

Maintenance income test

If you get more than the base rate of FTB Part A, a maintenance income test may also apply.

The maintenance income test applies if you or your partner receives, or is entitled to receive, child support or spousal maintenance. If you or your partner is permanently blind and on specific pension payments, you may be exempt from the maintenance income test.

Maintenance income test free areas per year

The maintenance income test free area is the amount of child support or spousal maintenance you can receive before the maintenance income test starts to reduce your FTB Part A rate.

If you get more child support or spousal maintenance than the maintenance income test free limit, it may reduce your FTB Part A by 50 cents in the dollar, until it reaches the base rate of FTB Part A.

Your FTB Part A rate may also include a number of different payment components, for example, Rent Assistance. If you receive more child support or spousal maintenance than the maintenance income test free area allows, other components of your FTB Part A, rate such as Rent Assistance, may also be reduced. The reduction applied to each component is calculated as a proportion of the total FTB Part A rate.

These are the maintenance income test 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

We may automatically adjust your regular payments to avoid or reduce a projected FTB overpayment. This will apply to you if you get your FTB payment in fortnightly instalments.

Maintenance Income Credit

If your child support is registered for collection by us and you receive irregular child support payments, you may be able to access Maintenance Income Credit.

Maintenance Income Credit allows you to carry over your unused maintenance income free area balance from previous financial years. If you receive child support arrears in a later financial year, we can use any available Maintenance Income Credit balance to reduce the impact on your FTB Part A when your payments are balanced.

If you get irregular child support payments for longer than 1 financial year, Maintenance Income Credit may be applied when your FTB is balanced. This ensures you receive the same amount of FTB Part A over time as a person who receives their child support payments on time.

Example

At the end of the financial year, Carrie has a $500 Maintenance Income Credit balance. Carrie receives a $400 arrears payment of child support during the financial year.

When Carrie’s FTB payments for the financial year are balanced, the amount of child support arrears that Carrie received is offset against her available Maintenance Income Credit balance. This means that the $400 child support arrears that Carrie received will be taken into account during the balancing process and will not affect her FTB Part A for the financial year.

Carrie would then have a remaining Maintenance Income Credit balance of $100.

You do not need to ask for us to use your available Maintenance Income Credit balance. Maintenance Income Credit is automatically calculated and applied as part of the balancing process.

Annual income limit for payment of base rate of FTB Part A

For financial year 2016–17

Income limits are indicative only.

Number of children No children
13 to 15 years of age or secondary students 16 to 19 years of age
1 child
13 to 15 years of age or secondary students 16 to 19 years of age
2 children
13 to 15 years of age or secondary students 16 to 19 years of age
3 children
13 to 15 years of age or secondary students 16 to 19 years
No children 0 to 12 years of age n/a $75,665 n/a n/a
1 child 0 to 12 years of age $68,365 $92,126 n/a n/a
2 children 0 to 12 years of age $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 for this household combination. This is because the rate calculated under the first income test for this combination is usually higher than the rate calculated under the second income test, which applies the base rate.

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

Maximum adjusted taxable income limit

These are the annual income limits at which FTB Part A, including the supplement, stops.

For financial year 2016–17

Income limits are indicative only.

Number of children No children
13 to 15 years of age or secondary students 16 to 19 years of age
1 child
13 to 15 years of age or secondary students 16 to 19 years of age
2 children
13 to 15 years of age or secondary students 16 to 19 years of age
3 children
13 to 15 years of age or secondary students 16 to 19 years of age
No children 0 to 12 years of age n/a $101,957 $122,348 $157,571
1 child 0 to 12 years of age $101,957 $115,048 $150,271 $185,493
2 children 0 to 12 years of age $109,598 $142,971 $178,193 $213,416
3 children 0 to 12 years of age $135,671 $170,893 $206,116 $241,338

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

Page last updated: 25 August 2016

This information was printed Friday 30 September 2016 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.