Family Tax Benefit (FTB) is a government payment to help families with the cost of raising children. Despite its name, it’s not a tax refund or tax deduction—it’s a social security benefit to help with everyday costs like food, clothing, and education.
FTB has two parts:
- Part A: Main payment available to most eligible families
- Part B: Extra payment for single parents or certain single-income families
Importantly, FTB is paid by Services Australia (through Centrelink), not the ATO.
Eligibility for Family Tax Benefit
To qualify for FTB, you must have at least one dependent child in your care, and:
- Your child is aged 0–15 years, or a full-time secondary student aged 16–19, cared for at least 35% of the time
- Your child is an Australian resident
- You (the claimant) meet certain residency rules
- Your income is under specific thresholds
FTB is means-tested, with income tests for both Part A and Part B.
FTB Isn’t a Tax Refund
A tax refund is money the ATO returns if you’ve overpaid tax, but FTB is a Centrelink benefit, separate from your tax system.
- Lodging a tax return does not automatically grant FTB
- FTB does not appear in your tax assessment
Historically, some family benefits were delivered via the tax system, but today Centrelink delivers FTB, similar to the Parenting Payment or Child Care Subsidy.
How to Claim Family Tax Benefit
You claim FTB through Services Australia, either:
- Online via your myGov account linked to Centrelink
- By phone through the Families line
- At a Centrelink service centre
If you’ve recently had a baby, hospitals often provide a Newborn child declaration form, which includes a lump sum claim for FTB and other family payments.
Payment Options
- Fortnightly payments
- Most families opt to receive FTB every two weeks
- Estimate your family’s income for the year
- Centrelink pays accordingly and reconciles payments after year-end
- Annual lump sum
- Submit a claim after 30 June for the previous financial year
- Uses your actual income from your tax return
- Must claim within one year after the financial year ends (e.g., 2024–2025 by 30 June 2026)
During the claim, you provide details about your children and estimate income (if opting for fortnightly payments). Once approved, payments start based on your chosen method.
Important Considerations
- Communication comes from Centrelink, not the ATO
- Lump-sum FTB payments are deposited directly by Centrelink
- Notify Centrelink if your circumstances change (income, care arrangements) to avoid overpayments or adjustments.
Key Takeaways
- FTB helps with child-rearing costs, not taxes
- It’s paid by Centrelink, not the ATO
- You can choose fortnightly payments or end-of-year lump sum
- Eligibility and payment rates depend on income, residency, and child details
- Always update Centrelink with changes to your circumstances