Family Tax Benefit 2026: Australia FTB Part A and Part B Explained

Australia's Family Tax Benefit is one of the most substantial family payments in the developed world — for a family with two young children on a moderate income, annual FTB entitlements can exceed $15,000. The system has two distinct parts with separate rules, and understanding both is essential to getting the calculation right.

What Is Family Tax Benefit?

Family Tax Benefit (FTB) is administered by Services Australia (Centrelink). It has two parts:

• FTB Part A — A per-child payment scaled by the child's age and the family's income. Designed to help with the general costs of raising children.
• FTB Part B — A per-family payment providing extra support to single-income families, single parents, and families with a large income gap between partners. Does not scale per child.

Both parts can be received together. Each has its own income test.

FTB Part A: Rates and Calculation for 2025–26

Base Rates

These are the maximum rates. Your actual rate depends on your family's adjusted taxable income (ATI).

Part A Income Test: Two Thresholds

FTB Part A uses a two-step income test:

Step 1 — Higher Income Free Area (HIFA): The HIFA for 2025–26 is $65,189 for a family with one child. Each additional FTB child increases the threshold by $3,796.

• 1 child: $65,189
• 2 children: $68,985
• 3 children: $72,781
• 4 children: $76,577

Below this threshold, you receive the maximum FTB Part A rate.

Above it, your rate reduces by 20 cents for every dollar of income above the threshold.

Step 2 — Lower Income Free Area: The reduction from Step 1 continues until FTB Part A reaches the base rate of $63.56 per fortnight per child. At that base rate, a second income test applies — Part A stays at the base rate until income exceeds approximately $108,665 (for one child), above which it reduces further at 30 cents per dollar until it reaches zero.

Worked Example: Family with Two Children (Ages 4 and 7), Income $80,000

1. Maximum FTB Part A: 2 × A$227.36/fortnight × 26 fortnights = A$11,822.72/year
2. HIFA: $65,189 + $3,796 = $68,985
3. Income over threshold: $80,000 − $68,985 = $11,015
4. Reduction: $11,015 × 20% = A$2,203
5. Actual FTB Part A: A$11,822.72 − A$2,203 = A$9,619.72/year

FTB Part B: Who Gets It and How Much

Rates

FTB Part B is a per-family amount — it does not multiply per child. The rate is determined by the age of your youngest FTB child.

Part B Income Test

FTB Part B has no primary earner income limit. But:

• Secondary earner income free area: $6,789/year
• Above $6,789: Part B reduces by 20 cents for every dollar above the free area
• Cut-off: At $28,681 secondary earner income, Part B reaches zero

For single parents, there is no secondary earner income test — only the primary earner's income is relevant, and the primary earner income limit is set very high (over $100,000) before Part B significantly reduces.

Worked Example: Two-Parent Family, Youngest Child Age 3, Primary Earner $85,000, Secondary Earner $20,000

1. FTB Part B base rate (child under 5): $188.86/fortnight = $4,910.36/year
2. Secondary earner income over free area: $20,000 - $6,789 = $13,211
3. Reduction: $13,211 × 20% = $2,642.20
4. Actual FTB Part B: $4,910.36 - $2,642.20 = $2,268.16/year

Worked Example: Single Parent, Child Age 2, Income $58,000

Single parents are assessed only against their own income for Part B. At $58,000 — well below the point where Part B significantly reduces — a single parent would receive the full $4,910.36/year.

Combining Part A and Part B

A family with two children (ages 3 and 7) on $68,000 combined income (one earner $68,000, one earner $0):

• FTB Part A:
  • Child 1 (age 3): A$5,911.36/year (maximum)
  • Child 2 (age 7): A$5,911.36/year (maximum)
  • Total Part A: A$11,822.72/year
  • Income of $68,000 vs. HIFA of $68,985 → no reduction (below threshold)
• FTB Part B:
  • Youngest child age 3: A$4,910.36/year
  • Secondary earner income: $0 → no reduction
  • Total Part B: A$4,910.36/year

Combined FTB: A$16,733.08/year — or approximately A$1,394/month.

The Newborn Supplement

When a new baby arrives and the family is not eligible for the government's Parental Leave Pay scheme (generally where one parent receives employer-based parental leave), FTB Part A includes a Newborn Supplement:

• First child: $2,003.82 total — paid as an initial amount plus an additional rate for 13 weeks
• Subsequent children: $668.34 total

This is paid on top of the regular FTB Part A rate. Families receiving the government's Parental Leave Pay (18 weeks at minimum wage) are not eligible for the Newborn Supplement simultaneously — they receive one or the other.

Supplement Payments at Tax Time

FTB is designed with an annual reconciliation. The FTB Part A Supplement of A$938.05 per child and the FTB Part B Supplement of A$448.95 are paid at tax time after lodgement, provided:

• The family lodges tax returns on time
• The child meets immunisation and health check requirements
• There is no debt from previous years outstanding

These supplements are significant — a family with two FTB Part A children receives an additional A$1,876.10 each year at tax time purely from the Part A supplement.

Common Reasons Families Receive Less Than Expected

Immunisation non-compliance. FTB Part A drops to the base rate ($63.56/fortnight per child) if a child is not up to date on immunisations. Many families don't realise a missed booster has triggered this until reconciliation. Check the Australian Immunisation Register.

Income estimates too low. Services Australia pays FTB based on your estimated income for the year. If you underestimate — a bonus, new job, or investment income — you will face an overpayment at reconciliation. It is common and managed, but can mean repaying several thousand dollars.

Not claiming the childcare subsidy separately. FTB and the Childcare Subsidy (CCS) are separate payments. CCS covers up to 90% of eligible childcare fees for low-income families. Many families receiving FTB still miss out on CCS because they assume it is automatic.

Forgetting the large family supplement. Families with four or more FTB children receive the Large Family Supplement of $13.40 per fortnight ($348.40/year) for each child after the third. It is automatic once you have four children in the system, but worth confirming.

FTB vs. Other Australian Family Payments

FTB sits within a broader ecosystem of family support:

FTB is the baseline — the ongoing support throughout childhood. CCS provides the largest financial impact for families with young children in care. Both can be received simultaneously and are not means-tested against each other.

How to Claim Family Tax Benefit

1. Create a myGov account and link it to Centrelink (Services Australia)
2. Apply online through myGov — the claim takes 10–30 minutes
3. Provide income estimates — use your most recent tax return as a starting point, adjusting for any expected changes
4. Choose payment schedule — fortnightly payments or annual lump sum (end of financial year)
5. Confirm immunisation status for children who have received vaccines — these should auto-populate from the Australian Immunisation Register

Claims for a newborn should be made within 52 weeks of birth to avoid losing the Newborn Supplement. For older children, there is no strict deadline, but backdating is limited to 52 weeks before the claim date.

Related Guides

• FTB Part A vs Part B: Key Differences Explained — detailed comparison of the two parts
• Child Benefits Calculator — estimate your FTB entitlement instantly
• Documents Needed for Child Benefit Claims — what to prepare
• Family Budgeting With Child Benefits — plan your household finances

Rates are for the 2025–26 financial year, sourced from Services Australia (servicesaustralia.gov.au), verified April 2026. FTB rates are indexed to CPI each July. Always confirm current rates at servicesaustralia.gov.au before making financial decisions.