A new addition to the family is both exciting and overwhelming.
Once the “baby daze” subsides, reality begins to kick in. Suddenly, expenses begin to add up and you start to feel as though you’re in over your head. Don’t panic. We’re on your side. That’s why we’re here to discuss the Family Tax Benefit.
What exactly is the Family Tax Benefit?
To put it simply, this is a set of payments that is provided to qualifying Australians to help with the costs of having and caring for children. There are two parts to this tax benefit:
- Family Tax Benefit Part A
- Family Tax Benefit Part B
You must meet different requirements for each. Let’s take a deeper look.
Family Tax Benefit Part A Eligibility
The Part A payment is paid for each child but the amount you receive depends on your family and financial situation for that year. You may be eligible for the Family Tax Benefit Part A if you care for a dependent child who is either of the following:
- 15 years of age or under, or
- 16 to 19 years of age, and
- is enrolled in a full time education program or training in an approved course leading towards a year 12 qualification
- has an acceptable (by ATO guidelines) study load, or
- Is exempt from education or training requirements
It is imperative that you also satisfy an income test (set forth by ATO guidelines), are an Australian resident, and care for the child for at least 35% of the time. Your child must also meet immunisation requirements. They must be:
- current with their medical immunisations, according to the early childhood vaccination schedule appropriate to your child’s age
- on a recognised immunisation catch up schedule, or
- medically exempt from these guidelines
QUICK TIP: Do you have a newborn at home? You may also qualify for Newborn Upfront Payment and Newborn Supplement. Newborn Supplement is a component of Part A. It is paid over a span of three months with your regular Part A payment. You can find out more about this by checking out the full list of guidelines HERE.
Family Tax Benefit Part B Eligibility
Part B of this tax benefit takes things a step further and provides even more financial assistance to the following people who qualify:
- Single parents
- Couples with only one main income flow
- Non-parent carers (ie: grandparents)
If you are a single parent or non-parent carer, you may be eligible for the Part B payment if you care for a child at least 35% of the time and the child is:
- 16 years old or younger, or
- a full time secondary student, up until the end of the calendar year in which they turn 18 years old
If you are part of a couple with one main income source, you may be eligible for art B if you care for a dependent child 12 years of age or younger at least 35% of the time.
In order to qualify as an “eligible carer” according to the ATO, you must be one of the following:
- foster carer
- great grandparent, or
- another non parent carer
If I qualify, how much am I entitled to?
Now that you have a good idea whether or not you are eligible for the full or partial Family Tax Benefit, let’s address how much you’ll be receiving. Since the Family Tax Benefit consists of two different parts, there are two separate payment structures as well.
Family Tax Benefit Part A Payment Rates
If you qualify for Part A of the benefit, you’ll receive a base payment per fortnight. To determine your base payment, you will need to consider the following:
- How many children you are caring for
- Your annual income
You will then use that information to navigate the government table HERE.
To give you an idea of the maximum you could receive, here is a basic Part A table:
QUICK TIP: Did you have multiples? You’ll receive $152.88 a fortnight for triplets or $203.56 a fortnight for quadruplets if you qualify for Part A. A separate claim for each child is not necessary under these circumstances.
Family Tax Benefit Part B Payment Rates
Unlike Part A, the amount you receive from Part B is usually based on the age of your youngest child. While many other specific factors play a part in determining your actual payment, here is a basic table of the maximum you could receive.
How can I report the Family Tax Benefit?
This family tax benefit seems to cause some confusion with the multiple parts and payment tiers. That’s why we’re here to help you out. When lodging your tax with E-Lodge, you’ll have access to tax experts who can answer your questions about this benefit and numerous others that you may qualify for. We’ll steer you in the right direction so that you’ll be on your way to the greatest refund possible.