Family Tax & Benefits

Family Payments
In order to better those families most in need, the indexation of a number of family payment thresholds have been frozen until July 2012. The following higher income thresholds for family payments are affected:

  • The Family Tax Benefit Part A (FTB-A) higher income free area – $94,316 of family income (plus $3,796 for each child after the first).
  • The Family Tax Benefit Part B primary earner income threshold -  $150,000
  • Dependency tax offsets threshold – $150,000
  • Baby Bonus eligibility threshold – $75,000 of family income in the six months following the birth or adoption of a child (equivalent to $150,000 a year)

Family Tax Benefit (FTB)
FTB claims are made through the Family Assistance Office (FAO). From 1 July 2009 the ATO no longer accepts FTB claims, whether it be current year or earlier claims, and will not produce FTB claim forms for 2009 and later years.

From 1 July 2009, the FTB-A for children under 16 payment rates will be indexed by the Consumer Price Index (CPI). This is in line with other family payments.

Baby Bonus
The aim of the Baby Bonus is to assist families with children with the cost of raising children and is paid to families having a baby or adopting a child. The payment is subject to an income test and is currently payable to families whose combined adjusted taxable income does not exceed $75,000 in the six months following the birth or adoption of a child. It can only be claimed directly from the Family Assistance Office.

Paid Parental Leave
The first ever comprehensive Paid Parental Leave scheme will be available to parents for births and adoptions that occur on or after 1 January 2011 and parents will be able to lodge claims from 1 October 2010.

The scheme will provide 18 weeks postnatal leave paid at the federal minimum wage (currently $543.78 per week).

There is some eligibility requirement for the scheme which is largely based on being actively in the work force prior to the birth or adoption of the child and includes a means test of an adjustable taxable income of $150,000 or less in the financial year prior to the date of birth or adoption of the child.

The Government has said it will provide employers with the funds in advance and employers will act as “paymasters” in most situations.

Child Care Rebate
The Child Care Rebate is provided to assist working families with the cost of child care. While it is no longer a tax offset, eligible families are paid the rebate by the Family Assistance Office. The Rebate covers 50 per cent of out-of-pocket child care expenses for approved child care, with a rebate of up to $7,778 (indexed) per child per year.