Let’s be honest: when governments announce benefits or rate changes, many of us glance, nod, but then forget the details. So here I am, to walk you through—step by step—what the Family Tax Benefit (FTB) changes look like in 2025, particularly for Part A and Part B. I’ll point out what’s confirmed, what you need to watch out for, and what it might mean for your household.
What is the Family Tax Benefit (FTB), and why it matters
Before diving into rates, let’s quickly recap what FTB is, especially in case you’re new or just brushing up. The Family Tax Benefit (administered via Centrelink / Services Australia) is financial support to assist families with the costs of raising children. It comes in two parts:
- FTB Part A — Paid per child (so more children = more total support), mainly aimed at helping with general childcare and living costs.
- FTB Part B — Paid per family (not per child), designed especially for single-parent families or couples where only one partner works (or earns low income), giving extra help when one income dominates.
These benefits are “income tested,” meaning how much you receive depends on your family’s adjusted taxable income, number and age of kids, who cares for them, etc. On top of that, there are end-of-year supplements if you qualify.
Now, in 2025, some rate bumps and threshold tweaks were confirmed. Let’s see the details.
What’s New in 2025 / 2025–26 (Confirmed Updates)
Here are the key confirmed changes for the FTB rates starting in the 2025–26 financial year (i.e., from 1 July 2025 onward) or as recently indexed:
FTB Part A Rates (per child, per fortnight maximums)
| Child age / condition | Fortnightly maximum rate (2025–26) |
|---|---|
| 0 to 12 years | $227.36 |
| 13 to 15 years | $295.82 |
| 16 to 19 years (if in full-time secondary study) | $295.82 |
| Child in approved care organization (any age) | (a special lower fixed rate) |
Also: there’s a Part A Supplement that’s paid annually (after your year-end reconciliation). For 2025–26, that supplement could go up to $938.05 per eligible child.
So yes — on the flip side, things are going up a bit compared to prior years.
FTB Part B Rates (per family, fortnightly maximums)
| Youngest child’s age | Fortnightly maximum rate (2025–26) |
|---|---|
| Under 5 years | $193.34 |
| 5 to 18 years | $134.96 |
And there’s a Part B Supplement (also reconciled annually) which for 2025–26 is up to $459.90 per family.
Income Tests, Phase-outs & Key Eligibility Notes (Yes, the fine print matters)
You might be thinking, “Those are the maximums — but what will I actually get?” Good question. Turns out, many families will get something less — sometimes a lot less — depending on income and other rules.
Income test for FTB Part A
- If your family’s adjusted taxable income is $66,722 or less, you may get the full maximum rate (i.e. unaffected by tapering).
- From $66,722 up to $118,771, your FTB Part A is reduced (tapered) — initially by 20 cents per dollar over $66,722, until it hits a “base rate.”
- Once your income exceeds $118,771, further reductions may occur (30 c per dollar) until the payment goes to zero.
There are also income limits beyond which Part A ceases entirely — and they depend on how many children you have and their ages.
Income test for FTB Part B
- For single parents, you can access the maximum Part B as long as your income is $120,007 or under.
- For couples, Part B is more restrictive: the lower-income earner mustn’t exceed a modest threshold (e.g. ~$6,935 per year) for you to retain the full maximum.
- Part B eligibility also depends on the age of the youngest child (if you are a couple) and whether you meet the “care 35%” rule for children.
Other caveats & requirements
- Your child must meet immunisation and health check requirements in many cases.
- If your child is aged 16–19, they often must be in full-time secondary study (or meet study requirements) to count under Part A or B.
- Shared care arrangements will affect how much you receive (if you don’t care for the child > 35% of time) — your payment is adjusted accordingly.
- Because these payments are reconciled annually, you must report correct income estimates to avoid overpayments or needing to repay excess.
What These Changes Mean (In Plain Language)
So, you see the new max rates are a boost — modest but meaningful. If your income is solidly below the taper threshold, you might see a clean increase in your fortnightly payments. But if you’re right in the middle or higher end, you may barely see a change or possibly even a small clawback (if your income changes upward).
Another thing: that jaw-dropping supplement at year’s end (for both A and B) may feel like a mini bonus. But don’t count on it until after the tax year reconciliation — and only if your income qualifies.
Also, these updates reflect indexation (adjusting for inflation) and political decisions, so they’re not gigantic leaps. Still, for many families, every extra dollar helps.
Quick Recap (Because repetition helps retention)
- Part A is per child; Part B is per family.
- Maximum Part A (2025–26): $227.36 (0–12 yrs), $295.82 (13–19 yrs in study) per fortnight.
- Maximum Part B (2025–26): $193.34 (youngest < 5), $134.96 (youngest 5–18) per fortnight. Supplements (once a year): up to $938.05 (Part A supplement) per child, up to $459.90 (Part B supplement) per family.
- Income tests will taper your payment if you earn above certain thresholds.
- Reconciliation at year’s end may lead to extra payment or needing to repay overpayments.
- Eligibility rules (study, immunisation, care share) still apply.
FAQs
1. When do the updated 2025–26 FTB rates take effect?
They roll out from 1 July 2025, for the 2025–26 financial year.
2. If my income increases mid-year, will my FTB drop right away?
Possibly. Because payments are income tested and based on your estimate, a change in income might reduce your fortnightly rate or lead to reconciliation adjustments.
3. Can I receive both Part A and Part B simultaneously?
Yes — many eligible families qualify for both. But Part B is more restrictive, especially in couples.
4. What happens if I receive too much FTB during the year?
At year end, Centrelink recalculates (balances) your entitlement. If you got too much, you may be required to repay the difference.
5. Do I need to reapply each year?
Not exactly. You need to confirm your income estimate, keep your Centrelink / myGov details up to date, and notify any changes (e.g. a new job, change in family structure).