What is the Family Tax Benefit?
Family Tax Benefit (FTB) is a government payment to help with the cost of raising children. Despite the name, it is not a tax deduction, tax offset or tax refund. It is a social security benefit designed to support families with everyday costs such as food, clothing, education and general child-raising expenses.
FTB is made up of two parts:
• FTB Part A – the main payment, available to most eligible families
• FTB Part B – an extra payment for single parents or single-income families (for example, where one parent stays home or works part-time)
Importantly, FTB is paid by Services Australia (Centrelink) – not by the ATO.
Who is eligible?
To receive FTB, you must have at least one dependent child in your care. Eligibility generally requires that:
• your child is aged 0–15, or a full-time secondary student aged 16–19
• your child is in your care at least 35% of the time
• your child is an Australian resident
• you meet Australian residency rules
• your family income is under the relevant income thresholds (FTB is means-tested)
Both Part A and Part B have their own income tests.
FTB is not a tax refund
A common misunderstanding is that FTB is linked to your tax return. It is not.
• A tax refund is money the ATO gives back if you paid too much tax.
• FTB is a Centrelink payment and does not form part of your tax assessment.
• Lodging a tax return does not automatically generate an FTB payment.
The confusion exists because many years ago, some family benefits were delivered through the tax system. Today, Centrelink administers FTB entirely.
Think of FTB like the Child Care Subsidy or Parenting Payment – a family support benefit, not a tax benefit.
How do you claim the Family Tax Benefit?
You must claim FTB through Services Australia, not through your tax return. You can claim:
• online through myGov (linked to Centrelink)
• by calling the Families line
• by visiting a Centrelink service centre
Parents of newborns can use the Newborn Child Declaration provided in hospitals, which includes the option to claim FTB.
Payment options
When claiming, you can choose how you want to receive FTB:
Option 1. Fortnightly payments
The most common approach.
• You estimate your family’s income for the year.
• Centrelink pays you every two weeks based on that estimate.
• After the financial year ends, they compare (balance) the payments against your actual taxable income.
• If you were overpaid, you may need to repay the difference.
• If you were underpaid, you’ll receive a top-up.
Option 2. Annual lump sum
• You wait until after 30 June and claim for the entire year at once.
• Your actual income (based on your tax return) is used to calculate the benefit.
• This option avoids overpayments because you are not estimating your income.
• Claims must be lodged within one year after the end of the financial year (for example, the 2024–25 year can be claimed until 30 June 2026).
What to expect after claiming
If approved, Services Australia will either:
• start your fortnightly payments, or
• pay your lump sum after both you and your partner lodge your tax returns (if applicable)
All communication about FTB – approvals, changes, updates, or balancing – will appear in your Centrelink online account or by letter. It will not appear in your ATO tax return paperwork.
Remember to keep Centrelink updated
Your payment rate depends on your circumstances. You should update Centrelink whenever your:
• income changes
• work hours change
• relationship status changes
• care arrangements for your child change
This helps avoid overpayments, large debts or unexpected adjustments after the end-of-year balancing.
FAQs
Do I need to lodge a tax return to receive Family Tax Benefit
You do not receive FTB through your tax return, but you may still need to lodge a tax return so Centrelink can balance your payments at the end of the financial year. This applies to you and your partner if you receive fortnightly payments.
What is the difference between FTB Part A and Part B
FTB Part A is the main payment available to most eligible families and is based on family income and the number of children. FTB Part B provides additional support to single parents or families where one partner earns little or no income.
Why does Centrelink need my tax return information
Centrelink uses your actual taxable income to balance your Family Tax Benefit if you receive fortnightly payments. This ensures you were paid the correct amount based on your final income for the year.
