Two Parent Families
If you are a two parent family, the income of the parent earning the higher amount (primary earner) must be equal to or less than the income limit of $150,000 per year. If the primary earner's income is $150,000 or less, then the income of the parent earning the lesser amount (secondary earner) is taken into consideration.
- Income test for the primary earner
- Income test for the secondary earner
- Maximum rates of Family Tax Benefit Part B
- Income limit where payment stops
- What can affect my payment?
Income test for the primary earner
The parent earning the higher amount can earn $150,000 or less for the 2008-09 financial year. An income test is then applied to the parent earning the lesser amount.Income test for the secondary earner
The parent earning the lesser amount can earn up to $4 526 for the 2008-09 financial year before it affects Family Tax Benefit Part B.| Age of youngest child | Per fortnight | Per year |
|---|---|---|
| Under 5 years | $128.80 | $3,358.00 |
| 5-15 years (or 16-18 years if a full-time student) |
$89.74 | $2,339.65 |
Please note: Family Tax Benefit Part B is paid per family. As the Family Tax Benefit Part B Supplement is paid after the end of the financial year, the amount is not included in these figures.
The amount of Family Tax Benefit Part B will reduce by 20 cents for each dollar earned above the income limit ($4,526 for 2008-09). See example.
Income limit where payment stops
Your Family Tax Benefit Part B payments will stop if the partner earning the lesser amount earns above:- $22,995 in 2008-09 if your youngest child is under 5;
- $17,904 in 2008-09 if your youngest child is between 5 and 18.
Example
Ken and Irene's youngest child is 12 years old and Ken earns $120,000 per year. Irene works part-time and earns $10 000 per year.
Step 1
$10 000 - $4 526 = $5 474.00
Step 2
$5 474 X 0.20 = $1 094.80
Step 3
$2 339.65 - $1 094.80 = $1 244.85
Therefore, Ken and Irene's Family Tax Benefit Part B entitlement will be $1 244.85 for 2008-09.
Ken and Irene's youngest child is 12 years old and Ken earns $120,000 per year. Irene works part-time and earns $10 000 per year.
Step 1
$10 000 - $4 526 = $5 474.00
Step 2
$5 474 X 0.20 = $1 094.80
Step 3
$2 339.65 - $1 094.80 = $1 244.85
Therefore, Ken and Irene's Family Tax Benefit Part B entitlement will be $1 244.85 for 2008-09.
What can affect my payment?
If either partner earns more than the relevant income limits, then ALL Family Tax Benefit Part B that was paid during the year may be an overpayment and would need to be repaid. This could be as high a $3 358.00 if you have a child under 5 years.If you are unsure of future changes in work or if you will earn above the income limits, you can reduce your risk of being overpaid by choosing to defer your Family Tax Benefit Part B until after the end of the financial year.
Special arrangements may apply to parents receiving FTB Part B who return to work for the first time after the birth of a child, or an eligible child entered their care.
This information is a guide only. Alternatively, you can use the secure online Family Assistance Estimator or contact us to work out your possible entitlement.
To get an accurate assessment of your entitlement you will need to lodge a claim.
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