In 2024, the Family Tax Benefit (FTB) will see an increase, offering greater financial support for Australian families. This adjustment is designed to help parents manage the rising cost of living, particularly in areas such as child-rearing, education, and household expenses. In this detailed guide, we’ll explore the Family Tax Benefit, how much it’s increasing, eligibility criteria, and key details for families relying on this crucial financial aid.
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What is the Family Tax Benefit?
The Family Tax Benefit (FTB) is a government payment designed to help families with the costs of raising children. It is divided into two parts:
- Family Tax Benefit Part A – Provides financial assistance to families based on their income and the number of children.
- Family Tax Benefit Part B – Offers additional support to single-parent families and families with one main income earner.
This benefit helps cover essential child-related expenses, such as education, healthcare, and general living costs.
Family Tax Benefit Increase in 2024: How Much More Will Families Get?
For 2024, the Family Tax Benefit payments are being increased in response to inflation and the rising cost of living. The increase applies to both FTB Part A and FTB Part B, with the changes scheduled to take effect early in the year. Here’s how the increases break down:
Family Tax Benefit Part A Increase 2024
- The maximum rate per child under 13 will increase by approximately $210 per year.
- The maximum rate per child aged 13-19 will increase by about $270 per year.
For families earning below the income threshold, these maximum rates apply. Families earning above the threshold may see a partial benefit or tapering based on their income level.
Family Tax Benefit Part B Increase 2024
- For families with a child under 5 years old, FTB Part B will increase by approximately $170 per year.
- Families with children aged 5-18 will see an increase of about $120 per year.
Single-parent families and families with only one income earner benefit the most from this component, as it helps support households where one parent is the primary caregiver.
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Eligibility Criteria for Family Tax Benefit in 2024
To receive the Family Tax Benefit, you must meet certain eligibility requirements. These requirements apply for both Part A and Part B of the payment:
FTB Part A Eligibility
- You must have a dependent child aged 0 to 15, or aged 16 to 19 who is either in full-time secondary education or dependent on you.
- Your income must be below the income threshold to qualify for the maximum payment. For families earning above the threshold, the benefit will taper accordingly.
- You and your child must be Australian residents, and the child must live with you at least 35% of the time.
FTB Part B Eligibility
- Families must have one main income earner or be a single-parent household.
- The primary earner’s income must be below $108,131 per year to receive Part B. Secondary earners may still be eligible if their income is under the relevant threshold.
- The family must have a dependent child under 13 years of age, or under 18 years of age if a single-parent household.
How to Apply for Family Tax Benefit in 2024
Applying for the Family Tax Benefit is a straightforward process through Centrelink. If you’re a new applicant or your circumstances have changed, here’s what you need to do:
- Log into your myGov account linked to Centrelink.
- Navigate to the “Make a Claim” section and select Family Tax Benefit.
- Provide information regarding your income, number of children, and other relevant details.
- Submit any necessary documents, including proof of your children’s enrollment in school (for older children), and any income details.
- Centrelink will review your application and process the payment based on your eligibility.
Payment Dates and Schedule
Centrelink typically issues FTB payments either:
- Fortnightly, directly into your bank account, or
- As part of your annual tax return adjustment.
For 2024, the increased payments are expected to begin in January, providing families with extra funds throughout the year. Families receiving their FTB through their tax returns will see the increase reflected in their 2024 tax year filing.
The 2024 increase in the Family Tax Benefit offers much-needed financial relief for Australian families. With increases across both FTB Part A and FTB Part B, families will see extra funds to help cover essential expenses like childcare, education, and daily living costs. Be sure to check your eligibility and stay informed about the changes to maximize the support you receive. Whether you’re a single parent or a dual-income family, the Family Tax Benefit is a key component of financial stability, especially in the face of rising living costs.
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