Family Tax Benefit (FTB) is a government payment to help families with the cost of raising children. Despite its name, it’s not a tax refund or tax deduction – it’s a social security benefit to help with everyday costs like food, education, clothing and other child-rearing expenses.
FTB has two parts: Part A is the main payment available to most eligible families, and Part B is an extra payment for single parents or certain single-income families (usually where one parent stays home or works part-time). Importantly, FTB is paid by Services Australia (through Centrelink), not the ATO.
To be eligible, you must have at least one dependent child in your care, and: your child must be aged 0–15 years, or a full-time secondary student aged 16–19, in your care at least 35% of the time; your child must be an Australian resident and you (as the claimant) must meet certain residency rules; and your income must be under certain thresholds. FTB is means-tested, and there are income tests for both Part A and Part B payments.
FTB isn’t a tax refund. A tax refund is money the ATO gives back if you’ve overpaid tax during the year, but FTB is a government benefit, separate from the tax system. You don’t automatically receive FTB by lodging a tax return, and it’s not calculated in your tax assessment. Historically, some family benefits were delivered through the tax system, but today Centrelink delivers FTB. Think of FTB as a family assistance payment like the Parenting Payment or Child Care Subsidy, rather than a tax refund or rebate.
To claim FTB, you must apply through Services Australia via your myGov account linked to Centrelink, phone the Families line, or visit a Centrelink service centre. If you’ve just had a baby, hospitals often provide the Newborn child declaration form, which includes a lump sum claim for FTB and other family payments.
You can choose to receive FTB as regular fortnightly payments by estimating your family’s income for the year, with final reconciliation after the year ends, or as an annual lump sum after 30 June using your actual income from your tax return. Lump-sum claims must be made within one year after the financial year ends (e.g., for 2024–2025 you have until 30 June 2026).
During your claim, you’ll provide details about your children and income. If approved, Services Australia will deposit fortnightly instalments into your bank account or process the lump sum after both you and your partner lodge tax returns. All FTB communication, including approval, payment details, and adjustments, is sent through Centrelink, not via your tax return paperwork. Lump sums are paid directly by Centrelink, separate from any ATO tax refund.
If your circumstances change (such as income or care arrangements), inform Centrelink promptly to avoid overpayments or adjustments after end-of-year reconciliation.