Family Tax Benefits in Australia
Updated on February 26, 2025
Reviewed by
Jonathan Rose, an IRS Enrolled Agent with 14 years of expat tax experience, specializes in US tax preparation, tax planning, and tax advice for US citizens and Green Card holders living and working in Australia.
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Table of Contents
Can Americans in Australia receive the Family Tax Benefit?
Yes, they can be eligible for the Family Tax Benefit (FTB). This benefit is mainly for Australian citizens and those temporarily residing in the country. However, some special conditions might extend these benefits to temporary residents.
Eligibility Criteria for US citizens:
To qualify for FTB Part A and/or Part B, you must meet the following requirements:
- Residency requirement: You need to hold an eligible visa.
- Income test: Your family’s total taxable income (including US income) must be below certain thresholds to qualify for full or partial payments.
- Child residency requirement: Your child must live with you in Australia for at least 35% of the time.
What is the Family Tax Benefit in Australia?
The Family Tax Benefit (FTB) is a government payment benefit designed to assist families in raising children. The Australian government understands how expensive raising a family can be, and its purpose is mainly this, to provide financial support for families, easing their burden.
The financial support is divided into two parts: for those paid per child and for single parents or one-income families.
What are the 2 parts of the Family Tax Benefit?
The FTB is divided into 2 parts:
- FTB Part A: This is available to families with dependent children and is calculated based on household income and the number of children.
- FTB Part 2: This provides additional support for single parents or single-income families, helping those with lower earnings.
What are the income limits for the Family Tax Benefit?
For FTB Part A, you can get the maximum benefit if your annual income is AUD$65,189 or less. For income more than that, you can still get the base rate of the FTB Part A.
FTB Part A income limit for those who earn above AUD$65,189:
|
Number of children |
Age of child |
Income limit per year |
|
1 |
0-12 |
AUD$84,845 |
|
13-19 |
AUD$93,550 |
|
|
2 |
Both 0-12 |
AUD$104,500 |
|
One child aged 0-12 and one child aged 13-15 or 16-19 in secondary study |
AUD$113,205 |
For FTB Part B, Single parents need to earn USD$117,194 or less per year. For partnered parents, one partner should earn USD$117,194 or less, and the other partner should earn AUD$6,789 or less per year.
Need more help understanding family tax benefits? Contact us today.
How much is the Family Tax Benefit payment?
The payments are usually given fortnightly or as a lump sum at the end of the financial year. For FTB Part A, the maximum rate will depend on the age of each child per fortnight. It is as follows:
- AUD$222.04 for a child 0 to 12 years
- AUD$288.82 for a child 13 to 15 years
- AUD$288.82 for a child 16 to 19 years who meets the study requirements
- AUD$71.26 for a child 0 to 19 years in an approved care organization.
The base rate for FTB Part A is AUD$71.26 for each child per fortnight.
For FTB Part B, the maximum rate depends on the age of your youngest child:
- AUD$188.86 when the youngest child is 0 to 4 years of age.
- AUD$131.74 when the youngest child is 5 to 18 years of age.
How do I apply for the Family Tax Benefit?
Once you’ve determined your eligibility, you can apply online through Services Australia via myGov. You can make a claim for the FTB there, just be sure to provide proof of residency, income, and child details.
If you want to apply in person, you can visit a Centrelink service center near you for further assistance.
Can I receive FTB if I also receive US child tax credits?
Yes, you can claim both benefits if they are available to you like the Additional Child Tax Credit in the US. Make sure to declare your FTB as foreign income on your US tax return.
The impact of child support payments greatly relieves parents so check your family’s eligibility for Family Tax Benefit.
Do I need to report my US income for FTB eligibility?
Yes, all worldwide income, including US earnings, should be declared when applying for FTB. This is to ensure transparency and compliance with the rules and eligibility criteria for FTB.
Does receiving FTB affect my US taxes?
No, FTB is not taxable in Australia and is generally not considered taxable income in the US. However, the IRS may require it to be reported under foreign financial accounts.
How can I calculate my FTB?
When calculating your FTB, you should also take into account the various personal and financial circumstances you have. So, make sure you have all the details ready and correct. You can refer to an online estimator tool provided by the Australian government.
The tool will provide an estimate of your potential FTB entitlement based on the information provided. So, by utilizing the online estimator and understanding the key factors involved, you can gain a clearer picture of your potential Family Tax Benefit entitlements.
