Raising children in Australia is expensive, and the cost of living has made it harder than ever for families to make ends meet. The good news is that there is a range of government support payments designed to help, with Family Tax Benefit (FTB) being the most important. Many families either do not claim what they are entitled to or do not realise the income tests have changed. Here is a clear guide to what is on offer in the 2026/27 financial year.
What Is Family Tax Benefit?
Family Tax Benefit is a payment from Services Australia (Centrelink) that helps with the cost of raising children. It comes in two parts — Part A and Part B — and you can receive one or both depending on your circumstances. You can choose to receive it as a fortnightly payment throughout the year or as a lump sum after you lodge your tax return.
To qualify, you must have a dependent child in your care, meet residency rules, and pass an income test. Both parts are reduced as your family income rises, so the amount you get depends heavily on what you earn. You can estimate your entitlement with our Family Tax Benefit calculator.
Family Tax Benefit Part A
FTB Part A is paid per child and is the larger of the two payments. The amount you receive depends on your family's combined income and the age of each child. The maximum rate is paid to families with lower incomes and reduces as income climbs.
As a rough guide for 2026/27, the maximum FTB Part A rate is around $222 per fortnight for each child aged under 13, and a little more for teenagers aged 13 to 19 in full-time secondary study. Families start to see the payment reduce once their combined income passes roughly $65,000, tapering down from there.
There is also an annual FTB Part A supplement of around $900 per child, paid after the end of the financial year once your income is confirmed and your children are up to date with their immunisations and health checks.
Family Tax Benefit Part B
FTB Part B gives extra help to single-parent families and families with one main income earner. It is paid per family rather than per child, and it recognises that these households often have less capacity to earn a second income.
The maximum rate is around $190 per fortnight when the youngest child is under five, dropping to about $132 per fortnight when the youngest is aged five to 18. For couples, FTB Part B cuts out once the higher earner's income passes roughly $117,000, and the lower earner's income is also tested. Single parents are generally eligible up to a similar income limit.
Because the payment depends so heavily on the split between the two earners in a couple, it is worth working out your after-tax incomes first. Our salary calculator shows what each partner takes home, which helps you understand how the income test applies.
The Child Care Subsidy
For many families, the single biggest cost-of-living relief is the Child Care Subsidy (CCS). This payment goes directly to your approved childcare provider to reduce your out-of-pocket fees. The percentage the government covers depends on your family income and how many children you have in care.
Lower-income families can have up to 90% of their childcare fees covered, with the subsidy tapering down as income rises. Recent reforms increased the rates and removed some of the old activity-test barriers, making care more affordable for working parents. If childcare is eating into your budget, checking your CCS eligibility through myGov should be your first move.
Other Support Worth Claiming
Beyond FTB and the Child Care Subsidy, several other payments can help families through tough times:
- Parenting Payment: income support for the main carer of a young child, for single parents until the youngest turns 14
- Newborn Upfront Payment and Newborn Supplement: extra help when a new baby arrives, if you are not taking Parental Leave Pay
- Parental Leave Pay: government-funded paid leave, now extended towards 26 weeks and shareable between parents, with superannuation now paid on top
- Rent Assistance: an extra payment for families receiving FTB Part A who pay private rent above a threshold
- Energy and cost-of-living rebates: state and federal electricity bill relief that continues in various forms in 2026/27
The Income Test Trap to Watch
One thing that catches families out is the way income is assessed. Centrelink uses your adjusted taxable income, which includes more than just your salary. It adds back things like reportable super contributions, certain fringe benefits, net investment losses, and any foreign income.
This means salary sacrificing into super, or running a negatively geared investment property, can affect your family payments in ways you might not expect — sometimes helping, sometimes hurting. If you have investments or salary-package arrangements, it is worth modelling the full picture. Our superannuation calculator can help you see how extra contributions change your assessable income.
How to Claim and Avoid Debts
You claim Family Tax Benefit through your Centrelink online account, linked to myGov. The most important thing is to give an accurate income estimate for the year. If you underestimate your income and receive too much FTB, you will have to repay the difference — and overpayment debts are a common and stressful problem.
A safe approach for families with variable income is to take a slightly conservative estimate, or to receive FTB as an annual lump sum after lodging your tax return, when your exact income is known. That way there is no risk of a surprise debt. Always update your estimate promptly if your circumstances change, such as a pay rise, a new job, or a partner returning to work.
The Bottom Line
Family Tax Benefit and the wider suite of family payments can be worth thousands of dollars a year, yet plenty of eligible families either miss out or get tripped up by the income tests. With childcare, rent, and grocery costs all biting hard in 2026/27, it has never been more important to claim everything you are entitled to.
Start by estimating your entitlement with our Family Tax Benefit calculator, work out each partner's after-tax income using the salary calculator, and then lodge an accurate claim through myGov. A couple of hours spent getting this right can deliver one of the best returns on your time of anything in your household budget.