Raising children in Australia comes with a fair share of financial responsibilities, but in 2025, the Family Tax Benefit (FTB) offers significant relief for eligible families. With payments reaching up to $6,442.25 per child annually, this government initiative aims to ease the cost of living for households managing childcare, education, and daily expenses. Whether you’re a single parent, a two-income family, or working part-time, this support could make a meaningful difference in your monthly budget.
What Is the Family Tax Benefit and How Does It Work?
The Family Tax Benefit is a financial assistance program provided by the Australian Government, administered by Services Australia. It consists of two components FTB Part A and FTB Part B. FTB Part A is the primary payment made per child, while FTB Part B offers additional help to single parents or single-income families. The amount you receive depends on your family’s income, the number and age of your children, and your overall household structure.
Understanding the Payment Rates in 2025
As of 2025, the maximum annual payment for FTB Part A can reach up to $7,214.48 per child aged 13–15, with younger children under 13 receiving slightly less. On average, many families fall within the $6,442.25 range per child annually, especially those earning below the base income threshold. FTB Part B further supplements families with up to $168.28 per fortnight for children under five and slightly less for older children. These payments can be delivered fortnightly or as an annual lump sum depending on your preference and financial needs.
Who Is Eligible to Receive the Family Tax Benefit?
To qualify for FTB in 2025, families must meet several core requirements. Applicants must reside in Australia and either be Australian citizens or hold eligible visas. You must be caring for the child for at least 35% of the time. Income testing plays a significant role FTB Part A offers full benefits to families earning under $60,000 annually, with gradual reductions beyond that point. For FTB Part B, the secondary earner must keep their income below $6,059 to receive the full rate, with phase-out occurring up to $28,945.
How to Apply Through myGov
Applying for the Family Tax Benefit is straightforward with the use of the government’s myGov portal. You’ll need to create or log into your myGov account and link it to Centrelink. From there, gather necessary documentation including tax file numbers, income estimates, proof of birth or adoption, and banking details. Once submitted, your claim will be assessed, and successful applicants typically receive their first payment within 21 days. You can also update your income throughout the year to ensure accuracy and avoid debt.
Managing Payment Options and Avoiding Overpayment
Families can choose to receive FTB payments either fortnightly or as a single annual payment. While many opt for fortnightly payments to help manage ongoing expenses, annual lump sums can be beneficial for those with unpredictable incomes. If you underestimate your income during the year, you may owe money back at tax time. Conversely, overestimating can lead to a post-tax top-up. To avoid surprises, it’s important to keep your income estimates updated in your myGov account.
Extra Supplements and Additional Family Benefits
Beyond the core payments, FTB recipients may be eligible for additional support such as the FTB Supplement up to $817.60 per child and assistance with rent or energy bills. These extras are designed to further reduce the financial pressure on families. Moreover, qualifying for FTB can open the door to other entitlements such as the Child Care Subsidy, Parenting Payment, or a Low Income Health Care Card, making it a key element in Australia’s broader family support system.
In a landscape of rising living costs, the 2025 Family Tax Benefit stands out as a vital source of relief for many Australian households. By understanding your eligibility, applying early, and keeping your details current, you can ensure your family receives the full support it deserves.