Family Tax Benefit Income Tests & Supplements (2026-27)

General information only. This is not tax or financial advice, nor financial-counselling advice. FTB thresholds are indexed and change periodically — confirm current figures with Services Australia before relying on them.

Family Tax Benefit (FTB) comes in two parts that are tested separately. Part A is paid per child and is means-tested on your whole family’s income. Part B is an extra payment for single-parent and single-income families, tested on the higher earner’s income with a separate test on the lower earner. Each part also carries an end-of-year supplement that is only paid once your income for the year is confirmed and is itself income-tested. Here is how the 2026-27 tests work.

FTB Part A income test

You receive the maximum rate of FTB Part A if your family’s adjusted taxable income is $69,131 or less.

Between $69,131 and $123,078, your maximum-rate FTB Part A reduces by 20 cents for each dollar over $69,131, until it reaches the base rate. Above the base-rate range a second taper of 30 cents in the dollar can apply for higher incomes. Adjusted taxable income includes more than salary — it adds reportable fringe benefits, reportable super contributions, net investment losses (including negatively geared property) and certain foreign income. For the full age-based maximum rates and base rate, see Family Tax Benefit rates for 2026-27.

The Part A supplement

For 2026-27 the FTB Part A supplement is up to $970.90 per eligible child, paid after the financial year ends once your income is reconciled. It is only payable if your family’s adjusted taxable income is $80,000 or less, and you must lodge any required tax returns (or notify that you don’t need to lodge) within the deadline.

FTB Part B income test

Part B uses a two-part test:

• Primary (higher) earner: Part B is not payable if the higher earner’s adjusted taxable income exceeds $124,327 for the year. Single parents and grandparent carers are tested only on this limit.
• Secondary (lower) earner: the lower earner can earn up to $7,154 a year and still attract the maximum Part B rate. Each dollar above $7,154 reduces Part B by 20 cents.

The Part B supplement

The FTB Part B supplement is up to $478.15 per family for 2026-27, paid after reconciliation and subject to the same lodgement requirements. For how both supplements are paid out and the lodgement deadline, see Family Tax Benefit supplements: how and when they’re paid (2026).

Is FTB taxable?

No. Family Tax Benefit is not taxable and is not included in your assessable income. But the reverse matters: your taxable income (plus the add-backs above) is exactly what drives the FTB income tests, so a salary-sacrifice arrangement, an investment loss, or a bonus can move your FTB entitlement even though FTB itself is tax-free.

Worked example

The Nguyen family has two children and a combined adjusted taxable income of $99,131. One partner earns $92,409, the other $6,722.

• Part A: income is $30,000 above the $69,131 free area. The 20-cent taper reduces their maximum-rate Part A by $30,000 × 0.20 = $6,000 a year off the maximum rate, until it floors at the base rate.
• Part A supplement: at $99,131 they are above the $80,000 supplement cap, so the per-child supplement is not paid.
• Part B: the higher earner ($92,409) is under the $124,327 limit, so Part B is payable. The lower earner’s $6,722 is under the $7,154 free area, so maximum Part B applies, plus the $478.15 supplement at reconciliation.

Estimate your FTB Family Tax Benefit Calculator Estimate FTB Part A & B payments based on income and family size Open →

Where this fits

Because both tests run on adjusted taxable income, the most useful first step is to nail down your taxable income for the year — model it with the income tax calculator, then feed the result into the Family Tax Benefit calculator to estimate Part A and Part B after the tapers. For the full 2026-27 rate schedule, see Family Tax Benefit rates for 2026-27, and for how the supplements are paid out see Family Tax Benefit supplements: how and when they’re paid (2026). For how FTB interacts with childcare support at tax time, see Childcare Subsidy, Family Tax Benefit and your tax return.