Family Tax Benefit Income Tests & Supplements (2025-26)

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 2025-26 tests work.

FTB Part A income test

You receive the maximum rate of FTB Part A if your family’s adjusted taxable income is $66,722 or less.

Between $66,722 and $118,771, your maximum-rate FTB Part A reduces by 20 cents for each dollar over $66,722, 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.

The Part A supplement

For 2025-26 the FTB Part A supplement is up to $938.05 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 $117,194 for the year. Single parents and grandparent carers are tested only on this limit.
• Secondary (lower) earner: the lower earner can earn up to $6,935 a year and still attract the maximum Part B rate. Each dollar above $6,935 reduces Part B by 20 cents.

The Part B supplement

The FTB Part B supplement is up to $459.90 per family for 2025-26, paid after reconciliation and subject to the same lodgement requirements.

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 $96,722. One partner earns $90,000, the other $6,722.

• Part A: income is $30,000 above the $66,722 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 $96,722 they are above the $80,000 supplement cap, so the per-child supplement is not paid.
• Part B: the higher earner ($90,000) is under the $117,194 limit, so Part B is payable. The lower earner’s $6,722 is under the $6,935 free area, so maximum Part B applies, plus the $459.90 supplement at reconciliation.

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 how FTB interacts with childcare support at tax time, see Childcare Subsidy, Family Tax Benefit and your tax return.