If you have kids you may be eligible for some government support called Family Tax Benefit. This used to form a part of your tax return and be handled by Us – your Accountants.
There are two types of family tax benefit, Family Tax Benefit A (FTB A) and Family Tax Benefit B (FTB B) the rates and income tests are quite complex.
Family Tax Benefit A
You will receive the maximum FTB A if your combined family income is less than $54,677 and after that it will reduce by $0.20 for each dollar over $54,677 you family income is.
The rate reduces down to the base rate and stays at the base rate for a period eventually dropping to 0. The final point where FTB A is $0 depends on how many children you have. Current this is $104,184 for one child moving up step by step to around $160,000 if you have 3 children.
Family Tax Benefit B
Your will receive maximum FTB B if your combined family income is less than $100,000 for s single parent family
or if two parents its a two part test;
If the main breadwinner earns over $100,000 then you cannot get any FTB B
The amount of FTB B received is based on the lower income earner with the maximum amount receivd if the low incoem earner earns $5694 or less and tops out at $0 when the lower income earner earns $21,973 – $28,197 (depending on the age of your youngest child)
All rates are accurate for the 2020 financial year