FTB FAQ and myths
Do I lose FTB if I go back to work?
No — not automatically, and not in one step. Part A tapers gradually: 20 cents per dollar above $69,131, then 30 cents per dollar above $123,078. Returning to work raises family income, so the rate may fall, but the taper is gradual and the family keeps most of each extra dollar earned. Part B is different for couples: if the lower earner returns to work, Part B tapers by 20 cents per dollar above $7,154, and if the higher earner passes $124,327, Part B stops. The myth that "earning more means losing everything" confuses a taper with a cliff. FTB has tapers, not cliffs, except for the supplement cap at $80,000 and the Part B higher-earner cap at $124,327.
Is there an assets test?
No. There is no assets test for either part of FTB. Savings, a home, a car and investments do not reduce the payment. Investment income can affect adjusted taxable income, which is an income test, not an assets test — but the value of the assets themselves is not counted. Families who delay claiming because they think savings disqualify them are delaying for a reason that does not exist.
Does child support cancel out FTB?
No. Child support above the free area reduces Part A by 50 cents per dollar, never below the base rate, and only for the child attracting maintenance. A parent receiving $3,000 above the free area loses $1,500 of Part A but gains $3,000 of support: a net gain of $1,500. Child support is worth pursuing even where the FTB reduction applies. The separate danger is the action test: not pursuing child support at all, without an exemption, can cap Part A at the base rate, which is a much larger loss than the 50-cent taper.
Can both parents claim for the same child?
No. Only one member of a couple can receive FTB for a child, and eligibility follows the child. Where care is shared at 35% to 65%, the rates may be shared between carers in proportion to care, but that is a sharing of one entitlement, not two entitlements. Two full payments for one child do not exist.
Does FTB stop at 13?
Part A does not stop at 13 — the rate rises at 13, from $235.48 to $306.46 a fortnight, and continues to 19 where the child is in full-time secondary study. Part B for couple families does effectively stop when the youngest child turns 13, while single-parent Part B continues to the end of the calendar year in which the child turns 18. The myth comes from mixing up the two parts.
Is the supplement automatic?
No. The supplements are paid after balancing, and only where the tax-return or income-notification obligation is met within 12 months after the end of the financial year. A family that never lodges, and never notifies, can lose the supplement and be required to repay fortnightly amounts. The supplement is also capped: Part A supplement requires family income of $80,000 or less. Treat the supplement as conditional money, not as a promise.
Can I claim late and get everything back?
Only within limits. A claim can be made up to 3 months before the expected birth or entry into care, and a post-year lump-sum claim must be made within 12 months after the end of the financial year. Outside those windows, the payment for the missed period is gone. Late claiming is the cheapest mistake in FTB to avoid and the hardest to fix.
Is FTB taxable?
FTB itself is not taxable income in the ordinary sense, but it is assessed on adjusted taxable income, which is a tax-based measure. The distinction matters for budgeting: FTB does not add to a tax bill, but a tax return is still required (or income notification given) to keep the payment and the supplements. If in doubt about tax treatment, the Australian Taxation Office and Services Australia are the authorities, not this site.