FTB income tests 2026–27

A red post box in Bassendean, Western Australia Photo: Wikimedia Commons, CC BY 2.5 au.

A suburban brick house on an unpaved street Photo: Wikimedia Commons, Public domain.

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Both parts of FTB are income-tested, but they use different incomes and different tapers. Part A tests combined family adjusted taxable income. Part B tests each partner's income separately: a hard cap on the higher earner, and a taper on the lower earner. There is no assets test for either part. Families receiving fortnightly instalments provide an income estimate for the financial year, and the tests below are applied to that estimate through the year and to actual income at balancing.

Part A: two tapers, and the higher rate applies

In most cases the rate is calculated using two income tests, and the test that results in the higher rate applies. Under the maximum-rate income test, income up to $69,131 a year has no effect on the rate of payment. Each dollar of income between $69,131 and $123,078 reduces the maximum rate by 20 cents. Each dollar of income above $123,078 reduces the maximum rate by 30 cents. Under the base-rate income test, income up to $123,078 a year has no effect on the base rate, and each dollar above $123,078 reduces the base rate by 30 cents. The income test does not apply to families where a parent receives certain income support payments (including certain Department of Veterans' Affairs payments) at a rate above nil.

A worked taper makes the shape concrete. A family with one child aged 8, on the maximum rate of $235.48 a fortnight, with family income of $79,131 — that is $10,000 above $69,131 — loses 20 cents for each of those dollars, which is $2,000 a year, or about $76.92 a fortnight, leaving about $158.56 a fortnight before any other test. The same family at $129,078 — $6,000 above $123,078 — is already past the base rate on the first test and is on the second test's 30-cent taper instead. The exact point at which Part A reaches nil depends on the number and ages of the children, because a family with more children has more maximum rate to taper away; the guide's cut-off limits vary with family circumstances and may be higher where a family receives additional supplements such as Energy Supplement or Rent Assistance. This site therefore does not print a single cut-off figure as if it applied to every family.

Part B: a cap, then a taper

For single families, the higher earner test is the whole story at the top end: annual income of $124,327 or less keeps Part B in play, and above that amount Part B is not paid. For couple families, the higher earner must also have an annual income of $124,327 or less; above that, Part B is not paid to the family at all, whatever the lower earner earns. The lower earner can have an annual income of up to $7,154 and still receive the maximum rate. Each dollar above $7,154 reduces the rate by 20 cents, and income support payments count as income towards this test. The rate reaches nil at a lower-earner income of $35,661 where the youngest child is under 5, and $27,777 where the youngest child is aged 5 to 18.

A worked Part B taper: a couple in Newcastle with a youngest child aged 3, where the lower earner earns $17,154 — $10,000 above the $7,154 free area — loses 20 cents per dollar, which is $2,000 a year, or about $76.92 a fortnight, from the $200.34 maximum, leaving about $123.42 a fortnight. The same lower-earner income with a youngest child aged 9 starts from $139.86, so the same $76.92 reduction leaves about $62.94 a fortnight. The age of the youngest child matters twice in Part B: it sets the starting rate, and it sets the nil point.

Estimates, and why they matter more than the thresholds

The thresholds above are annual figures, but fortnightly payments run on estimates. If you estimate $70,000 and earn $90,000, the taper that should have applied all year is applied retrospectively at balancing, and the difference becomes a debt. To reduce or avoid overpayment, families can elect to be paid at a lower rate throughout the year. Updating an estimate when income changes — a new job, a return from parental leave, a partner starting work — is the single most effective debt-prevention step in the whole FTB system, and it costs nothing to do.

General information only. This page explains Family Tax Benefit in plain English. It is not legal, financial, or tax advice, and it cannot decide whether you qualify. Only Services Australia can decide a claim. Rates and rules change over time — the figures here are for 2026–27, from 1 July 2026 — so always confirm the current position with Services Australia before you act on it. Contact: hello [at] tapetoolhq.com.