All you need to know about Family Tax Benefit - Accounts NextGen

All you need to know about Family Tax Benefit

All you need to know about Family Tax Benefit

Recently, the Australian government has launched a new scheme for the tax benefit of Australian families. This scheme intends to reduce the financial burden of Australian families while raising their children. There are several such schemes that are already in effect but in this blog, we are going to talk about the Family Tax Benefit in detail.

There are two types of it:

  1. Payment is made per family.
  2. Payment is made per child.

No matter which plans you choose, you are free to select the mode of getting the payments: either on a fortnight basis or at the end of the year.

Let us talk about the first plan:

Before going further, you should know that this plan is income tested. The annual income of your family will decide whether you are eligible for this plan or not. If you are eligible for this scheme, the amount of money that you will receive depends on how many children you have and the ages of those children along with how much time you give to your children. The table below will give you an idea about the money you should expect from this scheme:

Payment for each childFor each fortnight
0-12 years$189.56
13-15 years$246.54
16-19 years$246.54
0-19 years$60.90

 

In case your family income is less than $80,000 and you are eligible for this scheme, you will receive an amount of $781.10 at the end of each financial year. Here are some points you should care about if you want to get the benefits of this scheme:

  • If you apply for this scheme, your child should meet the Healthy Start for School requirements. As per the immunizations listed by the National Immunization Program Schedule, your child should be up to date with the immunizations.
  • If you want to apply for this scheme, you should lodge your tax return with ATO so that your income details would be verified.

Now the second plan:

This plan has been designed especially for single parents, and the carers of children who are non-parent. Look at the table below to know about the money you can get from this scheme:

Age of the childThe money you can receive per fortnight
0-5 years$161.14
5-18 years$112.56

 

From this scheme, the eligible candidates can get a financial supplement of up to $379.60.

Eligibility criteria for this scheme:

You will be eligible for the first plan if you have a dependent child aged 0-15 years. In case your child is 16-19 years old, you are eligible for this scheme only if your child is in full-time secondary education.

Here are the eligibility criteria for the second plan:

  • All those are eligible for this scheme if they are non-parent carers of a child or a single parent and their child is below 18 years of age.
  • Those who are a couple with one main income and their dependent child is under 13 years of age.

The income test:

For the first plan:

  • Maximum rate of this plan would be paid to those parents who are earning less than $55,626.
  • If your earning lies between $55,626 to $ 98,988, the rate of money you receive reduces by 20 cents for every dollar that you earn above $55,626.
  • For those who are earning more than $98,988, the rate reduces by 30 cents for each dollar above $98,988.

For the second plan:

  • The main person who is earning should have an income of less than $100,000.
  • The annual income for the secondary earner should be less than $5,767. The rate gets reduced by 20 cents for every dollar earned above $5,767.

Conclusion:

You can’t take the benefits of Parental Leave Pay and the second plan for Family Tax Benefit. All those who are planning to apply for this scheme should spend at least 35% of their time with their children.

Our Offices

Dockland Office
Level 10,
401 docklands drive
Docklands, VIC 3008

(03) 9015 8540

View on Map

Melbourne Office
Level 19,
180 Lonsdale Street
Melbourne, VIC 3000

(03) 9015 8540

View on Map

Sydney Office
Level 20 & 21 tower 2 Darling Park ,
201 Sussex St, Sydney NSW 2000

(02) 8973 7505

View on Map

Brisbane Office
Level 27,
480 Queen St
Brisbane, QLD 4000

(07) 3011 6316

View on Map

Geelong Office
73 Malop Street Geelong VIC 3320

(03) 52982000

View on Map

Adelaide Office
Level 21,
25 Grenfell Street,
Adelaide, SA 5000

(08) 8423 4554

View on Map

Perth Office
The Forest Centre,
Level 29 & 30,
221 St George's Terrace,
Perth, WA 6000

(08)9288 0603

View on Map

Available 24/7
1300 NXTGEN (698 436)

Emails
info@accountsnextgen.com.au

Translate »
Book Appointment