Family Tax Benefit Part B Calculator: Your Complete Guide for 2025-26

If you're a single parent or part of a family where one parent stays home or works limited hours, Family Tax Benefit Part B (FTB Part B) could provide valuable financial support for your household. This payment is specifically designed to assist families with one main income earner, recognising that when one parent takes on primary caring responsibilities, the family's earning capacity is naturally reduced. Understanding how FTB Part B works and how to estimate your entitlements can help you budget more effectively and ensure you're receiving all the support you're eligible for during the 2025-26 financial year.

What Is Family Tax Benefit Part B?

Family Tax Benefit Part B is a government payment that provides extra assistance to single parents and families where one parent earns little or no income. Unlike FTB Part A, which is paid per child, FTB Part B is a supplementary payment that recognises the financial challenges faced by families with reduced earning capacity due to caring responsibilities. This payment acknowledges that when one parent is primarily responsible for raising children, the family sacrifices potential income and deserves additional support.

For single parents, FTB Part B is available until your youngest child turns 16 years old, or until they turn 18 if they continue studying full-time. For couple families, the payment is generally available only until your youngest child turns 13. The rationale behind this difference is that as children grow older and become more independent, the intensity of care required decreases, and families typically have more flexibility to increase their workforce participation. The payment rates vary depending on the age of your youngest child, with higher amounts available for families with younger children under 5 years old.

FTB Part B can be received as a fortnightly payment to help with regular household expenses, or as a lump sum at the end of the financial year. Many families choose the fortnightly option because it provides consistent cash flow to help manage ongoing costs like groceries, utilities, and children's activities. However, the lump sum option can be useful if you prefer to receive a larger amount once per year, perhaps to cover significant expenses like school fees or holiday costs. Understanding your options helps you choose the payment method that best suits your family's budgeting style.

FTB Part B Payment Rates for 2025-26

For the 2025-26 financial year, Family Tax Benefit Part B payment rates are structured based on your family type (single parent versus partnered) and the age of your youngest child. These rates are indexed annually to help keep pace with the cost of living, though the exact figures may be adjusted slightly based on inflation and government budget decisions. The following table outlines the maximum fortnightly payment rates you could receive during 2025-26:

Note: Rates are indicative for 2025-26 and subject to indexation. Always confirm current rates at servicesaustralia.gov.au.

In addition to the regular fortnightly payments, FTB Part B includes an annual supplement of up to $424.15 for the 2025-26 financial year. This supplement is typically paid after you lodge your tax return or confirm your income with Services Australia, usually between July and December following the end of the financial year. To receive this supplement, you must meet certain requirements including ensuring your children meet immunisation requirements and that you have a Health Care Card or are registered for Medicare. The supplement can make a meaningful difference to your annual budget, effectively boosting your total FTB Part B entitlement.

Understanding the Income Test for FTB Part B

The income test for Family Tax Benefit Part B works differently depending on whether you're a single parent or part of a couple. For partnered families, the primary earner's income must be $110,000 or less per year to be eligible for any FTB Part B. This threshold applies regardless of how many children you have or their ages. If the primary income earner exceeds this limit, the family is not eligible for FTB Part B, even if the other parent earns nothing. This recognises that families with higher primary incomes are generally better positioned to manage on a single income.

For single parents, there's an income free area of approximately $5,627 per year. This means you can earn up to this amount without affecting your FTB Part B payment. Above this threshold, your payment gradually reduces by 20 cents for every dollar earned until it reaches zero. This taper rate is the same as FTB Part A and is designed to ensure that you're always better off working additional hours, even though your FTB Part B may decrease. The gradual reduction means there's no sudden cliff where you lose all your entitlement at once.

When calculating your income for FTB purposes, Services Australia uses your adjusted taxable income, which includes your taxable income, foreign income, total net investment losses, reportable superannuation contributions, and tax-free government benefits. If you're making salary sacrifice contributions to superannuation, these don't reduce your income for FTB purposes — they're added back to determine your eligibility. Similarly, if you have a HECS-HELP debt, the repayments don't reduce your adjusted taxable income for FTB calculations. Understanding how your various income sources and financial arrangements affect your FTB eligibility helps you accurately estimate your entitlements.

Who Is Eligible for FTB Part B?

To qualify for Family Tax Benefit Part B, you need to meet several eligibility criteria. First, you must be the primary carer of a dependent child under 16 years old (or under 18 if they're a full-time student), or you must be a single parent with caring responsibilities. For couple families, the payment is designed for situations where one parent earns little or no income because they're caring for children. If both parents are working substantial hours, you likely won't qualify for FTB Part B, though you may still be eligible for FTB Part A.

You must also meet residency requirements, which generally means being an Australian resident or holding a qualifying visa that makes you eligible for FTB. Your children must meet Australian residency requirements too, or be living with you in Australia. Additionally, your children must meet immunisation requirements — they need to be up to date with immunisations on the National Immunisation Program Schedule, have a medical exemption, or be on a recognised catch-up schedule. Failing to meet these requirements can result in reduced payments or loss of the annual supplement.

For couple families, there's an additional work requirement to consider. If the lower-income parent works more than a certain number of hours per week, the family may lose eligibility for FTB Part B. This is because FTB Part B is specifically designed for families where caring responsibilities significantly limit workforce participation. If you're unsure about your eligibility, it's worth checking with Services Australia or using their online estimator tool. Remember that FTB Part B is separate from your take-home pay from employment and your income tax obligations — it's a supplementary payment designed to recognise the financial impact of caring responsibilities.

How to Calculate Your FTB Part B Entitlement

Calculating your Family Tax Benefit Part B entitlement involves several steps. First, determine your family type — are you a single parent or part of a couple? This affects both the payment rates you're eligible for and the income tests that apply. Next, identify the age of your youngest child, as this determines which payment rate applies. Remember that for single parents, the higher rate applies until your youngest turns 5, then the lower rate applies until they turn 18 if studying. For partnered families, payments stop when your youngest turns 13.

Next, calculate your adjusted taxable income. For single parents, compare your income against the $5,627 free area. If your income is below this threshold, you'll receive the maximum rate. If it's above, reduce your payment by 20 cents for every dollar over the threshold. For example, if you're a single parent with a youngest child under 5 and your adjusted taxable income is $15,000, your income exceeds the free area by $9,373. At the taper rate of 20 cents per dollar, your annual FTB Part B would be reduced by approximately $1,875. With a maximum annual rate of about $4,906, you would receive approximately $3,031 for the year, plus any supplement you're eligible for.

For partnered families, first check that the primary earner's income is $110,000 or less. If it exceeds this threshold, you're not eligible for FTB Part B. If you're under the threshold, check that the lower-income parent's work hours don't exceed the limits. Then apply the appropriate payment rate based on your youngest child's age. Don't forget to factor in the annual supplement of up to $424.15 when estimating your total annual entitlement. Understanding your complete financial position — including your superannuation situation and any Medicare levy obligations — helps you plan your family's finances more effectively.

Claiming FTB Part B and Avoiding Common Mistakes

You can claim Family Tax Benefit Part B through your myGov account linked to Centrelink, or by submitting a claim form to Services Australia. When you claim, you'll need to provide an estimate of your income for the financial year. It's crucial to make this estimate as accurate as possible — if you underestimate your income, you may receive overpayments that you'll need to repay later. Overpayments are typically recovered through reductions in future payments or deductions from your tax refund, which can cause financial stress if you're not expecting them.

Throughout the financial year, keep Services Australia updated if your circumstances change. This includes changes to your income, your relationship status, the number of children in your care, or your children's circumstances (such as starting or finishing study). One common mistake is failing to update your income estimate when you receive a pay rise or take on additional work. Another is not realising that changes to your partner's income can affect your eligibility if you're in a couple. Prompt updates help ensure you receive the correct amount and avoid the stress of dealing with overpayment debts later.

At the end of each financial year, Services Australia reconciles your FTB payments against your actual income as reported to the ATO. This reconciliation process adjusts for any overpayment or underpayment. To ensure you receive the FTB Part B supplement, make sure your children meet immunisation requirements and that you lodge your tax return or confirm your income with Services Australia. Many families miss out on this supplement simply because they haven't completed their tax return or met the immunisation requirements. Taking care of these details can add hundreds of dollars to your annual support.

Key Takeaways

• Family Tax Benefit Part B provides extra support for single parents and families with one main income earner
• Single parents can receive FTB Part B until their youngest child turns 18 if studying; partnered families until age 13
• Maximum rates are approximately $188.70 per fortnight for single parents with children under 5
• The primary earner in couple families must earn $110,000 or less to qualify
• Single parents have an income free area of approximately $5,627, with payments reducing by 20 cents per dollar above this
• The annual FTB Part B supplement of up to $424.15 is paid after the financial year ends
• You must meet immunisation requirements and lodge your tax return to receive the full entitlement
• Update Services Australia promptly if your income or family circumstances change during the year
• Consider your complete financial picture including take-home pay, income tax, and superannuation when planning your family budget

Understanding your Family Tax Benefit Part B entitlements is an important part of managing your household finances, particularly if you're a single parent or managing on one income. While the system can seem complex, taking the time to understand how the income test works and what you're eligible for can help you maximise your family's support. FTB Part B recognises the valuable work of caring for children and provides meaningful assistance that can make a real difference to your household budget. Combine this knowledge with our other calculators to get a complete picture of your financial situation and plan confidently for your family's future.