Child Tax Credit in Australia, In 2025, as Australian families continue to manage rising living costs, government-provided family tax benefits like the Child Tax Credit (known locally as Family Tax Benefit or FTB) remain crucial. Whether you’re a low-income household or simply trying to budget more wisely, understanding what you’re entitled to under Australia’s tax and welfare system could make a real difference to your bottom line.

This guide breaks down who qualifies, how much you can get, income thresholds, and exact steps to claim it. It’s written in simple, jargon-free language and includes real-life examples to help you navigate the Family Tax Benefit and other Australian child tax credits confidently.

What is the Child Tax Credit? (Australian Equivalent: Family Tax Benefit)

In Australia, the “Child Tax Credit” most closely aligns with two government programs:

Family Tax Benefit Part A – helps with the cost of raising children.
Family Tax Benefit Part B – provides extra help for single-parent families or single-income families.

Unlike the U.S., Australia doesn’t offer a direct “credit” on your tax return—instead, you receive regular payments through Centrelink, or a lump sum at the end of the financial year.

Centrelink’s Role in the Child Tax Credit

Centrelink, operated by Services Australia, administers the Family Tax Benefit. You must apply through myGov and connect your account to Centrelink. Payments are means-tested, meaning the amount you receive depends on your family income, number of children, and their ages.

Key functions of Centrelink:

Determines your eligibility
Calculates fortnightly payments
Reviews your income yearly to ensure accurate benefits

Eligibility: Who Qualifies for the Child Tax Credit in Australia?

To qualify for Family Tax Benefit (FTB) in 2025, you must meet the following conditions:

✅ Have a dependent child under 16 (or a full-time secondary student aged 16–19)
✅ Be the primary carer (normally the parent or legal guardian)
✅ Meet residency requirements – you must live in Australia and have permanent residency or a special visa
✅ Pass the income test for your family situation

Income Limits for Child Tax Credit 2025

Family Tax Benefit Part A (FTB A):

You receive the maximum rate if your family’s adjusted taxable income (ATI) is under $60,000 per year.
The benefit reduces by 20 cents for every dollar above that threshold until it cuts off entirely around $112,000+, depending on the number of children.

Family Tax Benefit Part B (FTB B):

For single parents: no upper income limit (as long as the secondary income is low or zero)
For two-parent families: the secondary income must be less than $6,059 annually to receive the full benefit.

Income is assessed yearly and reconciled at tax time. Overpayment may result in Centrelink debt, so always estimate carefully.

How Much is the Child Tax Credit in 2025?

The 2025 payment rates for Family Tax Benefit are as follows:

FTB Part A (Per Child, Per Fortnight):

Under 13 years: $210.68
13–15 years: $273.00
16–19 years (still in school): $273.00

Add to this a supplement of up to $865.00 annually per child, paid after the financial year ends if you meet all conditions.

FTB Part B (Per Fortnight):

Youngest child under 5 years: up to $168.28
Youngest child 5–18 years: up to $117.46

Real-Life Example: The Smith Family in Sydney, NSW

Let’s say Sarah and Tom Smith have two children aged 7 and 14, and their combined income is $58,000 per year. They are eligible for:

FTB Part A: ~$210.68 (child 1) + $273.00 (child 2) every fortnight
FTB Part B: If Sarah earns less than $6,000/year, the family receives ~$117.46 extra fortnightly

Total family assistance: ~~$601.14 per fortnight (~~$15,628.64 per year), not including end-of-year supplements!

How to Claim the Child Tax Credit in Australia

Here are the exact steps to claim your benefits:

✅ Step 1: Create a myGov account

Link it to Centrelink and verify your identity.

✅ Step 2: Submit an FTB Claim

Use the “Make a Claim” section for Family Tax Benefit under Centrelink.
Provide details on children, relationship status, income estimates, and residency status.

✅ Step 3: Wait for Approval

Centrelink may request supporting documents. Once approved, you can choose fortnightly payments or an annual lump sum.

✅ Step 4: Update Information

Changes in income, address, or custody must be reported within 14 days to avoid overpayments.

What About Families with No Income?

Good news: You can still qualify for maximum benefits under both FTB A and B even if you don’t work or have zero taxable income. Many stay-at-home parents, single mothers, or temporary job seekers receive full support.

Make sure you file an income estimate of $0 with Centrelink to avoid delays.

Besides FTB, here are more child-related credits and rebates in 2025:

🍼 Parenting Payment:

For low-income parents (often single) with a child under 8 years old.

🎓 Child Care Subsidy:

Covers up to 90% of childcare costs based on your income and activity level.

💼 Schoolkids Bonus (if reintroduced):

A one-off payment to help with back-to-school expenses.

🏥 Medicare Child Dental Benefits:

Covers up to $1,052 per child over two years for essential dental treatments.

Tips for Maximizing Your Credit (2025)

📌 Update income estimates quarterly to avoid debts
📌 Claim child care subsidy + FTB for a powerful combo
📌 Consider end-of-year lump sum to avoid overpayments
📌 Use a Centrelink-approved tax agent for accuracy
📌 Monitor your annual income limit to retain supplements

Final Thoughts: The CTC is More Than a Credit—It’s a Lifeline

The Family Tax Benefit, often referred to as Australia’s version of the Child Tax Credit, is more than just a financial perk. In 2025, as cost-of-living pressures intensify, these payments help bridge gaps, reduce poverty, and support early childhood development.

Whether you’re a single parent, dual-income couple, or temporarily unemployed, understanding your entitlements can help you maximize your support—giving your children a better, more stable future.

20 FAQs on Child Tax Credit in Australia (2025): What Every Parent Must Know

Understanding the Child Tax Credit in Australia (2025)—commonly known through programs like the Family Tax Benefit (FTB)—is crucial for families navigating financial decisions, government entitlements, and rising living costs. This FAQ guide explains the most common and tricky questions about eligibility, amounts, income thresholds, payments, and related benefits in long-form, parent-friendly language.

1. What is the Australian version of the Child Tax Credit in 2025?

Australia doesn’t offer a “Child Tax Credit” in the same way the United States does. Instead, it provides direct payments to families through Centrelink under the Family Tax Benefit program. This is split into:

Family Tax Benefit Part A: For families with children under 16 or dependent full-time students aged 16–19.
Family Tax Benefit Part B: For single-income families or sole parents.

Both parts aim to reduce child-raising costs and offer fortnightly payments or annual lump sums, depending on what you choose.

2. Who is eligible for Family Tax Benefit (Child Tax Credit) in 2025?

To be eligible, you must:

Be the child’s primary carer (parent, legal guardian, or approved foster carer)
Have a child under 16 or a dependent full-time student aged 16–19
Be an Australian resident or hold an eligible visa
Meet income limits (your adjusted taxable income must fall within a specific range)

Eligibility is reviewed annually, and overpayments can lead to Centrelink debts, so accurate income reporting is crucial.

3. How much can I receive per child under FTB Part A in 2025?

In 2025, maximum fortnightly payment rates are:

Children aged 0–12 years: $210.68 per child
Children aged 13–15 years: $273.00 per child
Children aged 16–19 (in school): $273.00 per child

You may also receive an FTB Part A supplement of up to $865 per year per child, paid after the financial year, if income requirements are met and children are up to date with immunization and school attendance.

4. What is FTB Part B, and who qualifies?

FTB Part B is meant to assist:

Single parents
Stay-at-home parents or those with low secondary income

Rates vary based on the youngest child’s age:

Under 5 years: Up to $168.28/fortnight
Aged 5–18: Up to $117.46/fortnight

There’s no upper income limit for single parents, but two-parent families lose eligibility if the secondary earner makes over $6,059 annually.

5. How is income assessed for FTB purposes?

Centrelink assesses your adjusted taxable income (ATI), which includes:

Wages
Business income
Investments
Superannuation withdrawals
Foreign income
Rental property losses (added back)

You estimate this income at the start of each financial year, and Centrelink reconciles it with your tax return later. If you underestimate and get overpaid, you’ll owe money back.

6. Can I receive the Family Tax Benefit if I’m unemployed?

Yes, zero-income households usually qualify for the maximum rate of both Part A and Part B. In fact, FTB is designed to support low or no-income families. However, you still need to:

Prove your residency status
Ensure your children meet immunization and schooling conditions

7. How do I apply for the Child Tax Credit (Family Tax Benefit)?

Steps to apply:

Create or log in to your myGov account
Link it with Centrelink
Submit a claim for Family Tax Benefit
Provide required documentation (e.g., birth certificates, tax file numbers)
Await assessment

Applications can take up to 21 days, and benefits may be backdated by up to 3 months.

8. How often are payments made?

You can choose:

Fortnightly payments (most common)
Annual lump sum (helpful to avoid overpayments)

You may switch between options during the year but must notify Centrelink to avoid confusion.

9. Can I get both FTB Part A and Part B at the same time?

Yes, you can receive both benefits simultaneously if you qualify. Many families with low-to-mid income and only one working parent are eligible for both.

However, high-income earners may only qualify for Part A or be phased out entirely.

10. What happens if my income changes mid-year?

If your income changes:

Update your income estimate immediately through myGov or Centrelink
Centrelink adjusts your payments based on the new income
Failure to update may lead to overpayments and debt recovery

It’s recommended to update estimates quarterly for accuracy.

11. Do shared custody or separated parents qualify?

Yes, but only one carer can receive payments at a time. In shared custody arrangements:

The benefit can be split based on the number of nights the child stays with each parent
Centrelink calculates each parent’s share based on care percentage

12. Is the Family Tax Benefit taxable income?

No, FTB is not considered taxable income. You do not pay tax on this benefit, and it does not count toward your taxable income on your return.

However, it does affect eligibility for some other payments and concessions.

13. What is the FTB Part A Supplement?

The Part A Supplement is a lump sum of up to $865 per child, paid after the financial year, once Centrelink confirms:

You didn’t exceed income thresholds
Your child met immunization and schooling conditions
You received FTB all year

If you owe Centrelink due to overpayment, this supplement may be used to offset the debt.

14. What are the age rules for dependent children in 2025?

You may claim FTB for children:

Under 16 years
Aged 16–19, if:
- In full-time secondary education
- Not receiving Youth Allowance
- Still considered dependent

Children over 19 are not eligible unless under special conditions (e.g., disability).

15. What happens if my child stops attending school?

You may lose eligibility for FTB Part A if your child (16–19 years) is not in full-time secondary education. Centrelink regularly checks schooling status and may request confirmation.

Keep your child’s schooling info updated in myGov or Centrelink to avoid payment stoppage.

16. Can I receive the Child Care Subsidy and FTB together?

Yes! In fact, this is encouraged.

You can receive:

Child Care Subsidy to reduce childcare fees
FTB to help with broader living costs

Both programs are managed via Centrelink and require regular income estimates and activity statements.

17. How do I avoid Centrelink overpayments?

Here’s how:

Keep income estimates accurate
Report relationship or custody changes within 14 days
Choose annual lump sums if unsure of future income
Log into myGov monthly to verify details
Avoid underestimating income just to get more payments

18. What documents do I need to claim the FTB?

Be ready to submit:

Child’s birth certificate
Tax File Numbers (TFNs) for both parents
Residency evidence (visa or citizenship)
Proof of childcare, schooling, immunization
Income documents from employers, Centrelink, and other sources

19. Are there other family payments I can claim in 2025?

Yes. In addition to FTB:

Parenting Payment: For primary carers with young children
Newborn Upfront Payment & Supplement: For new parents
Child Care Subsidy: Reduces child care fees
Schoolkids Bonus (if reinstated): One-off back-to-school payment
Rent Assistance: If you’re a tenant and receive FTB

20. What if I disagree with a Centrelink decision?

You can:

Request a review of the decision via myGov
If unsatisfied, escalate to the Administrative Appeals Tribunal (AAT)
Seek legal aid or advice through community legal centres

Always respond quickly—Centrelink decisions have time limits for appeals.

Bycsannusharma

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