Tax Benefits For Parents In Australia

Raising kids is a challenge in itself and, then you have to manage taxes also. It’s difficult too. 🙁

But fortunately, thanks to the government. It offers various tax benefits to ease the financial burden on parents. From childcare rebates to family payments, understanding these incentives can significantly impact your household budget.

So, buckle up, parents, as we dive into Australian taxation and research the potential hidden treasures it holds for you and your little ones.

What Is Family Tax Benefit?

Family Tax Benefit (FTB) is a lifeline for eligible Australian families, offering financial assistance in two parts:

FTB Part A:

• Paid per child, the amount varies based on family income and the number of children.
• Automatically paid fortnightly alongside wages or salary or to a nominated account for non-working parents.

FTB Part B:

• Tailored for single-parent families or those with one main income earner.
• Provides additional support based on income and family circumstances.

Who Qualifies For Family Tax Benefit?

To be eligible for FTB:

• You must care for a dependent child.
• Meet residence rules, including being an Australian citizen, permanent visa holder, or holding a special category or temporary visa.
• Satisfy income tests, with the amount depending on family income.

Family Tax Benefit Part A

FTB Part A includes a supplement, available to families with adjusted taxable income of $80,000 or less. This supplement is paid at the end of the financial year, contingent upon lodging a tax return or notifying services Australia of exemption.

Family Tax Benefit Part B

FTB Part B assists:

• Single-parent families.
• Families with one main income earner.
• Families caring for a child aged under 13 (or 18 if meeting study requirements).

How Much Does Each Part Pay?

The payment amount depends on factors like family income, the number of children, and their ages. Payments can be made fortnightly or as a lump sum at the end of the financial year.

Additional Benefits Within FTB

Beyond the core benefits, families may be eligible for supplementary support, including:

• Energy Supplement.
• Rent Assistance.
• Newborn Supplement and Newborn Upfront Payment.
• Multiple Birth Allowance.

Education And Childcare Support

Childcare Subsidy

• Assists with approved childcare costs for children aged 0-5.
• Amount varies based on income, family type, and chosen childcare service.

Schoolkids Bonus

• A one-off annual payment for children in school years 1 to 6.

Higher Education Loan Program

• Government-funded loans for tertiary education, reduce upfront expenses.

Tax Offsets And Deductions – Maximising Benefits

Dependent Relative Tax Offset

• Offset for families caring for a dependent relative living with them.

Medical And Dental Expenses Deductions

• Claim deductions for eligible medical and dental expenses for both you and your dependents.

Donations Deductions

• Claim deductions for donations made to registered charities.

Conclusion 

While FTB offers vital support, understanding eligibility and maximising claims can be complex. Utilise the Australian Taxation Office (ATO) resources for clarity. Seeking advice from a qualified tax accountant, especially in complex situations, can significantly enhance your financial strategy. 

Speaking of qualified tax accountants, you can rely on KPG Taxation! They have expert tax agents and specialised personals who will offer you great support so that you can journey of parenthood with the assurance that the government is there to lend a helping hand.