Australia’s Family Tax Benefits Are Changing in March 2025 – Check Your Eligibility & Payment Details

The Australian government introduced major reforms to Family Tax Benefits (FTB) from March 2025, impacting thousands of families in the country. The reforms will support low- and middle-income families more while keeping the system sustainable for future generations.

Let’s look at what the reforms mean for Australian families and how they could affect your household budget.

A Brief History of Family Tax Benefits in Australia

Family tax benefits have been the backbone of Australia’s family support system for generations. First established to reduce the cost of raising children, the system has been adapted by successive governments to meet shifting economic realities and family composition.

The March 2025 reforms are one of the most significant overhauls in years, responding to the government’s increased living expenses and shifting family patterns throughout Australia.

Key Changes to Family Tax Benefit Part A

Family Tax Benefit Part A (FTB-A) is a cash payment made to families with dependent children, the rate of which varies with family income, child number, and their ages. The March 2025 changes have made a number of significant adjustments to the benefit.

Higher Payment Rates

The standard rates of FTB-A have gone up substantially, much-needed assistance to families affected by the escalating cost of living. For children younger than 13 years, the highest fortnightly rate has been raised to $287.86, compared to $209.51 in the last financial year. For young people between 13 and 15 years of age, the highest rate is now $374.92 a fortnight, a 15% rise from before.

Revised Income Thresholds

Income limits on eligibility have also been revised to reflect wage increases and inflation. The initial income limit at which payment reduction begins has risen to $61,500 annually. Families can now earn more before payments begin to decrease, with the taper rate continuing to be 20 cents per dollar above this threshold.

Additional Supplements

The FTB-A annual supplement has been kept but reshaped. Children will receive a standard supplement of $896.30 per child at the conclusion of the financial year if they satisfy specified conditions, such as having current immunizations and lodging tax returns within the specified period.

Changes to Family Tax Benefit Part B

Family Tax Benefit Part B (FTB-B) gives additional help to single parents and one-income families. The March 2025 reforms have significantly overhauled this benefit.

New Single Parent Supplement

The most major change is the creation of a separate Single Parent Supplement of $433.20 per fortnight for single parents with children under 16. This is a nod to the special financial difficulties of single-parent families in our current economy.

Adjusted Partnered Family Payment Rates

For partner families with one parent at home or working part-time to raise children, the highest FTB-B rates have been amended depending on the age of the youngest child:

• For families with a youngest child below 5 years: $206.15 fortnightly
• For households with a youngest child between 5 and 18 years of age: $144.34 per fortnight

Modified Income Testing

The income test for FTB-B has been changed to promote workforce participation while continuing to assist families with care burdens. The secondary earner income limit has risen to $7,900 per year before payments start to cut back. Over this limit, payments are cut back by 30 cents for every dollar earned.

Eligibility Criteria Under the New System

To be eligible for family tax benefits under the March 2025 changes, you need to satisfy a number of conditions:

Residency Requirements

You need to:

• Be an Australian resident or have a special category visa.
• Be residing in Australia
• Have a dependent child or full-time secondary student between 16 and 19 years old (for FTB-A).
• Have the child in your care at least 35% of the time.

Income Tests

Your eligibility and payment rates are based on:

• Your adjusted taxable income
• The number and ages of your dependent children
• Whether you’re a single parent or part of a couple
• The income of both partners (for couples)

Maintenance Action Requirements

For separated parents, taking reasonable steps to obtain child support from the other parent remains a requirement for receiving the maximum FTB-A rate. However, the March 2025 changes have introduced more flexibility around exemptions in cases involving family violence or other special circumstances.

How to Calculate Your Entitlements

The changes have made it slightly more complicated to work out your potential entitlements, but Services Australia has created improved online calculators that allow families to work out their entitlements on the new scheme.

Using the Payment and Service Finder

The best way to get an idea of your payments is through the Payment and Service Finder on the Services Australia website. This tool takes into account your specific family circumstances, income levels, and other relevant factors to provide a personalized estimate.

Transitional Arrangements

To ensure families aren’t disadvantaged during the transition to the new system, the government has implemented temporary transitional provisions. Families whose payments would decrease under the new system will receive transitional payments for up to 12 months to cushion the impact of the changes.

How to Claim Family Tax Benefits

The claiming process is still the same as last year, although with some improvements to simplify claiming.

Online Claiming Process

The best way to claim is via your my Gov account associated with Centrelink. The online claim has been simplified to walk you through the process step by step, with enhanced help options to explain unclear points.

Documents You’ll Need

When you apply, you’ll need to supply:

• Proof of identity for you and your children
• Details of your income and that of your partner
• Bank details for payment
• Tax file numbers for all relevant family members
• Details of any child support arrangement

Payment Options

You can opt to have your payments made:

• Fortnightly (default)
• Quarterly
• As a lump sum after the financial year ends

Impact on Different Family Types

The March 2025 changes will impact different families differently, depending on their unique situation.

For Single Parents

Single parents are among the largest winners under the reforms, with the introduction of the Single Parent Supplement significantly increasing their payments. A single parent with two children under the age of 13 could gain as much as $27,000 a year in combined FTB payments, an increase of around $3,600 under the old system.

For Dual-Income Families

Dual-income families with incomes in the middle range will tend to have relatively small increases in their payments because of the higher income cut-offs. For instance, a two-child family with an annual income of $90,000 might have their FTB-A payments rise by approximately $1,200.

For Families with Older Children

Teenage children in families will be assisted by the increased rates of payment for children aged between 13 and 15 years, which will take into account the added expense of having older children. The extra support will be in excess of $2,000 annually for each child in this age bracket.

Special Provisions and Circumstances

The March 2025 changes have brought in or widened a number of special provisions to cater to specific situations encountered by particular families.

Support for Foster Careers

Foster careers are now given greater support, with automatic maximum FTB-A rates for all, irrespective of income, in recognition of their vital work in taking care of vulnerable young children.

Provisions for Multiple Birth Families

Families with more than one birth (twins, triplets, etc.) are now eligible for a Multiple Birth Allowance of $176.82 a fortnight for triplets and $235.76 for quadruplets or more, up around 12% from what has been paid in the past.

Remote Area Supplement

Families residing in recognized remote areas are now entitled to an additional Remote Area Supplement of $36.40 a fortnight for every eligible child, acknowledging the additional expense of having children in remote Australia.

Family Tax Benefits and Other Government Payments

It is important to understand how FTB interacts with other government payments to maximize your entitlements.

Interaction with Child Care Subsidy

The March 2025 changes have enhanced the coordination between FTB and Child Care Subsidy. Families who are receiving maximum FTB-A are automatically eligible for increased Child Care Subsidy rates, with the new system providing for increased combined benefits for working families.

Relationship with Parental Leave Pay

The reforms also increased the interaction between FTB and parental leave pay, enabling more flexible transitions for new parents between these types of payments.

Planning for the Next Financial Year

With these changes taking effect, families need to take time to reassess their situations and plan accordingly.

Updating Your Details

Check that your details with Services Australia are up to date, such as estimated income, banking details, and family situation. This ensures payments are made directly to you for the right amount without delay.

Read More :- $645 Centrelink Payment Arriving in April’s 2nd Week – Check Your Eligibility & Payout Status!

Financial Advice

As the reform is complex in nature, considering advice from a financial counselor or taking advantage of the free Financial Information Service at Services Australia can assist you with maximizing your entitlements and being able to plan your budget optimally.

Comparative Table of FTB Changes: 2024 vs 2025

Benefit Type	Pre-March 2025	Post-March 2025	Change
FTB-A (under 13)	$209.51/fortnight	$287.86/fortnight	+$78.35
FTB-A (13-15)	$326.02/fortnight	$374.92/fortnight	+$48.90
FTB-A Annual Supplement	$814.80 per child	$896.30 per child	+$81.50
FTB-B (child under 5)	$176.82/fortnight	$206.15/fortnight	+$29.33
FTB-B (child 5-18)	$123.48/fortnight	$144.34/fortnight	+$20.86
Single Parent Supplement	Not available	$433.20/fortnight	New
Base Income Threshold	$58,200	$61,500	+$3,300
Secondary Earner Threshold	$6,059	$7,900	+$1,841

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