3.1.1.60 Indexation of FTB

Indexation (1.1.I.80) provisions

Where indexation has not been paused, both FTB and CCB are indexed in line with CPI. In these circumstances, indexation would normally occur in July each year for CCB and applicable components of FTB except RA. RA is indexed in line with the CPI in March and September each year.

The following rates and thresholds, where indexation has not been paused, are indexed on 1 July based on the CPI increases:

  • FTB Part A rates,
  • newborn supplement,
  • newborn upfront payment,
  • FTB Part A supplement,
  • FTB Part B supplement,
  • multiple birth allowance,
  • the FTB Part B rates,
  • the FTB ACO (1.1.A.80) rate,
  • the FTB Part A income free area,
  • the FTB Part A basic higher income free area,
  • standard basic MIFA, double basic MIFA and additional MIFA,
  • the FTB Part B secondary earner (1.1.S.25) income free area (1.1.I.40), and
  • the FTB Part B primary earner (1.1.P.122) income limit.

The following table provides details of current indexation pauses:

Rates and thresholds Commencement date Next indexation
FTB Part A basic higher income free area 1 July 2009 1 July 2020
FTB Part B primary earner income limit 1 July 2009 1 July 2020
FTB Part A rates 1 July 2017 1 July 2019
FTB Part B rates 1 July 2017 1 July 2019
FTB ACO rate 1 July 2017 1 July 2019

SIFS rates are not subject to indexation.

From 20 September 2014, the ES ceased to be indexed.

Act reference: FAAct Schedule 4 Indexation and adjustment of amounts

Policy reference: FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts, 3.1.4.10 Method 1 - Calculating the Maximum Rate of FTB Part A, 3.10 Determining the SIFS Rate

Last reviewed: 3 July 2017