3.1.9.20 Income Test - FTB Part B

FTB Part B income tests

The following table outlines the income tests that apply to different individual's circumstances.

If the Individual is… Then…
a single parent, they are eligible for the maximum rate of FTB Part B if their income is $100,000 per annum or less.
the higher income earner in a couple, there is a $100,000 per annum income test.
the lower income earner in the couple,

Explanation: It does not matter if the lower income earner is not the primary carer of the children.

Example: Damien and Genevieve receive FTB Part B. Damien is self-employed and earns $5,500 and Genevieve earns $15,500 per year. Genevieve works part-time and is the primary carer of the children. FTB Part B is calculated on Damien's income of $5,500 a year as he is the lower income earner even though Genevieve is the primary carer.

if their partner's income is equal to or lower than the income limit of $100,000 per annum, an income test then applies to the lower earner's income to determine the rate of FTB Part B. Their FTB Part B is reduced by 20% of the income excess if their ATI (1.1.A.20) is more than their income free area (1.1.I.40).

Explanation: This reduction is deducted from the maximum rate. This amount is now the individual's FTB Part B rate.

Special arrangements may apply to lower income earners in a couple returning to work for the first time after the birth of a child, or when an eligible child enters their care.

For information on how FTB Part A, FTB Part B and CCB are exempt from the income test for ATI for periods during the relevant income year (1.1.R.23) when the individual and/or their partner receive income support payments refer to 6.4.2.20.

Act reference: FA(Admin)Act section 20 Determination of rate may be based on estimate…, section 20A Indexed estimates, section 20B Indexed actual incomes

Policy reference: FA Guide 1.1.I.85 Indexed income - actual or estimate (FTB), 3.1.9.30 FTB Part B Return to Work, 6.4.2.20 Income Test Exemptions for Individuals in Receipt of Income Support

Last reviewed: 16 May 2016