The Enhanced Family Tax Benefit program of Australia gives parents further assistance with the rising cost of living as families now can receive up to $6,610 a year, per child aged 0–12. Designed to support low to middle-income families, the benefit also flexibly pays out in installments while maintaining a simple, easy to meet, eligibility threshold. The New Payment Method, Child Payment, also allows families to receive payment in either biweekly installments, or a one off payment at the conclusion of the financial year. Payments are again based on the child’s age: The amounts stated above cannot be fully depended upon as actual payments will differ based on your family’s combined income, shared care arrangements, and income bracket.
Who Qualifies for the Payment
Simple straightforward criteria ensures eligibility:
Residency and Citizenship
Claimants must be Australian citizens, permanent residents, or hold specified qualifying visas. The claimant and the child must live together or meet the residency requirements for the child.
Income Thresholds
Modest income families become eligible after passing the income bracket test. Higher income earners will forfeit the benefit, or be eligible to receive a partial payment.
Care Arrangement
Payments in shared-care arrangements will be split based on the time each caregiver spends with the child.
Claims can be made up to three months prior to the expected date of birth or the commencement date of caring for the child. For claims where the applicable application was not submitted, applications for the prior financial year will be accepted within a year after the financial year has ended.
Families can choose to receive payment through the Two options described below:
Steady cash flow throughout the year is ideal for fortnightly expenses budgeting.
A single payment after tax return submission is suitable for one-off major expenses.
However, outstanding tax returns or certain debts will place restrictions to the lump-sum option. Both you and your spouse, where applicable, must either submit tax returns or notify the tax office of no income from the prior year to bring these restrictions into place.
As a measure to help families cope with inflation, the government of Australia indexes the rate of child payment every year. This ensures support withstands the test of inflation while the expenses continually rise. In addition to this, a fixed top up of roughly 916 dollars is added to the payments made to the family at the end of the financial year for each child. This can help in managing the expenses associated with school, holidays, and childcare.
Planning Your Family Finances
The Family Tax Benefit’s Child Payment can be a great help for families struggling with growing childcare, school, and living expenses. Families can manage their budgeting better by optimizing payment levels and their timing:
Opt for fortnightly payments to help with monthly budgeting.
Choose the lump sum to receive a larger payment at the end of the year for school expenses.
Check shared care percentages to make sure payments are accurate for the current custody arrangements.
The payment of $6,610 for each child aged 0-12 will help many families weather financial storms and will improve budgeting and planning in times of economic uncertainty.
