From 1July 2006, the Government will increase the Family Tax Benefit Part A lower income threshold to $37,500.
This measure will assist lower income families, particularly those returning to work, by increasing the amount of earnings they can have before their family assistance is affected. Around 400,000 families will receive more FTB Part A with an average increase of $24 per fortnight.
The measure will also result in around 40,000 families becoming newly eligible for the Health Care Card and its many benefits.
FTB Part A is paid for each dependent child. The maximum amount payable for the 2005-06 tax year is $4,201.15 ($137.06 per fortnight plus the $627.80 per child FTB Part A Supplement paid at reconciliation) for children aged under 13 years, and $5157.45 for children aged between 13 and 15 years ($173.74 per fortnight plus the $627.80 per child FTB Part A Supplement paid at reconciliation). From 1 July 2005, a family can earn up to $33,361 before their income affects their payment.
From 1 July 2006, a family will be able to earn up to $37,500 a year before their income affects their payment. Where a family's income is more than $37,500 a year, payments will reduce by 20 cents for each dollar above $37,500 until the base rate is reached.
1 July 2006.
Total Government Funding
$1.1 billion over four years, including $749.0 million in the FaCS portfolio and $39.3 million in the Australian Taxation Office relating to increased Family Tax Benefit Part A payments, and $327.1 million in the Health and Ageing portfolio for additional Health Care Cards.