Family Tax Benefit Part B Explained: Single Parents and Single-Income Families

Family Tax Benefit Part B is specifically designed to provide extra support to families with one main income earner. Whether you're a single parent juggling work and childcare, or a couple where one partner stays home with the children, FTB Part B recognises the unique financial pressures you face and provides meaningful assistance.

What is Family Tax Benefit Part B?

While FTB Part A helps all families with the cost of raising children, FTB Part B takes a different approach. It's designed to provide additional support to families where one parent either doesn't work, works part-time, or earns a low secondary income. The payment acknowledges that these families often have less capacity to earn compared to dual-income households while still facing the full costs of raising children.

FTB Part B is paid per family rather than per child, so regardless of how many children you have, you'll receive one Part B payment. However, the age of your youngest child affects your payment rate, with higher amounts available when you have a child under 5 years old.

Who is Eligible for FTB Part B?

Eligibility for FTB Part B differs depending on whether you're a single parent or part of a couple. Single parents, including those who are separated, divorced, or widowed, are automatically eligible if they have a dependent child in their care. There's no income test on the single parent's own income for FTB Part B purposes, making it a valuable supplement to Part A.

For couples, the situation is slightly more complex. The lower-earning partner's income is tested against a threshold of $6,059 per year. If the secondary earner's income exceeds this amount, the FTB Part B payment is reduced by 20 cents for each dollar above the threshold. Additionally, the primary earner's income must be below $104,432 per year to receive any FTB Part B payment.

Current Payment Rates for 2026-27

The amount of FTB Part B you receive depends on your family type and the age of your youngest child. For single parents with a youngest child aged 0-4, the maximum fortnightly payment is $167.74. If your youngest child is aged 5-18, this reduces to $119.78 per fortnight. These rates recognise the increased childcare demands when you have very young children.

Couples receive slightly lower rates, reflecting that two-parent households have more potential earning capacity. For couples, the maximum rate is $119.78 per fortnight regardless of the youngest child's age. Remember, these are maximum rates—your actual payment will depend on passing the relevant income tests.

Understanding the Income Tests

One of the most attractive features of FTB Part B for single parents is that there's no income test on their own earnings. This means that as a single parent, you can earn any amount and still receive your full FTB Part B entitlement. This is in stark contrast to FTB Part A, which reduces as income increases.

For couples, the lower-earning partner faces an income test with a free area of $6,059 per year. If the secondary earner makes more than this, the payment is reduced by 20 cents for each dollar above the threshold until it cuts out completely. The primary earner must also earn less than $104,432 for the family to receive any Part B payment at all—this is a straightforward cutoff rather than a gradual reduction.

Single Parents: Special Considerations

Single parents enjoy significant advantages when it comes to FTB Part B. Beyond the lack of income testing, single parents receive higher maximum payment rates to acknowledge the challenges of raising children alone. The government recognises that single parents often face reduced earning capacity due to sole responsibility for childcare, household duties, and children's appointments and activities.

If you're a single parent returning to work, you can do so without worrying about losing your FTB Part B payment. This can make a significant difference when calculating whether taking on employment is financially worthwhile. Combined with the family income test reductions for FTB Part A, understanding how Part B works can help you make informed decisions about work and family balance.

How FTB Part B Interacts with Part A

It's important to understand that FTB Part A and Part B are separate payments with different eligibility criteria and income tests. You can receive both payments simultaneously, and many families do. While Part A is calculated per child and depends on family income, Part B is a per-family payment that depends on your family structure and the secondary earner's income.

When planning your family finances, consider both payments together. A single parent with three children might receive substantial FTB Part A payments plus the full Part B amount, providing significant support. Using a comprehensive FTB calculator can help you understand your total entitlement across both payment types.

Applying for FTB Part B

If you're already receiving FTB Part A, you don't need to submit a separate application for Part B—Services Australia will automatically assess your eligibility based on the information you've provided. However, you should ensure your family details are up to date, including your relationship status and your partner's income if applicable.

If your circumstances change—for example, if you separate from your partner and become a single parent—make sure to update Services Australia promptly. Changes in relationship status can significantly increase your Part B entitlement, and you don't want to miss out on payments you're entitled to receive.

Common Questions About FTB Part B

Many parents wonder whether grandparents or other carers can receive FTB Part B. The answer is yes—if you're a grandparent or other relative caring for a child, you may be eligible for FTB Part B under the same rules as other carers. The key is that you must have substantial care of the child and meet the other eligibility requirements.

Another common question involves shared care arrangements. If you share care of a child with another person, your FTB Part B may be affected. Generally, only one person can receive Part B for a child at any given time, though the payment can be split in some circumstances. Contact Services Australia if you're unsure how shared care affects your entitlements.

Maximizing Your Part B Payment

For couples, careful income planning can help maximize your FTB Part B payment. If the secondary earner can keep their annual income below $6,059, you'll receive the full Part B amount. This might influence decisions about part-time work hours or the timing of returning to work after having a baby.

Remember that FTB Part B stops when your youngest child turns 18 (or earlier if they finish secondary school). Planning for this transition is important, as the loss of Part B can represent a significant reduction in family income. Consider how this might affect your budget and whether the secondary earner might increase their work hours as children grow older.

Family Tax Benefit Part B provides crucial support for single parents and single-income families across Australia. By understanding the eligibility requirements, income tests, and payment rates, you can ensure you're receiving your full entitlement and make informed decisions about work, family, and finances.