FTB Changes for 2026-27: New Rates, Thresholds, and What It Means for Your Family

Each financial year brings adjustments to Family Tax Benefit rates and thresholds, typically increasing in line with inflation and changes to the cost of living. Understanding what's changed for 2026-27 helps you plan your family budget and ensures you know what to expect from your FTB payments.

FTB Part A Rate Changes

Family Tax Benefit Part A rates have been adjusted for the 2026-27 financial year. The maximum fortnightly rates by age group are now: $187.08 for children aged 0-4, $236.93 for children aged 5-12, $284.70 for children aged 13-15, and $285.42 for young people aged 16-19 in full-time secondary study.

These rates represent increases from the previous year, reflecting indexation to account for inflation. While the percentage increases may seem modest, they add up over the course of a year and across multiple children. For a family with two children, even a small rate increase can mean several hundred dollars more in annual support.

The FTB Part A supplement has also been maintained at $91.90 per child per year. This supplement is paid after the end of the financial year, once your income has been confirmed through tax returns. It provides a useful boost to help with back-to-school expenses or other end-of-year costs.

FTB Part B Rate Adjustments

FTB Part B rates for 2026-27 reflect the ongoing support for single parents and single-income families. Single parents with a youngest child aged 0-4 can receive up to $167.74 per fortnight, while those with a youngest child aged 5-18 receive up to $119.78 per fortnight.

For couples, the maximum Part B rate is $119.78 per fortnight regardless of the youngest child's age. As always, Part B is paid per family rather than per child, so the rate doesn't change based on how many children you have—only on your youngest child's age and your family type.

The significant advantage for single parents remains: no income test on their own earnings for FTB Part B. This means single parents can work and earn any amount without affecting their Part B payment, providing important support for workforce participation.

Income Threshold Updates

The income free area for FTB Part A has been set at $56,898 for the 2026-27 year. This is the amount you can earn before your Part A payment starts to reduce. Families with income below this threshold receive the maximum Part A rate (subject to other eligibility requirements).

Above the free area, the taper rate remains at 20 cents per dollar. This means for every dollar your family income exceeds $56,898, your annual FTB Part A is reduced by 20 cents. The gradual reduction ensures that working more always leaves you financially better off.

The higher income free area, where a second taper rate of 30 cents per dollar kicks in, sits at approximately $103,368. Families with incomes above this level see their payments reduce more quickly, though the base rate ensures most families with dependent children receive at least some assistance.

Part B Income Test Changes

For FTB Part B, the primary earner income limit for couples is now $104,432. If the higher-earning partner in a couple earns more than this amount, the family is not eligible for Part B at all. This is a hard cutoff rather than a gradual reduction.

The secondary earner income free area remains at $6,059 per year. For every dollar the lower-earning partner earns above this threshold, Part B is reduced by 20 cents. This relatively low free area means even modest part-time work can significantly reduce or eliminate Part B for couples.

Rent Assistance Updates

Rent Assistance rates have also been adjusted for 2026-27. Single parents can receive up to $79.60 per fortnight in Rent Assistance, while couples can receive up to $75.30 per fortnight. These rates apply when your rent exceeds the minimum threshold, currently around $155 per fortnight.

The rate at which Rent Assistance increases with rent remains at 75 cents per dollar above the threshold, up to the maximum rate. This means that as rental costs increase, Rent Assistance provides proportionally higher support until you reach the cap.

Given the ongoing challenges with housing affordability across Australia, Rent Assistance continues to be a valuable supplement to FTB for families who rent privately. If you're renting and not currently receiving Rent Assistance, check your eligibility—you may be entitled to this additional support.

Impact on Different Family Types

The 2026-27 changes affect different families in different ways. Low-income families receiving the maximum rate will see their payments increase in line with the rate adjustments, providing a modest boost to their support. This helps offset rising costs of living.

Middle-income families near the income thresholds may find their entitlements change as income limits are adjusted. If your income has remained stable but the thresholds have increased, you may receive slightly higher payments than before. Conversely, if your income has grown faster than the threshold adjustments, your payments may reduce.

Single parents continue to benefit from favorable Part B provisions, receiving higher rates and no income test on their own earnings. The combination of full Part B entitlement plus Part A based on their individual income provides substantial support for single-parent families.

What You Need to Do

In most cases, you don't need to take any action for the new rates to apply. Services Australia automatically updates payment rates at the start of each financial year. Your fortnightly payments should reflect the new rates from July 1st without any action on your part.

However, the start of a new financial year is a good time to review your income estimate. If your circumstances have changed—you've had a pay rise, changed jobs, or experienced other income changes—update your estimate through myGov. This ensures your payments are calculated correctly for the new year.

It's also a good opportunity to check that all your details are current. Review your personal information, family composition, and accommodation details in your Centrelink record. Accurate information leads to accurate payments and helps avoid problems at reconciliation time.

Looking Ahead

FTB rates and thresholds are typically adjusted annually, usually in line with inflation indices. While specific future changes aren't announced far in advance, you can generally expect ongoing adjustments to keep pace with cost of living increases.

Government budgets may also introduce policy changes that affect FTB. These could include changes to eligibility criteria, payment structures, or income tests. Keep an eye on budget announcements and Services Australia communications for any significant changes that might affect your family.

We update our calculator whenever new rates are announced, so you can always get an estimate based on current figures. Bookmark our site and check back whenever you need to understand how changes might affect your family's entitlements.

2026-27 Rates Summary

The 2026-27 financial year brings modest but meaningful increases to Family Tax Benefit payments. By understanding these changes and keeping your details current with Services Australia, you can ensure your family receives the full support you're entitled to throughout the year.