As foreshadowed in the recent Federal Budget, commencing next month are changes to Family Assistance Payments. This article highlights the relevant changes and the new payment rates.
Family Tax Benefit Part A and B indexed from 1 July 2012
From 1 July 2012, Family Tax Benefit Part A and B will be indexed. The maximum rates of Family Tax Benefit Part A will increase by:
- $5.04 a fortnight, which is an extra $131.40 a year per child for families with a child aged under 13 year – in total families will get up to $5,150 a year per child in assistance; and
- $6.58 a fortnight, which is an extra $171.55 a year per child for families with a child aged between 13 and 15 years – in total families will get up to $6,479 a year per child.
The rate of Family Tax Benefit Part B will also increase by:
- $4.34 a fortnight, which is an extra $113.15 a year where the youngest child is aged under five years – bringing total support per family to $4,117 a year; and
- $3.08 a fortnight, which is an extra $80.30 a year where the youngest child is aged between five and 18 years – bringing total support per family to $2,978.
Schoolkids payment commences
From 20 June 2012 families receiving their Family Tax Benefit Part A fortnightly will receive $409 for each child in primary school and $818 for each child in high school until the end of June. This payment will be paid straight into families' bank accounts as part of the transition from the Education Tax Refund to the new Schoolkids Bonus.
For more information please contact Ryan Love on 1300 856 338 or e-mail ryan.love@apexpartners.com.au.
This article is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives.