Reform of family payments from 1 July 2009
From 1 July 2009, as a cost reduction measure, the FTB –A payment rates will be indexed by the Consumer Price Index (CPI) consistent with other family payment such as FTB-B and the Baby Bonus. Currently the maximum rates of FTB-A for children under the age of 16 are benchmarked to the higher of a proportion of the combined couple rate of pension payments, or CPI.
The upper income threshold for FTB-A, FTB-B, dependency tax offsets and the Baby Bonus will remain at its current level until July 2012. These thresholds would ordinarily be indexed by CPI.
The following upper thresholds will remain:
|Cut off threshold
|Family Tax Benefit Part B
|Income of primary income earner
|Dependency tax offset
|Income of taxpayerclaiming the offset
|Combined family income in the six months following the birth of the child
|Family Tax Benefit Part A
|Combined family income before losing entitlement
|$94,316 (plus $3,796 for each additional child)