How changes will affect families
Making a fairer system for all
Single Income Couple with 1 child (aged 2)
Jack and Sue have one child, Veronica aged 2. Jack works full‑time and earns $82,562 and Sue stays at home.
In 2013‑14, they receive $2,201 in Family Tax Benefit Part A (FTB‑A), $4,241 in Family Tax Benefit Part B (FTB‑B) payments and $300 in the Single Income Family Supplement. This gives Jack and Sue a total take home income after tax of $69,571.
In 2016‑17, Jack now earns $90,000 because of growth in wages in line with average wage growth of around 3 per cent per year. They will receive $2,111 of FTB-A, $4,282 of FTB-B and $300 of Single Income Family Supplement. This gives them a total take home income after tax of $73,646.
| 2013‑14 | 2016‑17 | |
|---|---|---|
| Private income | $82,562 | $90,000 |
| Supplementary Government Income | ||
| Family Tax Benefit Part A | $2,201 | $2,111 |
| Family Tax Benefit Part B | $4,241 | $4,282 |
| Single Income Family Supplement | $300 | $300 |
| Total Government payments | $6,742 | $6,693 |
| Total Income | $89,304 | $96,693 |
| Income tax | $19,733 | $23,047 |
| Income after tax | $69,571 | $73,646 |
PLUS other payments and benefits
Jack and Sue may also be eligible for a range of other benefits and services including:
- Child Care Rebate up to $7,500 per child
- Child Care Benefit
- Access to Family Support Programmes
- Carer Allowance and Carer Supplement to care for somebody with a disability or medical condition
- Subsidised medicines through the Pharmaceutical Benefits Scheme and rebates towards the cost of a wide range of health services through the Medicare Benefits Schedule
Dual Income Couple with 2 children (aged 3 and 5)
David and Mary have two children, Daniel aged 3 and Leah aged 5. David works full-time and Mary works part‑time. They have an income split of 70:30.
In 2013‑14, they earned $82,562 in combined income. David and Mary received $4,402 in Family Tax Benefit Part A (FTB‑A), $324 in Family Tax Benefit Part B (FTB‑B) and $410 in Schoolkids Bonus. This gives them a total take home income after tax of $75,460.
In 2016‑17, David and Mary's combined income has grown to $90,000 because of average wage growth of around 3 per cent per year. David and Mary will continue to receive FTB‑A. However, they will no longer receive FTB‑B as Mary's income now exceeds the maximum allowed to receive this payment because of the pause to the eligibility threshold. They will still have a total take home income after tax of $79,228.
| 2013‑14 | 2016‑17 | |
|---|---|---|
| Private income | $82,562 | $90,000 |
| Supplementary Government Income | ||
| Family Tax Benefit Part A | $4,402 | $4,222 |
| Family Tax Benefit Part B | $324 | $0 |
| Schoolkids Bonus | $410 | $0 |
| Total Government payments | $5,136 | $4,222 |
| Total Income | $87,698 | $94,222 |
| Income tax | $12,238 | $14,994 |
| Income after tax | $75,460 | $79,228 |
PLUS other payments and benefits
Jack and Sue may also be eligible for a range of other benefits and services including:
- Child Care Rebate up to $7,500 per child
- Child Care Benefit
- Access to Family Support Programmes
- Carer Allowance and Carer Supplement to care for somebody with a disability or medical condition
- Subsidised medicines through the Pharmaceutical Benefits Scheme and rebates towards the cost of a wide range of health services through the Medicare Benefits Schedule
Sole Parent with 2 Children (aged 8 and 9) working part-time
Sharon is a single mother who has two children, Gus aged 8 and Max aged 9. She works part‑time and earns $27,521.
In 2013‑14 Sharon receives $10,607 in Family Tax Benefit Part A (FTB‑A), $3,070 in Family Tax Benefit Part B (FTB‑B) and $5,423 in other income support including Newstart, Income Support Bonus and Schoolkids Bonus. This gives Sharon a total take home income after tax of $44,557.
Since Sharon's youngest child is over 6, Sharon will continue to receive FTB‑B until 30 June 2017 as she will be grandfathered from the change to the FTB‑B eligibility age.
In 2016‑17, Sharon's wages have grown to $30,000 in line with average wage growth of around 3 per cent per year. She will receive $10,581 in FTB‑A, and $3,081 in FTB‑B and $4,792 in Newstart. She will have a total take home income after tax of $45,845.
| 2013‑14 | 2016‑17 | |
|---|---|---|
| Private income | $27,521 | $30,000 |
| Supplementary Government Income | ||
| Family Tax Benefit Part A | $10,607 | $10,581 |
| Family Tax Benefit Part B | $3,070 | $3,081* |
| Other Income support | $5,423 | $4,792 |
| Total Government payments | $19,100 | $18,454 |
| Total Income | $46,621 | $48,454 |
| Income tax | $2,064 | $2,609 |
| Income after tax | $44,557 | $45,845 |
* From 1 July 2017, Sharon will no longer receive FTB-B since the two year grandfathering expires. However, as a sole parent who receives the maximum rate of FTB-A of $12,256 in 2017-18, she will now receive a new FTB-A allowance of $750 for each of her children, which brings her total FTB-A to $13,756 for this year. She would also continue to receive Newstart.
PLUS other payments and benefits
Jack and Sue may also be eligible for a range of other benefits and services including:
- Child Care Rebate up to $7,500 per child
- Child Care Benefit
- Rent Assistance
- Carer Allowance and Carer Supplement to care for somebody with a disability or medical condition
- Access to Family Support Programmes
- Subsidised medicines through the Pharmaceutical Benefits Scheme and rebates towards the cost of a wide range of health services through the Medicare Benefits Schedule