Family Tax Benefit Part A income test 2026
How much you can earn before Family Tax Benefit Part A reduces, how fast it tapers above the free area, and where it stops.
| Annual family income | Effect on your payment |
|---|---|
| Up to $69,131 | Maximum rate (no reduction) |
| $69,131 to $123,078 | Maximum rate reduces by 20c per dollar; the base rate is untouched, and the higher of the two is paid |
| $123,078 and above | The reduced maximum rate and the base rate each reduce by 30c per dollar; the higher of the two is paid |
Source: DSS Social Security Payment Parameters, 1 July 2026 — Family Tax Benefit (Part A) — Income test
| Family situation | Annual income |
|---|---|
| No children aged under 13 — 1 child aged 13 or over | $99,226 |
| 1 child aged under 13 — No children aged 13 or over | $89,973 |
| 1 child aged under 13 — 1 child aged 13 or over | $120,067 |
| 2 children aged under 13 — No children aged 13 or over | $110,814 |
| Family situation | Annual income limit |
|---|---|
| No children aged under 13 — 1 child aged 13 or over | $129,648 |
| No children aged under 13 — 2 children aged 13 or over | $140,379 |
| No children aged under 13 — 3 children aged 13 or over | $167,012 |
| 1 child aged under 13 — No children aged 13 or over | $129,648 |
| 1 child aged under 13 — 1 child aged 13 or over | $136,218 |
| 1 child aged under 13 — 2 children aged 13 or over | $160,844 |
| 1 child aged under 13 — 3 children aged 13 or over | $187,477 |
| 2 children aged under 13 — No children aged 13 or over | $136,218 |
| 2 children aged under 13 — 1 child aged 13 or over | $154,675 |
| 2 children aged under 13 — 2 children aged 13 or over | $181,308 |
| 2 children aged under 13 — 3 children aged 13 or over | $207,941 |
| 3 children aged under 13 — No children aged 13 or over | $148,507 |
| 3 children aged under 13 — 1 child aged 13 or over | $175,140 |
| 3 children aged under 13 — 2 children aged 13 or over | $201,772 |
| 3 children aged under 13 — 3 children aged 13 or over | $228,405 |
Part A uses your family's yearly adjusted taxable income, and it is worked out two ways. You get whichever gives the higher rate. The first test starts from the maximum rate: up to the lower income free area nothing comes off, between the lower and higher free areas it reduces by 20 cents for each dollar, and above the higher free area by 30 cents.
The second test starts from the base rate, which is not touched until your income passes the higher free area, then reduces by 30 cents for each dollar. For smaller families the first test falls below the base rate before the higher free area, so from there only the base rate is paid. For larger families, and some families with teenagers, the reduced maximum rate is still the higher of the two at that point, so it keeps applying and Part A continues to a higher income. That is why the income limit depends on how many children you have and their ages.
Because the test is on yearly income, a change in your income during the year can change your payment. The thresholds are shown in the income test detail on this page. Adjusted taxable income includes more than salary, so see our adjusted taxable income page for what counts.
Where Family Tax Benefit Part A stops
| Situation | Income free area | Payment reaches $0 at | DSS figure |
|---|---|---|---|
| 1 child aged under 13 | $69,131 | $129,648 a year | Matches the DSS limit |
| 2 children aged under 13 | $69,131 | $136,218 a year | Matches the DSS limit |
Rounded up to the cent, as DSS rounds its limits.
- 1 child aged under 13: the payment reaches $0 at $129,648 a year of income, $60,517 more than the $69,131 income free area.
Worked examples
| Situation | Income a year | Payment |
|---|---|---|
| 1 child aged under 13 | $60,000 | $6,139.30 a year |
| 1 child aged under 13 | $100,000 | $1,971 a year |
| 1 child aged under 13 | $140,000 | $0 a year |
Income is the family’s adjusted taxable income for the year. Amounts are yearly and do not include the end-of-year supplement.
- At $100,000 a year the family gets $1,971, $4,168.30 less than the maximum of $6,139.30 for one child under 13.
- At $140,000 a year Part A stops altogether for one child under 13, whose income limit is $129,648.
More on Family Tax Benefit Part A
- Family Tax Benefit Part A overview
- Family Tax Benefit Part A rate table
- How much is Family Tax Benefit Part A?
- Family Tax Benefit Part A calculator
- Family Tax Benefit Part A in 2026
Estimates and general information only — not financial advice. Check Services Australia for your circumstances.
Rates effective 1 July 2026 · next scheduled indexation 1 July 2027. Source: DSS / Services Australia. Last checked 23 September 2026.