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Family Tax Benefit Part B — the $120,007 cliff explained (2025-26)

FTB Part B in 2025-26 — the $120,007 primary earner cap, the secondary earner taper, how much per child, and why single-income families benefit most. Verified rates.

6 min readUpdated 28 May 2026
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In 2025-26, Family Tax Benefit Part B pays up to $193.34 per fortnight when your youngest child is under 5, or up to $134.96 per fortnight when your youngest is 5–18. The primary earner — the higher-earning parent — must earn $120,007 or less in adjusted taxable income (ATI). One dollar over that cap and the whole payment drops to zero. It's a cliff, not a taper.

FTB-B is the smaller, more targeted half of Family Tax Benefit. Where Part A is income-tested against the WHOLE family and paid per child, Part B is income-tested against the PRIMARY earner only and paid per family — designed to support single-income families and single parents. The rules below are the ones our FTB calculator uses, verified against Services Australia and the DSS Family Assistance Guide §3.1.9.

Who can claim FTB Part B

You qualify for FTB-B if all of the following are true:

  • You have a dependent child under 13 in your care (or under 18 if you're a single parent or grandparent carer).
  • You meet residency requirements (same as FTB-A).
  • The primary earner's ATI is $120,007 or less for the year.
  • If you have a partner, the secondary earner's income is low enough to qualify (see below).

The misconception we see most often: parents who don't realise FTB-B is a separate test. You can be perfectly eligible for FTB-A but get $0 of FTB-B because the higher-earning partner is over $120,007 — or vice versa, you can be cut off from FTB-A by family income but still get FTB-B because the primary earner alone is under $120,007.

How much per family — the maximum rates for 2025-26

Youngest child's age Max rate per fortnight Annual maximum
Under 5 $193.34/fn ~$5,047/yr
5 – 18 $134.96/fn ~$3,524/yr

Plus a Part B supplement of $459.90 per family (not per child), paid as a lump sum after you lodge your tax return — but only if your actual ATI for the year stayed within the income test limits.

Run the NestWise FTB Calculator → Pop in your situation and we'll show you exact Part A AND Part B — for your kids, your incomes, your state.

How the $120,007 cliff works

This is what trips most families up. Unlike FTB-A (which tapers gradually), FTB-B has a hard cliff:

  • Primary earner at $120,000 → full FTB-B (if secondary earner qualifies)
  • Primary earner at $120,007 → full FTB-B (still — just inside)
  • Primary earner at $120,008ZERO FTB-B (over by $1, lose the lot)

The "primary earner" is whichever partner earns more — even if it's the parent at home with the baby earning a small amount from a side gig. If you're a single parent, you ARE the primary earner.

The bracket-creep trap: a salary review that pushes you from $119,500 to $122,000 looks like a $2,500 pay rise on paper. But if you have a youngest under 5, you also LOSE up to $5,047/year + $459.90 supplement in FTB-B. Net effect: the pay rise could leave you worse off. Worth modelling before accepting — our Extra Day Calculator does exactly this.

How the secondary earner test works

If you're partnered, the lower-earning parent's income is tested separately:

  • First $6,935 of secondary earner income: no effect on FTB-B. (This is the secondary earner free area.)
  • Above $6,935: FTB-B reduces by 20 cents for every $1 earned.

So the payment slowly tapers as the secondary earner returns to work — until it hits zero at:

Youngest child's age Secondary earner cut-off
Under 5 $34,438
5 – 18 $26,828

These thresholds are why FTB-B is so valuable to families where one partner is on parental leave or has reduced hours — for a parent earning under $7k/yr in casual work, FTB-B pays in full. As they ramp back up to part-time, it tapers.

Single parents are exempt from the secondary earner test entirely — there's no secondary earner. If you're a single parent under $120,007 ATI, you get the full FTB-B rate.

How FTB-B is different from FTB-A

Feature FTB Part A FTB Part B
Paid per Child Family (whole family, one rate)
Tested against Combined family ATI Primary + secondary earner ATI separately
Income test shape Two gradual tapers (20¢/30¢ per $1) Hard cliff at $120,007 + secondary 20¢/$1 taper
End-of-year supplement $938.05 per child (if family ATI ≤ $80k) $459.90 per family (if income test passed)
Eligibility Dependent child 0–19 Dependent child under 13 (under 18 for single parents)

Most families on FTB get both parts. A handful get FTB-A but not FTB-B (because the primary earner is over $120,007 but family income is under the FTB-A cutoff). Single parents and one-income couples get the most FTB-B value.

When the supplement gets paid

The $459.90 Part B supplement isn't paid fortnightly. It's an end-of-year top-up, paid after Centrelink reconciles your actual ATI against the estimate you gave them. You need to lodge your tax return on time to receive it — usually paid in October or November after EOFY.

CCS reconciliation reminder: if you over-estimated your income to Centrelink during the year, you may have been getting less FTB-B fortnightly than you were entitled to — the supplement covers that gap. If you under-estimated, the supplement may be reduced (or you may owe a debt). Our EOFY Reconciliation tool (Family tier) projects this before October hits.

Common scenarios

One earner at $90k, partner stay-at-home, youngest 2: Primary under $120,007 ✓, secondary under $6,935 ✓ → full FTB-B = $193.34/fn × 26 + $459.90 = $5,486.74/yr.

Both earning, one at $110k + one at $30k, youngest 6: Primary $110k under $120,007 ✓, secondary $30k → above the youngest-5-to-18 cutoff of $26,828 → FTB-B = $0. The first $6,935 of secondary income doesn't reduce, then 20¢/$1 on the next $23,065 ($4,613 reduction) wipes the $3,524/yr base + the supplement.

Single parent earning $85k, two kids aged 3 and 7: Primary under $120,007 ✓, no secondary earner test → full FTB-B = $193.34/fn × 26 + $459.90 = $5,486.74/yr (rated against the YOUNGEST child's age — so the under-5 rate applies even though there's also a 7-year-old).

Couple, primary at $135k, secondary at $20k: Primary $135k OVER the $120,007 cap → FTB-B = $0, regardless of family situation. Cliff fires.

Frequently asked questions

Quick answers

What is the FTB Part B income limit for 2025-26?

The primary earner — the higher-earning parent (or the only parent in a single-parent family) — cannot earn more than $120,007 a year in adjusted taxable income (ATI). One dollar over that and the entire Part B payment cuts to zero. It's a cliff, not a taper.

How much is FTB Part B per fortnight?

For 2025-26 the maximum rates are $193.34 per fortnight when the youngest child is under 5, and $134.96 per fortnight when the youngest is 5–18. There's also an end-of-year supplement of $459.90 per family (not per child) if your actual income for the year is below the cap.

Why do single-income families get more FTB-B than dual-income families?

FTB-B is designed to support families where one parent earns very little — typically a stay-at-home parent or someone on parental leave. Single-parent families and couples with one stay-at-home partner get the full rate. Once the lower-earning partner earns more than $6,935 a year, FTB-B starts reducing by 20 cents for every extra dollar they earn.

At what income does FTB-B cut off for the secondary earner?

With a youngest child under 5, FTB-B cuts off when the secondary earner reaches $34,438. With a youngest aged 5–18, it cuts off at $26,828. Above those thresholds the payment is reduced to zero — but this is the secondary earner's income only, not the family total.

Is FTB-B paid per child or per family?

FTB-B is paid per FAMILY, not per child. You get one rate based on the age of your youngest child only — even if you have four kids. (FTB Part A, by contrast, is paid per child.)

Do I need to claim FTB-B separately or is it automatic with FTB-A?

You claim FTB-A and FTB-B together via the same Centrelink form. If you're eligible for both, Centrelink works it out and pays them at the same time, either fortnightly or as a lump sum after EOFY.

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Where this comes from
For the full list, see our sources page.
Not financial advice
We've taken all care to make sure the figures in this guide are correct as at the last-updated date shown above. Rates and rules change — Centrelink, the ATO and state programs update at least each financial year, and sometimes mid-year (as the 3 Day Guarantee did on 5 January 2026). NestWise refreshes its calculators when new figures are published, but always verify with Services Australia via myGov before relying on a specific number. NestWise is not a financial or legal advisor and the information here is general only — it does not take your full circumstances into account.