Family Tax Benefit Part B (FTB-B) is not paid while you are getting Parental Leave Pay. In Services Australia's words, "You and your partner can't get FTB Part B while you're getting Parental Leave Pay" (source). The pause covers the whole family, not only the parent on leave. Family Tax Benefit Part A can still be paid during that time if you are eligible. Once the Paid Parental Leave period ends, FTB-B can be paid again for the rest of the year, as long as your family meets the usual rules.
So the short answer is "not at the same time". The longer answer is about what happens to FTB-B across the rest of the year, because Parental Leave Pay also counts as income for the income tests.
What the pause covers
The pause applies to Part B of Family Tax Benefit, for the time you are receiving Parental Leave Pay. It is not a permanent loss of eligibility, and it does not change who qualifies afterwards.
- On days Parental Leave Pay is paid — FTB-B is not paid. Services Australia: "You or your partner can't get FTB Part B on days Parental Leave Pay is paid."
- On other days — FTB-B can be paid if the income tests and child age rules are met. If Parental Leave Pay is taken in more than one block, the days in between count as other days.
Services Australia sets out the current rules on its Family Tax Benefit Part B page, and that page is the place to check how the pause applies to your family's exact circumstances.
Family Tax Benefit Part A (FTB-A) is a separate payment with its own family income test. The FTB Part A guide covers it. Parental Leave Pay counts as income for the Part A income test, and the Newborn Upfront Payment and Newborn Supplement can't be paid for the same child as Parental Leave Pay — the Newborn Supplement guide explains that choice.
Who is the primary earner and who is the secondary earner
FTB-B uses two separate income tests, each on one person's adjusted taxable income (ATI) for the financial year.
- The primary earner is the partner with the higher ATI for the year. In a single-parent family, the single parent is the primary earner, and there is no secondary earner test.
- The secondary earner is the partner with the lower ATI for the year.
In a leave year, the parent on leave often ends up with the lower income, so they are usually the secondary earner. But the test uses the full-year figures. A parent who normally earns more can still be the primary earner in a leave year if their wages before and after the leave, plus Parental Leave Pay, add up to more than their partner's income.
The primary earner test
The primary earner's ATI must be $124,327 or less for FTB-B to be paid. This is a hard limit rather than a taper: above it, FTB-B is nil for the year, whatever the secondary earner earns. The FTB Part B guide sets out this limit and the rates in full.
The secondary earner test
For a couple whose primary earner is within the limit, the secondary earner's ATI is then tested:
- The first $7,154 of the secondary earner's income does not affect FTB-B.
- Above that, FTB-B reduces by 20% of each extra dollar.
- It reaches nil at $35,661 when the youngest child is under 5, and at $27,777 when the youngest is 5 to 12. For couples, Part B stops once the youngest turns 13.
Where Parental Leave Pay fits in
Parental Leave Pay is taxable income, so it counts toward ATI for the financial year it is paid in. The guide to Paid Parental Leave after tax covers this, and adjusted taxable income explained covers what else is included.
For FTB-B, this matters most when the parent on leave is the secondary earner. Their income for the year is likely to be a mix of:
- wages before the leave started
- any employer-paid parental leave
- Parental Leave Pay
- wages after returning to work
That full-year total is what is normally compared against the $7,154 free area and the taper. Parental Leave Pay is not paid alongside FTB-B, but it still counts in the income test.
The return-to-work rule. A parent who starts or returns to work for the first time after time off to care for a newborn may be eligible for more. In Services Australia's words: "If you're eligible, you'll be paid the maximum rate of FTB Part B for the period of the financial year before you or your partner commenced or returned to work." You need to tell Services Australia you've returned to work within 12 months from the end of that financial year, and the rule applies again only if another eligible child comes into your care (source).
The income estimate
Centrelink pays FTB during the year based on the income estimate you give it, then balances that against actual income after tax returns are lodged. In a leave year, last year's salary is rarely the right figure for either partner. An estimate that reflects the leave-year mix — lower wages, Parental Leave Pay, and the return-to-work pattern — keeps the fortnightly payments closer to the final result.
The FTB-B supplement is paid after the year is balanced, and depends on the family being eligible for FTB-B for the relevant days. The FTB Part B guide explains how the supplement works.
Planning the leave and the payments together
The pause, the income tests and the timing of your return all interact. Choosing when Parental Leave Pay starts, how many days each partner takes and when each returns to work changes both the Paid Parental Leave period and each partner's income for the year. The partner split guide covers how the days can be shared.
- The Family Tax Benefit calculator estimates Part A and Part B from each partner's income and your children's ages.
- The Paid Parental Leave calculator estimates Parental Leave Pay, so you can see what that adds to the income side.