What's the difference between the Maintenance ACTION Test and the Maintenance INCOME Test?

Two separate tests. The Maintenance Action Test asks "have you taken reasonable action to obtain child support?" — if you haven't, your FTB-A is capped at the base rate (regardless of income). The Maintenance Income Test then takes the child support you actually receive and reduces your FTB-A by 50¢ for every $1 above the Maintenance Income Free Area (MIFA). Action Test is binary (pass/fail); Income Test is a sliding reduction.

What counts as "reasonable action" to obtain child support?

Either applying to Services Australia (Child Support Agency) for an assessment, OR having a private collect arrangement registered with CSA, OR an exemption (e.g. family violence, child conceived through assault, parent unknown). Just having an informal agreement between parents without CSA involvement doesn't count. If you don't pass the Action Test, FTB-A is capped at the base rate even if you'd otherwise qualify for maximum rate.

How much does child support actually reduce my FTB-A?

Above the MIFA threshold, every $1 of child support received reduces FTB-A by 50¢. The MIFA threshold is per-child and indexed annually. The reduction floors at the base rate — your FTB-A can't be reduced below the base. So receiving $10,000/year in child support might cost you ~$5,000/year in reduced FTB-A above MIFA.

Does the test apply to BOTH parents or just the receiving parent?

Only the receiving parent. The paying parent's FTB-A is unaffected by the MIT (though the paying parent's ATI is reduced by the child support PAID, which can lift their entitlements). The receiving parent's FTB-A is reduced by the child support received above MIFA.

Can I avoid the Maintenance Action Test by not claiming child support?

No — and trying to do so backfires. The Action Test specifically reduces your FTB-A to the base rate if you HAVEN'T taken action. So choosing not to apply for CSA-assessed support means you both lose the child support AND your FTB-A drops to base rate. The system is designed to make CS application the dominant strategy unless there's a genuine exemption.

How do I model this with NestWise?

Our Child Support Estimator shows the formula-based payment between parents. Our FTB calculator (Family tier) factors in the Maintenance Income Test to give a more accurate FTB-A figure — it's gated to paid because it requires the additional capture of csReceivedAnnual (Free users get an Action Test pass/fail flag but not the MIT-adjusted FTB-A).

The Maintenance Action Test — why your child support arrangement affects FTB-A

If you receive child support, your Family Tax Benefit Part A is reduced by 50¢ for every $1 above the Maintenance Income Free Area. And if you DON'T take "reasonable action" to obtain child support, your FTB-A is capped at the base rate. Here's how the two systems interact.

If you're a single or separated parent claiming Family Tax Benefit Part A, two child-support rules quietly shape how much FTB-A you actually get. The first is the Maintenance Action Test: if you don't take "reasonable action" to obtain child support from the other parent (typically by applying to Services Australia for an assessment), your FTB-A is capped at the base rate — you lose the max-rate uplift entirely. The second is the Maintenance Income Test: any child support you actually receive above the Maintenance Income Free Area reduces your FTB-A by 50¢ for every $1, down to (but not below) the base rate. Together, these two rules mean families with a child-support arrangement often see noticeably less FTB-A than the FTB-A guide suggests at first glance.

This guide explains both rules — when each applies, the numbers involved, and the gotchas.

When the Maintenance Action Test applies

The Maintenance Action Test applies if all of the following are true:

You're a single parent or separated parent receiving FTB-A.
The other parent is alive and could realistically pay child support.
The child is under 18 (or 18+ in secondary study, still eligible for FTB-A).

If all three apply, you must take "reasonable action" to obtain child support from the other parent — usually by applying to Services Australia's Child Support Agency for an assessment.

If you don't, your FTB-A is capped at the base rate ($72.94/fortnight per child in 2025-26). The max-rate uplift (up to $227.36/fn for under-13s or $295.82/fn for 13-19s) is forfeited until you take action.

Apply for a child support assessment via Services Australia → Centrelink does this through myGov — it's not separate paperwork.

What "reasonable action" means

"Reasonable action" is usually:

Applying for a child support assessment through Services Australia (the default path), OR
Having a registered private child support agreement (binding or limited, lodged with Services Australia), OR
Being exempted from the test because of recognised circumstances — family violence, the other parent being unable to pay, or the other parent being unidentifiable.

Exemptions are granted on application, supported by evidence. They're not automatic; you ask Services Australia in writing (with proof) and they decide.

The Maintenance Income Test — how received CS reduces FTB-A

If you do receive child support (whether via Services Australia's collection or privately), it counts as maintenance income for FTB Part A.

The rule:

Maintenance income up to the Maintenance Income Free Area (MIFA) has no effect on your FTB-A.
Maintenance income above the MIFA reduces your FTB-A by 50¢ for every $1.
The reduction stops at the base rate — you can't be reduced below it via this test.

For 2025-26, the MIFA is approximately $1,936/year for single parents with one child (it varies with family size and is indexed annually). Above that, every additional $1 of child support received reduces your FTB-A by 50¢.

A worked example: a single parent with one child under 13 receives $8,000/year in child support. Their MIFA is roughly $1,936. Above that, they're $8,000 − $1,936 = $6,064 over. The 50¢ taper reduces FTB-A by 50% × $6,064 = $3,032/year.

If their max-rate FTB-A would have been $227.36/fn × 26.0890 × 1 = $5,931/year, the $3,032 reduction takes them to $2,899/year — still above the base rate floor of $72.94 × 26.0890 = $1,903/year. So the reduction stands at $3,032.

How the two rules compound

For families with a CS arrangement, the FTB-A you actually receive is often noticeably below what a "no CS" income test would suggest:

Income test (Method 1) reduces FTB-A based on family ATI.
Maintenance Income Test then reduces what's left, based on CS received.
Floor: you can't go below the base rate via either rule.

The NestWise FTB calculator handles both — for paid users it factors in CS received via the Maintenance Income Test and shows the accurate FTB-A figure. For free users, we show the FTB-A figure as if no CS is in play, with a banner noting it may be over-stated. (See our scoping note on CS in FTB for why.)

The five gotchas

1. You can't skip the Maintenance Action Test just because the other parent "won't pay." You still have to apply for an assessment — even if you suspect the assessment will be $0, or the other parent won't comply. Applying is the action; collection is separate.

2. The 50¢ taper applies to CS RECEIVED, not CS ASSESSED. If your assessment says $10,000/year but you only receive $4,000, only the $4,000 counts. The MIT runs on actual receipts.

3. The MIFA changes with family composition. Add a child, lose a child to age-out, or the other parent's situation changes — the MIFA shifts. Recheck annually.

4. Receiving CS doesn't affect CCS. CCS uses ATI, which doesn't include CS received (CS received is income-tax-free for the recipient). Only FTB-A is reduced by CS received. CCS stays unchanged.

5. Paying CS reduces YOUR ATI. If you're on the paying side, your ATI for CCS / FTB / etc. is reduced by the CS you pay (it's an ATI deduction). This is a separate effect from the MIT — it helps the payer's other entitlements, while the MIT hurts the receiver's FTB-A.

How NestWise handles both rules

Free Child Support estimator (/free/cs) — quick check of your formula-based CS amount with a free account. Useful first pass to see what the MIT will apply to.
Full estimator (/dashboard/child-support) — with FTB-A Maintenance Income Test wired in (paid). Feed CS received, get the accurate FTB-A.
Maintenance Action Test flag — if you haven't applied for an assessment, the engine warns FTB-A is capped at base.
Your CS picture (/dashboard/child-support/picture) — latest assessment + YTD expense evidence in one view.

The full source list is on the sources page.