Family Payments — Centrelink Guides for Australian Families

Centrelink administers a range of income support payments and subsidies for Australian families — from the moment a child is born through to school age and beyond. For many families, these payments represent a significant component of household income, particularly in the first few years of a child’s life.

Most family payments are means-tested, based on combined family income. Higher-income families may receive partial payments or no payment at all, while lower-income families are entitled to the maximum rate. Understanding the income thresholds, rates and eligibility rules for each payment is essential for ensuring you’re receiving your entitlements.

Family Tax Benefit

Family Tax Benefit (FTB) is the primary ongoing payment for families raising dependent children. It has two parts with different eligibility rules and payment rates.

Family Tax Benefit Part A

FTB Part A provides assistance based on the number of children in the family and combined family income. It is payable for:

• Children under 16 years old
• Young people aged 16–19 who are in full-time secondary education (up to the end of the calendar year they turn 19)

Maximum fortnightly rates (2025–26):

FTB Part A phases out as combined family income rises. The income threshold above which FTB Part A begins to reduce is approximately $62,634 per year (family). Above this, the payment reduces by 20 cents for every dollar of additional income.

A higher income threshold allows higher-income families to still receive the base rate of FTB Part A (approximately $68 per fortnight, per child). The base rate eventually cuts out entirely at higher income levels.

Family Tax Benefit Part B

FTB Part B provides additional support for single-parent families and couples where one partner earns little or no income.

Eligibility:

• Single parent families — eligible until the youngest child turns 18 (in full-time secondary study up to age 18)
• Couple families — eligible until the youngest child turns 13; the secondary earner must earn less than $100,900 per year

Maximum fortnightly rates (2025–26):

For couple families, FTB Part B reduces by 20 cents for each dollar the secondary earner earns above $6,059/year.

Claiming Family Tax Benefit

FTB can be claimed fortnightly (as ongoing instalments) or as a lump sum at tax time. Fortnightly instalments provide immediate cash flow but may result in overpayments if income is underestimated — overpayments must be repaid. Many families claim at a rate lower than their maximum entitlement to reduce the risk of overpayment.

Reconciliation of FTB occurs after the end of the financial year when actual income is confirmed. If you were underpaid, you’ll receive a top-up; if you were overpaid, you’ll need to repay the difference.

Parental Leave Pay

Parental Leave Pay (PLP) provides government-funded paid leave to eligible parents following the birth or adoption of a child.

How Parental Leave Pay works

As of July 2025, the Parental Leave Pay scheme provides up to 26 weeks of leave paid at the national minimum wage (currently $23.23/hour or $882.75/week as of July 2025). This is a significant expansion from the previous 18-week entitlement.

Leave can be shared between two parents — for example, one parent takes 20 weeks and the other takes 6 weeks. There is no requirement for the leave to be taken consecutively, and it does not all need to be taken by the primary carer.

Eligibility for Parental Leave Pay

Income test: Each parent claiming PLP must have an adjusted taxable income of $168,865 or less in the financial year before the birth (or the year of the birth, whichever is lower).

Work test: Each parent must have worked for at least 10 of the 13 months before the birth and for at least 330 hours during that period (approximately one day per week on average).

Residency: Must be an Australian resident.

Parental Leave Pay and employer parental leave

Government PLP and employer-funded parental leave can be received simultaneously in most cases. Some employers offset their parental leave against the government payment, and some supplement it. Check your employment contract and award conditions.

PLP is subject to income tax and must be included in your tax return. It does not reduce your eligibility for Family Tax Benefit.

Dad and Partner Pay

Dad and Partner Pay provided up to 2 weeks of leave paid at the national minimum wage for eligible secondary carers. This payment was absorbed into the expanded Parental Leave Pay scheme from July 2023. Secondary carers are now entitled to share the Parental Leave Pay entitlement with the primary carer under the expanded 26-week scheme.

Child Care Subsidy

The Child Care Subsidy (CCS) helps families with the cost of approved childcare, which in Australia can be a very significant expense — $100–$180 per day per child at many services.

How CCS is calculated

The subsidy is calculated as a percentage of the actual childcare fee charged (up to a benchmark fee set by the government). The percentage depends on:

1. Combined family income — lower-income families receive a higher subsidy percentage

2. Activity level — the number of hours of subsidised care available per fortnight is limited by the number of hours each parent works, studies, trains or volunteers (minimum 8 hours, maximum 100 hours per fortnight). Families where one parent does no qualifying activity are limited to 24 hours of subsidised care per fortnight (with some exceptions).

3. Type of service — different service types (centre-based daycare, family daycare, outside school hours care, in-home care) have different benchmark fees.

Applying for CCS

CCS is claimed through Centrelink via myGov. You must confirm your child’s enrolment with the childcare service, which submits claims to Centrelink on your behalf. The subsidy is paid directly to the childcare provider, reducing your out-of-pocket fees.

Carer Payment

Carer Payment provides income support for people who are unable to work full-time because they provide constant care to a person with a severe disability or medical condition, or a person who is frail aged.

Carer Payment eligibility

To be eligible, you must:

• Provide constant care (at least equivalent to a continuous period each day) to a person who has a severe disability or medical condition, or who is frail aged
• Be living with or near the person you care for in most cases
• Meet the income and assets tests

The person being cared for must be assessed as requiring the level of care provided. Assessment is done by Services Australia using the Adult Disability Assessment Tool (ADAT) or Child Disability Assessment Tool (CDAT) depending on the care recipient’s age.

Carer Payment rates (FY2025–26):

Carer Payment is paid at the same rate as the Disability Support Pension.

Carer Allowance

Carer Allowance is a supplementary payment for people who provide daily care and attention to a person who has a disability, medical condition or is frail aged. Unlike Carer Payment, Carer Allowance:

• Is not means-tested on the carer’s income or assets (since July 2018)
• Can be received in addition to wages, other Centrelink payments or super income
• Is payable to a wider range of carers — you don’t need to be providing full-time care

Carer Allowance rate (2025–26): Approximately $153.50 per fortnight.

You can receive both Carer Payment and Carer Allowance simultaneously if you meet the eligibility criteria for both.

Double Orphan Pension

The Double Orphan Pension is a payment for children who have lost both parents (or in some other prescribed circumstances). It is a less commonly needed payment but worth noting for families in extreme circumstances.

Frequently Asked Questions

Does working part-time affect my Family Tax Benefit? FTB is based on combined family adjusted taxable income, not hours worked. Working part-time doesn’t affect FTB eligibility directly — only the income earned matters.

Can I claim both Parental Leave Pay and Family Tax Benefit? Yes. PLP and FTB Part A/B are separate payments with different purposes. Receiving PLP does not reduce or eliminate FTB entitlement, though PLP counts as income for FTB income test purposes.

What happens to FTB if I underestimate my income? If your actual income turns out to be higher than estimated, Centrelink will calculate an overpayment at reconciliation. You’ll need to repay the difference, either as a lump sum or through deductions from future payments. To reduce this risk, claim FTB at the base rate or at a conservative estimate of your entitlement.

Is Carer Allowance taxable? No. Carer Allowance is a supplementary payment and is not subject to income tax.

Guides in This Section

• Family Tax Benefit — Part A and Part B
• Parental Leave Pay
• Child Care Subsidy
• Carer Payment
• Carer Allowance

Payment rates and eligibility rules change regularly. Always verify current information at Services Australia or MoneySmart.

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