Parents, are you leaving thousands of dollars on the table? When it comes to family benefits, the biggest trap parents fall into is assuming they earn too much to qualify. Because eligibility rules constantly shift – and your own family’s income and circumstances naturally change over time – it is absolutely essential to keep track of your entitlements so you don’t miss out on thousands in tax-free government support.
Take Family Tax Benefit (FTB) Part A. It isn’t an automatic payment – if you don’t apply for it, you don’t get it. As your household income fluctuates year-to-year and your kids grow (covering children up to 19 years old), your family situation might have shifted enough to make you suddenly eligible without you realising it. And here is the kicker: FTB payments are completely tax-free.
Even if your direct cash payment is small, the flow-on perks are massive. Qualifying for FTB Part A automatically lowers your Medicare Safety Net threshold. It also unlocks the Child Dental Benefits Schedule (CDBS), providing up to $1,158 of covered dental care per child over a two-year period.
The best part? If you apply before the end of the financial year, you can claim backpay for the current year and the previous one. That is potentially two years of missed tax-free entitlements waiting in the wings.
Similarly, many families mistakenly write off the Child Care Subsidy (CCS). If you have lost track of the rules, take note: the activity test changed at the start of this year. Eligible families are now guaranteed three days of subsidised care per week (72 hours a fortnight), regardless of how much you work or study.
Furthermore, the household income limit doesn’t actually cut out to 0% until it reaches $535,279. CCS is paid directly to your childcare provider to offset your daily fees, making it essentially another tax-free benefit from the government. Even if you have older children, this subsidy still applies to outside-school-hours and vacation care, offering up to 36 hours of subsidised care per week for holiday programs.
Because government rules and your personal income constantly shift, it is always worth keeping track of where you stand. Don’t let the thought of battling Centrelink stop you. A great starting point is the Entitlemate App (entitlemate.com.au) – simply plug in your family’s details to quickly run the numbers and see exactly what tax-free support you might be owed.
Brendan Ryan is the founder of Entitlemate – the platform dedicated to helping Aussies access their entitlements.
Find all you and your family are entitled at entitlemate.com.au