If you’re a parent or carer in Australia, chances are you’ve heard the big news by now: Centrelink has officially updated the Family Tax Benefit (FTB) rates for 2025, and the payment schedule is already locked in. For many families, this announcement feels like a breath of fresh air. Let’s be real—raising kids isn’t cheap. Groceries, school supplies, uniforms, rent or mortgage, and don’t even get me started on extracurricular activities—it all adds up.
So, what exactly has changed? And more importantly, how does it affect your family? Let’s break it down in plain English so you can see where you stand.
What is the Family Tax Benefit Anyway?
Before diving into the updates, let’s quickly remind ourselves of what the Family Tax Benefit (FTB) is all about. Basically, it’s a government payment designed to help eligible families with the cost of raising children. It’s split into two parts:
- FTB Part A: This depends on your family’s income and how many kids you’ve got. It’s meant to cover day-to-day costs of raising children.
- FTB Part B: This is extra support for single-parent households or families with one main income earner.
It’s not a “bonus” or luxury—it’s essential support for many households across Australia.
The 2025 Update – What’s New?
The government has announced that both FTB Part A and Part B rates have been increased starting July 2025. Why? Well, in simple terms—it’s to keep up with the rising cost of living. Inflation hasn’t exactly been kind to families, and this adjustment is meant to take a little of that sting out of everyday expenses.
Here’s a quick snapshot of the new payment rates compared to the old ones:
| Benefit Type | Previous Rate (per child, per fortnight) | New Rate 2025 (per child, per fortnight) | Increase |
|---|---|---|---|
| FTB Part A (0–12 years) | $213.00 | $225.50 | +$12.50 |
| FTB Part A (13–19 years, still in school) | $278.00 | $293.40 | +$15.40 |
| FTB Part B (under 5 years) | $171.00 | $181.20 | +$10.20 |
| FTB Part B (5–18 years) | $121.00 | $128.30 | +$7.30 |
Now, these may not look like massive jumps at first glance, but honestly, every extra dollar helps when you’re staring at a supermarket receipt that feels longer than your weekly to-do list.
Payment Schedule – When Will Families See the Money?
Good news: the payments stick to the usual fortnightly schedule unless you’ve opted for annual lump sums. The first increase will hit bank accounts from the July 2025 payment cycle.
To keep it clear, here’s how the schedule is structured:
- Fortnightly Payments: Families will continue receiving payments every two weeks, adjusted to the new rate.
- Annual Lump Sum: For those who choose to wait until the end of the financial year, the updated rates will apply when the lump sum is processed after tax time.
On top of this, supplementary top-ups (which are sometimes added at the end of the year depending on eligibility) will also be recalculated based on the new rates.
Why This Matters to Families
Let’s be real for a moment. A $10 or $15 increase might not sound like much on paper, but when you spread it across multiple children and factor in fortnightly payments, it adds up. For example, a family with three kids (two in school and one under five) could see an extra $50–$60 per fortnight. Over a year, that’s more than $1,000 in additional support.
And that’s the kind of boost that can help cover rising fuel costs, a new pair of school shoes, or that never-ending grocery bill.
How to Make Sure You’re Getting the Right Amount
Now, here’s the catch—you need to make sure your details are up to date. Centrelink calculates payments based on your family income estimate and your circumstances (like relationship status and number of dependents).
So, if you’ve recently changed jobs, started working extra hours, or your household situation looks different in 2025, update your details in myGov or the Centrelink app. Otherwise, you could end up being overpaid (which means a dreaded debt) or underpaid (which means missing out).
The Family Tax Benefit update for 2025 is more than just numbers on a page—it’s about easing some of the financial strain Aussie families are feeling. Yes, the increases aren’t game-changing, but they’re practical, timely, and honestly, better than nothing.
If you’re already receiving FTB, you don’t need to reapply. The increase will automatically roll into your payments. And if you think you might be eligible but haven’t claimed yet, now’s the time to check—because let’s face it, no one wants to leave money on the table.
FAQs
1. When will the new Family Tax Benefit rates take effect?
From July 2025, payments will reflect the updated rates.
2. Do I need to reapply to get the increased rates?
No, existing recipients will automatically receive the higher amounts.
3. Can I choose between fortnightly and annual lump sum payments?
Yes, families can continue with fortnightly instalments or wait for an annual lump sum.
4. How do I check if I’m eligible?
Eligibility depends on income, number of children, and household situation. Check via myGov or Centrelink.
5. Will the Family Tax Benefit increase every year?
Not necessarily—it’s usually adjusted in line with inflation and government reviews.