The Family Tax Benefit (FTB) is a critical financial support program for Australian families, helping to ease the costs of raising children. For parents with school-aged children, especially those in secondary education, FTB provides essential assistance. However, significant changes to entitlements occur once a child completes Year 12, and understanding these changes is vital to ensure continued eligibility or plan for any adjustments.
This article explores how FTB is impacted when your child finishes Year 12, the steps parents need to take to update their details with Centrelink, and important deadlines to remember.
Deadlines and Key Dates
It’s essential to adhere to reporting deadlines to ensure continued payments or to avoid disruptions. Below is an overview of critical dates:
| Event | Deadline |
|---|---|
| End of Year 12 | December 31, 2024 |
| Deadline to Report Changes | January 15, 2025 (recommended for prompt updates) |
| Proof of Further Education Due | Before the first payment cycle of 2025 (varies by enrolment start date) |
| Payment Ceases Automatically | December 31, 2024, unless eligibility criteria are updated and confirmed |
About FTB and Its Purpose
The Family Tax Benefit, administered by Services Australia, consists of two parts:
- FTB Part A: Paid per child to help with the cost of raising children.
- FTB Part B: Paid to single parents or families with only one main income.
FTB supports families until children reach specific milestones, such as completing Year 12 or turning 16–19 years old while meeting certain eligibility criteria. The completion of Year 12 is a key trigger point where FTB payments may reduce, stop, or require additional documentation to continue.
For families relying on FTB, understanding these changes can help avoid disruptions in payments and ensure compliance with Centrelink requirements.
Understanding FTB Changes After Year 12
Once your child completes Year 12, the automatic eligibility for FTB Part A and FTB Part B may no longer apply. Here’s what typically happens:
- FTB Part A: Payments may continue only if the child meets certain conditions, such as being in further education or training (e.g., TAFE or an apprenticeship). Otherwise, payments will cease at the end of the calendar year in which they complete Year 12.
- FTB Part B: This payment is generally more impacted as it supports single-income households or single parents. If the child is no longer considered dependent, the entitlement may stop entirely.
Parents should be proactive in understanding these changes, especially if their child transitions into tertiary education, apprenticeships, or the workforce.
Eligibility Requirements Post-Year 12
Eligibility for FTB after Year 12 depends on the child’s next steps. To maintain payments:
- Child’s Age: The child must be under 20 years old and pursuing full-time secondary education.
- Further Education: Enrolment in a tertiary preparation course, TAFE, or an approved apprenticeship can extend FTB eligibility.
- Dependent Status: The child must still be considered dependent, living at home, and not earning above the income threshold set by Centrelink.
Special Circumstances:
- If your child has a disability or special needs, FTB may continue under specific provisions.
- For children taking a gap year, payments typically stop unless they meet specific criteria (e.g., registering for Youth Allowance).
Steps for Parents: Reporting Changes to Centrelink
To avoid payment interruptions, parents must inform Services Australia about their child’s status after completing Year 12.
Key Actions to Take:
- Update Household Details: Log in to your MyGov account linked to Centrelink and report any changes, such as your child’s education or employment status.
- Provide Documentation: Submit proof of continued education or training if your child is pursuing further studies.
- Review Income Estimates: Ensure your family’s income estimate is accurate, as overestimating or underestimating can affect FTB payments.
- Check Eligibility for Other Benefits: If your FTB entitlements cease, explore other options like Youth Allowance or Austudy for your child.
Failure to report changes promptly could lead to overpayments, which Services Australia will require you to repay.
Conclusion
The completion of Year 12 marks a significant transition for students and families, bringing with it important changes to Family Tax Benefit (FTB) entitlements. Parents must stay informed about these adjustments, report changes promptly, and explore alternative support programs if necessary.
By understanding eligibility requirements and adhering to deadlines, families can navigate this transition smoothly, ensuring they continue to receive the financial support they need. For more information, visit the Services Australia website or consult a Centrelink representative.
FAQ’s
Q: What happens if my child is taking a gap year?
A: FTB payments generally stop if your child is not pursuing full-time education or training. You may need to explore alternatives like Youth Allowance.
Q: Can I receive FTB if my child starts an apprenticeship?
A: Yes, FTB may continue if the apprenticeship is recognized as an approved program by Services Australia.
Q: How do I know if my payments will stop?
A: Check your MyGov account regularly for updates or contact Services Australia directly for clarification.