The Government is providing additional financial assistance to families who rely one main income earner. This includes, sole parent families and two‑parent families where one parent chooses to stay at home or balance some paid work with caring for children.
The Bonus will be a one‑off payment of $900 per family to every family entitled to Family Tax Benefit Part B (FTB‑B), irrespective of the number of children. The one‑off payment will be made in the fortnight commencing 11 March 2009 for families who receive their family assistance as fortnightly instalments.
Questions and Answers
Who will this payment assist?
- It is expected that around 1½ million families entitled to FTB-B on 3 February 2009 will benefit from the Single-Income Family Bonus.
How much is the payment?
- The payment is $900 for each eligible family. It will not be taxable or included for social security income‑testing purposes.
When and how will it be paid?
- The one‑off Bonus will be automatically paid by Centrelink in the fortnight commencing 11 March 2009 for families who receive their family assistance as fortnightly instalments, or as soon as practicable thereafter.
- For families who receive their family payments as a lump sum at the end of the financial year, the one‑off payment will be made with the rest of their FTB‑B payment. The timing of these payments will depend on when families claim.
Some families will also benefit from the Tax Bonus for Working Australians, why are additional payments being made to these families?
- A payment to FTB‑B entitled families will provide additional support to families who rely on one main income earner. Dual income households with similar incomes will generally receive the benefit of two Tax Bonuses.
Will separated parents who are not the primary carer of a child receive the payment?
- Family Tax Benefit is paid to the parent who is the primary carer of a child. This payment will go to that parent. Normal rules that apply to the sharing of Family Tax Benefit will apply to this payment, that is, where there is shared care, and a parent has at least 35 per cent of care, the payment will be shared according to the percentage of care.
What is the family income cut off for FTB-B?
- FTB‑B is limited to families (single parent or couple) where the primary earner has an adjusted taxable income of $150,000 per year or less.
- Single parents automatically receive the maximum amount of FTB‑B if they have an income of $150,000 per year or less.
- For two‑parent families where the highest income earner has an income of $150,000 per year or less, it is the income of the lower earner that affects how much FTB‑B the family will receive.
- Eligible two‑parent families can still receive some FTB‑B if:
- their youngest child is aged under five years and the lower earner has income less than $22,995 per annum; or
- their youngest child is aged between five and 18 years and the lower earner has income less than $17,904 per annum.
Can the payment be income managed?
- The legislation enabling the one‑off payment will also ensure that where a person's government payments are income managed, the one‑off payment will be managed.
Why has the Government lowered the Bonus by $50?
- The Government has made some amendments to the Nation Building and Jobs Plan to ensure the passage of this important Plan. This includes making some changes to the size of some of the targeted payments – to ensure the package remains fiscally responsible.
- This adjustment balances the requirement for fiscal responsibility with the need to deliver fiscal stimulus now.
- This does not fundamentally alter the balance, the intentions, or the careful design of the package.