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There are two types of Family Tax Benefit, Part A and Part B. In order to obtain either of these you must meet an income test.
Income for the purposes of eligibility is based on Adjusted Taxable Income (ATI), which includes your taxable income (gross income less allowable deductions) plus reportable fringe benefits, net income losses from rental property/investments and reportable superannuation contributions (e.g. salary sacrifice).
Family Tax Benefit Part B (FTB Part B)
Family Tax Benefit Part B can be received as a fortnightly payment or as an annual tax offset. To be eligible for Family Tax Benefit Part B you must have:
• a dependent child aged under 16 years, or
• a qualifying dependent full-time student up to the age of 18 (who doesn’t get Youth Allowance or a similar payment), and
• Parents care for child for at least 35% of the time.
Example Example
Jason’s salary package is $125,000 per annum. He salary sacrifices $10,000 per annum to super and has a rental property to
which provides an income loss of $5,000 per annum. Jason also has ordinary work related deduction of $4,000 per annum.
On this basis Jason’s Adjusted Taxable Income (ATI) is calculated as:
Taxable income $106,000 (125,000 less salary sacrifice, rental loss & ordinary deductions)
Add backs
Reportable super contributions $ 10,000 (salary sacrifice)
Net Rental loss $ 5,000
Adjusted Taxable Income Adjusted Taxable Income $121,000 $121,000 $121,000
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