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Newsletter March 2009

Family Tax Benefit (FTB) is a payment received to assist in the cost of raising your dependent children. To be eligible for FTB you must:

• Provide care to a dependant child,
• Care for the child for a minimum of 10% of the time,
• Be an Australian resident for family assistance purposes.

There are two types of Family Tax Benefit (FTB). FTB Part A entitlements are based on a family's adjusted taxable income. FTB Part B entitlements are based a sole parent's adjusted taxable income (or in the case of a couple, the lower income earner). Adjusted taxable income (ATI) is the taxable income plus;

• taxable value of fringe benefits,
• net rental property losses,
• tax free pensions or benefits,
• child maintenance paid to another person.

A taxpayer will be eligible for family tax benefits if the adjusted taxable income (ATI) is below a threshold that is determined by the number and age of the children.

Family ATI at which FTB Part A stops;

	Number of dependent children aged 18-24
No. of dependent children aged 0-17	0	1	2	3
0		99,244	110,595	122,823
1	97,845	109,196	121,424	133,651
2	107,797	120,025	132,252	144,480
3	118,625	130,853	143,080	155,308

Sole Parent or Lower income earner ATI at which FTB Part B stops;

Age of dependent child	ATI limit at which FTB Part B begins to phase out	Higher income earner limit or sole parent limit
Under 5	22,302	150,000
5-18 years	17,326	150,000

A more efficient method of calculation is to use the FTB calculator available at the ATO website http://www.ato.gov.au/individuals/content.asp?doc=/Content/10712.htm

1. Tax bonus for working Australians of up to $900

Eligibility;

• Australian residents who had adjusted income tax liability in 2008 financial year
• Lodge income tax return for 2008 by 30 June 2009
• Earn taxable income of less than $100,000.

Adjusted income tax liability: Is the sum of the income tax liability + medicare levy + medicare levy surcharge - tax offsets and imputation credits

Bonus amount

• $900 bonus with taxable income up to and including $80,000
• $600 bonus with taxable income exceeding $80,000 to $90,000
• $250 bonus with taxable income exceeding $90,000 to and including $100,000,

Payments will be made from April 2009.

2. Single income family bonus of $900

Eligibility;

• qualify for Family Tax Benefit Part B

Bonus amount

• $900 for each eligible family
  

Payment made in the fortnight commencing 11 March 09 for families who receive their family assistance as fortnightly instalments, or at the end of the financial year.

3. Training and learning bonus of $950

Eligibility;

• Eligible student social security recipients

• Category 1
  • 2009 only,           
  • One off $950 bonus for recipients at 3 February 2009  of Youth Allowance, Austudy, Abstudy, families entitled to FTB Part A for each eligible dependent full time student aged 21-24 and other student and related payments,
  • Not eligible if student attracts the ‘back to school’ bonus.

• Category 2
  • 1 January 2009 to 30 June 2010
  • Temporary supplement to the education entry payment of $950, which is paid to a range of social security recipients who are commencing study including new start allowance, and parenting payment partnered recipient.

4. Back to school bonus of $950

Eligibility;

• Eligible for FTB Part A with children between 4 - 18 on 3 February 2009
• Qualifying full time students aged 19 or 20 will not receive Back to school bonus or Training and learning bonus but will be eligible for $950 payment through an administrative scheme.

Bonus amount

• $950 per eligible child

5. Education tax refund (on going bonus)

Eligibility;

• eligible for FTB Part A
• The expense is one of the following;

• computer for home use or use in an educational institution,
• computer related equipment,
• computer software, or internet connection,
• school text books, other paper based school learning material,

Bonus amount

• The lesser of the offset limit;

• $375 for primary school students
• $750 for secondary school students
• or 50% of the eligible expenses