Federal Budget – Family Tax Benefit Part B

By FutureNestEgg | June 19, 2008

Family Tax Benefit Part B is paid to single parent families or to two parent families where only partner has the main income (the other might be a stay-at-home partner or might work part time).

Prior to the Federal Budget 2008-09, the benefit you get depends on the following:

Two Parent Families:

1. The age of your youngest child
2. Income of the partner with the lower income (only the income of the partner earning the least out of the two is means tested). How much the other partner earns is irrelevant.

Single Parent Families

1. The age of your youngest child
2. No income test at all – maximum rate applied

Complete information about how much you can get from this benefit can be found at Family Tax Benefit Part B.

Changes in the Federal Budget 2008-2009

Two Parent Families: The benefit will only be paid if the partner earning higher income earns less than $150,000 per annum. Part B benefit directly and indirectly appreciates the efforts of stay at home mums and mums who work part time…Does this mean that the federal government is indicating that if you are rich then your efforts will not be rewarded?

Single Parent Families Single parents who earn more than $150,000 are no longer eligible for this benefit.

What are your thoughts about these cuts? Share your views….