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Centrelink & Payments

Centrelink Changes From 1 July: Family Payments and Higher Limits

By Anita Bell, Founder & Senior Bookkeeper · Published 1 July 2026 · Updated 2 July 2026

Family Tax Benefit rates and income limits rose from 1 July 2026 under the standard annual indexation cycle for family payments. Part A climbed to $235.48 a fortnight per child under 13, and the Part B primary earner income limit lifted to $124,327.

A father packs school lunch boxes at the kitchen bench while two young children eat breakfast behind him

Key facts

What changedDetail
FTB Part A — per child under 13$235.48/fortnight
FTB Part A — per child 13–15$306.46/fortnight
FTB Part B — youngest under 5$200.34/fortnight
FTB Part B — youngest 5 and over$139.86/fortnight
FTB Part B primary earner limit$124,327

Family Tax Benefit rates from 1 July

Family Tax Benefit Part A's maximum rate rose to $235.48 a fortnight for each child under 13 and $306.46 for each child aged 13 to 15, up a few dollars on last year's rates. Family Tax Benefit Part B, paid to single parents and single-income couple families, rose to $200.34 a fortnight where the youngest child is under 5, and $139.86 where the youngest is 5 or older. Both parts index every 1 July, in line with the financial year, so families see the new rate in their first payment of the new financial year rather than partway through it.

The exact amount a family receives depends on the number and ages of children, whether they're on the maximum rate or a part rate under the income test, and any supplementary payments like the FTB Part A supplement, paid after the end of the financial year once your tax return confirms your actual family income.

Income limits moved too

Alongside the rate rises, the Family Tax Benefit Part B primary earner income limit lifted to $124,327 for 2026-27 — families where the primary earner earns more than that aren't eligible for Part B at all. Family Tax Benefit Part A's income-free areas and taper thresholds were indexed on the same date, which can lift the payment for some families already receiving a part rate, and may bring some higher-income families back into eligibility for at least a small payment.

Why family payments index in July, not March

Family Tax Benefit and related family assistance payments run on the financial year, so they're indexed each 1 July. That's a different cycle to pension-type payments like the Age Pension, JobSeeker and Carer Payment, which index every 20 March and 20 September, and to student payments like Youth Allowance and Austudy, which index each 1 January. Running three separate indexation cycles across the year means Centrelink payment rates are essentially always being reviewed for some category of recipient, even though any single payment only moves once or twice a year.

Do you need to do anything

Existing Family Tax Benefit recipients get the higher rate automatically from their first payment after 1 July 2026 — there's no need to reapply. If your family income has dropped below the new, higher Part B limit and you weren't previously eligible, or you have a new baby or changed care arrangements, you'll need to lodge or update a claim through myGov to start receiving the payment. It's also worth confirming your family income estimate for the new financial year is accurate, since an outdated estimate can lead to an overpayment that Centrelink claws back at tax time.

What this means for your pay

Family Tax Benefit sits alongside your take-home pay rather than through it, but a change in household income can shift how much you're entitled to. If you're weighing up extra shifts, a pay rise, or returning to work after parental leave, use our take-home pay calculator to see your new after-tax income, and the Parental Leave Pay guide if you're also weighing government-funded leave against family payments.

Frequently asked questions

What Family Tax Benefit rates changed on 1 July 2026?

Family Tax Benefit Part A's maximum rate rose to $235.48 a fortnight for each child under 13 and $306.46 for each child aged 13 to 15. Family Tax Benefit Part B's maximum rate rose to $200.34 a fortnight where the youngest child is under 5, and $139.86 where the youngest is 5 or older.

Did the Family Tax Benefit income limits also rise?

Yes. The Family Tax Benefit Part B primary earner income limit rose to $124,327 for 2026-27 — above that, a family isn't eligible for Part B at all. Part A income-free areas and taper thresholds were also indexed, following the standard annual 1 July cycle for family assistance payments.

Why are family payments indexed on 1 July, not March?

Family Tax Benefit and related family assistance payments run on the financial year and are indexed each 1 July, unlike pension-type payments such as Age Pension and JobSeeker, which are indexed every 20 March and 20 September on a separate, calendar-based cycle.

Do I need to do anything to get the higher FTB rate?

No. Services Australia applies the indexed rates automatically to ongoing Family Tax Benefit recipients from the first payment after 1 July 2026. If you're not currently claiming but think you're now eligible under the higher income limits, you'll need to lodge or update a claim through myGov.

Sources & References

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