Families benefit from payment rises
Millions of Australian families receiving Family Tax Benefit (FTB) and Child Care Benefit (CCB) will benefit from increases to payment rates, thresholds, and associated limits, following annual adjustments from the beginning of July 2008.
Together with the Rudd Government’s substantial Budget measures, this will help relieve the financial pressure on families, particularly those raising children.
Rates, thresholds and limits will increase by 3 per cent in line with increases to the CPI for the year to December 2007.
As a result of indexation, families will benefit from increases to rates of payment such as:
- The maximum rate of payment for FTB Part A (excluding supplement) will increase by $7.84 per fortnight to $196.84 for each eligible child between 13 and 15 years of age.
- The maximum rate of payment for FTB Part B (excluding supplement) will increase by $3.78 per fortnight to $128.80 for each eligible family in which the youngest child is under five.
- The maximum rate of CCB for 1 child using full time approved child care will increase by $5.00 per week to $173.50.
In addition, the Rudd Government is delivering an ambitious and critical reform agenda to provide affordable and accessible quality child care and universal access to preschool.
The Government has committed to increasing the Child Care Tax Rebate from 30 per cent to 50 per cent of out-of-pocket child care costs for working families, with the total amount available per child rising from $4,354 to $7,500.
Families will also benefit from the Rudd Government’s changes to Baby Bonus. From 1 July 2008 the Baby Bonus will increase to $5,000.
These initiatives complement the strong support for working families outlined recently in the Government’s Budget, most importantly the $46.7 billion of tax relief over the next four years.
The Rudd Government is introducing a $4.4 billion Education Tax Refund to help low to middle income families with the costs of educating their kids.
This will provide families receiving FTB Part A with up to $375 a year for each child in primary school and $750 a year for each secondary school child.