Families set to benefit from indexation increases

About 1.7 million families will soon receive a boost in their family payments to help them make ends meet.

Through indexation and the start of the Clean Energy Supplement for families, from 1 July the maximum rates of Family Tax Benefit Part A will increase by:

• $153.30 a year per child under 13, to $5,303.45 a year, including a Clean Energy Supplement of $87.60;
• $200.75 a year per child aged between 13 and 15, to $6,679.50 a year, including a Clean Energy Supplement of $113.15; and
• $200.75 a year per child aged between 16 and 19 attending school, to $6,679.50 a year, including a Clean Energy Supplement of $113.15.

The rate of Family Tax Benefit Part B will also increase by:

• $124.10 a year where the youngest child is aged under five, to $4,241.30 a year, including a Clean Energy Supplement of $69.35; and
• $91.25 a year where the youngest child is aged between five and 18, to $3,069.65 a year, including a Clean Energy Supplement of $51.10.

Certain pension thresholds and income and asset test free areas will also be increased in line with indexation, meaning more than 1.2 million part pensioners will be able to earn more income or own more assets before their pension is reduced.

The Gillard Government is delivering record levels of assistance to low and middle income families, while making sure our family payments system is strong and sustainable for the future.

This Labor Government has delivered:

• Australia’s first national Paid Parental Leave scheme;
• an increase to the Child Care Rebate from 30 to 50 per cent of out of pocket costs, up to $7,500 per child per year;
• the Schoolkids Bonus to help families with the cost of their children’s education;
• higher payments for families with teenagers to encourage them to stay in school;
• family payment increases as part of our Household Assistance Package; and
• tax cuts for millions of working families.

See the full details of all rates and thresholds to be indexed on 1 July.