Summary
Impacts of Government proposals to cut family benefits
- 1.1 million families will lose FTB-A Supplements of $726 per child
- Even with the increase of $20 per fortnight, or $525 per year, they will still be $200 per child per year worse off. The increase won’t start until 1 July 2018.
- Around half of these are sole parents. o Around 500,000 of these families are on the maximum rate of FTB-A – meaning their family income is below $52,000.
- Around 300,000 families losing the supplement will not receive the increase to the fortnightly rate. Families on the base rate will not receive the increase – for a family with one child in primary school this would mean they had income over $68,000 per year. Families with one child in high school receive only the base rate if their income is over $75,000 per year.
- Supplements will begin to be phased out from 1 July 2016 – meaning this year’s payment will be reduced. Supplements will be fully phased out by 1 July 2018. The increase will not begin until then.
- 1.1 million families will lose the FTB-B supplement of $354 per family per year o Over 665,000 of these families are sole parents.
- Around 30,000 sole parents with children in high school aged 17-19 will lose FTB-B completely - $3,186 per family per year
