Helping families raise their children

The Government’s record

This package builds on the Government’s previous measures to assist families, through the Family Tax Initiative in 1996 and through A New Tax System in 2000.

Since 1996 total assistance to families will have increased by over $6 billion a year. The base rate of family assistance has increased from less than $600 per child in January 1996 to almost $1,700 per child in July 2004 (see chart above), a real increase of over 100 per cent.

Family Tax Benefit, Part A

There will be an increase of $600 a year in the maximum and base rates of FTB (A) for each dependent child. This will benefit around 2 million families.

The $600 increase will be made available as a lump sum following the end of each financial year at the time that reconciliation of entitlement for the previous year occurs. For example, the $600 per child increase for 2003-04 will be paid to eligible families after July this year (in 2004-05) following reconciliation of their entitlement for 2003-04.

If required, the lump sum payment will be available to offset any overpayment of FTB that a family may have incurred during a previous year.

2003-04 lump sum payment to families

As well as the ongoing increase in FTB (A), all families receiving or eligible for FTB (A) in 2003-04 will receive an immediate lump sum payment of $600 per child. Over $2 billion will be paid to eligible families before 30 June 2004.

Most families will receive $600 before 30 June 2004 and be eligible for a further $600 per child after their 2003-04 reconciliation of entitlement — an additional $1,200 per child over the next 12 months.