Can you get Family Tax Benefit and Carer Allowance together?
Yes. Family Tax Benefit and Carer Allowance are separate payments with separate tests, and many families receive both. Family Tax Benefit helps with the cost of raising a child. Carer Allowance recognises the extra daily care needed by a child or adult with a disability or medical condition. Carer Allowance is not taxable and is not counted as income for Family Tax Benefit.
A New Tax System (Family Assistance) Act 1999 (Cth)
Social Security Act 1991 (Cth)
Family Assistance Guide 3.2.6, Tax free pensions or benefits
Services Australia, Carer Allowance, Who can get it
Two payments, two Acts
Family Tax Benefit is paid under the A New Tax System (Family Assistance) Act 1999. Part A is paid per child and Part B gives extra help to single parents and single income families. Both are income tested on the family's adjusted taxable income. Carer Allowance is paid under the Social Security Act 1991 to a person providing additional daily care to someone with a disability, serious illness or frailty. It has its own income test based on adjusted taxable income, with a high family income threshold, and no assets test. Because they answer different questions, being paid one does not disqualify you from the other.
Does one affect the other
Carer Allowance is not part of your taxable income and it is not one of the tax free pensions or benefits that count in adjusted taxable income for Family Tax Benefit, so receiving it does not reduce your Family Tax Benefit. Family Tax Benefit likewise does not count towards the Carer Allowance income test. Carer Payment is different: if both the carer and the care receiver are under Age Pension age, Carer Payment counts as a tax free pension in adjusted taxable income for Family Tax Benefit. Foster and kinship carers should also note that state care allowances are generally not treated as income for either payment.
How to claim both
You can claim each payment through your Centrelink online account linked to myGov. For Family Tax Benefit, you provide an estimate of family income for the financial year and confirm actual income after 30 June, and Services Australia reconciles any difference. For Carer Allowance, the treating health professional completes a medical report, form SA431 for a child under 16. A child under 16 who qualifies for Carer Allowance also gets a Health Care Card. If your child has a disability, ask Services Australia about other supports too, such as the Child Disability Assistance Payment, and check whether an NDIS plan is appropriate for the child's needs.
For foster and kinship carers
Non parent carers can receive both payments for a child in their care. Family Tax Benefit is available to formal and informal foster, kinship and grandparent carers who meet the care and income requirements, and Carer Allowance can be claimed if the child has a qualifying disability or medical condition. Any care allowance paid by the state child protection department is a contribution to the child's costs and is generally not counted as income for either payment. If the child moves placement, tell Services Australia promptly because both payments follow the person providing care. Grandparent, Foster and Kinship Carer Advisers at Services Australia can help you sort out which payments apply.
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