What is Family Tax Benefit Supplement?

The Supplement is an annual payment to families who have received the Family Tax Benefit  for some or all of the year. A payment is received for each child for who Family Tax Benefit is claimed. The amount paid will depend on whether care for the child is shared with someone else, and whether the child was born during the year.

The Supplement is paid after the family’s tax return is lodged. If the information about the family income provided in the tax return indicates that the family has been overpaid Family Tax Benefit during the year, the Supplement will be used to offset outstanding overpayments. If the family is not required to lodge a tax return, they need to advise the Family Assistance Office.

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Conversations with Families about the Supplement

For families on low incomes the supplement provides a substantial one-off payment. Some parents may experience pressure from older children to use the Supplement to purchase the latest consumer goods, regardless of other financial pressures on the household.

Knowing that families will be receiving the payment after the end of the financial year, family workers may want to raise the Supplement in discussions with the primary carer in the family.

Some issues to look at include:

  • How much money will the family receive altogether?

  • What are the biggest financial issues the family faces? Could the money be used to address debts?

  • Can the money be used to avert a financial crisis in the coming year eg by replacing or repairing household items?

  • Could the money be used to give the children additional opportunities the family may find it difficult to afford such as dental or orthodontic treatment, a camp or school trip, or enrolment in sporting or other activities?

  • Are children in the family aware of the Supplement? Has the parent felt pressure about how it should be used? Who does the parent feel should be making decisions about the family income? How can they include children in discussions about the family budget, without giving in to ‘pester power’. 

  • If the parent does want to buy a significant item for the child, could this be a Christmas or birthday present rather than as a bonus gift for the child?