Supporting families with teenagers

Under significant reforms from 1 January 2012, Federal Labor will increase the maximum payment rate of Family Tax Benefit Part A (FTB-A) by more than $150 per fortnight for teenagers aged 16 to 18 years who are in school or an equivalent vocational qualification.

These reforms will help families make ends meet and help with cost of living pressures. There are around 650,000 teenagers turning 16 over the next five years whose families will benefit.

Why are we doing this?

The Gillard Labor Government recognises that families with older teenage children can face higher costs. The cost of groceries, clothes and family activities can all increase as children grow.

But under the existing system, the maximum rate of FTB-A drops from $208 per fortnight to $51 per fortnight when a child turns 16. Rent Assistance also stops when a child turns 16.

This sharp drop in family support can encourage teenagers to leave school early if their family is unable to support them in full-time study or training.

What are we doing?

The new maximum rate of FTB-A for 16 to 18 year olds will increase to $208 per fortnight, leading to a total amount of $6,161 per year. 1 This is the same rate as applies for 13 to 15 year olds. Other eligibility conditions for 13 to 15 will also continue to apply for these 16 to 18 year olds.

Supporting families with teenagers - Fact Sheet