A bonus for families with school-aged children

back to school 150x150 A bonus for families with school aged childrenThe Schoolkids Bonus scheme came into effect on 1 July 2012 however the federal government has decided to abolish the scheme from 1 January 2017.

Until the scheme is closed, families with school-aged children who qualify for Family Tax Benefit (FTB) Part A will automatically receive $422 for each primary school child and $842 for each high school child.

The bonus will also be payable to families who don’t receive FTB Part A if they have school-aged children and receive the Youth Allowance, Disability Support Pension, ABSTUDY Living Allowance or education allowances under the Veterans’ Children Education Scheme or Military Rehabilitation and Compensation Act Education and Training Scheme.

The total amount will be split into two payments made January and July each year. While the payment is now automatic and there’s no need to keep or lodge any paperwork, the bonus is effectively means tested. The base rate of the FTB Part A reduces once a family’s adjusted taxable income reaches $94,316 a year (plus $3,796 for each FTB child after the first). The actual income at which it cuts out depends on the number and ages of children in a family.

To better explain, consider the following:

Cameron and Stacey have a combined adjusted taxable income in 2015/16 of $98,500. They have two children, aged 10 and 12 years old. Their FTB Part A entitlement cuts out at $109,427. As their income is below this amount they are eligible for FTB Part A and will automatically receive the Schoolkids Bonus provided their income continues to be below the relevant threshold.

Patrick and Louisa have a combined adjusted taxable income in 2015/16 of $160,000. They have three children, aged 11, 14 and 16 years old. Their FTB Part A entitlement cuts out at $147,971. As their income exceeds this amount, they are not eligible for the payment and will not receive the Schoolkids Bonus unless their circumstances change.

Sending your kids to school comes with its expenses. Call (07) 3040 4840 and speak to a licensed financial adviser to see what other forms of assistance may be applicable to you and your family.


Disclaimer:

The advice on this site may not be suitable to you because it contains general information that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.  Please also refer to our general advice warning under contact us tab on our website.  The article is based on information available at the time of writing only and therefore care should be taken as to the accuracy of the content.

Image courtesy of [ nuttakit] at FreeDigitalPhotos.net

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