Maintenance income test | CLIK

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Maintenance income test

The maintenance income test applies when assessing a person's entitlement to Family Tax Benefit. A threshold amount of income (the maintenance income free area) is allowed, with each dollar of maintenance income above the threshold reducing FTB Part A payments by 50 cents. The maintenance income test also applies to child-related payments in respect of DVA saved children.

 

 

Family Tax Benefit A is a payment made by the Family Assistance Office to assist families with the cost of raising children. It replaces Minimum Family Allowance, Family Allowance, Family Tax payment Part A and Family Tax Assistance Part A.

According to subsection 5K(1) of the VEA, maintenance income in relation to a person, means:

  • child maintenance — that is, the amount of a payment or the value of a benefit that is received by the person for the maintenance of a maintained child of the person and is received from:
  • a parent of the child, or
  • the partner or former partner of a parent of the child, or
  • partner maintenance — that is, the amount of a payment or the value of a benefit that is received by the person for the person's own maintenance and is received from the person's partner or former partner, or
  • direct child maintenance — that is, the amount of a payment or the value of a benefit that is received by a maintained child of the person for the child's own maintenance and is received from:
  • a parent of the child, or
  • the partner or former partner of a parent of the child,

but does not include disability expenses maintenance.

 

 

From 1 January 1998 responsibility for administration of most income support child related payments was transferred to  Centrelink. However, saving provisions allow any person in receipt of service pension or income support supplement on 31 December 1997 who would be or is financially disadvantaged by the transfer to continue having their child related payments paid by DVA. Saved children are assessed under the rules contained in the VEA as at 31 December 1997.

 

 

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