What exists instead is a set of separate supports. Eligibility depends on household income, child age, care arrangements, residency and family circumstances. This guide covers the 2026-27 figures (rates reset 1 July 2026). Check Services Australia before relying on any number, as rates and thresholds change.
Key Takeaways
- Family Tax Benefit, Parenting Payment, Newborn payments, Child Care Subsidy and Parental Leave Pay are separate programs.
- You don't need personal wages for family assistance, but household income tests still apply.
- US Child Tax Credit rules and the old "baby bonus" don't apply to your Australian return.
- Update income estimates promptly to avoid overpayments at balancing time.
Understanding the "Stay-at-Home Mum Tax Credit" in Australia
Three different things get lumped together under one phrase:
- Tax offsets and credits: administered by the ATO, applied when you lodge a return.
- Centrelink payments: Family Tax Benefit, Parenting Payment, newborn payments and Parental Leave Pay, administered by Services Australia.
- Childcare subsidy: Child Care Subsidy (CCS), set by the Department of Education and claimed through Services Australia.
US articles on the Child Tax Credit or proposed payments for stay-at-home parents describe US law. None of it applies automatically in Australia. The old spouse (without dependent child or student) tax offset was also abolished from 1 July 2014, so there's no general offset for a non-earning partner.
Figures below use 2026-27 rates, with 2025-26 shown only for comparison. Confirm current amounts on the ATO and Services Australia pages.
What Financial Support May Be Available to Stay-at-Home Parents?
Family Tax Benefit Part A
FTB Part A is paid per child. A dependent child must be 15 or younger, or 16 to 19 and meeting secondary-study requirements. You generally need at least 35% care, and you must meet income and residence tests.
From 1 July 2026, per DSS rates:
| Item | Amount |
|---|---|
| Maximum rate, child under 13 (per fortnight) | $235.48 |
| Maximum rate, 13-15 or eligible student 16-19 | $306.46 |
| Base rate | $75.60 |
| Annual supplement | Up to $970.90 |
The maximum rate reduces by 20c per dollar above $69,131. Above $123,078, a further 30c per dollar test applies. Actual cut-offs depend on family composition.
Family Tax Benefit Part B
Part B supports single-parent and single-main-income families. It is paid per family, not per child.
Couples with one main income generally need a youngest child under 13. Single parents can qualify until the calendar year the youngest child turns 18, with full-time secondary study at 16-18.
- Maximum rate: $200.34 a fortnight (youngest under 5) or $139.86 (youngest 5-18)
- Annual supplement: up to $478.15 per family
- Single parent or primary earner limit: $124,327
- Secondary earner free area: $7,154, then 20c per dollar
Not every stay-at-home mum qualifies. A partner's income can reduce or cancel entitlement.
Newborn Upfront Payment and Newborn Supplement
You generally need to be eligible for FTB Part A, with the birth registered or registration applied for. From 1 July 2026, the upfront payment is $708 per child.
The supplement is paid over up to 13 weeks, to a maximum of $2,125.76 for a first child or $709.80 for later children. Both are non-taxable.
If either parent receives Parental Leave Pay for the child, no newborn payments are available. You can claim FTB up to three months before the expected birth.
Child Care Subsidy
CCS is about approved care and fee liability, not whether a parent stays home. You need at least 14% care of the child and must be liable for approved care fees.
Since 5 January 2026, the 3 Day Guarantee gives every eligible family at least 72 hours of subsidised care a fortnight, including non-working parents. It does not guarantee a place or remove gap fees.
From 6 July 2026, the subsidy is 90% up to $88,520 family income, falling 1 percentage point per $5,000 to nil at $538,520.
Parenting Payment and related assistance
Parenting Payment is an income support payment, not a tax credit. Only one principal carer gets it. The youngest child must be under 14 if you're single, or under 6 if partnered. Income and assets tests apply.
From 20 September 2026, the single maximum basic rate is $1,037.50 a fortnight. The partnered rate is $755.10. Check state or territory concessions separately with your state government.
How Eligibility Is Determined
Household income and the income test
Services Australia uses adjusted taxable income (ATI). ATI covers:
- Taxable income and foreign income
- Net investment losses
- Reportable fringe benefits and reportable super contributions
- A partner’s income, plus business or self-employment income
- Parental Leave Pay
Child age, care and family circumstances
Care percentage drives FTB:
- 35-65%: shared entitlement
- More than 65%: can give 100%
- Below 35%: no FTB for that child
CCS uses a different care threshold of 14%.
Residency and visa requirements
FTB claimants and children must meet living-in-Australia and status rules. Qualifying status includes citizenship, a permanent visa, a Special Category visa, or specified temporary visas.
FTB Part A generally has a one-year waiting period for newly arrived residents; FTB Part B has none. Australian tax residency is a separate test, so meeting one does not satisfy the other.
Work status and the parent's own income
Having no wages is not a complete test on its own. FTB and CCS look at family income, not only the stay-at-home parent’s wages. Parenting Payment also applies an assets test, and Parental Leave Pay requires past work.
Changes that must be reported
Tell Services Australia as soon as possible if:
- You start or end a relationship
- Care arrangements change
- You or your partner start a job or business
- Your income estimate changes
- A child reaches an age limit
- You travel or move overseas
Australian Family-Support Changes to Check in 2026
Paid Parental Leave changes
For births or adoptions from 1 July 2025, leave is up to 120 days. From 1 July 2026 it rises to 130 days (26 weeks), with 20 days reserved for the partner in couples.
The 2026-27 rate is $200.94 a day, and it is taxable. You need to have worked 10 of the previous 13 months and at least 330 hours.
FTB Part A can continue. FTB Part B is unavailable on PPL days, and newborn payments don't apply to the same child.
Annual indexation and updated thresholds
- FTB and newborn rates reset on 1 July 2026
- Parenting Payment indexes on 20 March and 20 September
- CCS thresholds and hourly caps change on 6 July 2026
Childcare and claiming-process updates
The 3 Day Guarantee replaced the previous activity test. Families with more than 48 hours of recognised activity a fortnight can access 100 hours. Check the Department of Education for the latest.
How to Claim and Avoid Common Mistakes
Start with the correct government service
- Sign in to myGov and link Centrelink (you'll need two identity documents and a Medicare card).
- Select "Make a claim", then "Families".
- Choose "Apply for Family Assistance Payments (including Paid Parental Leave)".
Don't use unofficial "tax credit" websites.
Prepare supporting information
- Identity and residency details
- Children's birth or adoption evidence
- Care percentages and relationship status
- Partner details
- Income estimates
- Childcare provider details
Estimate and update family income carefully
Payments are based on your estimate, then balanced against actual income. Underestimate and you may owe money back, which can be recovered from tax refunds, supplements or lump sums.
Overestimate and you may be underpaid until balancing. Confirm 2025-26 income by 30 June 2027.
Keep tax and Centrelink records separate
| Payment | Tax treatment |
|---|---|
| FTB A and B | Not taxable |
| Newborn payments | Not taxable |
| CCS | Exempt income |
| Parenting Payment (single) | Declare in pensions and allowances |
| Parenting Payment (partnered) | Taxable |
| Parental Leave Pay | Taxable |
Non-taxable doesn't remove your income-confirmation duties with Services Australia.
When professional tax support may help
If you run a family business, are self-employed or have overseas income, your family income estimate gets harder.
VJM Global provides tax compliance and accounting support for Australian businesses. It doesn't make Centrelink decisions or promise any benefit, but it can help keep your business income records clean.
Frequently Asked Questions
Can I claim child care expenses on taxes?
No. The ATO treats child care and before or after school care as private expenses. Help comes through Child Care Subsidy instead.
What is the Newborn Upfront Payment and how can I qualify?
It is a Services Australia payment of $708 per child from 1 July 2026. You need FTB Part A eligibility and a registered birth. It isn't available if you receive Parental Leave Pay for that child.
What is the $3,000 baby bonus in Australia?
The Baby Bonus was abolished on 1 March 2014. The $3,000 figure related to second and later children under 2013 changes. Check Newborn payments instead of social-media claims.
What are the changes to paid parental leave in 2026?
From 1 July 2026, leave rises to 130 days, with 20 days reserved for a partner. Parental Leave Pay is separate from FTB and newborn payments.
How much will I get paid for family tax benefit?
It depends on Part A or B, family income, number and age of children, and care arrangements. Use the Services Australia Payment and Service Finder for an estimate.
