Reform of family payments from 1 July 2009
From 1 July 2009, as a cost reduction measure, the FTB –A payment rates will be indexed by the Consumer Price Index (CPI) consistent with other family payment such as FTB-B and the Baby Bonus. Currently the maximum rates of FTB-A for children under the age of 16 are benchmarked to the higher of a proportion of the combined couple rate of pension payments, or CPI.
The upper income threshold for FTB-A, FTB-B, dependency tax offsets and the Baby Bonus will remain at its current level until July 2012. These thresholds would ordinarily be indexed by CPI.
The following upper thresholds will remain:
| Benefit Type | Income purpose | Cut off threshold |
| Family Tax Benefit Part B | Income of primary income earner | $150,000 |
| Dependency tax offset | Income of taxpayerclaiming the offset | $150,000 |
| Baby Bonus | Combined family income in the six months following the birth of the child | $75,000 |
| Family Tax Benefit Part A | Combined family income before losing entitlement | $94,316 (plus $3,796 for each additional child) |
