Why do I owe Centrelink money for Family Tax Benefit?

FTB is paid fortnightly based on the family income estimate you give Centrelink. After you and your partner lodge tax returns, Services Australia balances what you were paid against your entitlement at your actual adjusted taxable income. If you earned more than your estimate — a pay rise, overtime, a bonus, or a partner returning to work — you were paid too much FTB, and the difference becomes a debt.

How do the FTB supplements offset a debt?

The FTB Part A supplement (up to $970.90 per child in 2026-27, only if your family's adjusted taxable income is $80,000 or less) and the FTB Part B supplement (up to $478.15 per family in 2026-27) are only paid after balancing. If you were overpaid during the year, the supplements are applied against the overpayment first — a small debt can be fully absorbed, meaning no bill but a smaller top-up. Source: Services Australia, checked 20 July 2026.

How do I update my family income estimate with Centrelink?

Sign in to myGov, open Centrelink, then go to My Family, Family income estimate, Update income estimate — or use the Express Plus Centrelink app. Updating your estimate changes your FTB rate for the rest of the year only; it does not claw back what has already been paid, so the earlier you update, the smaller any debt.

What income counts for FTB reconciliation?

Adjusted taxable income: taxable income plus reportable fringe benefits, reportable superannuation contributions, net investment losses, and certain foreign income — for both partners. Many FTB debts come from forgetting the add-backs, not just from underestimating salary.

Family Tax Benefit Debt Checker

FTB is paid on an income estimate, then balanced against your real income after tax time — underestimating creates a debt. Project where you will land at reconciliation and whether your year-end supplements will absorb it.

Last verified: 20 July 2026Jump to calculator ↓

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