Services Australia reminded families on 26 October 2026 that Family Tax Benefit (FTB) may change when a child finishes school. For a household that counts FTB as part of its income, the timing is awkward: the end of Year 12 is also when many families start looking at a car, either for the school leaver or to replace the family vehicle. This piece sets out when FTB stops, how large the gap can be and what to line up before a car loan application. It is general information, not financial advice.
When Family Tax Benefit stops after Year 12
Services Australia's rules for a child aged 16 to 19 who stops full time study or school (checked 31 October 2026) set out the timing:
- If your child completes Year 12 or an equivalent qualification before November, FTB for that child stops 28 days after they finish.
- If they complete it in November or December, FTB for that child stops on 31 December.
- If your child stops studying before completing Year 12, you need to update their study end date, or you could be overpaid.
- If your child claims their own income support payment early, your FTB for them stops. If that new payment will not start until the next year, Services Australia says to call the Families line, as it may be able to restart your FTB until 31 December.
The same page says FTB Part B for single parents, non parent carers and grandparent carers may be paid until the end of the calendar year in which the child turns 18, while the child is in full time secondary study or exempt from the study requirements. A child who cannot study full time because of a medical condition, disability, serious illness or exceptional circumstances may be exempt, which can mean FTB continues.
For a student who finishes Year 12 exams in November, the practical date is 31 December 2026. A lender assessing an application in December may still see that FTB on a current Centrelink income statement, but the income ends within weeks.
How much income the change can remove
Services Australia's FTB Part A payment rates (page updated 1 July 2026, checked 31 October 2026) list a maximum rate of $306.46 a fortnight for each child aged 13 to 15, and for each child aged 16 to 19 who meets the study requirements. The base rate is $75.60 a fortnight for each child. Your actual rate depends on your family income, care arrangements and children, so use the figure on your own statement.
Our worked example, using those published rates and 26 fortnights a year:
- At the maximum rate: $306.46 x 26 = $7,967.96 a year, or about $664 a month.
- At the base rate: $75.60 x 26 = $1,965.60 a year, or about $164 a month.
In loan terms, $664 a month is roughly the repayment on a $32,700 car loan at an assumed 8% a year over five years, before fees. On the same assumptions, $164 a month is roughly the repayment on $8,100. These are illustrative calculations, not quotes: actual rates depend on the lender, the loan and your credit history. Our guide to how car loan repayments are calculated shows the method.
The FTB Part A supplement, up to $970.90 for each eligible child for 2026-27, is paid after your payments are balanced at the end of the financial year. Services Australia says the amount depends partly on the number of days you were eligible for FTB Part A, so it can also be smaller for a child whose FTB ends on 31 December.
Why the timing matters for a car loan application
Moneysmart says lenders look at your income, bills and other commitments, and that responsible lending obligations mean a lender cannot lend if it thinks you will not be able to make the repayments. How a lender treats FTB is its own credit policy, not law. As our guide to Centrelink payments and car finance explains, some lenders may count FTB for dependants within qualifying age ranges and others exclude it.
That leaves two practical points for a family applying around the end of Year 12:
- If FTB for a child who is about to finish school is part of the income on your application, say when it ends. Income that stops on 31 December is not ongoing income, and a budget built on it can come up short in January.
- If your budget works without that FTB, it is a firmer base for choosing a loan amount and term. You can test repayments against your January income with our loan calculators.
A checklist before you apply
- Check your child's study end date in your Centrelink online account through myGov, using Services Australia's guide to updating your child's education details.
- Note the date FTB for that child will stop: 28 days after they finish if that is before November, or 31 December for a November or December finish.
- Take your fortnightly FTB for that child from your latest statement, not the maximum rate.
- Rebuild your budget without it, including any FTB Part B change if you are a single parent or carer.
- Look at what your child may be able to get in their own right on Services Australia's leaving secondary school page, keeping in mind that an early claim can stop your FTB for them.
- Size the loan from the income you will have in January, then compare car loan rates and lender profiles before applying.
If the car is for the school leaver
A first car for a Year 12 finisher raises a separate question: whose loan it is. A loan in a parent's name is assessed on the parent's own income and commitments, which from January may no longer include FTB for that child. If you are thinking about guaranteeing your child's loan instead, our guide to guarantor car loans explains what a guarantor takes on. When the numbers are clear, you can start a car loan enquiry with income you can document for the full term.
