Hundreds of thousands of Australian families with older teenagers are set to benefit from next Tuesday’s Federal budget.

They will receive more than $10,000 a year due to changes in the family tax benefit that encourages teens to stay in school.

Clare Hunter reports.


Parents have long been aware of the cost of living with teens and now the government has caught on.

Julia Gillard will deliver her election promise extending the maximum rate of the Family Tax Benefit Part A to families with a teenager up to nineteen years old.

Presently the benefit is cut off once dependents reach 16.

Julia Gillard, Prime Minister: “Even in a tight budget we are working hard to put resources into those things that truly matter, those things that, as Prime Minister I want to see change about our country.”

The cash bonus means an extra $4,200 a year for eligible teens who remain in school.

It reinforces the Government’s position that teenagers earn or learn.

And there’s more good news for low income families who could be eligible for up to $3,600 a year in rent assistance.

The opposition describes the cash handout as another ploy to buy votes.

Joe Hockey, Shadow Treasurer: “You can’t on one hand talk tough and on the other hand hand out cheques to people, it doesn’t work like that.”

This is the third family friendly promise from the Government this week the full Budget will be announced next Tuesday.

Clare Hunter QUT News.