This topic explains how to calculate the percentage of care when 2 or more individuals (1.1.I.90) share the care of an FTB child and they have not provided the FAO with an agreed percentage of care or there is disagreement over the percentage of care. The percentage of care is calculated taking into account the pattern of care (1.1.P.70) over the care period (1.1.C.100).
Note: From 1 July 2010, an assessment of shared care that is determined by either the FAO for FA purposes or the CSA for child support purposes will have effect for the other agency in relation to care periods that begin on or after this date. This means where a care percentage has been determined by the CSA, that determination will be aligned for the purpose of FA and will be applied in determining the individual's care percentage for FTB. The FAO will not need to determine the care percentage unless there has been a change in the care arrangements and a new care determination is required. The CSA use the same rules to verify shared care arrangements as the FAO (184.108.40.206).
This topic includes the following:
The processes of establishing the pattern of care, and calculating the rate of FTB are covered in separate topics.
The pattern of care to be used in the shared care determination is either the pattern agreed to by all carers of the child or, if there is no such agreement, the pattern of care as established by the decision maker for the care period. A care period is the period over which care is assessed to determine the care percentages for each carer. A care period begins on the day on which the care of a child starts to be shared between 2 or more adults, or the day on which the pattern of care changes and ends when there is a subsequent change in care. It should be noted that a care period will generally be a 12 month period from the commencement of the care arrangements and the same care arrangements will be assumed to apply for subsequent 12 month periods, unless otherwise advised. A care period may be shorter than 12 months where care arrangements are unsettled and change on a regular basis.
Example 1: Angus and Julie have agreed to care arrangements for Claire on a 50/50 basis for the 4 month period from 1 November to 28 February. They have agreed to review this at the end of February, as Angus has extensive work engagements that may mean he will not be able to provide care at the same level. At the beginning of March, Angus and Julie agree that Julie will provide care of Claire for 65% of the nights in the period from 1 March to 31 October, and Angus for 35% for that period. The FAO is advised during March of the new care arrangements. The care period from 1 November to 28 February based on the 50/50 shared care arrangement comes to an end and a new care period based on the new care percentages of 65% for Julie and 35% for Angus begins from March. These new care percentages will continue to apply until a further change is notified.
Example 2: Julie and Ken have recently separated and are uncertain about the ongoing care arrangements for their child, Joel, over the longer term. In the period immediately after separation, from June to November, Julie and Joel's grandmother Prue care for him equally. Julie, Prue and Ken all share care of Joel equally from December to February and Julie and Ken share care equally from March to May. Even though Julie has provided continuous care for a 12 month period there are 3 separate care periods because the proportion of care each person has provided has changed twice.
Depending on the circumstances, there may also be more than one care period operating simultaneously in relation to different children being cared for by the same carer.
Example: Sam shares care of her son John on a 50/50 basis with John's other parent Bruce and this is an arrangement that is assessed over ongoing 12 month periods to May each year. Sam also shares care of her daughter Fiona with Fiona's other parent Karen. As Sam and Karen have recently separated, their caring arrangements for Fiona are on a 50/50 basis for a trial 6 month period. Although these percentages are agreed between Sam and Karen, the care arrangements are variable, which they have indicated to the FAO. As they separated on 15 February, their care period runs until 14 August. If no further advice is received from Sam or Karen, the FAO may decide to continue the care period from 15 August on an ongoing 12 month basis from then.
Having established the pattern of care during the care period, the number of nights in care (1.1.N.15) is divided by the number of days in the care period and multiplied by 100 to arrive at a percentage.
Example: Colin's parenting plan (1.1.P.20) states that his daughter Anne is to stay with him during the Easter and mid-year school holidays, in addition to other regular care on an ongoing basis. Over the 12 month care period, Colin cares for Anne for 147 nights, which is divided by 365 and multiplied by 100 to get a care percentage of 40%. Colin is eligible for 35% of the standard FTB rate (1.1.S.103).
From 1 July 2008, new rounding rules for care percentage took effect. For care below 50%, care level must be rounded down to the nearest whole number. However, for care levels of 50% and above, care percentage must be rounded up to the nearest whole number.
Example: Ken has care of his 2 children 127 nights a year with his ex-partner Michelle having care of the children the remaining 238 nights. Ken's percentage of care is determined to be 34.8% (127/365 x 100) and Michelle's percentage is 65.2% (238/365 x 100). As Ken's care percentage is below 50, his level of care is rounded down from 34.8% to 34% while Michelle's percentage is rounded up from 65.2% to 66%. This means Ken is not eligible to receive FTB (child related components) and Michelle receives 100% of the FTB payment.
If there are more than 2 carers and one of them has a level of care lower than 35% that person is deemed not to have an FTB child. Their share of care may be apportioned between the other carers who have at least 35% each provided all carers for the care period have been identified and included in determining care percentages. If there is another eligible carer who has not claimed, their share of entitlement cannot be apportioned.
Example: Karen, Ben and Edith share the care of Tom. Karen has 40%, Ben has 36% and Edith has 24% actual care. Edith has less than 35% care of Tom and is therefore not entitled to receive FTB. However, as Edith has more than 14% care, Tom is considered her regular care child. As Karen and Ben each have more than 35% actual care, they are each entitled to FTB for Tom. To apportion the unclaimed 24% between Karen and Ben, use the following calculation method:
Note: Apportioning of FTB where there is a carer who has less than 35% care does not affect the actual care determination. All carers will still have their care percentages assessed. For child support purposes, the information that is sent to CSA will include care percentage information on all carers who have a child support assessment.
Act reference: FAAct section 25 Effect of FTB child being in individual's care for less than 35% of a period
The percentage of care for each person for a care period is applied to the standard rate of FTB Part A and FTB Part B for that person. As each carer's circumstances are different, the rate of FTB may differ even when they have the same percentage of care.
Policy reference: FA Guide 220.127.116.11 Shared Care Rate for FTB
Anna and Bill have a parenting plan (1.1.P.21) setting out the care arrangements for their 3 children, Alyce, Brian and Clara. Both Anna and Bill have claimed FTB instalments. The care period is the 12 month period starting 1 August, and the following percentages of care have been worked out based on the plan:
On 5 November Anna contacts the FAO and advises that the pattern of care for Alyce and Clara has changed from 1 November. Anna gives details of the new arrangements. The new pattern of care is expected to continue indefinitely. The FAO contacts Bill, and he confirms the arrangements notified by Anna. The care arrangements for the new care period beginning from 1 November are:
The care arrangements for Brian have not changed.
The percentages of care for the new care period from 1 November to 31 October are worked out as follows:
The care percentages are applied until a subsequent change in care is reported.
Allan and Beth do not have a parenting plan or agreed percentages of care regarding the care arrangements of their children Ashley and Carol. Their pattern of care was assessed on the basis of the care arrangements they both advised. Both Allan and Beth have been receiving instalments of FTB. Allan advises that their care arrangements have changed to the following:
Beth agrees that this arrangement is ongoing. The percentages of care for the new care period are worked out as follows:
The percentages of care for the new 12 month care period are worked out as follows:
Kate and Paul do not have a formal care arrangement (1.1.C.05) specifying care for their child. They have been unable to agree to an ongoing pattern of care. They both receive FTB instalments, and their care arrangements have been assessed by the FAO based on the evidence they provided. Every time there is a variation to their assessed percentage of care they notify the FAO and a new assessment is made.
Paul applies to the Family Court for a parenting order, which comes into effect from 1 July. Paul notifies the FAO of the formal care arrangement and provides a copy of the order. The FAO contacts Kate and confirms that she is caring for the children within the terms of the order. A determination is made to change the share of FTB each person receives to reflect the parenting order.
The following percentages of care have been worked out based on the order:
Paul contacts the FAO on 6 August to advise that Kate has not been caring for the children since 2 August. When the FAO contacts Kate to confirm this she agrees that she has not cared for the children since 2 August but states this is because Paul is refusing to return the children to her. Kate applies to the Family Court for another hearing. As Kate has taken reasonable action to ensure compliance with a care arrangement, no reassessment of FTB is required and FTB may continue at the same rate for an interim period up to 14 weeks.
If after 14 weeks the children have still not been returned to Kate, the FAO must make a new determination of care. As Kate does not have the care of the children, Kate and Paul's FTB payments are reassessed according to the actual pattern of care that now applies. As Kate is not providing any care, Paul may be eligible to receive 100% of FTB for both children.
Note: In special circumstances, the interim period may be extended to up to 26 weeks.
Last reviewed: 1 July 2010