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The following table shows possible shared care situations for FTB and where you will find more information.
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Situation |
Detail |
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Two or more individuals (1.1.I.90) share the care of an FTB child, and the individuals are not members of the same couple (1.1.M.50) during the period of the claim, |
This topic. |
| A person shares the care of a child with another person, other than the partner, for 14 to less than 35% of the time and has no other FTB children, |
RA may be payable under Method 3. FA Guide 3.1.4.30 Rent Assistance |
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A blended family (1.1.B.30) where members of the same couple each have at least one FTB child from a previous relationship, |
3.1.1.32 Sharing FTB in Blended Families |
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Two individuals who have separated both claim FTB for a past period when they were members of the same couple. |
3.1.1.34 Shared Rate of FTB for Separated Couples |
This topic provides information about sharing FTB between individuals who are not members of the same couple and who share the care of an FTB child. It covers the following:
From 1 July 2008 FTB can only be shared when at least 2 individuals care for the same child between 35 and 65 per cent of the care period.
A determination must be made under section 59 of the A New Tax System (Family Assistance) Act 1999 to share FTB if more than one individual cares for a child. The determination must specify a shared care percentage for each individual, based on the pattern of care (1.1.P.70) for the care period (1.1.C.100). A determination of shared care has an effect on the following FTB rate components:
Act reference: FAAct section 59 Shared care percentages where individual is FTB child of 2 people who are not members of the same couple, Schedule 1 clause 11 Sharing FTB (shared care percentages), Schedule 1 clause 38E Rate of RA payable to individual who is a relevant shared carer or who has one or more regular care children
Policy reference: FA Guide 3.1.1.10 Calculating a Rate of FTB - Overview, 2.1.1.25 Shared Care of an FTB Child
Once a determination has been made to share FTB, it can only be paid in the specified proportion, even if FTB is not payable to one of the applicants/recipients.
Example: Brian and Natasha have a son Sam, aged 10. Brian and Natasha are separated and each care for Sam 50% of the time. They both receive FTB at 50% of the standard rate for one child under 13. Brian has been promoted and expects his income to be $130,000 per year. Brian no longer satisfies the income test for FTB. Natasha is still only eligible for 50% of the standard rate for a child under 13, and is subject to her own ATI reduction as her family income is $45,000.
From 1 July 2008, FTB entitlement may not be transferred. A person with less than 35% share of care is not entitled to child-related components of FTB and therefore does not have any entitlement to transfer. Previously, FTB could be transferred between parents/carers as long as the person wishing to transfer entitlement had as least 10% but less than 30% share of entitlement.
If the care of one or more MBA child(ren) is shared, the rate of MBA for each child is shared according to the FTB shared care determination. The following table shows how to calculate a shared rate of MBA.
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Step |
Action |
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1 |
Work out the amount of MBA payable per child by dividing the MBA rate payable by the number of MBA children. |
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2 |
Work out the shared proportion of MBA for each child by multiplying the MBA rate payable for the child by the individual's FTB shared care percentage for that child. |
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3 |
Add the shared proportion of MBA for each child to give the total amount of MBA payable to each recipient. |
Example: Kelly and Michael have 4 year old triplets. After they separated they agreed to share the care of Susan 35%/65%, Kerry 50%/50% and Richard 60%/40%. Both Kelly and Michael have an entitlement to FTB and MBA as their shared care percentage is a least 35% for each child.
Kelly's share of MBA is worked out as follows:
Susan: ($3,467.50 / 3) x 35% = $404.54
Kerry: ($3,467.50 / 3) x 50% = $577.92
Richard: ($3,467.50 / 3) x 60% = $693.50
Total MBA rate for Kelly = $1,675.96
Michael's share of MBA is worked out as follows:
Susan: ($3,467.50 / 3) x 65% = $751.29
Kerry: ($3,467.50 / 3) x 50% = $577.92
Richard: ($3,467.50 / 3) x 40% = $462.33
Total MBA rate for Michael = $1,791.54
Act reference: FAAct Schedule 1 clause 38 Sharing MBA (determinations under section 59A)
RA and LFS are not shared. RA is paid at the relevant rate to each eligible recipient. This means that each eligible parent/carer receives the full amount of RA, subject to any reduction due to income or maintenance income rate to each eligible recipient.
Explanation: The shared care percentage is only applied to the standard rate of FTB, FTB supplements and MBA. RA and LFS are not included in the standard rate.
Example: Kathy and Rex have 5 children. They have separated and share the care of all of their children. Both Rex and Kathy receive instalments of FTB. Rex pays private rent for his accommodation, and is entitled to receive RA. Rex's FTB rate includes a shared care proportion of FTB Part A and Part B, the full amount of LFS and the relevant shared care rate of RA taking into account 5 FTB children. Kathy receives a shared care proportion of FTB Part A and Part B as well as the full amount of LFS taking into account 5 FTB children.
The following table shows how to calculate the FTB Part A rate payable to each person when the care of the FTB child is shared.
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Step |
Action |
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1 |
Determine the FTB child rate (1.1.F.57) payable for each FTB child of the individual under Method 1 and Method 2. |
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2 |
Determine the percentage of care for each FTB child for each individual. |
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3 |
Work out the FTB shared care percentage (3.1.1.31) |
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4 |
Multiply the FTB child rate for each child by the FTB shared care percentage for that child. The result is the shared care rate for the child payable to the individual. |
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5 |
Add the shared care rates payable for all FTB children of the individual. The result is the person's standard rate of FTB Part A. |
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6 |
Work out the individual's rate of FTB Part A supplement (percentage applicable). |
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7 |
Work out the individual's rate of MBA (percentage applicable). Refer to this topic to calculate the rate of MBA. |
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8 |
Work out the individual's rate of LFS, and RA if applicable. LFS is paid at the full rate to each eligible parent and RA may be paid at the relevant rate for each eligible parent. Note: RA is only payable under a Method 1 calculation. |
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9 |
Add the standard rate of FTB Part A, FTB Part A supplement, MBA, LFS and RA. This is the maximum rate. |
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10 |
Apply the income test for Part A using Method 1 and then Method 2. |
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11 |
Apply the maintenance income test to the rate worked out using Method 1 under Step 6. |
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12 |
Compare the Method 1 rate to the rate worked out under Method 2. The Part A rate payable is the higher of the 2 rates. The result is the individual's rate of FTB Part A. |
Act reference: FAAct Schedule 1 clause 11 and Schedule 1 clause 27 Sharing FTB (shared care percentages)
Policy reference: FA Guide 3.1.1.31 Shared Care - Example of Rate Calculation, 3.1.1.20 Current FTB Rates & Income Test Amounts, 3.1.4 FTB Part A Rate Calculation - Method 1, 3.1.7 Maintenance Income Test, 3.1.8 FTB Part A Rate Calculation - Method 2
The following tables show how to calculate the FTB Part B rate payable to each individual when the care of an FTB child is shared.
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Step |
Action |
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Individual has one FTB child, and care is shared | |
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1 |
Work out the FTB Part B standard rate payable according to the age of the youngest child. |
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2 |
Work out the percentage of care for that child. |
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3 |
Work out the FTB shared care percentage for the child (3.1.1.31). |
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4 |
Multiply the standard rate by the FTB shared care percentage for the child. |
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5 |
Work out the rate of FTB Part B supplement by multiplying the gross supplement amount by the FTB shared care percentage for the child. |
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6 |
Work out the FTB Part B maximum rate by adding the results of Steps 4 and 5. |
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7 |
If the individual is a single parent, the result from Step 6 is the person's rate of FTB Part B. If the individual is partnered, go to Step 8. |
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8 |
Apply the income test for Part B to the result from Step 6. The result is the individual's rate of FTB Part B. |
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Step |
Action |
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Individual has more than one FTB child, and care is shared | |
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1 |
Work out the FTB Part B standard rate payable for each of the FTB children of the individual whose care is not shared, as if they were an only child. |
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2 |
Work out the percentage of care for each of the shared care children. |
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3 |
Work out the FTB shared care percentage for each of the shared care children (3.1.1.31). |
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4 |
Work out the standard rate for each shared care FTB child as if they were an only child. |
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5 |
Multiply the result from Step 4 for each child by the FTB shared care percentage for that child. If the individual is partnered, go to Step 6. |
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6 |
Compare the results from Step 1 and Step 5. The highest rate payable for any of the FTB children is the individual's standard rate of FTB Part B. |
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7 |
If the individual has 100% of at least one FTB child, the rate of FTB Part B supplement is the FTB Part B gross supplement amount. If the individual has only shared care of FTB children, their FTB Part B supplement amount is the highest rate resulting from multiplying the FTB shared care percentage for each child by the FTB Part B gross supplement amount. |
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8 |
Work out the individual's FTB Part B maximum rate by adding the FTB Part B supplement amount from Step 7 to the individual's standard rate from Step 6. |
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9 |
If the individual is a single parent, the result from Step 8 is the person's rate of FTB Part B. If the individual is partnered, go to Step 10. |
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10 |
Apply the income test for Part B to the result from Step 8. The result is the individual's rate of FTB Part B. |
Act reference: FAAct Schedule 1 clause 31 Sharing FTB (determination under subsection 59(1))
Policy reference: FA Guide 3.1.1.31 Shared Care - Example of Rate Calculation, 3.1.1.20 Current FTB Rates & Income Test Amounts, 3.1.9 FTB Part B Rate Calculation
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Last reviewed: 1 July 2010
