|
|
|
|
|
This topic provides an example of the shared care rate calculation for FTB Part A and FTB Part B where an individual shares the care of their FTB child with another person who is not their partner.
Note: From 1 July 2008, the term 'shared care' only applies where a parent/carer has care of an FTB child between 35% and 65% of the relevant care period. An FTB shared care percentage will be used to work out a parent's FTB Part A rate. The FTB shared care percentage will be worked out as shown in the table below:
| No. of nights care (annually) | Percentage of care | FTB shared care percentage |
| 0 to 51 | 0% to less than 14% | Not eligible for FTB. |
| 52 to 127 | 14% to less than 35% | Not eligible for child related components of FTB. Eligible for RA component and other government benefits. |
| 128 to 175 | 35% to less than 48% | 25% plus 2% for each percentage point over 35%. |
|
Example: If an individual has care of a child for 40% of the time, their FTB shared care percentage is calculated as follows: 25 + [(40 - 35) x 2] = 35% | ||
| 176 to 189 | 48% to 52% | 50% |
| 190 to 237 | More than 52% to 65% | 51% plus 2% for each percentage point over 53%. |
|
Example: If an individual has care of a child for 60% of the time, their FTB shared care percentage is calculated as follows: 51 + [(60 - 53) x 2] = 65% | ||
| 238 to 365 | More than 65% to 100% | 100% |
The rate calculations are used to illustrate the principles of sharing a rate. See the references given below for more detailed information about applying the FTB income tests for FTB Part A Method 1 and Method 2 and FTB Part B.
Policy reference: FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts, 3.1.4 FTB Part A Rate Calculation - Method 1, 3.1.8 FTB Part A Rate Calculation - Method 2, 3.1.9 FTB Part B Rate Calculation, 3.1.7 Maintenance Income Test
Hilary has 2 FTB children, Daniel aged 3, and Jessica aged 8. Hilary has full care of Jessica, and shares the care of Daniel with her ex-partner Matt. Her percentage of care for Daniel has been determined to be 58%. Hilary's ATI is $5,146, and her current partner's ATI is $95,626.
The following tables show how to calculate Hilary's rate of FTB Part A and FTB Part B.
|
FTB Part A rate | ||
|
Step |
Action |
Amount |
|
1 |
Determine the FTB child rate (1.1.F.57) for each child under Method 1 and Method 2. |
Method 1 $4,423.80 Method 2 $1,416.20 each for Daniel and Jessica |
|
2 |
Determine percentage of care for Daniel. |
Hilary 58%; Matt 42% |
|
3 |
Determine FTB shared care percentages. |
Hilary 61%; Matt 39% |
|
4 |
Multiply the rate for Daniel by Hilary's FTB shared care percentage. |
Method 1 $4,423.80 x 61% = $2,698.52 Method 2 $1,416.20 x 61% = $863.88 |
|
5 |
Add the FTB child rate for Jessica. The result is Hilary's standard rate. |
Method 1 $2,698.52 + $4,423.80 = $7,122.32 Method 2 $863.88 + $1,416.20 = $2,280.08 |
|
6 |
Determine the FTB Part A Supplements for Daniel and Jessica. |
Daniel $726.35 x 61% = $443.07 Jessica $726.35 |
|
7 |
Multiple birth allowance. |
Not eligible |
|
8 |
LFS or RA. |
Not eligible |
|
9 |
Maximum rate (including supplement). |
Method 1 $8,291.74 Method 2 $3,449.50 |
|
10 |
Apply ATI test Method 1 - Income excess = ATI less the income free area: $95,626 - $47,815 = $47,811 - Reduction for ATI = 20% of the income excess: $47,811 x 20% = $9,562.20 - Income tested rate: $8,080.18 - $9,854.20 = nil Method 2 Income excess = ATI less the higher income free area: $95,626 - ($94,316 + $3,796) $98,112 = Nil income reduction |
Rate using Method 1 = nil
Rate using Method 2 = $3,449.50 |
|
11 |
Maintenance income test is not applicable. | - |
|
12 |
Hilary's rate of FTB Part A is the higher of the rates worked out using Method 1 and Method 2. | $3,449.50 |
|
FTB Part B rate | ||
|
Step |
Action |
Amount |
|
1 |
Determine standard rate of FTB Part B payable for Jessica as if she was the only FTB child. |
$2,624.35 |
|
2 |
Determine percentage of care for Daniel |
Hilary 58%; Matt 42% |
|
3 |
Determine FTB shared care percentages |
Hilary 61%; Matt 39% |
|
4 |
Determine the standard rate of FTB Part B payable for Daniel as if he was the only FTB child. |
$3,763.15 |
|
5 |
Multiply the rate for Daniel by percentage of care = $3,763.15 x 61% This is the shared standard rate of FTB Part B for Daniel. |
$2,295.52 |
|
6 |
Compare the rate for Jessica to the shared rate for Daniel. The higher of the 2 rates is the standard rate payable. Hilary's standard rate is the amount worked out for Jessica. |
$2,624.35 |
|
7 |
Calculate the maximum FTB Part B rate by adding the FTB Part B Supplement. If the individual has at least one unshared FTB child, the rate of FTB Part B Supplement is the FTB Part B gross supplement amount. |
$2,624.35 + $354.05 = $2,978.40 |
|
8 |
Hilary is not a single parent, therefore the ATI test must be applied. | |
|
9 |
The FTB Part B income test is applied to the income of the secondary earner (1.1.S.25). - Income excess = ATI less the income free area: $5,146 - $5,037 = $109 - Reduction for ATI = 20% of the income excess: $109 x 20% = $21.80 - Income tested rate of FTB Part B: $2,978.40 - $21.80 |
$2,956.60 |
|
Hilary's total amount of FTB |
= FTB Part A + FTB Part B |
|
|
= $3,449.50 + $2,956.60 |
|
|
= $6,406.10 |
_______________________________________________________
Last reviewed: 2 July 2012
