Prior to 1 July 2008, the total FTB payment could be shared between both members of a blended family couple. The rest of this topic covers FTB policy for blended families prior to 1 July 2008 and include:
If each member of a couple in a blended family wanted to be paid FTB separately, a determination to share FTB between them was made. The total amount of FTB payable for the family was calculated, and then each person was paid a percentage of the total amount. This was regardless of how many immediate children (1.1.B.30) each person had - the payment was not calculated on a per child basis. Each child in a blended family was taken to be an FTB child of both members of the couple.
A determination to share FTB was made before the payment could be shared. The effect of the determination was to divide the rate that would be payable to one member of a couple in a blended family between both members of the couple. The total payment was therefore the same as if it was not shared.
The couple had to nominate the percentage of FTB they each wanted to receive. If they could not agree on the split, the total rate of FTB was divided by the number of immediate FTB children of each individual. The percentage of FTB for each member of the couple would be rounded to the nearest whole percent, starting with the highest percentage. The percentages must not exceed 100%.
Example: Susan and Mike had 3 children between them in a blended family. As each had specific expenses for their own children, they decided that they wanted to share their FTB, although they had not been able to agree on the percentage each of them should be paid. Susan had 2 immediate children, and Mike had one immediate child. Their share of the rate of FTB would be worked out as follows:
Susan's percentage of rate: 2/3 x 100 = 67%
Mike's percentage of rate: 1/3 x 100 = 33%
Either or both members of a couple in a blended family could share the care of an FTB child with another individual outside the family. The blended family rate was worked out after the total rate of FTB was calculated, taking into account the shared care determination.
Explanation: This means that the total rate of FTB was worked out taking into account any shared care arrangements before working out the shared rate in the blended family.
Example: In 2006-07, Karl and Rosa had 5 children in a blended family. Karl had 3 immediate children. He shared their care with their mother, 40% for each child. Rosa has 2 immediate children. She had full care of one, and 70% care of the other. Karl and Rosa's total rate of FTB would be calculated by taking into account 40% of the FTB child rate for each of Karl's children, and 70% and 100% of the FTB child rates for Rosa's children respectively. The income test would be applied to their standard rate which is the sum of the FTB child rates. The income-tested rate was then divided according to the percentage of the rate that Karl and Rosa had agreed upon as a couple in a blended family.
The following table shows how to calculate the FTB rate payable when both members of a couple in a blended family claim FTB.
|Work out the rate of FTB Part A and FTB Part B that would be payable as if only one member of the couple claimed FTB.|
|Work out the percentage of FTB for each member of the couple, ensuring that the percentages add up to 100%.|
|Multiply the total rate of FTB Part A and FTB Part B by the percentage derived from step 2. The result is the rate of FTB Part A and FTB Part B payable to each member of the couple.|
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 Methods 1 and 2, and FTB Part B.
Policy reference: FA Guide 22.214.171.124 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
Last reviewed: 1 July 2011