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This topic shows, in 2 tables, how the adjustment percentage (1.1.A.40) is calculated to determine CCB entitlement (1.1.E.30) for an individual using approved care (1.1.A.90). Calculating the adjustment percentage is complex and it is advisable to do this as the first step in calculating CCB entitlement. To calculate the adjustment percentage, an individual's MWB (1.1.M.27) must be determined in one of 3 ways, depending on the:
The adjustment percentage calculation in this topic is shown in the following 2 tables:
The formula for determining CCB entitlement for approved care is detailed in the first referenced topic. Examples of how to calculate the adjustment percentage are detailed in the other referenced topics.
Act reference: FAAct Schedule 2 clause 2 Adjustment percentage
Policy reference: FA Guide 3.5.2.10 CCB Overall Rate Calculation - Approved Care, 3.5.2.70 CCB Adjustment Percentage Example - 1 Child, Income below Upper Threshold, 3.5.2.80 CCB Adjustment Percentage Example - 4 Children, Income above Upper Threshold, 3.5.2.90 CCB Adjustment Percentage Example - 2 Children, Income above Upper Threshold
The following table shows the 5 steps in the calculation of an individual's MWB.
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Step |
Action |
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1 |
Is ATI under the lower income threshold (1.1.I.70)? - If yes, the taxable income percentage is 100%. Go to step 5. - If no, go to step 2. |
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2 |
Does the family receive income support (1.1.I.50)? - If yes, the taxable income percentage is 100%. Go to step 5. - If no, go to step 3. |
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3 |
Determine the weekly income excess: - Determine the income threshold. (1.1.I.70). - Deduct the income threshold from ATI. - Divide by 52 to express as a weekly amount. - Result: Weekly income excess. |
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4 |
Determine the weekly taper amount: - Weekly income excess. - Multiply by the income taper percentage. See (1.1.I.60) Income taper percentage (CCB) to determine the income taper percentage. - Result: Weekly taper amount. |
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5 |
Determine the MWB: - See (1.1.M.27) to determine the MWB. |
The following table shows the 6 steps in the calculation of an individual's adjustment percentage.
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Step |
Action |
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1 |
Determine the taxable income percentage: - Divide the weekly taper amount by the relevant MWB and express the result as a percentage. - Deduct the resulting percentage from 100%. - Result: Taxable income percentage. |
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2 |
Determine the multiple child percentage: - Take the MWB for one child in that type of care (1.1.T.70). - Multiply by the number of children in that type of care. - Result: Single child rate. - Divide the family's MWB by the single child rate and express the result as a percentage. - Result: Multiple child percentage. |
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3 |
Determine the CCB percentage: - Take the multiple child percentage. - Multiply by the taxable income percentage. - Result: CCB percentage. |
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4 |
Determine the part-time percentage: Is the child: - a non-school child, and - in LDC (1.1.T.70) for less than 38 hours per week? If yes, go to (1.1.P.50) Part-time percentage (CCB) to determine the part-time percentage. If no, go to step 5. |
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5 |
Determine the schooling percentage: Is the child a non-school child? If yes, the schooling percentage is 100%. If no, the schooling percentage is 85%. |
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6 |
Determine the adjustment percentage: - Take the schooling percentage. - Multiply by the part-time percentage. - Multiply by the CCB percentage. - Result: Adjustment percentage. |
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Last reviewed: 2 July 2012
