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This topic shows the calculation of the approved care CCB adjustment percentage (1.1.A.40) for an individual with one non-school child (1.1.S.15) in LDC for 40 hours per week. The family's ATI is $55,000 per year. The adjustment percentage is determined by calculating the:
Act reference: FAAct Schedule 2 clause 2 Adjustment percentage
Policy reference: FA Guide 3.5.2.10 CCB Overall Rate Calculation - Approved Care, 3.5.2.20 Calculating the Approved Care Adjustment Percentage
The following table shows the 5 steps in calculating the recipient's MWB.
|
Step |
Action |
$ |
|
1 |
ATI of $55,000 is above the lower income threshold (1.1.I.70) of $41,026. |
- |
|
2 |
The family does not receive income support (1.1.I.50) nor is it in an employment income nil rate period. |
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|
3 |
Determine the weekly income excess: - Determine the income threshold - Deduct the income threshold from ATI = $55,000 - $41,026 - Divide by 52 to express as a weekly amount. - Result: Weekly income excess. |
41,026.00
13,974.00
268.73 |
|
4 |
Determine the weekly taper amount: - Weekly income excess - Multiply by taxable income taper percentage (1.1.T.40) = 10% - Result: Weekly taper amount. |
268.73
26.87 |
|
5 |
Determine the MWB: - See 1.1.M.27 to determine the MWB for the number of children in care. - Result: MWB. |
195.00 |
Policy reference: FA Guide 1.1.R.05 Receiving income support
SS Guide 3.1.12 Employment Income Nil Rate Period
The following table shows the 6 steps in calculating the individual's adjustment percentage.
|
Step |
Action |
% |
|
1 |
Determine the taxable income percentage: - Divide the weekly taper amount by the relevant MWB and express the result as a percentage = ($26.87 ÷ $195.00) x 100 - Deduct the resulting percentage from 100% - Result: Taxable income percentage. |
13.78
86.22 |
|
2 |
Determine the multiple child percentage: - Take the MWB for one child in that type of care (1.1.T.70) = ($3.90 x 50) = $195.00 - Multiply by the number of children in that type of care (1) - Result: Single child rate = $195.00 - Divide the family's MWB by the single child rate and express the result as a percentage = ($195.00 ÷ $195.00) x 100 - Result: Multiple child percentage. |
100 |
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3 |
Determine the CCB percentage: - Take the multiple child percentage. - Multiply by the taxable income percentage. - Result: CCB percentage. |
100 86.22 86.22 |
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4 |
Determine the part-time percentage (1.1.P.50): - Result: As the child is in LDC for 40 hours per week, the part-time percentage is 100%. |
100 |
|
5 |
Determine the schooling percentage (1.1.S.20): - Result: As the child is a non-school child (1.1.S.15), the schooling percentage is 100%. |
100 |
|
6 |
Determine the adjustment percentage: - Take the schooling percentage. - Multiply by the part-time percentage. - Multiply by the CCB percentage - Result: Adjustment percentage. |
100 100 86.22 86.22 |
The individual may choose to round down their CCB percentage from 86.22% to 86%.This option was introduced in January 2003.
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Last reviewed: 2 July 2012
