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This topic shows the calculation of the approved care CCB adjustment percentage (1.1.A.40) for an individual with 2 non-school children (1.1.S.15) in LDC for 40 hours per week. The family's ATI (1.1.A.20) is $97,000 per year. The adjustment percentage is determined by calculating the:
Act reference: FAAct Schedule 2 clause 2 CCB rate calculator
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 individual's MWB.
|
Step |
Action |
$ |
|
1 |
ATI of $97,000 is above the upper income threshold (1.1.I.70) of $95,530. |
- |
|
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 = $97,000 - $95,530 - Divide by 52 to express as a weekly amount. - Result: Weekly income excess |
95,530.00
1,470.00
28.27 |
|
4 |
Determine the weekly taper amount: - Weekly income excess. - Multiply by taxable income taper percentage (1.1.T.40) of 25% - Result: Weekly taper amount |
28.27
7.06 |
|
5 |
Determine the MWB: - Calculate the income excess as if the family's ATI is the upper income threshold = ($95,530 - $41,026) ÷ 52 = $54,504 ÷ 52 - Multiply by the relevant taxable income taper percentage of 15% - Result: Specific taper amount (1.1.S.95)
- Take the MWB that would apply if the family's ATI was below the upper income threshold = ($3.90 x 100) + $17.53 - Deduct the specific taper amount. - Result: MWB |
1,048.15
157.22
407.53 157.22 250.31 |
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 = ($7.06 ÷ $250.31) x 100 - Deduct the resulting percentage from 100%. - Result: Taxable income percentage |
2.82 97.18 |
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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) = ($3.90 x 50) = $195.00 - Multiply by the number of children in that type of care = 2 - Result: Single child rate = $390.00 - Divide the family's MWB by the single child rate and express the result as a percentage = ($250.31 ÷ $390.00) x 100 - Result: Multiple child percentage |
64.18 |
|
3 |
Determine the CCB percentage: - Take the multiple child percentage. - Multiply by the taxable income percentage. - Result: CCB percentage |
64.18 97.18 62.37 |
|
4 |
Determine the part-time percentage (1.1.P.50): - Result: As the children are non-school children 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 children are non-school children (1.1.S.15), the schooling percentage is 100%. |
100 |
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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 |
100 100 62.37 62.37 |
The individual may choose to round down their CCB percentage from 62.37% to 62%. This option was introduced in January 2003.
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Last reviewed: 2 July 2012
