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3.5.2.90 CCB Adjustment Percentage Example - 2 Children, Income above Upper Threshold

Summary

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 $99,000 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

 

Calculating the MWB

The following table shows the 5 steps in calculating the individual's MWB.

Step

Action

$

1

ATI of $99,000 is above the upper income threshold (1.1.I.70) of $97,632.

-

2

The family does not receive income support (1.1.I.50) nor is it in an employment income nil rate period.

 

3

Determine the weekly income excess:

- Determine the income threshold

- Deduct the income threshold from ATI

= $99,000 - $97,632

- Divide by 52 to express as a weekly amount.

- Result: Weekly income excess

 

97,632.00

 

1,368.00

 

26.31

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

26.31

 

6.58

5

Determine the MWB:

- Calculate the income excess as if the family's ATI is the upper income threshold

= ($97,632 - $41,902) ÷ 52

= $55,730 ÷ 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

= ($3.99 x 100) + $17.92

- Deduct the specific taper amount.

- Result: MWB

 

 

 

 

1,071.73

160.76

 

 

 

416.92

160.76

256.16

 

Calculating the adjustment percentage

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

= ($6.58 ÷ $256.16) x 100

- Deduct the resulting percentage from 100%.

- Result: Taxable income percentage

2.57

 

97.43

2

Determine the multiple child percentage:

- Take the MWB for one child in that type of care (1.1.T.70)

= ($3.99 x 50)

= $199.50

- Multiply by the number of children in that type of care = 2

- Result: Single child rate = $399.00

- Divide the family's MWB by the single child rate and express the result as a percentage

= ($256.16 ÷ $399.00) x 100

- Result: Multiple child percentage

64.20

3

Determine the CCB percentage:

- Take the multiple child percentage.

- Multiply by the taxable income percentage.

- Result: CCB percentage

 

64.20

97.43

62.55

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

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

62.55

62.55

 

The individual may choose to round down their CCB percentage from 62.55% to 62%. This option was introduced in January 2003.

_______________________________________________________

Last reviewed: 1 July 2013


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Last Edited: 31/07/2013 1:31:50 PM


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