This topic shows the calculation of the approved care CCB adjustment percentage (1.1.A.40) for an individual with 2 nonschool 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
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 
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 parttime percentage (1.1.P.50):  Result: As the children are nonschool children in LDC for 40 hours per week, the parttime percentage is 100%. 
100 
5 
Determine the schooling percentage (1.1.S.20):  Result: As the children are nonschool children (1.1.S.15), the schooling percentage is 100%. 
100 
6 
Determine the adjustment percentage:  Take the schooling percentage.  Multiply by the parttime 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.
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Last reviewed: 1 July 2013