1.1.M.27 Maximum weekly benefit (CCB)

Definition

For the purposes of CCB, a recipient's MWB is the maximum amount of CCB they could receive in a week for a particular kind of care (1.1.T.70) provided to a child. MWB is used in calculating a recipient's:

The figures in this topic relate to the current income year (for CCB purposes this takes effect on the first Monday in July: 3 July 2017 to 1 July 2018). Information for previous income years is located in 3.6.5.30.

Explanation: Elements used to calculate the MWB are subject to indexation; for CCB purposes this takes effect on the first Monday of the income year. A week for the purposes of CCB and CCR commences on a Monday.

Act reference: FAAct Schedule 2 clause 4(2) Standard hourly rate-basic meaning, Schedule 4 clause 2 Indexed and adjusted amounts, Schedule 4 clause 3 CPI Indexation Table, section 3(6) A week, for the purposes of CCB…

Policy reference: FA Guide 3.5.2.20 Calculating the Approved Care Adjustment Percentage

Methods of determining MWB

There are 3 methods of determining the MWB. These methods are explained in the rest of this topic. The following table shows which method applies according to:

  • the number of children in the type of care, and
  • whether the recipient's ATI (1.1.A.20) exceeds the upper income threshold (1.1.I.70).
If the number of children in care is… And the family's ATI is… Then refer to…
only one, any amount, Method 1.
2 or 3, below the upper income threshold, Method 1.
4 or more, below the upper income threshold, Method 2.
more than one, above the upper income threshold, Method 3.

Method 1

The following table shows the calculation of the MWB, if:

  • there is one child in care and a family's ATI is any amount, or
  • there are 2 or 3 children in care and a family's ATI is below the upper income threshold.
Number of children Family's ATI Calculation of MWB
1 any amount

Standard hourly rate (1.1.S.100) $4.30

Multiply by 50

2 below upper income threshold

Standard hourly rate $4.30

Multiply by 100

Add $19.32 (multiple child loading for 2 children)

3 below upper income threshold

Standard hourly rate $4.30

Multiply by 150

Add $56.14 (multiple child loading for 3 children)

Method 2

The following table shows the 2 steps in calculating the MWB if:

  • there are 4 or more children in care, and
  • a family's ATI is below the upper income threshold.
Step Action
1

Determine the MWB for 3 children in the type of care:

Standard hourly rate $4.30

Multiply by 150

Add $56.14

Result: MWB for 3 children in the type of care = $701.14

2

Determine the MWB:

MWB for 3 children in the type of care

Add, for each child after the third:

- standard hourly rate ($4.30) × 50, and

- ($56.14 ÷ 3) (additional multiple child rate loading)

Result: MWB.

Method 3

The following table shows the 2 steps in calculating the MWB if:

  • a family's ATI is above the upper income threshold, and
  • there is more than one child in care.
Step Action
1

Determine the specific taper amount (1.1.S.95):

Calculate the income excess (1.1.I.30) as if the family's ATI is the upper income threshold.

Multiply by the relevant taxable income taper percentage (1.1.T.40).

($105,263 − $45,114) ÷ 52 × 15% = $173.51

Result: specific taper amount.

2

Determine the MWB:

- For 2 or 3 children in same type of care use method 1.

- For 4 or more children use method 2.

Then: subtract the specific taper amount.

Result: MWB.

Act reference: FAAct Schedule 2 clause 11 Maximum weekly benefit

Last reviewed: 3 July 2017