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:
- adjustment percentage (1.1.A.40),
- taxable income percentage (1.1.T.30), and
- multiple child percentage (1.1.M.70).
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