3.1.1.30 Shared Care Rate for FTB
Summary
The following table shows possible shared care situations for FTB and where you will find more information.
Situation | Detail |
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Two or more individuals (1.1.I.90) share the care of an FTB child, and the individuals are not members of the same couple (1.1.M.50) during the period of the claim, | This topic. |
An individual shares the care of a child with another individual, other than the partner, for 14% to less than 35% of the time and has no other FTB children, | RA may be payable under Method 3.
3.1.4.30 Rent Assistance |
A blended family (1.1.B.30) where members of the same couple each have at least one FTB child from a previous relationship, | 3.1.1.32 Sharing FTB in Blended Families |
Two individuals who have separated both claim FTB for a past period when they were members of the same couple | 3.1.1.34 Shared Rate of FTB for Separated Couples |
This topic provides information about sharing FTB between individuals who are not members of the same couple and who share the care of an FTB child. It covers the following:
- determination to share FTB,
- shared rate of MBA,
- RA, NBS and NBU are not shared, and
- calculating the FTB Part A and Part B rate in shared care cases.
From 20 March 2017, the ES ceased for new FTB recipients. For individuals who became new recipients of FTB after 20 September 2016, they will no longer be paid ES after 19 March 2017. However, eligible individuals and ACOs may continue to be paid ES as part of their FTB rate under grandfathering rules. See 8.2.
From 1 July 2016, the FTB Part A supplement is not payable when the combined ATI is more than $80,000 for the relevant income year.
Determination to share FTB
A determination must be made under FAAct section 59 to share FTB if more than one individual cares for a child. The determination must specify a shared care percentage for each individual, based on the pattern of care (1.1.P.70) for the care period (1.1.C.100). A determination of shared care has an effect on the following FTB rate components:
- standard rate of FTB Part A, and
- ES Part A, and
- FTB Part A supplement, and
- standard rate of FTB Part B, and
- ES Part B, and
- FTB Part B supplement, and
- multiple birth allowance.
Act reference: FAAct section 59 Shared care percentages where individual is FTB child of 2 people who are not members of the same couple, Schedule 1 clause 11 Sharing FTB (shared care percentages), Schedule 1 clause 38E Rate of RA payable to individual who is a relevant shared carer or who has one or more regular care children
Policy reference: FA Guide 3.1.1.10 Calculating a Rate of FTB - Overview, 2.1.1.25 Shared Care of an FTB Child
FTB must be paid according to determination
Once a determination has been made to share FTB, it can only be paid in the specified proportion, even if FTB is not payable to one of the individuals.
Example: Brian and Natasha have a son Sam, aged 10. Brian and Natasha are separated and each care for Sam 50% of the time. They both receive FTB at 50% of the standard rate for one child under 13. Brian has been promoted and expects his income to be $130,000 per year. Brian no longer satisfies the income test for FTB. Natasha is still only eligible for 50% of the standard rate for a child under 13, and is subject to her own ATI reduction as her family income is $55,000.
Shared rate of MBA
If the care of one or more MBA child/ren is shared, the rate of MBA for each child is shared according to the FTB shared care determination. The following table shows how to calculate a shared rate of MBA.
Step | Action |
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1 | Work out the amount of MBA payable per child by dividing the MBA rate payable by the number of MBA children. |
2 | Work out the shared proportion of MBA for each child by multiplying the MBA rate payable for the child by the individual's FTB shared care percentage for that child. |
3 | Add the shared proportion of MBA for each child to give the total amount of MBA payable to each individual. |
Example: Kelly and Michael have 4 year old triplets. After they separated, they had an FTB shared care determination for each of the triplets. The FTB shared care percentages for Kelly and Michael respectively attributed to each of the children are: Susan 35%/65%, Harry 50%/50% and Richard 60%/40%.
Using 2017-18 payment rates, Kelly's share of MBA is worked out as follows:
Susan: $4,044.20 ÷ 3 × 35% = $471.82
Harry: $4,044.20 ÷ 3 × 50% = $674.03
Richard: $4,044.20 ÷ 3 × 60% = $808.84
Total MBA rate for Kelly = $1,954.69
Michael's share of MBA is worked out as follows:
Susan: $4,044.20 ÷ 3 × 65% = $876.24
Harry: $4,044.20 ÷ 3 × 50% = $674.03
Richard: $4,044.20 ÷ 3 × 40% = $539.23
Total MBA rate for Michael = $2,089.50
Act reference: FAAct Schedule 1 clause 38 Sharing MBA (determinations under section 59A)
Policy reference: FA Guide 3.1.1.31 Shared care rate calculation
RA, NBS & NBU are not shared
RA, NBS and NBU are not shared. RA, NBS and NBU are paid at the relevant rate to each eligible individual. This means that each eligible individual receives the full amount of RA, NBS and NBU subject to any reduction due to income or maintenance income applicable to each eligible individual.
Explanation: The shared care percentage is only applied to the standard rate of FTB, ES, FTB supplements and MBA. RA, NBS and NBU are not included in the standard rate.
Example: Kathy and Rex have 5 children. They have separated and share the care of all of their children. Both Rex and Kathy receive instalments of FTB. Rex pays private rent for his accommodation, and is entitled to receive RA. Rex's FTB rate includes a shared care proportion of FTB Part A and Part B, ES Part A and Part B and the relevant rate of RA taking into account 5 FTB children. Kathy receives a shared care proportion of FTB Part A and Part B, ES Part A and Part B.
Calculating shared care rate of FTB Part A
The following table shows how to calculate the FTB Part A rate payable to each individual when the care of the FTB child is shared.
Step | Action |
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1 | Determine the FTB child rate (1.1.F.57) payable for each FTB child of the individual under Method 1 (3.1.4) and Method 2 (3.1.8). |
2 | Determine the percentage of care for each FTB child for each individual. |
3 | Work out the FTB shared care percentage (3.1.1.31) |
4 | Multiply the FTB child rate for each child by the FTB shared care percentage for that child. The result is the shared care rate for the child payable to the individual. |
5 | Add the shared care rates payable for all FTB children of the individual. The result is the individual's standard rate of FTB Part A. |
6 | Determine the ES child rate (3.1.1.25) payable for each FTB child of the individual under Method 1 and Method 2. |
7 | Multiply the ES child rate for each child by the FTB shared care percentage for that child determined in Step 3. The result is the shared care rate for the child payable to the individual. |
8 | Add the shared care rates payable for all FTB children for the individual. The result is the individual's standard rate of ES Part A. |
9 | Work out the individual's rate of FTB Part A supplement (percentage applicable). |
10 | Work out the individual's rate of MBA (percentage applicable). Refer to this topic to calculate the rate of MBA. |
11 | Work out the individual's rate of NBS and RA if applicable. NBS is paid at the full rate to each eligible parent and RA may be paid at the relevant rate for each eligible individual.
Note 1: RA is only payable under a Method 1 calculation. |
12 | Add the standard rate of FTB Part A, ES Part A, FTB Part A supplement, MBA, NBS and RA. This is the maximum rate. |
13 | Apply the income test for Part A using Method 1 and then Method 2. |
14 | Apply the maintenance income test to the Method 1 income tested rate. |
15 | Compare the maintenance and income tested Method 1 rate to the income tested rate worked out under Method 2. The Part A rate payable is the higher of the 2 rates. The result is the individual's rate of FTB Part A. |
Act reference: FAAct Schedule 1 clause 11, clause 27, clause 38AE and clause 38AG Sharing FTB (shared care percentages)
Policy reference: FA Guide 3.1.1.31 Shared care rate calculation, 3.1.1.20 Current FTB rates & income test amounts, 3.1.4 FTB Part A Rate Calculation - Method 1, 3.1.7 Maintenance income test, 3.1.8 FTB Part A rate calculation - Method 2
Calculating shared care rate of FTB Part B
The following tables show how to calculate the FTB Part B rate payable to each individual when the care of an FTB child is shared.
Step | Action |
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Individual has one FTB child, and care is shared | |
1 | Work out the FTB Part B standard rate payable according to the age of the youngest child. |
2 | Work out the percentage of care for that child. |
3 | Work out the FTB shared care percentage for the child (3.1.1.31). |
4 | Multiply the standard rate by the FTB shared care percentage for the child. |
5 | Work out the ES Part B rate payable according to age of the youngest child. |
6 | Work out the percentage of care for that child. |
7 | Work out the FTB shared care percentage for the child. |
8 | Multiply the ES Part B rate by the FTB shared care percentage for the child. |
9 | Work out the rate of FTB Part B supplement by multiplying the gross supplement amount by the FTB shared care percentage for the child. |
10 | Work out the FTB Part B maximum rate by adding the results of Steps 4, 8 and 9. |
11 | If the individual is single, the result from Step 10 is the individual's rate of FTB Part B. If the individual is partnered, go to Step 12. |
12 | Apply the income test for Part B to the result from Step 10. The result is the individual's rate of FTB Part B. |
Step | Action |
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Individual has more than one FTB child, and care is not shared for all children | |
1 | Work out the FTB Part B standard rate payable for each of the FTB children that would otherwise be eligible for FTB Part B of the individual whose care is not shared, as if they were an only child. |
2 | Work out the percentage of care for each of the shared care children. |
3 | Work out the FTB shared care percentage for each of the shared care children (3.1.1.31). |
4 | Work out the standard rate for each shared care FTB child as if they were an only child. |
5 | Multiply the result from Step 4 for each child by the FTB shared care percentage for that child. |
6 | Compare the results from Step 1 and Step 5. The highest rate payable for any of the FTB children is the individual's standard rate of FTB Part B. |
7 | Work out the ES Part B standard rate payable for each of the FTB children of the individual whose care is not shared, as if they were an only child. |
8 | Work out the percentage of care for each of the shared care children. |
9 | Work out the FTB shared care percentage for each of the shared care children. |
10 | Work out the ES Part B standard rate for each shared care FTB child as if they were an only child. |
11 | Multiply the result from Step 10 for each child by the FTB shared care percentage for that child. |
12 | Compare the results from Step 7 and Step 11. The highest rate payable for any of the FTB children is the individual's standard rate of ES Part B. |
13 | If the individual has 100% of at least one FTB child, the rate of FTB Part B supplement is the FTB Part B gross supplement amount. If the individual has only shared care of FTB children, their FTB Part B supplement amount is the highest rate resulting from multiplying the FTB shared care percentage for each child by the FTB Part B gross supplement amount. |
14 | Work out the individual's FTB Part B maximum rate by adding the FTB Part B supplement amount from Step 13 to the individual's standard rate from Step 6 and the ES Part B amount from Step 12. |
15 | If the individual is single, the result from Step 14 is the individual's rate of FTB Part B. If the individual is partnered, go to Step 16. |
16 | Apply the income test for Part B to the result from Step 14. The result is the individual's rate of FTB Part B. |