3.5.2.10 CCB Overall Rate Calculation - Approved Care

Summary

In order to apply an appropriate rate, the calculation process for approved care (1.1.A.90) CCB entitlement (1.1.E.30) is quite detailed. The most complex part of the calculation is the adjustment percentage (1.1.A.40), which is based on calculating several other items first. This topic briefly explains the overall calculation in a more simplified form, using a 3 step process. The process begins by calculating the CCB percentage (1.1.C.10) needed for the adjustment percentage and ends with the final calculation of the CCB entitlement.

Explanation: An individual's CCB hourly rate is calculated using Schedule 2 of the FAAct. This calculation is normally done on the system. This topic only aims to present an overview of the process to:
  • show you how it is done, and
  • help you to explain it to someone, such as an individual.

This topic, however, does not guarantee to produce a completely accurate CCB hourly rate for a particular individual. Normally the CCB percentage will be calculated automatically and sent by Centrelink to the service (1.1.A.90) nominated by the individual. The service will then calculate the level of fee reduction to be provided to the individual.

Act reference: FAAct Schedule 2 CCB rate calculator

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

Overall rate calculation diagram

The following diagram shows the overall rate calculation process for approved care CCB entitlement in 3 steps. Each step involves either:

  • further, minor calculation, or
  • application of a rate.

Click on the relevant link to view the applicable rate or calculation.

Step Action Formula
1 Calculate the CCB percentage Taxable Income % (3.5.2.40) × Multiple Child % (3.5.2.50)
2 Calculate the adjustment percentage CCB % (3.5.2.30) × Part-time % (1.1.P.50) × Schooling % (1.1.S.20)
3 Calculate the approved care CCB entitlement Adjustment % (3.5.2.20) × Standard Hourly Rate (1.1.S.100) × Eligible Hours % (1.1.E.20)
Last reviewed: 20 September 2016