3.5.2.20 Calculating the Approved Care Adjustment Percentage
Summary
This topic shows, in 2 tables, how the adjustment percentage (1.1.A.40) is calculated to determine CCB entitlement (1.1.E.30) for an individual using approved care (1.1.A.90). Calculating the adjustment percentage is complex and it is advisable to do this as the first step in calculating CCB entitlement. To calculate the adjustment percentage, an individual's MWB (1.1.M.27) must be determined in one of 3 ways, depending on the:
The adjustment percentage calculation in this topic is shown in the following 2 tables:
 calculating an individual's MWB, and
 calculating the adjustment percentage.
The formula for determining CCB entitlement for approved care is detailed in the first referenced topic. Examples of how to calculate the adjustment percentage are detailed in the other referenced topics.
Act reference: FAAct Schedule 2 clause 2 Adjustment percentage
Policy reference: FA Guide 3.5.2.10 CCB Overall Rate Calculation Approved Care, 3.5.2.70 CCB Adjustment Percentage Example 1 Child, Income below Upper Threshold, 3.5.2.80 CCB Adjustment Percentage Example 4 Children, Income above Upper Threshold, 3.5.2.90 CCB Adjustment Percentage Example 2 Children, Income above Upper Threshold
Calculating an individual's MWB
The following table shows the 5 steps in the calculation of an individual's MWB.
Step  Action 

1 
Is ATI under the lower income threshold (1.1.I.70)? If yes, the taxable income percentage is 100%. Go to step 5. If no, go to step 2. 
2 
Does the family receive income support (1.1.I.50)? If yes, the taxable income percentage is 100%. Go to step 5. If no, go to step 3. 
3  Determine the weekly income excess:
Result: Weekly income excess. 
4  Determine the weekly taper amount:
Result: Weekly taper amount. 
5  Determine the MWB:

Calculating the adjustment percentage
The following table shows the 6 steps in the calculation of an individual's adjustment percentage.
Step  Action 

1  Determine the taxable income percentage:
Result: Taxable income percentage. 
2  Determine the multiple child percentage:
Result: Multiple child percentage. 
3  Determine the CCB percentage:
Result: CCB percentage. 
4  Determine the parttime percentage:
If yes, go to 1.1.P.50 to determine the parttime percentage. If no, go to step 5. 
5  Determine the schooling percentage:
If yes, the schooling percentage is 100%. If no, the schooling percentage is 85%. 
6  Determine the adjustment percentage:
Result: Adjustment percentage. 