3.5.2.70 CCB Adjustment Percentage Example  1 Child, Income below Upper Threshold
Summary
This topic shows the calculation of the approved care CCB adjustment percentage (1.1.A.40) for an individual with one nonschool child (1.1.S.15) in LDC for 40 hours per week. The family's ATI is $60,000 per year. The adjustment percentage is determined by calculating the:
Act reference: FAAct Schedule 2 clause 2 Adjustment percentage
Policy reference: FA Guide 3.5.2.10 CCB Overall Rate Calculation  Approved Care, 3.5.2.20 Calculating the Approved Care Adjustment Percentage
Calculating the MWB
The following table shows the 5 steps in calculating the recipient's MWB.
Step  Action  $ 

1  ATI of $60,000 is above the lower income threshold (1.1.I.70) of $45,114.   
2  The family does not receive income support (1.1.I.50) nor is it in an employment income nil rate period.  
3 
Determine the weekly income excess:

45,114.00 14,886.00 286.27 
4 
Determine the weekly taper amount:

286.27 28.62 
5 
Determine the MWB:

215.00 
Policy reference: FA Guide 1.1.R.05 Receiving income support
SS Guide 3.1.12 Employment Income Nil Rate Period
Calculating the adjustment percentage
The following table shows the 6 steps in calculating the individual's adjustment percentage.
Step  Action  % 

1 
Determine the taxable income percentage:

13.31 86.69 
2 
Determine the multiple child percentage:

100 
3 
Determine the CCB percentage:

100 86.69 86.69 
4 
Determine the parttime percentage (1.1.P.50):

100 
5 
Determine the schooling percentage (1.1.S.20):

100 
6 
Determine the adjustment percentage:

100 100 86.69 86.69 
The individual may choose to round down their CCB percentage from 86.69% to 86%.This option was introduced in January 2003.