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 non-school 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:

  • weekly taper amount, and
  • MWB (1.1.M.27), then
  • adjustment percentage.

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:

  • Determine the income threshold
  • Deduct the income threshold from ATI = $60,000 - $45,114
  • Divide by 52 to express as a weekly amount.
  • Result: Weekly income excess.

45,114.00

14,886.00

286.27

4

Determine the weekly taper amount:

  • Weekly income excess
  • Multiply by taxable income taper percentage (1.1.T.40) = 10%
  • Result: Weekly taper amount.

286.27

28.62

5

Determine the MWB:

  • See 1.1.M.27 to determine the MWB for the number of children in care.
  • Result: 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:

  • Divide the weekly taper amount by the relevant MWB and express the result as a percentage
  • = ($28.62 ÷ $215.00) × 100
  • Deduct the resulting percentage from 100%
  • Result: Taxable income percentage.

13.31

86.69

2

Determine the multiple child percentage:

  • Take the MWB for one child in that type of care (1.1.T.70) = ($4.30 × 50) = $215.00
  • Multiply by the number of children in that type of care (1)
  • Result: Single child rate = $215.00
  • Divide the family's MWB by the single child rate and express the result as a percentage
  • = ($215.00 ÷ $215.00) × 100
  • Result: Multiple child percentage.
100
3

Determine the CCB percentage:

  • Take the multiple child percentage.
  • Multiply by the taxable income percentage.
  • Result: CCB percentage.

100

86.69

86.69

4

Determine the part-time percentage (1.1.P.50):

  • Result: As the child is in LDC for 40 hours per week, the part-time percentage is 100%.
100
5

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

  • Result: As the child is a non-school child (1.1.S.15), the schooling percentage is 100%.
100
6

Determine the adjustment percentage:

  • Take the schooling percentage.
  • Multiply by the part-time percentage.
  • Multiply by the CCB percentage
  • Result: 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.

Last reviewed: 3 July 2017