# 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

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

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

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