3.5.2.80 CCB Adjustment Percentage Example - 4 Children, Income above Upper Threshold

Summary

This topic shows the calculation of the approved care CCB adjustment percentage (1.1.A.40) for an individual with 4 non-school children (1.1.S.15) in LDC for 40 hours per week. The family's ATI (1.1.A.20) is $120,000 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 individual's MWB.

Step Action $
1 ATI of $120,000 is above the upper income threshold (1.1.I.70) of $105,263 p.a. -
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
  • = $120,000 - $105,263
  • Divide by 52 to express as a weekly amount.
  • Result: Weekly income excess.

 

105,263.00

14,737.00

 

283.40

4 Determine the weekly taper amount:
  • Weekly income excess.
  • Multiply by taxable income taper percentage (1.1.T.40) = 35%
  • Result: Weekly taper amount.

 

283.40

99.19

5 Determine the MWB:
  • Calculate the income excess as if the family's ATI is the upper income threshold.
  • ($105,263 - $45,114) ÷ 52
  • = $60,149 ÷ 52
  • Multiply by the relevant taxable income taper percentage = 15%
  • Result: Specific taper amount.
  • Take the MWB that would apply if the family's ATI was below the upper income threshold.
  • Deduct the specific taper amount.
  • Result: MWB.

 

1,156.71

173.51

934.85

173.51

761.34

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
  • = ($99.19 ÷ $761.34) × 100
  • Deduct the resulting percentage from 100%.
  • Result: Taxable income percentage.

 

13.03

 

86.97

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 = 4
  • Result: single child rate = $860.00
  • Divide the family's MWB by the single child rate and express the result as a percentage
  • = ($761.34 ÷ $860.00) × 100
  • Result: Multiple child percentage.

 

 

 

 

 

88.5

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

88.5

86.97

76.96

4 Determine the part-time percentage (1.1.P.50):
  • Result: As the children are non-school children (1.1.S.15) 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 are non-school children (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

76.96

76.96

The individual may choose to round down their CCB percentage from 76.96% to 76%. This option was introduced in January 2003.

Last reviewed: 3 July 2017