# 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

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

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

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