3.5.2.90 CCB Adjustment Percentage Example - 2 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 2 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:

Act reference: FAAct Schedule 2 clause 2 CCB rate calculator

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. -
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) of 25%
  • Result: Weekly taper amount
283.40

 

70.85

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 of 15%
  • Result: Specific taper amount (1.1.S.95)
  • Take the MWB that would apply if the family's ATI was below the upper income threshold
  • = ($4.30 × 100) + $19.32
  • Deduct the specific taper amount.
  • Result: MWB

1,156.71

173.51

449.32

173.51

275.81

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
  • = ($70.85 ÷ $275.81) × 100
  • Deduct the resulting percentage from 100%.
  • Result: Taxable income percentage

25.69

74.31

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 = 2
  • Result: Single child rate = $430.00
  • Divide the family's MWB by the single child rate and express the result as a percentage
  • = ($275.81 ÷ $430.00) × 100
  • Result: Multiple child percentage
64.14
3 Determine the CCB percentage:
  • Take the multiple child percentage.
  • Multiply by the taxable income percentage.
  • Result: CCB percentage

64.14

74.31

47.66

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

47.66

47.66

The individual may choose to round down their CCB percentage from 47.66% to 47%. This option was introduced in January 2003.

Last reviewed: 3 July 2017