# 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

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