3.9 SKB Rate

Cessation of SKB

The final instalment of SKB (in respect of the 30 June 2016 bonus test date) was paid in July 2016. For individuals who claim their FTB Part A via a lump sum for the 2015-16 income year, SKB will be paid with their FTB Part A entitlement if eligible.

The following information is relevant to the 2012-13 to 2015-16 income years only.

Introduction

SKB will be paid in 2 equal instalments in January and July of each year.

From 1 January 2015, individuals will only be eligible for SKB on a bonus test day if, in relation to that day, their annual adjusted taxable income is $100,000 or less.

The current instalment amounts of SKB are:

  • $215 ($430 per annum) for each eligible child in primary education,
  • $428 ($856 per annum) for each eligible child in secondary education.

The amount of SKB paid depends on whether the child or individual was in primary or secondary education in the previous education period before the bonus test date. Where a child is commencing primary or secondary education, the applicable amount would depend on the level of study in the current education period for the bonus test date so that assistance for that level of study is delivered upfront.

Once a child is aged 16 years, the payment amount would be the secondary amount regardless of the education level the child is undertaking. For example, if the child is aged 16 years and is undertaking primary education, they would still attract the secondary rate.

Act reference: FAAct section 65A Primary school amount and secondary school amount, section 65B Amount of SKB-general rule for individuals eligible in relation to a child, section 65C Amount of SKB-individuals eligible in relation education allowance, section 65D Amount of SKB-individuals eligible in relation to school leavers, section 65E Amount of SKB-individuals eligible under section 35UE or 35UF, section 65EA Amount of SKB-individuals eligible under subsection 35UE(4) or (5), section 65EB Amount of SKB-individuals eligible under section 35UF, section 65F Amount of SKB-individuals eligible under section 35UG

Shared care rate of SKB

Where a child is a FTB Part A child of 2 individuals (i.e. shared care) the amount payable for each individual would be the applicable SKB rate for the child multiplied by the FTB shared care percentage relevant on the bonus test dates, 1 January and 30 June each year.

An individual with less than 35% share of care is not entitled to child-related components of FTB Part A and therefore does not have any entitlement to receive the SKB payment.

Act reference: FAAct Schedule 1 clause 31 Sharing FTB (shared care percentages)

Blended families

The SKB payment will be split according to the blended family percentage relevant on the bonus test dates, 1 January and 30 June each year.

Act reference: FAAct section 60 Sharing FTB between members of a couple in a blended family

Policy reference: FA Guide 3.1.1.30 Shared Care Rate for FTB

Income management of SKB

SKB is 100% income managed.

Act reference: SS(Admin)Act section 123XPL Deductions from SKB payments

Indexation

SKB is indexed in line with changes to the CPI. Indexation of the SKB payment commenced 1 July 2014 and was paid in January 2015 in respect of the 1 January 2015 bonus test date. The indexation is based on the CPI increase in the 12 months to the previous December.

Act reference: FAAct Schedule 4 clause 3 CPI Indexation Table

Last reviewed: 15 August 2016