1.1.M.22 Maintenance income test ceiling (FTB)
Definition
The maintenance income test (MIT) ceiling limits the amount of child support that can reduce the above base rate amounts of FTB Part A. A MIT ceiling must be determined where there are child support children and non-child support children in the family, or where an individual has more than one child support case.
The method of calculating the MIT ceiling limit depends on whether the family’s ATI is above or below the high income free area (HIFA) (3.1.1.20).
The MIT ceiling ensures that any child support received will only reduce the individual's above base rate amounts of FTB Part A for the child support children. Any child support income above the MIT ceiling is disregarded.
Act reference: FAAct Schedule 1 Division 5 Subdivision A section 20 Effect of maintenance income on FTB rate, Schedule 1 Division 5 Subdivision C Maintenance income ceiling for Method 1, Schedule 1 Division 5 Subdivision D Maintenance income ceiling for purposes of comparison for Method 2
Policy reference: FA Guide 3.1.7.03 Maintenance income test ceiling, 3.1.7.10 Maintenance income test – general provisions