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3.1.1.31 Shared care rate calculation

Summary

This topic provides an example of the shared care rate calculation for FTB Part A and FTB Part B where an individual shares the care of their FTB child with another individual who is not their partner.

Note: From 1 July 2008, the term 'shared care' only applies where an individual has care of an FTB child between 35% and 65% of the relevant care period. An FTB shared care percentage will be used to work out an individual's FTB Part A rate. The FTB shared care percentage will be worked out as shown in the table below:

No. of nights care (annually) Percentage of care FTB shared care percentage
0 to 51 0% to less than 14% Not eligible for FTB.
52 to 127 14% to less than 35% Not eligible for child related components of FTB. Eligible for RA component and other government benefits.
128 to 175 35% to less than 48% 25% plus 2% for each percentage point over 35%.
Example: If an individual has care of a child for 40% of the time, their FTB shared care percentage is calculated as follows:
25 + [(40 − 35) × 2] = 35%
176 to 189 48% to 52% 50%
190 to 237 More than 52% to 65% 51% plus 2% for each percentage point over 53%.
Example: If an individual has care of a child for 60% of the time, their FTB shared care percentage is calculated as follows:
51 + [(60 − 53) × 2] = 65%
238 to 365 More than 65% to 100% 100%

The rate calculations are used to illustrate the principles of sharing a rate. See the references given below for more detailed information about applying the FTB income tests for FTB Part A Method 1 and Method 2 and FTB Part B.

Policy reference: FA Guide 3.1.1.20 Current FTB rates & income test amounts, 3.1.4 FTB Part A rate calculation - Method 1, 3.1.8 FTB Part A rate calculation - Method 2, 3.1.9 FTB Part B rate calculation, 3.1.7 Maintenance income test

Example - calculating shared care FTB rate

Hilary has 2 FTB children, Daniel aged 3, and Jessica aged 5. Hilary has full care of Jessica, and shares the care of Daniel with her ex-partner Matt. Her percentage of care for Daniel has been determined to be 58%. Hilary's ATI is $5,911, and her combined ATI with her current partner is $100,000.

The following tables show how to calculate Hilary's rate of FTB Part A and FTB Part B. As Hilary's combined ATI is greater that the higher income free area, her rate of FTB Part A will be calculated using Method 2. However, as Step 3 of Method 2 requires a comparative adjusted Method 1 calculation, the Method 1 FTB child rates have also been calculated. The higher of the 2 rates calculated under adjusted Method 1 and Method 2 will be Hilary's rate.

Note: This example uses relevant rates as at 1 July 2019.

FTB Part A rate
Step Action Amount
1

Determine the FTB child rate (1.1.F.57) for each child under Method 1 and Method 2.

Note: This calculation uses maximum and base standard rates as at 1 July 2019.

Method 1 $4,854.50

Method 2 $1,558.55 each for Daniel and Jessica
2 Determine percentage of care for Daniel. Hilary 58%; Matt 42%
3 Determine FTB shared care percentages. Hilary 61%; Matt 39%
4 Multiply the rate for Daniel by Hilary's FTB shared care percentage.

Method 1
$4,854.50 × 61% = $2,961.25

Method 2
$1,558.55 × 61% = $950.72
5

Add the FTB child rate for Jessica.

The result is Hilary's FTB Part A standard rate.

 Method 1
$2,961.25 + $4,854.50 = $7,815.75
Method 2
$950.72 + $1,558.55 = $2,509.27
6 Determine the ES child rate (3.1.1.25) payable for each FTB child of the individual under Method 1 and Method 2. Method 1 $91.25
Method 2 $36.50
7 Multiply the ES child rate for each child by the FTB shared care percentage for Daniel determined in Step 3.
The result is the shared care rate for the child payable to the individual.

Method 1
Hilary 61% for Daniel
$91.25 × 61% = $55.66
Jessica 100% = $91.25

Method 2
Hilary 61% for Daniel
$36.50 × 61% = $22.27
Jessica 100% = $36.50
8 Add the shared care rates payable for all FTB children for the individual. The result is Hilary's ES Part A standard rate.

Method 1 $146.91

Method 2 $58.77
9 Determine the FTB Part A supplements for Daniel and Jessica. Not eligible
10 Multiple birth allowance. Not eligible
11 NBS or RA. Not eligible
12 Maximum rate (including FTB Part A supplement and ES Part A).

Method 1 $7,962.66

Method 2 $2,568.04
13

Apply ATI test

Adjusted Method 1 (using 30% taper for income above the higher income free area)
Calculate income excess

  • Higher income free area less the income free area
    $98,988.00 − $54,677.00 = $44,311.00
  • Reduction for ATI = 20% of the income excess
    $44,311.00 × 20% = $8,862.20
  • ATI less the higher income free area
    $100,000.00 - $98,988.00 = $1,012.00
  • Reduction for ATI = 30% of the income excess
    $1,012.00 x 30% = $303.60
  • Income excess
    $8,862.20 + $303.60 = $9,165.80

Income tested rate
$7,962.66 − $9,165.80 = nil

Method 2
Calculate income excess

  • ATI less the higher income free area
    $100,000.00 − $98,988.00 = $1,012.00
  • Apply income reduction
    $1,012.00.00 × 30% = $303.60
    $2,568.04 − $303.60 = $2,264.44

Rate using Method 1 = nil

 

 

 

 

Rate using Method 2 = $2,264.44
14 Maintenance income test is not applicable as the result of the adjusted Method 1 calculation in step 13 is nil. -
15 Hilary's rate of FTB Part A is the higher of the rates worked out using Method 1 and Method 2. $2,264.44
FTB Part B rate (3.1.9.10)
Step Action Amount
1 Determine standard rate of FTB Part B payable for Jessica as if she was the only FTB child. $2,883.50
2 Determine percentage of care for Daniel. Hilary 58%; Matt 42%
3 Determine FTB shared care percentages. Hilary 61%; Matt 39%
4 Determine the standard rate of FTB Part B payable for Daniel as if he was the only FTB child. $4,128.15
5 Multiply the rate for Daniel by percentage of care = $4,128.15 × 61%
This is the shared standard rate of FTB Part B for Daniel.		 $2,518.17
6 Compare the rate for Jessica to the shared rate for Daniel. The higher of the 2 rates is the standard rate payable.

Hilary's standard rate is the amount worked out for Jessica.		 $2,883.50
7 Work out the ES Part B standard rate payable for each of the FTB children of the individual whose care is not shared (Jessica), as if they were an only child. $51.10
8 Work out the ES Part B standard rate for each shared care child (Daniel) as if they were an only child. $73.00
9 Multiply the result from Step 8 for each child by the FTB shared care percentage for that child (Daniel). If the individual is partnered, go to Step 10. $73.00 × 61% = $44.53
10 Compare the results from Step 7 and Step 9. The highest rate payable for any of the FTB children is the individual's standard rate of ES Part B. $51.10
11 Calculate the maximum FTB Part B rate by adding the FTB Part B supplement and the ES Part B amount from Step 10.
If the individual has at least one unshared FTB child, the rate of FTB Part B supplement is the FTB Part B gross supplement amount.		 $2,883.50 + $372.30 + $51.10 = $3,306.90
12 Hilary is not a single parent, therefore the ATI test must be applied.  
13

The FTB Part B income test is applied to the income of the secondary earner (1.1.S.25).

  • Income excess = ATI less the income free area
    $5,911.00 − $5,694.00 = $217.00
  • Reduction for ATI = 20% of the income excess
    $217.00 × 20% = $43.40
  • Income tested rate of FTB Part B
    $3,306.90 − $43.40
 $3,263.50
Hilary's total amount of FTB

= FTB Part A + FTB Part B
= $2,264.44 + $3,263.50
= $5,527.94

Policy reference: FA Guide 3.1.1.20 Current FTB rates & income test amounts, 3.1.4 FTB Part A rate calculation - Method 1, 3.1.8 FTB Part A rate calculation - Method 2, 3.1.9 FTB Part B rate calculation, 3.1.7 Maintenance income test

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