3.1.4.20 Standard rate - FTB Part A Method 1
Standard rate
An individual's standard rate (1.1.S.103) is the sum of their FTB child rates (1.1.F.57).
The standard rate is added to the individual's rate of ES Part A, MBA, FTB Part A supplement and RA to arrive at the individual's maximum rate (1.1.M.26). The income test and maintenance income tests are applied to the maximum rate to calculate the individual's rate of FTB Part A. The FTB Part A supplement is not paid until after the end of the financial year after FTB reconciliation, and is only paid to families with adjusted taxable income of $80,000 or less.
Note: The ES ceased on 20 March 2017 for new FTB recipients. For individuals who became new recipients of FTB after 20 September 2016, they will no longer be paid ES after 19 March 2017. However, eligible individuals and ACOs may continue to be paid ES as part of their FTB rate under grandfathering rules. See 8.2.
Act reference: FAAct Schedule 1 clause 7 Standard rate
Policy reference: FA Guide 3.1.1.20 Current FTB rates & income test amounts, 3.1.1.25 Current ES rates
Maintenance action
The FTB child rate is restricted to the base FTB child rate (1.1.B.15) if the individual or their partner (1.1.P.30):
- is entitled to receive child support for an FTB child, and
- does not take reasonable action to obtain child support (unless granted an exemption).
Act reference: FAAct Schedule 1 clause 10 Effect of certain maintenance rights
Policy reference: FA Guide 3.1.5 Maintenance action test for FTB Part A, 3.1.5.70 Exemptions from the maintenance action test
Receiving a periodic payment
When an individual or their partner receives a periodic payment under a law of the Commonwealth or under a scheme administered by the Commonwealth that provides for an increase in the rate of payment by reference to an FTB child, they are only entitled to the base FTB child rate for that child.
Explanation: A periodic payment under a law/scheme of the Commonwealth includes:
- Agreement pensions (1.1.A.60) paid under the SSAct, and
- Service pensions paid under the Veterans' Entitlements Act 1986.
Act reference: FAAct Schedule 1 clause 9 FTB child rate - recipient of other periodic payments
Effect of shared care
For FTB Part A, if a determination has been made because care of an FTB child is shared, the percentage of care is used to determine the FTB shared care percentage and applied to the FTB child rate for that child before the individual's standard rate of FTB Part A is calculated.
A shared care determination does not apply to sharing FTB for a:
- blended family, or
- separated couple who claim FTB for a past period prior to separation.
Explanation: In these situations, the payment of FTB is shared after the total rate has been calculated.