5.1.4.50 DOP - Additional Component

Summary

This topic describes how to calculate the additional component of DOP.

The additional component of DOP is payable to DOP recipients who are eligible for a rate of FTB Part A for the child that is lower than the family allowance or FTB Part A received for the child immediately before they became a double orphan.

The additional component of DOP is only payable for a young person who became a double orphan on or after 1 July 1998.

The additional component is equal to the difference between the carer's entitlement to FTB Part A for the child and the FTB Part A received for the child immediately before they became a double orphan.

The additional component of DOP is not payable where:

  • FTB has been cancelled as a result of the child receiving a payment under a prescribed educational scheme, or
  • family assistance was not being received for the child immediately before the child became a double orphan.

Act reference: SSAct section 1010 Rate of double orphan pension

Calculating the additional component of DOP

The following table shows the steps involved in calculating the additional component of DOP.

Step Action
1 Calculate the double orphan child's former family's prior legislative rate of family allowance/FTB Part A.
2 Calculate the current legislative rate of FTB Part A for the DOP for the double orphan child. (See FA Guide 3.1 FTB Rate Calculation.)
3 Calculate the rate of the additional component of DOP by subtracting the current fortnightly legislative rate of FTB Part A for the double orphan child under step 2 from the prior fortnightly legislative rate of FTB Part A for the double orphan child under step 1.

If the rate given by subtracting the current fortnightly legislative rate of family allowance/FTB Part A from the prior fortnightly legislative rate of FTB Part A is negative, then the rate of the additional component of DOP is zero.

Family allowance calculation table

If the prior family was receiving family allowance for the child, the following steps should be used to calculate the prior rate for that child.

Step Action
1 Determine the total fortnightly rate of family allowance.
2 Subtract the fortnightly rate of any multiple birth allowance from the total family allowance rate.
3

Subtract the minimum fortnightly rate of family allowance for each child from the total rate.

If the amount remaining after completing steps 1 to 3 equals zero, then the rate for the child is the minimum fortnightly rate of family allowance for that child. If the amount remaining is greater than zero, continue.

4 Determine the maximum possible fortnightly standard family allowance rate for each child.
5

Subtract the fortnightly minimum rate of family allowance for each child.

If the difference between the maximum and minimum rate of family allowance for the child equals zero because the rate for the child was a fixed rate, e.g. forced base-rate, then the rate for the child is the fortnightly minimum rate of family allowance for that child. If the amount is greater than zero, continue.

6 Add the amounts obtained for each child in step 5.
7 Add the maximum possible fortnightly rate of RA for the family to the total given in step 6.
8 Divide the amount obtained for each child in step 5 by the total given in step 7, to determine the maximum possible rate of family allowance for that child as a percentage of the maximum possible family allowance rate.
9 Multiply the amount remaining after steps 1 to 3 by the percentage obtained for each child in step 8.
10 Add the amount given in step 9 to the fortnightly minimum rate of family allowance for each child.*

*The figure obtained in step 10, is the fortnightly rate of family allowance for each child.

FTB calculation table

If the family was/is receiving FTB Part A for the child, the following steps should be used to calculate the rate for that child.

Step Action
1 Determine the total fortnightly rate of FTB Part A.
2 Determine the maximum possible fortnightly base rate of FTB Part A for each child.
3

Add the amounts obtained in step 2 for each child to determine the total possible fortnightly base rate of FTB Part A.

If the amount obtained in step 3 is equal to the amount obtained in step 1, then the fortnightly rate of FTB Part A for each child is the maximum possible fortnightly base rate of FTB Part A for each child (as determined in step 2).

If the amount obtained in step 3 is greater than the amount obtained in step1, then only steps 4 to 5 need to be completed. If the amount obtained in step 3 is less than the amount obtained in step 1, go to step 6.

4 Divide the amount obtained for each child under step 2 by the total given under step 3, to determine the maximum possible base rate of FTB Part A for each child as a percentage of the maximum possible FTB Part A base rate.
5 Multiply the total given in step 1 by the percentage for each child obtained under step 4. The figure obtained is the fortnightly rate of FTB for each child.
6 Determine the maximum possible fortnightly rate of FTB Part A for each child.
7

Subtract the fortnightly base rate of FTB Part A for each child.

If the difference between the maximum and base rate of FTB Part A for the child equals zero because the rate for the child was a fixed rate, e.g. forced base-rate, then the rate for the child is the fortnightly base rate of FTB Part A for that child. If the amount is greater than zero, continue.

8 Add the amounts obtained for each child in step 7.
9 Add the maximum possible fortnightly rate of RA for the family to the total in step 8.
10 Divide the amount obtained for each child in step 7 by the total given in step 9, to determine the maximum possible rate of FTB Part A for that child as a percentage of the maximum possible FTB Part A rate.
11 Subtract the maximum possible fortnightly base rate of FTB Part A for each child from the total rate obtained in step 1.
12 Multiply the amount in step 11 by the percentage obtained for each child in step 10.
13 Add the amount given in step 12 to the fortnightly base rate of FTB Part A for each child.*

*The figure obtained in step 13 is the fortnightly rate of FTB Part A for each child.

Last reviewed: 1 July 2016