The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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 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.

In the case of a shared care child, the additional component of DOP is the difference between:

  • the result of the current carer’s shared care percentage applied to the FTB Part A rate for the child immediately before they became a double orphan, and
  • the shared care FTB Part A rate of the current carer.

The additional component of DOP is not payable to DOP recipients where:

  • the individual is not eligible for FTB because the child is receiving a payment under a prescribed educational scheme, or
  • FTB was not being received for the child immediately before the child became a double orphan.

Act reference: SSAct section 1010 Rate of DOP

Policy reference: FA Guide 3.1.1.30 Shared care rate for FTB

Calculating the additional component of DOP

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

Step Action

1

Using the FTB calculation table below, calculate the FTB Part A rate payable to the double orphan child's former family immediately prior to the child becoming a double orphan. (Also see FA Guide 3.1.)

Note: If the current legislative rate of FTB Part A for the double orphan child is adjusted according to shared care, that same shared care rate is applied to the double orphan child's former family's prior legislative rate of FTB Part A.
2 Calculate the current legislative rate of FTB Part A for the double orphan child using the FTB calculation table below. (Also see FA Guide 3.1.)

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 fortnightly legislative rate of FTB Part A for the double orphan child under Step 1.

If the result is positive, then this amount is the rate of the additional component of DOP.

If the result is zero or negative, then the rate of the additional component of DOP is zero.

FTB calculation table

The following steps are used to calculate the prior and current family’s FTB Part A rate for each child.

Step Action
1 - family actual rate (including RA) Determine the total fortnightly rate of FTB Part A for the family.

2 - per child base rate

Determine the maximum possible fortnightly base rate of FTB Part A for each child in the family by summing the following components:

  • the standard rate for Method 2
  • the standard rate for ES Part A for Method 2
  • newborn supplement
  • large family supplement, and
  • multiple birth allowance.

The components above (excluding large family supplement and newborn supplement) are adjusted according to each child’s shared care percentage. See FA Guide 3.1.1.30 for how to calculate the shared rate of multiple birth allowance.

If large family supplement is applicable, divide the total rate of large family supplement by the number of children and add the amount to the total for each child.

3 - family base rate

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 Step 1, 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 - per child base rate as a percentage of family base rate 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 - per child actual rate (excluding RA) 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 - per child maximum rate (excluding RA) Determine the maximum possible fortnightly rate of FTB Part A (excluding RA) for each child in the family by summing the following components:
  • the standard rate for Method 1
  • the standard rate for ES Part A for Method 1
  • newborn supplement
  • large family supplement, and
  • multiple birth allowance.

The components above (excluding large family supplement and newborn supplement) are adjusted according to each child’s shared care percentage. See FA Guide 3.1.1.30 for how to calculate the shared rate of multiple birth allowance.

If large family supplement is applicable, divide the total rate of large family supplement by the number of children and add the amount to the total for each child.

7 - per child maximum above base rate(excluding RA)

Subtract the amount obtained for each child in Step 2 from the amount obtained for each child in Step 6.

If the difference between the maximum and base rate of FTB Part A for the child equals zero for example, because the maintenance action test is not met, then the FTB Part A rate for the child is the fortnightly base rate of FTB Part A for that child.

If the amount is greater than zero, continue to Step 8.
8 - family maximum above base rate (excluding RA) Add the amounts obtained for each child in Step 7.
9 - family maximum above base rate (including RA) If the family is eligible for RA, add the maximum possible fortnightly rate of RA for the family to the total in Step 8.
10 - per child maximum above base rate (excluding RA) as a percentage of family maximum above base rate (excluding RA) Divide the amount obtained for each child in Step 7 by the total given in Step 8, to determine the maximum possible above base rate of FTB Part A for that child as a percentage of the maximum possible above base rate of FTB Part A (excluding RA).
11 - family actual above base rate (including RA) Subtract the sum of the maximum possible fortnightly base rates of FTB Part A for each child at Step 2 from the total rate obtained in Step 1.
12 - per child actual above base rate (including RA) Multiply the amount in Step 11 by the percentage obtained for each child in Step 10, to determine the above base rate of FTB Part A for each child (including RA).

13 - per child actual rate (including RA)

Add the amount given in Step 12 to the fortnightly base rate of FTB Part A for each child from Step 2.

The result is the fortnightly rate of FTB Part A for each child.

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