Apportionment of income/maintenance reduction for Family Tax Benefit (FTB) Part A 007-07060050
This page contains information about how a reduction due to family income and maintenance income is applied to a customer's maximum Family Tax Benefit (FTB) Part A rate when the income is above the relevant income free area.
Applying a reduction to maximum FTB Part A
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Step |
Action |
1 |
Work out the maximum rate of each component of FTB Part A Read more ... Do not apply the income or maintenance income tests. The FTB Part A supplement is only included after the end of the financial year during reconciliation or lump sum claim assessment. From 1 July 2018, an FTB Part A reduction may be applied to the maximum rate of FTB Part A that can be paid for a child who does not meet FTB immunisation requirements. See Rate of Family Tax Benefit (FTB). Check if the customer is currently grandfathered for Energy Supplement before including energy Supplement in the calculation. Select the Energy Supplement Grandfathering hyperlink on the Energy Supplement Summary Screen (CESSUM) to access the Energy Supplement Grandfathering Status - Family Tax Benefit screen. |
2 |
Work out amount that can be affected by income Read more ...
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3 |
Work out the FTB Part A income test reduction Read more ...
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4 |
Work out the maintenance income reduction (if applicable) Read more ... If the income test reduces FTB Part A to the base rate using the below HIFA Method 1, base rate FTB Part A is paid. If this is the case, procedure ends here. See Maintenance Income Test (MIT) for Family Tax Benefit (FTB). |
5 |
Calculate total reduction amount Read more ... Add:
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6 |
Is the customer's FTB Part A rate reduced to the base rate under Method 1? Read more ...
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7 |
Divide each component by total amount that can be affected by income and express as percentage Read more ... Maximum amount (from Step 1) / total Part A rate that can be affected by income (from Step 2) x 100. When working out the standard Part A rate as a percentage of the total, first subtract the base rate if Method 1 is used. Example: If the difference between the maximum Part A rate (including Rent Assistance (RA)) and the base rate = $6,000 and the maximum RA rate = $1,500, RA is 25% of the total rate (1,500 / 6,000 x 100). |
8 |
Work out reduction for each component Read more ... Percentage (from Step 7) x total reduction (from Step 5) Example: If the total reduction from Step 5 is $1,000, the amount to reduce the maximum RA rate is $250 ($1,000 x 25%). |
9 |
Amount of each component payable for the period Read more ... Amount of each component payable for the period equals:
Example: RA per above = $1,000 - $250 = $750 Note: if the customer is grandfathered for Energy Supplement and their legislative rate for FTB Part A is reduced to $0, they will lose their grandfathering for Energy Supplement. See Energy Supplement for FTB recipients for more information. |