Apportionment of income/maintenance reduction for Family Tax Benefit (FTB) Part A 007-07060050
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Manual rate calculation of FTB Part A
This table describes the example used to manually calculate a reduced FTB Part A.
For more examples, see References page for a link to the Family Assistance Guide, 3.1.3, Apportioning Income Test Reductions between FTB Part A Rate Components.
Scenario
Member of a couple with 2 children aged 3 and 8, adjusted taxable income of $56,500, annual maintenance income of $2,450 (1 person receives child support for the 2 children), paying rent of $225 per week. The FTB parent is grandfathered for Energy Supplement. Both children meet immunisation requirements.
Note: the FTB Part A supplement is only payable after the end of the financial year and is not included in these calculations. Rates used in this example apply for the 2019-20 financial year.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
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Step |
Calculation using Method 1 |
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1 |
Determine maximum annual rate + Read more ... Maximum annual rate: Standard Part A (under 13 x 2) = $9,533.80 Energy Supplement Part A = $182.50 Rent Assistance = $4,277.80 FTB Part A reduction = $0.00 Total maximum rate = $13,994.10 |
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2 |
Calculate difference between maximum and base rates + Read more ... Base rate = base Part A + Energy Supplement = $3,058.70 + $73.00 = $3,131.70 Difference between maximum rate and base rate = $13,994.10 - $3,131.70 = $10,862.40 |
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3 |
Calculate percentages above base rate + Read more ... Standard Part A amount above base rate, as percentage of total above base Part A rate that can be affected by income = ($9,533.80 - $3,058.70) / $10,862.40 x 100 = $6,475.10/ $10,862.40 x 100 = 59.61% Energy Supplement Part A above base Part A Energy Supplement rate, as percentage of total above base Part A rate that can be affected by income = ($182.50 - $73.00) / $10,862.40 x 100 = $109.50/ $10,862.40 x 100 = 1.01% Rent Assistance rate, as percentage of total above base Part A rate that can be affected by income = $4,277.80/ $10,862.40 x 100 = 39.38% |
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4 |
Calculate income reduction Income reduction = ($56,500 - $55,626) x 0.20 = $174.80 |
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5 |
Calculate maintenance income reduction + Read more ... Maintenance income reduction = Annual maintenance income - maintenance income free area = ($2,450 - $2,160.80) x 0.50 = $144.60 |
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6 |
Calculate total reduction = income test reduction + maintenance income test reduction = $174.80 + $144.60 Total reduction = $319.40 |
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7 |
Calculate income tested rate + Read more ... Customer's income tested rate = Maximum rate FTB Part A less total reduction = $13,994.10 - $319.40 = $13,674.70 This is more than base rate of $3,131.70 |
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8 |
Calculate reduction amount Reduction of Part A standard rate = $319.40 x 59.61% = $190.39 Reduction of Energy Supplement Part A = $319.40 x 1.01% = $3.23 Reduction of Rent Assistance = $319.40 x 39.38% = $125.78 |
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9 |
Determine rate payable Annual standard FTB Part A rate = $9,533.80 - $190.39 = $9,343.41 Annual Energy Supplement Part A rate = $182.50 - $3.23 = $179.27 Annual Rent Assistance rate = $4,277.80 - $125.78 = $4,152.02 |