Calculating Family Tax Benefit (FTB) Part A (Method 2) 007-07070030
Expand allThis page contains examples of working out a person's fortnightly Family Tax Benefit (FTB) Part A rate using Method 2. This includes a comparison with the above higher income free area (HIFA) Method 1 rate. The higher of the 2 rates is paid.
On this Page:
Examples - comparison of 2018-19 and 2019-20 financial years
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Rates used in the following examples compare the 2018-19 and 2019-20 financial years to show the changes to the above HIFA Method 1 taper rate and one-off HIFA increase from 1 July 2019.
The FTB Part A supplement is subject to an income limit and is not included in the calculations.
Example 1: Single individual with three children, one child in shared care
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Sarah has 3 children; John aged 2, Megan aged 4, and Kate aged 8. Sarah shares the care of Kate equally with previous partner, Jamie and Sarah's shared care percentage is 50%. Sarah's estimated income is $105,750. Sarah pays $210 per week rent. Sarah is grandfathered for Energy Supplement Part A.
Method 2 from 1 July 2019
Table 1: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 calculation. It includes the 1 July 2019 one-off HIFA increase. The taper rate remains unchanged at 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 from 1 July 2019
Table 2: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. It includes the 1 July 2019 one-off HIFA increase and the taper rate change. The taper rate is 20c in the dollar above the lower income free area, then 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Sarah’s annual FTB Part A rate from 1 July 2019 is $6,306.18.
As above HIFA Method 1 rate ($6,306.18) is higher than Method 2 rate ($1,959.03), the above HIFA Method 1 is used from 1 July 2019.
Method 2 prior to 1 July 2019
Table 3: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. Prior to 1 July 2019, the taper rate is 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 prior to 1 July 2019
Table 4: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. Prior to 1 July 2019, the taper rate is 20c in the dollar above the lower income free area and this applies up to and including any income above the higher income free area until a nil payment is reached.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
As above HIFA Method 1 rate ($6,485.98) is higher than Method 2 rate ($484.43), the above HIFA Method 1 is used up to 30 June 2019 inclusive.
Daily rate = annual rate / 365 (this is rounded after calculating the person's full FTB daily rate).
Fortnightly FTB rate = daily FTB rate x 14.
Example 2: Couple with two children including a baby
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Peter and Susan have a baby on 3 May 2019 - Samuel, their second child. They already receive FTB for Amy who is 4. Their estimated combined taxable income is $101,000. Susan's FTB is reassessed and Susan is paid Newborn Supplement (NBS) for Samuel. Susan is grandfathered for Energy Supplement Part A.
Method 2 from 1 July 2019
Table 5: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. It includes the 1 July 2019 one-off HIFA increase. The taper rate remains unchanged at 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 from 1 July 2019
Table 6: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. It includes the 1 July 2019 one-off HIFA increase and the taper rate change. The taper rate is 20c in the dollar above the lower income free area, then 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Peter and Susan's annual FTB Part A rate from 1 July 2019 is $3,137.05.
As Method 2 rate ($3,137.05) is higher than above HIFA Method 1 rate ($976.25), Method 2 is used from 1 July 2019.
Method 2 prior to 1 July 2019
Table 7: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. The taper rate is 30c in the dollar above the HIFA.
Rates are based on 2 children aged under 18.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 prior to 1 July 2019
Table 8: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. Prior to 1 July 2019, the taper rate is 20c in the dollar above the lower income free area and this applies up to and including any income above the higher income free area until a nil payment is reached.
Rates are based on 2 children aged under 13.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
As Method 2 rate ($1,677.05) is higher than above HIFA Method 1 rate ($812.45), Method 2 is used up to 30 June 2019 inclusive.
Daily rate = annual rate / 365 (this is rounded after calculating the person's full FTB daily rate).
Fortnightly FTB rate = daily FTB rate x 14.
Example 3: Couple with two children including a secondary student
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Tom and Carol have 2 children - Jessica is 8, Ben is 17 and is a secondary student. Tom and Carol estimate their combined taxable income is $101,000 and are paying $250 per week rent. Carol is grandfathered for Energy Supplement Part A.
Method 2 from 1 July 2019
Table 9: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. It includes the 1 July 2019 one-off HIFA increase. The taper rate remains unchanged at 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 from 1 July 2019
Table 10: This table describes calculating FTB Part A fortnightly payment rates using above HIFA Method 1 rate calculation. It includes the 1 July 2019 one-off HIFA increase and the taper rate change. The taper rate is 20c in the dollar above the lower income free area, then 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Tom and Carol's annual FTB Part A rate from 1 July 2019 is $6,189.05.
As above HIFA Method 1 rate ($6,189.05) is higher than Method 2 rate ($2,586.50), the above HIFA Method 1 is used from 1 July 2019.
Method 2 prior to 1 July 2019
Table 11: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. Prior to 1 July 2019, the taper rate is 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 prior to 1 July 2019
Table 12: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. Prior to 1 July 2019, the taper rate is 20c in the dollar above the lower income free area and this applies up to and including any income above the higher income free area until a nil payment is reached.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
As above HIFA Method 1 rate ($5,923.05) is higher than Method 2 rate ($1,126.50), above HIFA Method 1 is used up to 30 June 2019 inclusive.
Daily rate = annual rate / 365 (this is rounded after calculating the person's full FTB daily rate).
Fortnightly FTB rate = daily FTB rate x 14.
Example 4: Couple with six children
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Jodie and Adrian have 6 children. 3 children are aged 13-15 and 3 children are aged under 13. Jodie has estimated their combined adjusted taxable income (ATI) is $120,000, which is above the FTB Part A higher income free area. Jodie is grandfathered for Energy Supplement Part A.
Method 2 from 1 July 2019
Table 13: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. It includes the 1 July 2019 one-off HIFA increase. The taper rate remains unchanged at 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 from 1 July 2019
Table 14: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. It includes the 1 July 2019 one-off HIFA increase and the taper rate change. The taper rate is 20c in the dollar above the lower income free area, then 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
|
Category |
Calculation |
|
Maximum Part A rate for child under 13 x 3 Excludes supplement |
= $4,854.50 x 3 = $14,563.50 |
|
Maximum Part A rate for child aged 13-15 x 3 Excludes supplement |
= $6,314.50 x 3 = $18,943.50 |
|
Energy Supplement Part A for child under 13 x 3 |
= $91.25 x 3 = $273.75 |
|
Energy Supplement Part A for child aged 13-15 x 3 |
= $116.80 x 3 = $350.40 |
|
Maximum Part A rate payable (total of above amounts) |
= $34,131.15 |
|
Income reduction (Lower income free area = $54,677) (Higher income free area = $98,988) |
Taper (20c) for income above lower income free area up to the higher income free area = ($98,988 - $54,677) x 0.2 = $8,862.20 Taper (30c)for income above higher income free area = ($120,000 - $98,988) x 0.3 = $6,303.60 Total income reduction = $15,165.80 |
|
Maximum FTB Part A rate less income reduction Annual FTB Part A rate |
= $34,131.15 - $15,165.80 = $18,965.35 |
Jodie and Adrian's annual FTB Part A rate from 1 July 2019 is $18,965.35.
As above HIFA Method 1 rate ($18,965.35) is higher than Method 2 rate ($3,266.40), the above HIFA Method 1 is used from 1 July 2019.
Method 2 prior to 1 July 2019
Table 15: This table describes calculating FTB Part A fortnightly payment rates using the Method 2 rate calculation. Prior to 1 July 2019, the taper rate is 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 prior to 1 July 2019
Table 16: This table describes calculating FTB Part A fortnightly payment rates using the above HIFA Method 1 rate calculation. Prior to 1 July 2019, the taper rate is 20c in the dollar above the lower income free area and this applies up to and including any income above the higher income free area until a nil payment is reached.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
As above HIFA Method 1 rate ($20,274.50) is higher than Method 2 rate ($1,689.90), the above HIFA Method 1 is used up to 30 June 2019 inclusive.
Daily rate = annual rate / 365 (this is rounded after calculating the person's full FTB daily rate).
Fortnightly FTB rate = daily FTB rate x 14.
Examples - 2020-21 financial year
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Rates used in these examples apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit and is not included in this calculation.
Example 5: Single customer with 3 children that do not meet immunisation requirements
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Annika has 3 children - Jake aged 5, Jasper aged 4 and Jordy aged 2. All children do not meet immunisation requirements from 1 July 2019. Abigail has an estimated taxable income of $105,750.
Method 2 from 1 July 2020
Table 17: This table describes calculating FTB Part A annual payment rates using the Method 2 rate calculation. The taper rate is 29c in the dollar above the lower income free area, then 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Above HIFA Method 1 from 1 July 2020
Table 18: This table describes calculating FTB Part A annual payment rates using the above HIFA Method 1 rate calculation. The taper rate is 20c in the dollar above the lower income free area, then 30c in the dollar above the HIFA.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
As above HIFA Method 1 rate ($4,399.05) is higher than Method 2 rate ($2,844.15), above HIFA Method 1 is used from 1 July 2020.
Annika’s annual FTB Part A rate from 1 July 2020 before reductions due to non-compliance with immunisation requirements = $4,399.05.
Rate reduction due to non-compliance
Table 19: This table describes calculating Annika's FTB Part A fortnightly payment rates after applying the reduction due to non-compliance with immunisation requirements.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
*FTB Part A reduction due to immunisation will be applied to days where the child does not meet immunisation requirements following a 63 day grace period. If the child fails to comply after the grace period the reduction will be applied to the days in the grace period at end of year reconciliation. The reduction will cease when the child meets immunisation requirements
Example 6: Single recipient with 1 child who does not meet immunisation requirements
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Jenny has 1 child - Blake aged 5. The child does not meet immunisation requirements from 1 July 2020. At the end of the immunisation grace period the child still is not immunisation compliant and remains that way until the EOFY (301 days). Jenny has an estimated taxable income of $103,000. As Method 2 rate is higher than Method 1 rate, Method 2 is used.
Method 2 from 1 July 2020
Table 20: This table describes calculating FTB Part A annual payment rates using the Method 2 rate calculation and applying a reduction due to non-compliance with immunisation requirements.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
*FTB Part A reduction due to immunisation will be applied to days where the child does not meet immunisation requirements following a 63 day grace period. If the child fails to comply after the grace period the reduction will be applied to the days in the grace period at end of year reconciliation. The reduction will cease when the child meets immunisation requirements.
Example 7: Partnered customer with 2 children, 1 of which is a non-compliant child for immunisation and Healthy Start for School (HSFS) requirements
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Bec and Bernie have 2 children. Josie is 10 and Jack is 5. Jack has not met immunisation and HSFS requirements for the financial year. Bec and Bernie’s estimated combined taxable income was $117,000. Bec received Parenting Payment Partnered for 100 days during the financial year.
Method 2 from 1 July 2020
Table 21: This table describes calculating FTB Part A annual rates.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
If a child is non-compliant for both immunisation and HSFS requirements, only one rate reduction per fortnight will be applied. This customer has the HSFS rate reduction only applied while they were in receipt of income support. Once their income support payment ceased, the immunisation rate reduction continued.
Example 8: Partnered customer with 3 children, circumstance change causes FTB/CAN-INC.
The figures used in these examples are for illustration purposes only, and may not represent the current maximum entitlement rates for the relevant pension or allowance. For current maximum rates of entitlements and supplementary payments, see Rates and thresholds.
Olivia and Ivan have three children Leonie aged 18, Cedric aged 17, and Xavier aged 16. Olivia has been receiving FTB Part A for the three children. The existing income limit for three children is $135,525. The combined family income estimate is $120,000.
Olivia contacts to notify that Leonie has completed Year 12. This is updated and Leonie is no longer an FTB child. With two remaining FTB children in care (Cedric and Xavier), the income limit is $113,710.
The circumstance change has resulted in a new income limit ($113,710.00) which is less than the existing estimate ($120,000.00). As the nil entitlement is due to a circumstance change, Olivia’s FTB will cancel CAN-INC. Olivia’s FTB cancels because Olivia's income limit has decreased due to a change in circumstances and not due to a revised family income estimate.
As of 1 July 2020, the existing family income estimate for Olivia and Ivan is $120,000.
Method 2 from 1 July 2020
Table 22: This table describes calculating FTB Part A annual rates when affected by a change in circumstances (Method 2).
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.