Rate and payment of Farm Household Allowance (FHA) 002-03030000
Expand allFHA rate calculation - example for single customer
Table 1
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
| Item | Description |
| 1 | Customer circumstances Age: 28 Relationship status: single Dependent children: no Accommodation: not paying rent Income Business: farming sole trader $1,000 ANN Business: non-farming sole trader (cleaning services) $1,500 ANN Foreign Income $US 1,000 MTH Employment income $50 1WE Farm estimate $0.00 ANN Financial assets Savings: everyday account $7,500 Beneficiary Loan $200,000 Shares $15,000 |
| 2 | Identify assessable income Exclude:
Include:
|
| 3 | Customer's total daily income Business: farming sole trader: $1,000 / 365.25 = $2.7379 Business: cleaning services: $1,500 / 365.25 = $4.1068 Foreign income (converted to $AU): $1,356.48 / 30.4375 = $44.5661 Employment income: $50 / 7 = $7.1429 Farm estimate: $0.00 Deemed income: Financial assets total below threshold = $22,500 Multiplied by deeming rate 1% Deemed income total = $225 per year Daily deemed income amount = $225 / 365.25 = $0.6160 Total daily income: $2.7379 + $4.1068 + $44.5661 + $7.1429 + $0.00 + $0.6160= $59.17 |
| 4 | Customer's daily income test reduction The income free area (IFA) and income threshold must also be converted to a daily amount. As total daily income is more than the daily income threshold, the reduction is the sum of: ($256 - $150) = $106 X 50% = $53.00 / 14 = $3.7857 plus ($59.17 - ($256 / 14) X 60%) = $24.5306 3.7857 + 24.5306 = 28.3163 Total: $28.32 (rounded to 2 decimal places) |
| 5 | Daily maximum rate FHA Basic: $824.90 / 14 = $58.9214 Energy Supplement: $8.80 / 14 = $0.6286 |
| 6 | Calculate customer's rate Subtract daily income test reduction from daily maximum rate. $58.9214 - 28.32 = 30.6014 Before 11 June 2020, the customer would be entitled to a part daily rate of $30.60. From 11 June 2020, all FHA customers receive the maximum rate of payment if their payment is greater than zero dollars after the income test is applied. |
FHA rate calculation - example for partnered customer
Table 2
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
| Item | Description |
| 1 | Historical information Before 21 June 2018, the partner maximum daily rate calculation included Pharmacy Allowance (PhA) for all partnered customers. When calculating rates of FHA before 21 June 2018, PhA must be included as a maximum daily rate component, regardless of whether or not it was listed in Entitlement Items at the time. From 21 June 2018, PhA only needs to be included in the maximum daily rate calculation for those customers who are receiving it, as listed in Entitlement Items. |
| 2 | Customer circumstances Age: 50 Marital Status: partnered, partner aged 58 in receipt of FHA. Dependent children: aged 8, 15 and 18 years Accommodation: homeowner (lives in remote location) Income Business: non-farming from Real Estate and Business Summary (REBS) screen:
Employment income: $800 (IOP) - 100% partner Farm actual income - Partnership (CUS 50%, PTR 50%) - $5,000 ANN Financial assets Savings - $7,500 (CUS 50%, PTR 50%) Shares - $100,000 (CUS 25%, PTR 75%) Gifts - $20,000 (CUS 50%, PTR 50%) |
| 3 | Total daily income Deemed income for customer Financial assets - savings, shares, gifts $3,750 + $25,000 + $10,000 = $38,750 $38,750 X 1% = $387.50 ANN Deemed income for partner Financial assets - savings, shares, gifts $3,750 + $75,000 + $10,000 = $88,750 Below threshold: $43,100 X 1% = $431.00 ANN Above threshold: ($88,750 - $43,100) X 3% = $1,369.50 Total: $1,800.50 ANN Daily income for customer
Total: $27.7549 Daily income for partner
Total: $88.7764 |
| 4 | Customer's daily income test reduction The income free area and income threshold must also be converted to a daily amount. As the customer's total daily income is more than the daily income threshold, the reduction is the sum of: ($256 - $150) = $106 X 50% = $53.00 / 14 = $3.7857 plus ($27.7549 - $256 / 14) X 60% = $5.6815 3.7857 + 5.6815 = $9.4672 Total: $9.47 (rounded to 2 decimal places) |
| 5 | Daily maximum rate FHA Basic: $755.10 / 14 = $53.9357 Energy Supplement: $7.90 /14 = $0.5643 |
| 6 | Partner excess income Partner's daily maximum rate: FHA Basic: $755.10 / 14 = $53.9357 Energy Supplement: $7.90 / 14 = $0.5643 Total: $54.50 Partner's income cut-off: Partner income free area (daily rate): $1414.67 / 14 = $101.0476 Partner daily income (daily rate): $1,242.8696 / 14 = $88.7764 As partner daily affecting income ($88.7764) is below the FHA daily rate ($101.0476) it has no impact on customer rate. |