Rate and payment of Farm Household Allowance (FHA) 002-03030000
Expand allFHA rate calculation - example for single customer
Table 1: Rates used in this example were current 20 March 2020.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
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Description |
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Customer circumstances Age: 28 Relationship status: single Dependent children: no Accommodation: not paying rent Income Business: farming sole trader $10,000 (annual) Business: non-farming sole trader (cleaning services) $1,500 annual Foreign Income: $US 1,000 (monthly) Employment income: $150 (weekly) Farm estimate $0.00 annual Financial assets Savings: everyday account $7,500 Beneficiary Loan: $200,000 Shares $15,000 |
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2 |
Identify assessable income Exclude:
Include:
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Customer's total daily income Business: cleaning services: $1,500 / 365.25 = $4.1068 Foreign income (converted to $AU): $1,356.48 / 30.4375 = $44.5661 Employment income: $150 / 7 = $21.4286 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 / 364 = $0.6181 Total: $4.1068 + $44.5661 + $21.4286 + $0.00 + $0.6181 = $70.7196 |
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Customer's daily income test reduction The income free area 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: ($254 / 14 - $104 / 14) X 50% = $5.3571 plus ($70.7196 - $254 / 14) X 60% = $31.546 5.3571 + 31.546 = 36.9031 Total: $36.90 (rounded to 2 decimal places) |
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Daily maximum rate FHA: $565.70 / 14 = $40.41 Energy Supplement: $8.80 / 14 = $0.6286 |
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Calculate customer's rate Subtract daily income test reduction from daily maximum rate. Daily FHA: $40.41 - $36.90 = $3.51 Daily CES = $0.2507 Before 11 June 2020, the customer would be entitled to a part daily rate of $3.51. 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. Their daily rate would be $40.41. |
FHA rate calculation - example for partnered customer
Table 2: Rates used in this example were current 20 March 2020.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
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Item |
Description |
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1 |
Historical information Before 21 June 2018, the partner maximum daily rate calculation incorrectly included Pharmacy Allowance (PhA) for all partnered customers. A system release resolved this issue on 21 June 2018. 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. |
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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 estimate: $5,000 annual - 50% customer, 50% partner Financial assets Savings $7,500 (50% customer, 50% partner) Shares $100,000 (25% customer, 75% partner) Gifts $20,000 (50% customer, 50% partner) |
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3 |
Identify assessable income Exclude:
Include:
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Total daily income Deemed income for customer Savings, shares, gifts $3,750 + $25,000 + $10,000 = $38,750 $38,750 X 1% = $387.50 annually Deemed income for partner Savings, shares, gifts $3,750 + $75,000 + $10,000 = $88,750 Below threshold: $43,100 X 1% = $431 Above threshold: ($88,750 - $43,100) X 3% = $1,369.50 Total: $1,800.50 annually Daily income for customer
Total: $27.7586 Daily income for partner
Total: $88.7869 |
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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: ($254 / 14 - $104 / 14) X 50% = $5.3571 plus ($27.7586 - $254 / 14) X 60% = $5.7694 $5.3571 + $5.7694 = $11.1265 Total: $11.13 (rounded to 2 decimal places) |
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Daily maximum rate FHA: $510.80 / 14 = $36.48 Energy Supplement: $7.90 / 14 = $0.5643 |
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Partner excess income Partner's daily maximum rate: FHA: $510.80 / 14 = $36.48 Energy Supplement: $7.90 / 14 = $0.5643 Total: $37.05 Partner's income cut-off: Partner income free area (daily rate): $993.5002 / 14 = $70.9643 Partner daily income (daily rate): $1,243.0166 / 14 = $88.7869 Partner income excess: $88.7869 - $70.9643 = $17.8226 Partner affecting income: $17.8226 x $0.60 = $10.6936 As partner daily affecting income is below the FHA daily rate it has no impact on customer rate. |