Clean Energy Advance (CEA) for Family Tax Benefit (FTB) customers 101-03090020

Scenario:

Glenda and Bruce both received Age Pension. Due to family circumstances, they gained 100% care of their two grandchildren on 1 August 2012. The children were aged 4 and 7, but the youngest child turned 5 on 20 August 2012.

Glenda lodged an FTB claim on 15 August 2012, and the claim was finalised on 30 August 2012. Glenda's CEA amount was determined when the FTB claim was finalised.

As they received income support, their FTB Part A was paid at their maximum rate. Therefore, their maximum rate of FTB Part A was used to calculate their CEA amount.

Although their FTB Part B is reduced due to the income test, their FTB Part B standard rate is still used to calculate her CEA amount.

• Glenda's CEA daily rate for the period 1 - 19 August 2012 (19 days):
• 2 x (Part A standard rate for child under 13 + Part A Supplement)
• FTB Part B standard rate + Part B Supplement (youngest child aged under 5)
• Total x 0.017
• Divide by 365, round to nearest cent
• Glenda's CEA daily rate for the period 20 - 30 August 2012 (11 days):
• (Part A standard rate for child under 13 + Part A Supplement) x 2 children
• FTB Part B standard rate + Part B Supplement (youngest child aged 5 or over)
• Total x 0.017
• Divide by 365, round to nearest cent
• Glenda's CEA daily rate for the period 31 August 2012 to 30 June 2013 (304 days):
• 2 x (Part A standard rate for child under 13 + Part A Supplement)
• FTB Part B standard rate + Part B Supplement (youngest child aged 5 or over)
• Total x 0.017
• Divide by 365, round to nearest cent

Glenda's actual CEA amount was then calculated as the sum of the CEA amounts for each period:

• 19 x daily CEA rate for 1 - 19 August 2012
• 11 x daily CEA rate for 20 - 30 August 2012
• 304 x daily CEA rate for 31 August 2012 to 30 June 2013

Scenario:

Neo and Trinity had two children. The youngest child turned 5 on 1 August 2012 and the older child turned 13 on 1 January 2013.

Neo lodged a lump-sum claim for FTB for 2012-13 on 1 September 2013, after their tax returns were processed by the Australian Taxation Office.

Neo's CEA amount was determined when the FTB claim was finalised.

Due to their combined income, their FTB Part A was paid at below their base rate. Therefore, their base rate of FTB Part A was used to calculate their CEA amount.

While their FTB Part B was reduced due to the income test, their FTB Part B standard rate was still used to calculate their CEA amount.

• Neo's CEA daily rate for the period 1 - 30 July 2012 (31 days):
• 2 x (Part A base rate for child under 18 + Part A Supplement)
• FTB Part B standard rate + Part B Supplement (youngest child aged under 5)
• Total x 0.017
• Divide by 365, round to nearest cent
• Neo's CEA daily rate for the period 1 August 2012 - 30 June 2013 (334 days):
• 2 x (Part A base rate for child under 18 + Part A Supplement)
• FTB Part B standard rate + Part B Supplement (youngest child aged 5 or over)
• Total x 0.017
• Divide by 365, round to nearest cent

Neo's actual CEA amount was then calculated as the sum of the CEA amounts for each period:

• 31 x daily CEA rate for 1 - 31 July 2012
• 334 x daily rate for 1 August 2012 to 30 June 2013

Scenario:

Raoul and Oscar had 100% care of their two children aged 3 and 4, and between 14% and 35% care of a third child aged 5.

Their income estimate was $68,000 for Raoul and $25,500 for Oscar, they were not receiving child support, and they were paying $600 rent per fortnight.

Including the Regular Care Child in calculating their Rent Assistance, Raoul and Oscar's income and maintenance tested Part A rate exceeded their base rate, so the CEA was calculated based on their maximum rate of FTB Part A (excluding add-ons) for each FTB child.

If the Regular Care Child was not included, their Rent Assistance would be based on two children, and income and maintenance income testing would reduce their Part A to base rate, so the CEA amount would be based on their Part A base rate.

This shows that although a CEA is not paid for a Regular Care Child, the Regular Care Child may influence the rate of CEA paid for other FTB children in the family.

Scenario:

Mark and Liz had two children Will and Charlie aged 2 and 4, both from previous relationships.

Mark and Liz each received income support, but their FTB Part A was reduced to their base rate due to the maintenance income test. They received their payments as a blended family, with Mark receiving 70% and Liz receiving 30%.

As their FTB was split according to their nominated blended family percentage, their individual applicable FTB rates were multiplied by 0.017 to calculate their CEA amounts.

Liz's CEA amount was 1.7% of her 30% share of the total FTB for the family.

Mark's CEA amount was 1.7% of the remaining 70% of the FTB.

The FTB Part A amount used was their base rate of FTB Part A (including Supplement) for 2012-13.

Similarly, as FTB Part B was split according to existing blended family rules, the Part B component of their CEA payment was also 1.7% of their nominated blended family percentages.

Scenario:

Lindsay was claiming FTB for her foster child, Amy. Amy came to live with Lindsay permanently on 15 August 2012. Before this Amy lived with her mother.

Lindsay received a pro-rata Clean Energy Advance payment once her FTB claim was processed, assuming she meets all other eligibility requirements.