Apportionment of income/maintenance reduction for Family Tax Benefit (FTB) Part A 007-07060050

Do not apply the income or maintenance income tests.

The FTB Part A supplement is only included after the end of the financial year during reconciliation or lump sum claim assessment.

From 1 July 2018, an FTB Part A reduction may be applied to the maximum rate of FTB Part A that can be paid for a child who does not meet FTB immunisation requirements.

See Rate of Family Tax Benefit (FTB).

Check if the customer is currently grandfathered for Energy Supplement before including energy Supplement in the calculation. Select the Energy Supplement Grandfathering hyperlink on the Energy Supplement Summary Screen (CESSUM) to access the Energy Supplement Grandfathering Status - Family Tax Benefit screen.

• If Method 1 is used, the amount that can be affected by income is the difference between the customer's maximum FTB Part A rate and their base rate, as the rate cannot be reduced below the base rate under Method 1. Note: Large Family Supplement (LFS) (not payable from 1 July 2016), Multiple Birth Allowance (MBA) and Newborn Supplement (NBS) are base rate components and not affected by income equal to or below the higher income free area (HIFA)
• If Method 2 is used, the amount that can be affected by income is the customer's base rate. This rate can be reduced to nil under Method 2

• Under Method 1, income reduction = (adjusted taxable income - Part A income free area) x 0.2. Go to Step 4
• Under Method 2, income reduction = (adjusted taxable income - Part A higher income free area ) x 0.3. Go to Step 5

If the income test reduces FTB Part A to the base rate using the below HIFA Method 1, base rate FTB Part A is paid. If this is the case, procedure ends here.

See Maintenance Income Test (MIT) for Family Tax Benefit (FTB).

Add:

• Income test reduction amount (from Step 3)
• Maintenance income reduction (from Step 4)

• Yes, base rate FTB Part A is paid. Procedure ends here
• No,
• Under Method 1, the reduction is apportioned between FTB Part A components (except Large Family Supplement (LFS) (if payable before 1 July 2016), Multiple Birth Allowance (MBA) and Newborn Supplement (NBS)) if the customer is entitled to more than base rate, or
• If Method 2 is used, the reduction is apportioned between all FTB Part A base rate components

Maximum amount (from Step 1) / total Part A rate that can be affected by income (from Step 2) x 100.

When working out the standard Part A rate as a percentage of the total, first subtract the base rate if Method 1 is used.

Example: If the difference between the maximum Part A rate (including Rent Assistance (RA)) and the base rate = $6,000 and the maximum RA rate = $1,500, RA is 25% of the total rate (1,500 / 6,000 x 100).

Percentage (from Step 7) x total reduction (from Step 5)

Example: If the total reduction from Step 5 is $1,000, the amount to reduce the maximum RA rate is $250 ($1,000 x 25%).

Amount of each component payable for the period equals:

• Maximum rate (from Step 1) less,
• Reduction amount (from Step 8)

Example: RA per above = $1,000 - $250 = $750

Note: if the customer is grandfathered for Energy Supplement and their legislative rate for FTB Part A is reduced to $0, they will lose their grandfathering for Energy Supplement. See Energy Supplement for FTB recipients for more information.