Income tests for family assistance and Paid Parental Leave scheme payments 007-07070000
Expand allCalculating income limit at which Family Tax Benefit Part A may not be paid
This formula is for calculating the income limit at which Family Tax Benefit Part A may not be paid ($p.a.) for 4 or more children, or with 3 children and the family is eligible for Rent Assistance, i.e. Method 1 with income above the higher income free area (HIFA).
The rates below are used for example only and may not reflect the current rates.
Ensure you use the correct rates for the relevant financial year.
Refer to the links at the bottom of this page for current and historical rates within A guide to Australian Government payments.
2019-20 financial year onwards
Table 1
|
Item |
Description |
|
1 |
Formula for calculating income limit (cut off) using Method 1 and income is above the HIFA Step 1- calculate the customer's annual maximum Part A rate taking into account:
FTB Part A rates can be found in A guide to Australian Government payments on the Services Australia website. Step 2 - using the 20c income taper, calculate the income reduction between the income free area (IFA) and higher income free area (HIFA). Step 3 - work out the remaining Part A entitlement after applying the 20c taper to the max rate (outcome of Step 1 less the outcome of Step 2). Step 4 - to obtain the income limit, divide the outcome of Step 3 by 0.30 and add the HIFA. The result of Step 4 is the income limit in which FTB Part A may not be paid. |
|
2 |
Example - FTB A limit for 4 children under 12 for the 2022-2023 financial year Step 1 - calculate the maximum Part A rate FTB Part A (without supp) $5,161.10 x 4 children = $20,644.40 ES Part A $91.25 x 4 children = $365.00 Total $21,009.40 Step 2 HIFA $103,368 - IFA $58,108 x 0.20 = $9,052 Step 3 $21,009.40 - $9,052 = $11,957.40 Step 4 $11,957.40 / 0.30 + $103,368 = $143,226 |
|
3 |
Example - FTB A limit for 4 children under 12 in care 100% and one child aged 14 with 50% shared care, for the 2022-2023 financial year Step 1 – calculate the maximum Part A rate FTB Part A (without supp) $5,161.10 x 4 children U12 = $20,644.40 FTB Part A (without supp) $6,712.35 x 0.5 children aged 13+ = $3,356.18 ES Part A $91.25 x 4 U12 children = $365.00 ES Part A $116.80 x 0.5 children aged 13+ = $58.40 Total $24,423.98 Step 2 HIFA $103,368 – IFA $58,108 x 0.20 = $9,052 Step 3 $24,423.98 - $9,052 = $15,371.98 Step 4 $15,371.98 / 0.30 + $103,368 = $154,607.93 |
Before the 2019-20 financial year
The rates below are used for example only and may not reflect the current rates.
Table 2
|
Item |
Description |
|
1 |
Formula for calculating income limit (cut off) using Method 1 and income is above the HIFA Step 1 - calculate the customer's annual maximum Part A rate taking into account:
FTB Part A rates can be found in A guide to Australian Government payments on the Services Australia website. Step 2 - to obtain the income limit, divide the outcome of Step 1 by 0.20 and add the IFA. The result of Step 2 is the income limit in which Part A may not be paid. |
|
2 |
Example - FTB A limit for 3 children under 12, with Rent Assistance, not grandfathered for Energy Supplement, for the 2018-2019 financial year Step 1 – calculate the maximum Part A rate FTB Part A (without supp) $4,766.90 x 3 children = $14,300.70 Rent Assistance $4,745 Total $19,045.70 Step 2 $19,045.70 / 0.20 + $53,728 = $148,956.50 |