Calculating Family Tax Benefit (FTB) Part A (Method 1) 007-07070020

To estimate a person's potential Family Tax Benefit (FTB) rate, see Online estimator options.

The customer's ongoing FTB rate calculation can be viewed from the Rate Explanation (REXFTB) screen.

Is the person or their partner receiving income support payments (ISP)?

• Yes, go to Step 2
• No, go to Step 3

The exemption from the income test for ISP customers does not apply to the following groups:

• single ISP customers in an employment income nil rate period
• partnered ISP customers who are both in employment income nil rate periods
• partnered customers when only one is an ISP customer and is in an employment income nil rate period

For more information, see Effect of income support entitlement on Family Tax Benefit (FTB).

Does the customer fit into one of the above groups?

• Yes, the income test applies for the period they are in an employment income nil rate period. The customer must provide an income estimate to calculate their rate for this period. Go to Step 3
• No, go to Step 4

For more information, see Assessment of adjusted taxable income for family assistance and Paid Parental Leave scheme payments.

Is ATI above the Part A higher income free area?

• Yes, see Calculating Family Tax Benefit (FTB) Part A (Method 2). Procedure ends here
• No, go to Step 4

Only include eligible FTB children (at least 35% actual care) when calculating entitlement to each component. Add:

• The FTB Part A child rate (for each FTB child (if shared care, multiply the child rate by the shared care percentage used for assessment)
• Energy Supplement Part A maximum rate if grandfathered. If shared care, multiply by the shared care percentage
• Large Family Supplement (LFS) if entitled. Note: LFS is not payable from 1 July 2016
• Multiple Birth Allowance (MBA) if entitled (if shared care, divide rate by the number of children, multiply the rate for each child by the shared care percentage, then add amounts)
• Newborn Supplement (NBS) if entitled
• Rent Assistance (RA) rate if entitled. Note: RA is paid with the income support payment if the person is only entitled to base rate Part A due to the Maintenance Action Test (MAT)

The References page contains a link to historical rates.

Note: the References page contains a link to FTB historical rates.

Is the person receiving an income support payment, or is their adjusted taxable income (ATI) less than or equal to FTB Part A income free area?

• Yes, go to Step 7
• No, go to Step 6

Subtract income reduction from amount calculated at Step 4.

Income reduction = (ATI - FTB Part A income free area) x 0.2.

The References page contains a link to historical rates.

Only include maintenance income received for child support children. See Maintenance Income Test (MIT) for Family Tax Benefit (FTB).

Annual FTB Part A rate = rate obtained in Step 7

If calculated rate at Step 7 is less than base rate, the person is paid base rate.

Any reduction due to income or maintenance income is apportioned between the Part A components. To calculate the amount of each component payable, see Apportionment of income/maintenance reduction for Family Tax Benefit (FTB) Part A.

Blended families

For a blended family couple, and for separated couples who claim FTB for a past period before they separated multiply the total annual amount by the percentage each person is to receive to obtain the annual rate for each person.

Deduct any FTB Part A advance that has been paid for the period.

Deduct any FTB Part A rate reduction for children who do not meet immunisation or Healthy Start for School requirements.

The daily rate is rounded after adding any entitlement to FTB Part B.

Rounding

Component amounts of the FTB Part A rate (LFS if applicable, etc) are rounded to the nearest cent, 0.5 is rounded up. If the unrounded rate is more than 0 but less than 0.5 cents per day, the daily rate is rounded up to 1 cent.