Calculating Family Tax Benefit (FTB) Part A (Method 1) 007-07070020
Expand allThis page contains examples of calculating Family Tax Benefit (FTB) Part A fortnightly payment rates using Method 1 which is used when combined taxable income is not above the Part A higher income free area.
PPS customer with 3 children
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only paid after the end of the financial year and is not included in this calculation.
Example 1
Table 1: This table describes an example of calculating Family Tax Benefit (FTB) Part A fortnightly payment rates using Method 1 for a Parenting Payment Single (PPS) customer. Sarah has 3 children; John aged 2, Megan aged 4, and Kate aged 8. Sarah is grandfathered for Energy Supplement. Sarah pays $190 per week rent.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Couple with 2 children including a baby
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only paid after the end of the financial year and is not included in this calculation.
Example 2
Table 2: This table describes an example of calculating Family Tax Benefit (FTB) Part A fortnightly payment rates using Method 1. Peter and Susan have a new baby, Samuel, their second child. They already receive FTB for Amy who is 4. Susan is grandfathered for Energy Supplement. Their estimated combined taxable income is $73,000. Susan's FTB is reassessed and is paid Newborn Supplement (NBS) for Samuel.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Couple with 2 children including a secondary student
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only paid after the end of the financial year and is not included in this calculation.
Example 3
Table 3: This table describes an example of calculating Family Tax Benefit (FTB) Part A fortnightly payment rates using Method 1. Tom and Carol have 2 children - Jessica is 8, Ben is 17 and is a secondary student. Tom and Carol estimate their combined taxable income as $73,000 and are paying $220 per week rent. Carol is grandfathered for Energy Supplement.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Couple with shared care child
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only paid after the end of the financial year and is not included in this calculation.
Example 4
Table 4: This table describes an example of calculating Family Tax Benefit (FTB) Part A fortnightly payment rates using Method 1. Stuart and Alice have 2 children; Murphy is 10 and is in their full care, Lucy is 3 and is in their care 35% of the time (equal to 25% of FTB). Stuart and Alice have combined adjusted taxable income (ATI) of $56,000 and Alice receives maintenance income of $1,780 per year. Alice is grandfathered for energy Supplement.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
|
Category |
Calculation |
|
The FTB Part A rate for child under 13 x 1.25 Not including supplement |
= $4,942.10 x 1.25 = $6,177.63 |
- 1 child in 100% care = 100% of the FTB Part A rate for child under 13
- 1 child in 35% care = 25% of the FTB Part A rate for child under 13
Total = 125% of the FTB Part A rate for child under 13 (1.25 x the FTB Part A rate)
|
Category |
Calculation |
|
Energy Supplement Part A Maximum rate for child under 13 x 1.25 |
= $91.25 x 1.25 = $114.06 |
|
Maximum rate payable (total of above amounts) |
= $6,291.69 |
|
Income reduction |
= ($56,000 - $55,626.00) x 0.2 = $74.80 |
|
Income tested rate |
= $6,291.69 - $74.80 = $6,216.89 |
|
Maintenance reduction |
= ($1,780 - $1,686.30) x 0.5 = $46.85 |
Maintenance Income Free Area = $1,686.30
|
Category |
Calculation |
|
Annual FTB Part A rate |
= $6,216.89 - $46.85 = $6,170.04 |
This is greater than the base rate of $1,957.30
Calculation: = $1,911.68 Part A + $45.62 Energy Supplement Part A
|
Category |
Calculation |
|
Daily rate Round after calculating full FTB daily rate |
= $16.90(annual rate/365) |
|
Fortnightly FTB rate |
= $236.60 (daily FTB rate x 14) |
Couple with 2 teenagers and no Energy Supplement entitlement
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only payable after the end of the financial year and is not included in this calculation.
Using Method 1
Table 5: This table describes calculating FTB Part A fortnightly payment rates using Method 1. Natasha and Boris have 2 children - Jake is 15, Isabelle is 14. Both are secondary students. Natasha and Boris estimate their combined taxable income as $56,000. Natasha applied for FTB in April 2020 and is not grandfathered for Energy Supplement Part A.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Natasha's annual FTB Part A rate = $12,780.50
|
Category |
Calculation |
|
Daily rate Round after calculating full FTB daily rate |
= $35.02 (annual rate/365) |
|
Fortnightly FTB rate |
= $490.28 (daily FTB rate x 14) |
Single customer with 2 children in shared care and no Energy Supplement entitlement
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only payable after the end of the financial year and is not included in this calculation.
Using Method 1
Table 6: Meng and Sue recently separated. They share the care of their two children. Isaac is 10 and Louisa is 9. Meng is a new FTB customer. Sue is already an FTB customer whose assessment has already been changed. Meng has estimated their adjusted taxable income (ATI) as $69,000. Meng applied for FTB on 13 April 2020. Meng is not grandfathered for Energy Supplement.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Meng's annual FTB Part A rate = $2,267.30
|
Category |
Calculation |
|
Daily rate Round after calculating full FTB daily rate |
= $6.21(annual rate/365) |
|
Fortnightly FTB rate |
= $86.94 (daily FTB rate x 14) |
Single customer with 1 child who does not meet immunisation requirements
Rates used in this example apply for the 2020-21 financial year. The FTB Part A supplement is subject to an income limit, is only payable after the end of the financial year and is not included in this calculation.
Using Method 1
Table 7: This table describes calculating FTB Part A fortnightly payment rates using Method 1. Annika has one child who is 11 years of age and does not meet immunisation requirements from 1 July 2020. Annika is single, receives Austudy and has an exemption from the Maintenance Action Test.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
*FTB Part A reduction due to immunisation will be applied to days where the child does not meet immunisation requirements following a 63 day grace period. If the child fails to comply after the grace period the reduction will be applied to the days in the grace period at end of year reconciliation. The reduction will cease when the child meets immunisation requirements.