Calculating Family Tax Benefit (FTB) Part A (Method 2) 007-07070030

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

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

Method 2 is used when the family's adjusted taxable income (ATI) is above the Part A higher income free area (HIFA). For current rates, see Rates and Thresholds.

Calculate the person's maximum rate (base rate)

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

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

• Annual base 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 at base rate where the person is grandfathered. If shared care, multiply by the shared care percentage
• Large Family Supplement (LFS) at full rate if eligible. Note: LFS is not payable from 1 July 2016
• Multiple Birth Allowance (MBA) at full rate if eligible. If shared care, divide full rate by the number of children, multiply the rate for each child by the shared care percentage, then add amounts
• Newborn Supplement (NBS) at full rate if eligible

Part A supplement is not included from 1 July 2016 onwards.

(ATI - higher income free area) x 0.3.

This is the total annual FTB Part A rate under Method 2.

The income reduction is apportioned between the Part A components. To calculate the amount of each component payable, see Apportionment of income/maintenance reduction for FTB Part A.

Work out above HIFA Method 1 rate

Work out the income and maintenance tested rate of FTB Part A payable using above HIFA Method 1. Apply the above HIFA Method 1 income test.

Compare the above HIFA Method 1 rate with the rate worked out at Step 3.

The annual rate payable is the higher of the Method 2 and above HIFA Method 1 rates.

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 rate by the percentage each person is to receive to obtain the annual rate for each person.

Daily rate = annual rate/365

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

FTB Part A reduction

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

Note: if a child is non-compliant for both immunisation and Healthy Start for School, only one rate reduction per day per child will be applied.

Rounding

Component amounts (standard Part A rate, 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.