Calculating Rent Assistance for a Family Tax Benefit (FTB) customer with Regular Care Child only (Method 3) 007-26042152
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This document outlines how the rate of Rent Assistance (RA) is calculated when a customer has Regular Care child/children only in their care using Method 3.
Method 3
A child can only be an Family Tax Benefit (FTB) child of an individual if the individual has at least 35% care of that child. A child is regarded as a regular care child of an individual who provides care for between 14% and less than 35% of the time. A regular care child is considered an RA child, and is taken into account in working out the maximum rate of RA.
Individuals who have one or more regular care children are entitled to the same gross rate of RA as those classified as relevant shared carers.
Their RA is calculated under Method 3 as their FTB entitlement consists only of RA. The RA may be reduced due to income if neither the individual nor a partner receives an income support payment and the family's income is above the FTB Part A income free area.
The income test applied under Method 3 is the same as for Method 1, but there is no maintenance income test and no comparison with a base rate (as the base rate would be zero).
Related links
Calculating Family Tax Benefit (FTB) Part A (Method 1)
Rate of Family Tax Benefit (FTB)
Qualification for payment of Rent Assistance (RA)
Effect of income support entitlement on Family Tax Benefit (FTB)