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Calculating Rent Assistance for a Family Tax Benefit (FTB) customer with Regular Care Child only (Method 3) 007-26042152

This page contains information about calculating Family Tax Benefit (FTB) Rent Assistance for a customer with a Regular Care Child only (Method 3).

Calculate the rate of Family Tax Benefit (FTB) Rent Assistance with a Regular Care Child only using Method 3

Step	Action
1	Calculate the customer’s maximum annual RA entitlement Determine the maximum RA payment for the relevant financial year: For the current financial year, see Rates and thresholds The References page contains a link to historical rates Determine the annual rent threshold for the relevant financial year. Determine the annual rent paid by the customer. Calculate Maximum annual RA payment. Less (Annual rent paid less annual rent threshold) multiplied by $0.75. Equals Maximum annual RA entitlement. See the Resources page for example calculations.
2	Calculate the income reduction 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 (the base rate would be zero). Calculate the family’s combined adjusted taxable income (ATI). For more information, see Assessment of adjusted taxable income for family assistance and Paid Parental Leave scheme payments. Determine the FTB Part A income free area. Calculate the Income reduction: Income reduction = (ATI - FTB Part A income free area) x 0.2. See the Resources page for example calculations.
3	Calculate Income Tested Rate Maximum annual RA entitlement = amount obtained in step 1. Income reduction = amount obtained in step 2. Calculate the Income Tested rate: Income Tested rate = Maximum annual RA entitlement – Income reduction.
4	Calculate the daily and fortnightly rate The daily rate = annual rate / 365. The daily rate is to be rounded. 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. Calculating fortnightly rate Daily rate X 14 = fortnightly rate.