Calculating Rent Assistance for a Family Tax Benefit (FTB) customer with Regular Care Child only (Method 3) 007-26042152
Expand allThis page contains examples of calculating Rent Assistance for a Family Tax Benefit (FTB) customer with Regular Care Child only using Method 3 which is used when combined taxable income is not above the Part A higher income free area. It also has a table for calculating Rent Assistance entitlement.
Calculating Rent Assistance entitlement
Rates used in this example apply for the 2025-26 financial year.
This table describes calculating Rent Assistance (RA) entitlement to use in Method 3.
Mark has one child who is 10 years of age, pays $10,000 rent per annum and has 30% care.
These amounts may not be current. They are examples only. For current payments, see Rates and Thresholds.
Note: when completing rent assistance calculations for a customer who is to be assessed under Method 3, the RA calculation will always be a ‘Relevant Shared Carer’ calculation.
Calculations for Relevant Shared Carer’s are first worked out using the maximum rates and rent thresholds for individuals who are not relevant shared carers and then using the maximum rates and rent thresholds for a relevant shared carer. The individual is entitled to the higher of the 2 amounts.
Example: Single customer with 1 child in shared care
Rates used in this example apply for the 2025-26 financial year.
Mark and Simone recently separated. They share the care of their child. Isaac is 10. Mark is a new FTB customer with 30% care. Simone is already an FTB customer whose assessment has already been changed. Mark has estimated their adjusted taxable income (ATI) as $69,000. Mark pays Rent of $10,000 per annum.
Calculate the Maximum RA amount
Category | Calculation not a relevant shared carer | Calculation relevant shared carer |
Customer’s maximum annual RA entitlement (using Calculating Rent Assistance Entitlement above) | = $3000.13 | = $1,117.65 |
Calculate the Excess Income
| Category | Calculation not a relevant shared carer | Calculation relevant shared carer |
| Income reduction using Method 1 Income free area = $66,722.00 | = ($69,000-$66,722) x 0.2 = $455.60 | = ($69,000-$66,722) x 0.2 = $455.60 |
Calculate Income Tested Rate
| Category | Calculation not a relevant shared carer | Calculation relevant shared carer |
| Annual RA entitlement | $3,000.13 | $1,117.65 |
| Minus Reduction for Income | $455.60 | $455.60 |
| Income Tested Rate | $2,544.33 | $662.05 |
Calculate the daily and fortnightly rate
| Category | Calculation not a relevant shared carer | Calculation relevant shared carer |
| Income tested rate | $2,544.33 | $662.05 |
| Divided by 365 and rounded = Daily rate | ($2,544.33/365) = $6.97 | ($662.05/365) = $1.81 |
| Fortnightly rate (Daily rate*14) | ($6.97*14) = $97.58 | ($1.81*14) = $25.39 |