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This topic covers the following in relation to calculating FTB Part B:
The rate of FTB Part B is affected by:
The standard rate (1.1.S.103) of FTB Part B will be a nil rate while a PPL period applies to the individual or their partner.
The standard rate (1.1.S.103) of FTB Part B depends on the age of the youngest child. A higher rate is payable if the youngest child is under 5 years of age in recognition of the additional assistance required for families with children below school age. This also recognises the indirect cost of reduced workforce participation, due to the extra caring requirements of a very young child.
The method chosen to calculate the rate of FTB Part B depends on whether the individual is a single parent (Method 1) or a member of a couple (Method 2).
Method 1 is used when the individual is a single parent with ATI at or below the income limit. In this case, an eligible individual receives the standard rate of FTB Part B based on the age of the youngest FTB child.
Method 2 is used when the individual is a member of a couple (1.1.M.50) and the primary earner has ATI at or below the income limit. In this case, the primary income earner (1.1.P.122) is subject to an initial income test. In the case where the ATI (1.1.A.20) of the primary earner is below the income limit, a secondary earner (1.1.S.25) income test will be applied. Under Method 2, the standard rate of FTB Part B applicable to the eligible individual based on the age of the youngest FTB child is reduced by 20 cents for each dollar of the secondary income earner's ATI over the income free area (1.1.I.40).
Special arrangements may apply to eligible lower income earners returning to work for the first time after the birth of a child, or if an eligible child entered their care.
Policy reference: FA Guide 3.1.9.30 FTB Part B Return to Work, 3.1.1.20 Current FTB Rates & Income Test Amounts
If the individual is sharing the care of a child and a shared care percentage is determined under subsection 59(1) of the A New Tax System (Family Assistance) Act 1999 in respect of that child, the individual's standard rate is worked out as follows.
If the shared care child is the individual's only child, then the standard rate is the shared care percentage of the standard rate based on the age of this child.
If the individual has more than one FTB child, the standard rate is the higher of the following amounts:
An FTB child who has turned 16 is disregarded in calculating entitlement to FTB Part B unless:
*Note: Prior to 1 January 2012 a child would not be disregarded in calculating FTB Part B if the child was aged 16 to 18 and was in full-time secondary or tertiary study, up to the end of the calendar year they turned 18.
If the disregarded child is the individual's only FTB child, then the individual's standard rate of FTB Part B is nil.
Act reference: FAAct Schedule 1 clause 28C Paid parental leave, Schedule 1 clause 29 General method of calculating Part B rate, Schedule 1 clause 30 Standard rate, Schedule 1 clause 31 Sharing FTB (shared care percentages)
FA(Admin)Act section 20A Indexed estimates, section 20B Indexed actual incomes
Policy reference: FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts, 1.1.I.85 Indexed income - actual or estimate (FTB)
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Last reviewed: 3 January 2012
