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FAMILY ASSISTANCE
30 June 2023
WHAT IS ELIGIBLE FAMILY TAX BENEFIT INCOME?
Assessable taxable income less deductions
Plus net investment losses e.g. rental properties
Plus reportable fringe benefits x 0.535 (Un-grossed up)
Plus tax free benefits or pension
Plus child support received
Less child support paid
Plus reportable superannuation contributions
Plus all foreign income
FAMILY TAX BENEFIT PART A & B
1. Must meet resident requirements.
2. Must be a dependent child > 35% of time
3. Must be < 20 years old. You
will receive benefits up to the 31 December in the year in
which they turned 19 years old. 16 to 19 years old
must be studying full-time secondary study or
equivalent.
4. Must be studying full time.
5. Must not receive another benefit e.g. youth allowance.
6. You and your partner must lodge a tax return within 12 months after the end of the relevant financial year
FAMILY TAX BENEFIT PART B
A child must be < 13 for a couple and < 19 for singles, grandparent or great-grand parent.
FAMILY TAX BENEFIT PART A
CHILDREN UNDER 13
1 Child
Family Income < $80,000
If under 13 then FTB Part A is $5,978.70 per year until family income reaches $58,108 then FTB Part A reduces by 20c per $1 until family income reaches $75,628. At this level family income of $75,628 the FTB Part A Base Amount is $2,474.70 until family income reaches $80,000.
Family Income > $80,000.
At this level family income of $80,000 the FTB Part A Base Amount is $2,474.70 less $817.60 supplement per child = $1,657.10 until family income reaches $103,368 then FTB Part A reduces by 30c per $1 until Family income reaches $108,892.
2 Children
Family Income < $80,000
If under 13 then FTB Part A is $5,978.70 x 2 = $11,957.40 until family income reaches $58,108 then FTB Part A reduces by 20c per $1 until family income reaches $80,000. At this level family income of $80,000 the FTB Part A Base Amount is $2,472.70 less $817.60 = $1,657.10 x 2 = $3,314.20.
Family Income > $80,000 (The first income test is used as it is usually higher than the 2nd income test).
At this level family income of $80,000 the FTB Part A Base Amount is $2,472.70 less $817.60 supplement per child = $1,657.10 x 2 = $3,314.20 until family income reaches $103,368 then FTB Part A reduces by 30c per $1 until Family income reaches $114,416.
3 Children
Family Income < $80,000
If under 13 then FTB Part A is $5,978.70 x 3 = $17,936 until family income reaches $58,108 then FTB Part A reduces by 20c per $1 until family income reaches $80,000. At this level FBT Part A is $13,557.60.
Family Income > $80,000 (The first income test is used as it is usually higher that the 2nd income test).
At this level family income of
$80,000 the FTB Part A Base Amount is $2,472.70 less $817.60 x 3
= $4,965.30 until family income reaches $108,255
then FTB Part A reduces by 30c per $1 until Family income
reaches $124,806.
CHILDREN 13 TO 19
1 Child
Family Income < $80,000
If > 12 then FTB Part A is $7,529.95 per year until family income reaches $58,108 then FTB Part A reduces by 20c per $1 until family income reaches $80,000. At this level family income of $80,000 the FTB Part A Base Amount is $3,151.55.
Family Income > $80,000
At this level family income of $80,000 the FTB Part A Base Amount is $2,472.70 less $817.60 supplement per child = $1,655.10 until family income reaches $103,378 then FTB Part A reduces by 30c per $1 until Family income reaches $108,892
2 Children
Family Income < $100,448 (The first income test is used as it is usually higher that the 2nd income test).
If > 12 then FTB Part A is $7,529.95 x 2 = $15,059.90 until family income reaches $58,108 then FTB Part A reduces by 20c per $1 until family income reaches $80,000. At this level family income the FTB Part A Base Amount is $2,472.70 less $817.60 x 2 = $3,310.20.
Family Income > $100,448 (The first income test is used as it is usually higher that the 2nd income test).
At this level family income of $103,368 the FTB Part A Base Amount is $2,472.70 less $817.60 x 2 = $3,310.20 reduces by 30c per $1 until Family income reaches $117,944.00.
3 Children
Family Income < $80,000 (The first income test is used as it is usually higher that the 2nd income test).
If > 12 then FTB Part A is $6,953.25 x 3 = $20,859.75 until family income reaches $58,108 then FTB Part A reduces by 20c per $1 until family income reaches $123,768. At this level FBT Part A is $1,655.10 x 3 = $4,965.30
Family Income > $123,768 (The first income test is used as it is usually higher that the 2nd income test).
At this level family income of
$123,768 the FTB Part A Base Amount is $1,655.10 x 3 = $4,965.30
then reduces by 30c per $1 until the Family income reaches
$140,319.00.
CHILD SUPPORT RECEIVED MAY REDUCE PART A
One parent receiving child support
1 Child > $1,752 reduces by 50c per $1.
2 Children > $2,336 reduces by 50c per $1.
Couple each receiving child support
1 Child each > $3,504 reduces by 50c per $1.
Additional children add $584.00 per child then reduces by
50c per $1.
FAMILY TAX BENEFIT PART B
The higher earner or single parent must earn < $104,432
The lower earner or single parent must earn as follows:
CHILD UNDER 5
$4,785.15 until lower earner or single parent's income reaches
$6,059 then the amount reduces by 20c per $1 until $29,985.
CHILD UNDER 18
$3,460.20 until lower earner or single parent's income reaches
$6,059 then the amount reduces by 20c per $1 until $23,360.00.
AND
A child must be < 13 for a couple and < 19 for singles, grandparent or great-grand parent and be a qualifing full-time secondary student who does not get Youth Allowance or similar.
RENT ASSISTANCE
A family must receive more than Family Tax Benefit
Part A base rate.
CHILDREN UNDER 13
1 Child
Family income must be < $75,628
If rent > $184.38 or $272.44 (couple) per week then
$4,808.44
2 Children
Family income must be < $86,104
If rent >
$184.38 or $272.44 (couple) per week then $4,808.44
3 Children
Family income must be < $110,668
If rent > $184.38 or $272.44 (couple) per week then $4,808.44
CHILDREN 13 to 19
1 Child
Family income must be < $83,384
If rent > $184.38 or $272.44 (couple) per
week then $4,808.44
2 Children
Family income must be < $108,660.50
If rent >
$184.38 or $272.44 (couple) per week then $4,808.44
3 Children
Family income must be < $133,936.75
If rent > $184.38 or $272.44 (couple) per week then $4,808.44
CHILD CARE BENEFIT RATES
You must also satisfy the following:
1. You must use approved child care.
2. You must have been eligible for Child Care Benefit.
3. You and your partner must have passed the Child Care Benefit test
and be working, looking for work, doing voluntary work, training
or studying at least 15 hours per week or 30 hours per
fortnight.
Google Deewr.gov.au Child Care Benefit Ready Reckoner
CHILD CARE REBATE
Combined Family Income
Subsidy% of actual fee charged to the relavant %
of hourly rate cap
Up to $72,466 85%
More than $72,466 to below $177,466 Decreasing to 50% by 1% for each $3,000
$177,466 to below $256,756 50%
$256,756 below to below $346,756 Decreasing to 20% by 1% for each $3,000
$346,756 to below $356,756 20%
$356,756 or more 0%
The Child Care Rebate annual cap is
$7,613
per child per year.
There is no income test for the Child Care Rebate but you must
satisfy the following:
1. You must use approved child care.
2. You must have been eligible for Child Care Benefit
(entitled at a rate of zero or more).
3. You and your partner must have passed the Child Care Benefit test
and be working, looking for work, doing voluntary work,
training or
studying at least 15 hours per week or 30 hours per fortnight.
Payments are made quarterly other than for the 30 June quarter when the final payment is reconciled your income tax return as the Child Care Benefit payments are income tested using family adjusted taxable income.
THINGS THAT CAN GO WRONG
My clients have a 15% error rate for Family Assistance payments.
These are usually due to information not being supplied or dropping
off the system.
MOST COMMON ERRORS
1. When children turn 16 you must notify Family Assistance that they
are still in full time education.
2. Families are eligible for rent assistance but think that they are
over the threshold and do not submit rental lease information.
3. Child Support Agency is not told who the parents are. e.g. a parent is living
overseas.
THE AVERAGE ERROR IS APPROX $2,000
CHILD SUPPORT AGENCY BASIC FORMULA
This is a complex calculation and it is best to contact the CSA and google "child support agency basic formula" for a full explanation.
There are 8 steps:
Step 1 Parent's child support income is:
Adjusted taxable income (including fringe benefits, reportable superannuation, investment losses, foreign income and tax free pensions) less the self support amount ($23,752) for 30 June 2016 less (if any) dependant child and multi-case allowance.
Step 2 Combined parent's child support income.
Step 3 The income percentage of each parent.
Divide each parent's child support income by the total.
Step 4 Work out each parent's care percentage.
This is the number of nights each parent has the child.
Below is a segment of the table, please review the entire table on the CSA web site.
Care percentage Nights in a year Care level Child support cost %
0-13% 0-51 nights Below regular care Nil
14-34% 52-127 nights Regular care 24%
35-47% 128-175 nights Shared care 25% + 2% for every % over 35%
Step 5 Cost percentage
This is the percentage of the child's costs that each parent meets directly through care.
There is a cost of the children table on the CSA web site.
Step 6 Child support percentage.
Each parent's costs of the child percentage is worked out by subtracting the parent's cost percentage from their income percentage.
Step 7 Costs of the child.
The costs of the child are determined by the parents' income, the number of children and the age of the children. There is a Costs of Children Table.
Below is a segment of the table, please review the entire table on the CSA web site.
Parents' combined Child Support Income
Children 0 to 12 years
Amounts 0 to $36,803 >$36,803 > $73,606 > $110,409 > $147,213 >$184,015
1 child 17c per $ $6,257+15c per $ $11,777+12c per $ $16,193+$10c per $ $19,873+7c per $ $22,449
2 children 24c per $ $8,833+23c per $ $17,298+20c per $ $24,659+$18c per $ $31,284+10c per $ $34,964
Children > 13 years
Amounts 0 to $36,803 >$36,803 > $73,606 > $110,409 > $147,212 >$184,015
1 child 23c per $ $8,465+22c per $ $16,562+12c per $ $20,978+$10c per $ $24,658+9c per $ $27,970
2 children 29c per $ $10,673+28c per $ $20,978+25c per $ $30,179+$20c per $ $37,540+13c per $ $42,324
Children of mixed age
Amounts 0 to $36,803 >$36,803 > $73,606 > $110,409 > $147,213 >$178,140
2 children 26.5c per $ $9,753+25.5c per $ $19,138+22.5c per $ $27,419+$19c per $ $34,412+11.5c per $ $38,644
3 children 29.5c per $ $10,857+28.5c per $ $21,346+27.5c per $ $31,467+$26.5c per $ $41,220+19c per $ $48,213
Step 8 Annual rate of child support.
Child support percentage x the costs of the child
Some Child Support Additional Payments:
When the costs of maintaining a child are significantly affected. E.g. special needs.
Is the child being cared for, educated or trained in the manor expected by their parents? E.g. private schools, child care costs, before and after school caring, etc.
Example: 1
Peter's adjusted taxable income is $80,000. He has contact with his children, aged 5 & 8, every 2nd weekend and on holidays which totals 73 nights in regular care. Jane's (his ex-spouse) adjusted taxable income is $20,000 and does not exceed the self support amount of $24,535.
Step 1 Peter's child support income is $80,000 less self support amount $24,535 = $55,465.
Step 2-3 Peter's income percentage is $55,465/$55,465 = 100% as Jane's child support income is under $24,535.
Step 4-5 Peter's child support cost percentage would be 24% based on 73 nights of regular care.
Step 6 Peter's child support percentages would be 100% - 24% = 76%.
Step 7 Peter's costs of the children would be $8,833 + ($55,465-$36,803) x 23c = $13,125.26.
Step 8 Peter's annual rate of child support is $13,125.26 less 24% = $9,975.20.
Example: 2
John's adjusted taxable income is $80,000. He has contact with his children, aged 5 & 8, every 2nd weekend and on holidays which totals 73 nights in regular care. Mary's (his ex-spouse) adjusted taxable income is $80,000. Both their incomes exceed the self support amount of $24,535. Their children attend private schools.
Step 1 John's child support income is $80,000 less self support amount $24,535 = $55,465. Mary's child support income is $80,000 less $23,752 = $56,248. Their combined child support income is $55,465 + $55,465 = $110,930.
Step 2-3 John's income percentage is $55,465/$110,930 = 50%. Mary's income percentage is $55,465/$110,930 = 50%.
Step 4-5 John's child support cost percentage would be 24% based on 73 nights of regular care.
Step 6 John's child support percentages would be 50% - 24% = 26%.
Step 7 John's costs of the children would be $24,659 + ($110,930-$110,409) x 20c = $24,763.20.
Step 8 John's annual rate of child support is $24,763.20 x 50% = $12,381.60 less 24% = $9,410.02 plus additional contributions for special needs for private school fees of $5,000 = $14,410.02.
Example: 3
John's adjusted taxable income is $80,000. He has contact with his children, aged 5 & 8, every 2nd weekend and on holidays which totals 73 nights in regular care. Mary's (his ex-spouse) adjusted taxable income is $40,000. Both their incomes exceed the self support amount of $24,763. Their children attend private schools.
Step 1 John's child support income is $80,000 less self support amount $24,763 = $55,465. Mary's child support income is $40,000 less $24,763 = $15,237. Their combined child support income is $55,465 + $15,237 = $70,702.00.
Step 2-3 John's income percentage is $55,465/$70,702 = 78.4%. Mary's income percentage is $15,237/$70,702 = 21.6%.
Step 4-5 John's child support cost percentage would be 24% based on 73 nights of regular care.
Step 6 John's child support percentages would be 78.4% - 24% = 54.4%.
Step 7 John's costs of the children would be $8,833 + ($70,702-$36,804) x 23c = $16,230.
Step 8 John's annual rate of child support is $16,230 x 78.4% = $12,724 less 24% = $9,670.24 plus additional contributions for special needs for private school fees of $3,000 = $12,670.24.
We have clients from the following locations:
Brisbane, Gold Coast, Sydney, Newcastle, Sunshine Coast, Cairns, Canberra,
Melbourne, Adelaide, Perth, Darwin.
Other:
Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor,
Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle
Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.
Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba,
North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie
Island, Elimbah, Kippa-Ring.
Disclaimer
The information provided in the above documents is not intended to
be, nor should it be construed as tax advice. Any specific
recommendation for a client can only be done after their individual
circumstances have been determined by David Douglas Accountants.
We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and
sole traders.
Liability limited by a scheme approved under Professional Standards legislation