**FAMILY ASSISTANCE**

**
30 June 2019**

**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

4. Must be studying full time

5. Must not receive another benefit e.g. youth allowance.

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 $5,518.80 per year until family income reaches $53,728 then
FTB Part A reduces by
20c per
$1 until family income reaches $69,915.75. At this level family
income of $69,915.75 the FTB Part A Base Amount is $2,281.25 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 $2,281.25 less $751.90 supplement per child = $1,529.35 until family income reaches $94,316 then FTB Part A
reduces by 30c per $1 until Family income reaches $99,414.**

**2 Children**

**Family Income < $80,000**

**If under 13 then FTB Part A
is $5,518.80 x 2 = $11,037.60 until family income reaches
$53,728 then FTB Part A reduces by 20c per $1 until family
income reaches $86,104. At this level family income of $86,104
the FTB Part A Base Amount is $2,281.25 x 2 = $4,562.50.**

**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
$86,104 the FTB Part A Base Amount is $2,281.25 less $751.90 supplement per child = $1,529.35 x 2 =
$3,058.70 until family income reaches $94,316 then FTB Part A
reduces by 30c per $1 until Family income reaches $104,512.**

**3 Children**

**Family Income < $80,000**

**If under 13 then FTB Part A
is $5,518.80 x 3 = $16,556.40 until family income reaches
$53,728 then FTB Part A reduces by 20c per $1 until family
income reaches $102,291.25. At this level FBT Part A is $2,281.25 x 3 = $6,843.75**

**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
$ 102,291.25 the FTB Part A Base Amount is
$2,266.65 x 3 = $6,843.75 until family income reaches $102,291.25
then FTB Part A reduces by 30c per $1 until Family income
reaches $125,103.75.**

**CHILDREN 13 TO 19 **

**1 Child**

**Family Income < $80,000**

**If > 12 then FTB Part A is
$6,953.25 per year until family income reaches $53,728 then
FTB Part A reduces by
20c per
$1 until family income reaches $77,088. At this level family income
of $77,088 the FTB Part A Base Amount is $2,281.25.**

**Family Income > $80,000**

**At this level family income of
$80,000 the FTB Part A Base Amount is $2,281.25 less $751.90 supplement per child = $1,529.35 until family income reaches $94,316 then FTB Part A
reduces by 30c per $1 until Family income reaches $99,414**

**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
$6,953.25 x 2 = $13,906.50 until family income reaches $53,728 then
FTB Part A reduces by
20c per
$1 until family income reaches $100,448. At this level family income
of $100,448 the FTB Part A Base Amount is $2,281.25 x 2 =
$4,562.50.**

**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
$100,448 the FTB Part A Base Amount is
$2,281.25 x 2 = $4,562.50 reduces by 30c per $1 until
Family income reaches $115,656.33.**

**3 Children**

**Family Income < $123,808 (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 $53,728 then
FTB Part A reduces by
20c per
$1 until family income reaches $123,808. At this level FBT Part A is
$2,281.25 x 3 = $6,843.75**

**Family Income > $123,808 (The
first income test is used as it is usually higher that the 2nd
income test).**

**At this level family income of
$123,808 the FTB Part A Base Amount is $2,281.25 x 3 = $6,843.75
then reduces by 30c per $1 until the Family income reaches
$146,620.50.**

**CHILD SUPPORT RECEIVED MAY REDUCE PART A**

**One parent receiving child support
1 Child > $1,620.60 reduces by 50c per $1**.

**.**

2 Children > $2,160.80 reduces by 50c per $1

2 Children > $2,160.80 reduces by 50c per $1

**.**

Couple each receiving child support

1 Child each > $3,241.20 reduces by 50c per $1

Couple each receiving child support

1 Child each > $3,241.20 reduces by 50c per $1

**.**

Additional children add $540.20 per child then reduces by 50c per $1

Additional children add $540.20 per child then reduces by 50c per $1

**FAMILY TAX BENEFIT PART B**

**The higher earner or single parent must earn < $100,000
The lower earner or single parent must earn as follows:
CHILD UNDER 5
$4,420.15 until lower earner or single parent's income reaches
$5,621 then the amount reduces by 20c per $1 until $27,722.
CHILD UNDER 18
$3,197.40 until lower earner or single parent's income reaches
$5,621 then the amount reduces by 20c per $1 until $21,608.**

**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 < $69,916

If rent >

Family income must be < $69,916

If rent >

**$187.72 or $226.29 (couple)**

**per week then $4,420.15**

2 Children

Family income must be < $86,104

If rent >

2 Children

Family income must be < $86,104

If rent >

**$187.72 or $226.29 (couple) per week then $4,420.1**

3 Children

Family income must be < $102,291

If rent > $198.07 or $240.20 (couple) per week then $4,732

CHILDREN 13 to 19

1 Child

Family income must be < $77,088

If rent >

3 Children

Family income must be < $102,291

If rent > $198.07 or $240.20 (couple) per week then $4,732

CHILDREN 13 to 19

1 Child

Family income must be < $77,088

If rent >

**$187.72 or $226.29**

**(couple)**

**per week then $4,420.1**

2 Children

Family income must be < $100,448

If rent >

2 Children

Family income must be < $100,448

If rent >

**$187.72 or $226.29 (couple) per week then $4,420.1**

3 Children

Family income must be < $123,808

If rent > $198.07 or $240.20 (couple) per week then $4,732

3 Children

Family income must be < $123,808

If rent > $198.07 or $240.20 (couple) per week then $4,732

**
CHILD CARE BENEFIT RATES**

**1 Child is $4.30 per hour or $43.00 per 10 hours per day or
$215
for 50 hours.
The Child Care Benefit is income tested and you must use the Child
Care Benefit Ready Reckoner to see what % you are entitled to. I
have listed part of the schedule below.**

**Income Number of children in care**

**
One Two
Three**

**< $45,114 100.00% 104.49% 108.70%**

**$59,000
87.58% 95.18%
102.49%**

**$73,000
75.06% 85.79%
96.23%**

**$87,000
62.53% 76.39%
89.97%**

**$101,000 50.01% 67.00%
83.71%**

**$115,000
37.49% 53.26%
71.64%**

**$129,000
24.97% 37.60%
57.03%**

**$142,000
13.34% 23.07% 43.47%**

**>$156,914
Nil
6.30% 27.81%**

**>$162,633 Nil
Nil 21.55%**

**>$183,655
Nil
Nil
Nil**

**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**

**Child Care Rebate is 50% of your out of pocket child care costs. **

**You must calculate your out of pocket
Child Care Cost by first calculating if you are eligible for any
Child Care Benefits. See below.**

**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

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.**

**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 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.**

**
We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and
sole traders.**

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Professional Standards legislation**