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A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 NO. 80, 1999 - SCHEDULE 2

- Child care benefit rate calculator
Note: See subsection 70(1).

Part 1—Overall rate calculation process

- SECT 1
Method of calculating rate of child care benefit
(1)
If an individual's rate of child care benefit for a session of care provided to a child is to be worked out using this Schedule, the individual's hourly rate of child care benefit for the session is worked out in accordance with the following method statement:

Method statement

Step 1. Use Part 2 (clause 4) to work out the standard hourly rate for the session. Step 2. Work out the individual's adjustment percentage using clause 2. Step 3. Work out that percentage of the standard hourly rate: the result is the individual's rate of child care benefit for the care.

(2)
If the individual is eligible for child care benefit for only part of a session of care, this Schedule applies to the individual's rate of child care benefit for that part of the session as if a reference in this Schedule to a session of care included a reference to a part of a session of care.

- SECT 2
Adjustment percentage
(1)
An individual's adjustment percentage for the purposes of step 2 in the method statement in clause 1 is:

(2)
In subclause (1):

CCB % is:

schooling % is:

(a)
85% if the child is a school child; and

(b)
100% if the child is not a school child.

part-time % means:

(a)
110% if:

(i)
the care is provided by a centre based long day care service; and
(ii)
the child is not a school child; and
(iii)
the total number of hours in sessions of care that are provided to the child by one or more approved child care services, and for which the family incurs liability to pay, in the week concerned is less than 34; and
(b)
100% in any other case.

(3)
In subclause (2):

multiple child % is worked out using Part 3 (clause 5).

taxable income % is worked out using Part 4 (clauses 6 to 12).

- SECT 3
Number of children in care of a particular kind
(1)
An individual's multiple child % and taxable income % are affected by the number of children the individual has in care of a particular kind.

(2)
For the purposes of applying this Schedule to work out an individual's rate of child care benefit for a session of care of a particular kind, the number of children in care of that kind is worked out in accordance with the following method statement:

Method statement Step 1. Work out what kind of care was provided. For this purpose, the kinds of care are:

(a) care other than care provided by an occasional care service; and (b) care provided by an occasional care service;

Step 2. Work out, in relation to the individual, how many children are in sessions of care of that kind in the week concerned for which the individual is eligible for child care benefit. That number is the number of children in care of that kind in relation to the individual and that kind of care.

Part 2—Standard hourly rate

- SECT 4
Standard hourly rate—basic meaning
(1)
The standard hourly rate for a session of care provided to a child is worked out using the following table and rounding the result to the nearest cent (rounding 0.5 cents upwards):

Standard hourly rates
Kind of care provided in hour Standard hourly rate
1 Care other than part-time family day care or non-standard hours family day care $2.40
2 Part-time family day care The lesser of: (a) one and a third times the item 1 rate; and (b) the ceiling rate worked out under subclause (2)
3 Non-standard hours family day care one and a third times the item 1 rate
(2)
For the purposes of item 2 of the table in subclause (1), the ceiling rate is:

where:

item 1 rate is the item 1 standard hourly rate in the table in subclause (1).

number of eligible hours is the total number of hours in sessions of care of the kind referred to in item 2 of the table in subclause (1) that are provided to the child in the week concerned and for which the individual is eligible for child care benefit.

Part 3—Multiple child %

- SECT 5
Multiple child %
The multiple child % for an individual's child care benefit for a session of care of a particular kind provided to a child is worked out in accordance with the following method statement:

Method statement

Step 1. Use clause 3 to work out the number of children the individual has in care of that kind: the result is the number of children . Step 2. Use clause 11 to work out the individual's maximum weekly benefit: the result is the multiple child rate . Step 3. Work out what would be the individual's maximum weekly benefit under clause 11 if the individual had only one child in care of that kind and multiply it by the number of children: the result is the single child rate . Step 4. Divide the multiple child rate by the single child rate and express the result as a percentage: the result is the multiple child % .

Part 4—Taxable income %

- SECT 6
Income thresholds
(1)
There are 2 income thresholds that are relevant for working out an individual's taxable income %.

(2)
The lower income threshold is $28,200.

(3)
The upper income threshold is $66,000.

- SECT 7
Method of calculating taxable income %
An individual's taxable income % for a session of care provided to a child in an income year is:

(a)
100% if:

(i)
the individual's adjusted taxable income for the income year does not exceed the lower income threshold; or
(ii)
the individual or the individual's partner is receiving a social security benefit, a social security pension or a service pension; and
(b)
worked out using clause 8 if paragraph (a) does not apply.

- SECT 8
Taxable income % if adjusted taxable income exceeds lower income
threshold and if neither individual nor partner on income support
(1)
If an individual's taxable income % for a session of care provided to a child in an income year is to be worked out using this clause, it is to be worked out in accordance with the following method statement:

Method statement

Step 1. Use clause 9 to work out the individual's income threshold. Step 2 . Take the individual's income threshold from the individual's adjusted taxable income for the income year: the result is the individual's income excess . Step 3. Divide the income excess by 52 to convert it into a weekly amount: the result is the weekly income excess . Step 4. Use clause 10 to work out the individual's taper % and then work out that percentage of the weekly income excess: the result is the weekly taper amount . Step 5. Divide the weekly taper amount by the individual's maximum weekly benefit worked out under clause 11 and express the result as a percentage. Step 6. Take the percentage obtained in step 5 from 100% and round to 2 decimal places: the result is the provisional taxable income % . Step 7. Use clause 12 to work out the minimum taxable income %. Step 8. The individual's taxable income % is:

(a) the individual's provisional taxable income % if it is equal to or greater than the minimum taxable income %; or (b) the minimum taxable income % if it is greater than the individual's provisional taxable %.

- SECT 9
Income threshold
An individual's income threshold for a session of care of a particular kind provided to a child in an income year is worked out using the following table:

Weekly threshold
Number of children in care of that kind Adjusted taxable income for income year exceeds upper income threshold? Threshold
1 1 no Lower income threshold
2 1 yes Lower income threshold
3 2 or more no Lower income threshold
4 2 or more yes Upper income threshold
- SECT 10
Taper %
The taper % for an individual for a session of care of a particular kind provided to a child in an income year is worked out using the following table:

Taper %
Number of children in care of that kind Adjusted taxable income for income year exceeds upper income threshold? Taper %
1 1 No 10%
2 1 Yes 10%
3 2 No 15%
4 2 Yes 25%
5 3 or more No 15%
6 3 or more Yes 35%
- SECT 11
Maximum weekly benefit
The maximum weekly benefit for an individual for a session of care of a particular kind provided to a child in an income year is worked out using the following table:

Maximum Weekly Benefit Table
Number of children in care of that kind Adjusted taxable income for income year exceeds upper income threshold? Maximum weekly benefit (MWB)
1 1 no
2 1 yes
3 2 no
4 2 yes
5 3 no
6 3 yes
7 4 or more no
8 4 or more yes
(2)
In the table in subclause (1):

"MWB" means maximum weekly benefit.

standard hourly rate is the amount specified in item 1 of the table in subclause 4(1); and

weekly taper amount for an individual is the amount that would be worked out for the individual under step 4 of the method statement in subclause 8(1) if the individual's adjusted taxable income for the income year were the upper income threshold.

- SECT 12
Minimum taxable income %
The minimum taxable income % is the percentage worked out in accordance with the following formula and rounded to 2 decimal places:

where:

standard hourly rate is the amount specified in item 1 of the table in subclause 4(1).


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