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BRISBANE TAX ACCOUNTANTS / MORAYFIELD TAX ACCOUNTANTS
FAMILY ASSISTANCE
1 July 2022 to 30 June 2023
WHAT IS ELIGIBLE FAMILY TAX BENEFIT INCOME?
Assessable taxable income less deductions
Plus net investment losses eg rental properties
Plus reportable fringe benefits x 0.535 (Ungrossed 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 be a dependent child > 35% of time
2. Must be < 25 for A and < 18 for B or if aged < 22 prior to
1 January 2012 then < 22
3. Must be studying full time.
4. Must earn < $13,361
5. Must not receive other benefit
FAMILY TAX BENEFIT PART A
CHILDREN UNDER 13
1 Child
If under 13 then FTB Part A is $5,774.30 per year.
If family income is over $56,137 then FTB Part A reduces by 20c per
$1 until family income reaches $60,955.
At this level family income of $73,055 the FTB Part A Base
Amount is $2,390.75 until family income reaches $99,864 then FTB
Part A reduces by 30c per $1 until Family income reaches
$105,206.
2 Children
If under 13 then FTB Part A is $5,774.30 per year per child =
$5,774.30 x 2 = $11,548.60
If family income is > $56,137 then FTB Part A reduces by 20c per
$1 until family income reaches $89,972.50
At this level FTB Part A base rate is $2,390.75 per child per
year x 2 = $4,781.50 until family income reaches $99,864 then
FTB Part A reduces by 30c per $1 until family income reaches
$110,547.
3 Children
If under 13 then FTB Part A is $5,774.30 per year per child =
$5,774.30 x 3 = $17,322.90 plus large family supplement of $295.65.
If family income > $56,137 then FTB Part A reduces by 20c per $1
until family income reaches $106,890.
At this level FTB Part A base rate is $2,390.75 per child per
year x 3 = $7,172.25 until family
income reaches $101,908 then FTB Part A reduces by 30c per $1 until
family income reaches $120,572
CHILDREN 13 to 19
1 Child
If 13 to 15 $7,274.45 per year
If income over $56,137 reduces by 20c until $80,555.
Then base rate $2,390.75 until $99,864 reduces by 30c until
$105,206
2 Children
If 13 to 15 $7,274.45 per year x 2 = $14,548.90
If income over $56,137 reduces by 20c until $104,974
Then base rate $2,390.75 x 2 = $4,781.50 until $99,864 reduces
by 30c until $113,953
3 Children
If 13 to 15 $7,274.45 per year x 3 = $21,823.35
If income over $56,137 reduces by 20c until $129,393
Then base rate $2,390.75 x 3 = $7,172.25 until family income
reaches $99,864 then FTB Part A reduces by 30c per $1 until
family income reaches $135,574
CHILD SUPPORT RECEIVED MAY REDUCE PART A
One parent receiving child support
1 Child > $1,697.25 reduces by 50c
2 Children > $2,263 reduces by 50c
Couple each receiving child support
1 Child each > $3,394.50 reduces by 50c
Additional children add $565.75 per child then reduces by 50c
FAMILY TAX BENEFIT PART B
The higher earner or single parent must earn < $100,900
The lower earner or single parent must earn as follows:
CHILD UNDER 5
$4,620.90 until $5,840 then reduces by 20c until $28,945
CHILD UNDER 18
$3,343.40 until $5,840 then reduces by 20c until $22,557
RENT ASSISTANCE
A family must receive more than Family Tax Benefit
Part A base rate.
CHILDREN UNDER 13
1 Child
Family income must be < $73,055.
If rent over $165.06 or $244.16 (couple) per week then $3,665.48.
2 Children
Family income must be < $89,973.
If rent over $165.06 or $244.16 (couple) per week then $3,665.48.
3 Children
Family income must be < $106,890
If rent over $165.06 or $210.32 (couple) per week then $4,145.96.
CHILDREN 13 to 15
1 Child
Family income must be < $80,555.
If rent over $165.06 or $244.16 (couple) per week then $3,665.48.
2 Children
Family income must be < $104,974.
If rent over $165.06 or $244.16 (couple) per week then $3,665.48.
3 Children
Family income must be < $129,393.
If rent over $176.59 or $244.16 (couple) per week then $4,145.96.
CHILD CARE BENEFIT RATES
1 Child is $3.78 per hour or $37.80 per 10 hours per day or $189.00
for 50 hours.
2 Children are per child $3.95 per hour or $39.50 per 10 hours per
day or $197.50 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
< $69,390 100.00%
$174,390 Decreasing to 50%
$253,680 50%
$343,680 Decreasing to 20%
$353,680 50.00%
$353,680 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.
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 ($21,622) for 30 June 2012 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 $32,433 $32,434 to $64,865 $64,866 to $97,298 $97,299 to $129,730 $129,731 to $162,163 >$162,163
1 child 17c per $ $5,514+15c per $ $10,379+12c per $ $14,271+$10c per $ $17,514+7c per $ $19,784
2 children 24c per $ $7,784+23c per $ $15,243+20c per $ $21,730+$18c per $ $27,568+10c per $ $30,811
Children > 13 years
Amounts 0 to $32,433 $32,434 to $64,865 $64,866 to $97,298 $97,299 to $129,730 $129,731 to $162,163 >$162,163
1 child 17c per $ $7,460+22c per $ $14,595+12c per $ $18,487+$10c per $ $21,730+9c per $ $24,649
2 children 24c per $ $9,406+28c per $ $18,487+25c per $ $26,595+$20c per $ $33,081+13c per $ $37,297
Children of mixed age
Amounts 0 to $32,433 $32,434 to $64,865 $64,866 to $97,298 $97,299 to $129,730 $129,731 to $162,163 >$162,163
2 children 26.5c per $ $8,595+25.5c per $ $16,865+22.5c per $$24,162+$19c per $ $30,324+11.5c per $ $34,054
3 children 29.5c per $ $9,568+28.5c per $ $18,811+27.5c per $$27,730+$26.5c per $$36,324+19c per $ $42,486
Step 8 Annual rate of child support.
Child support percentage x the costs of the child
Example:
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 does exceed the self support amount of $21,622.
Step 1 Peter's child support income is $80,000 less self support amount $21,622 = $58,378.
Step 2-3 Peter's income percentage is 100% as his wife's child support income is under $21,622.
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 $7,784 + ($58,378-$32,434) x 23c = $13,751.12.
Step 8 Peter's annual rate of child support is $13,751.12 x 76% = $10,450.85.
We have clients from the following locations:
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.
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.