David Douglas

BRISBANE ACCOUNTANTS / MORAYFIELD ACCOUNTANTS

FAMILY ASSISTANCE

1 July 2010 to 30 June 2011

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
3. Must be studying full time.
4. Must earn < $13,010
5. Must not receive other benefit

FAMILY TAX BENEFIT PART A

CHILDREN UNDER 13

1 Child
If under 13 $4,905.60 per year
If income over $45,114 reduces by 20c until $59,331
Then base rate $2,062.25 until $94,316 reduces by 30c until $101,191

2 Children
If under 13 $4,905.60 per year x 2 = $9,811.20
If income over $45,114 reduces by 20c until $73,548
Then base rate $2,062.25 x 2 = $4,124.50 until $98,112 reduces by 30c until $111,861

3 Children
If under 13 $4,905.60 per year x 3 = $14,716.80
If income over $45,114 reduces by 20c until $87,764
Then base rate $2,062.25 x 3 = $6,186.75 until $101,908 reduces by 30c until $123,492

CHILDREN 13 to 15

1 Child
If 13 to 15 $6,161.20 per year
If income over $45,114 reduces by 20c until $65,608
Then base rate $2,062.25 until $94,316 reduces by 30c until $101,191

2 Children
If 13 to 15 $6,161.20 per year x 2 = $12,322.40
If income over $45,114 reduces by 20c until $86,104
Then base rate $2,062.25 x 2 = $4,124.50 until $98,112 reduces by 30c until $111,861

3 Children
If 13 to 15 $6,161.20 per year x 3 = $18,483.60
If income over $45,114 reduces by 20c until $101,908
Then base rate $2,062.25 x 3 = $6,186.75 until $101,908 reduces by 30c until $123,492

CHILDREN 16 to 17

1 Child
Then base rate $2,062.25 until $94,316 reduces by 30c until $101,191

2 Children
Then base rate $2,062.25 x 2 = $4,124.50 until $98,112 reduces by 30c until $111,861

3 Children
Then base rate $2,062.25 x 3 = $6,186.75 until $101,908 reduces by 30c until $123,492

DEPENDENT FULL TIME STUDENTS 18 to 24

1 Child
Then base rate $2,518.50 until $94,316 reduces by 30c until $102,711

2 Children
Then base rate $2,518.50 x 2 = $5,037 until $98,112 reduces by 30c until $114,902

3 Children
Then base rate $2,518.50 x 3 = $7,555.50 until $101,908 reduces by 30c until $128,055

CHILD SUPPORT RECEIVED MAY REDUCE PART A

One parent receiving child support

1 Child > $1,368.75 reduces by 50c

2 Children > $1,825 reduces by 50c

Couple each receiving child support

1 Child each > $2,737.50 reduces by 50c

Additional children add $456.25 per child then reduces by 50c

FAMILY TAX BENEFIT PART B

The higher earner or single parent must earn < $150,000

The lower earner or single parent must earn as follows:

CHILD UNDER 5

$3,909.15 until $4,745 then reduces by 20c until $24,291

CHILD UNDER 18

$2,832.40 until $4,745 then reduces by 20c until $18,907

RENT ASSISTANCE

A family must receive more than Family Tax Benefit
Part A base rate.

CHILDREN UNDER 13

1 Child
Family income must be < $59,331
If rent over $157.57 per week then $3,516.24

2 Children

Family income must be < $73,548
If rent over $157.57 per week then $3,516.24

3 Children

Family income must be < $87,764
If rent over $169.33 per week then $3,974.88

CHILDREN 13 to 15

1 Child
Family income must be < $65,608
If rent over $157.57 per week then $3,516.24

2 Children
Family income must be < $86,104
If rent over $157.57 per week then $3,516.24

3 Children

Family income must be < $101,908
If rent over $169.33 per week then $3,974.88

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. Eg living overseas.

THE AVERAGE ERROR IS APPROX $2,000

TAX OFFICE 50% EDUCATION TAX REBATE

Family must receive Family Tax Benefit Part A

Child must be doing a primary ( $397 per student), secondary ($794 per student) or TAFE secondary school course

Some eligible expenses from 1 July 2011

1. School uniforms
2. Laptops, computers and repairs
3. Computer software
4. Printers, USB drives and computer supplies
5. Internet
6. Stationery packs and study guides
7. Textbooks.
8. Trade tools for courses

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 $7,500 per child per year.

There is no means 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
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.

CHILD CARE BENEFIT RATES

1 Child is $3.68 per hour or $36.80 per 10 hours per day or $184.00 for 50 hours.

2 Children are per child $3.84 per hour or $38.49 per 10 hours per day or $192.28 for 50 hours.

The Child Care Benefit is means tested and you must use the Child Care Benefit Ready Reckoner to see what % you are entitled to. You must also satisfy the following:

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.