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Family Tax Benefit Question

I have a question:

Under the new legislation the family tax benefit has some step changes.  I have just received a assessment and spoken to the department which has my family tax benefit reduced.  There response was that because I have 35.07% care they round down to 35%.  Then because I do not have more than 35% care I am only entitled to 25% of the family tax benefit.

My question is:
  1. can they just round down?
  2. What is the difference if I  had 36% care as they department could or would not answer my question on what the difference is? I am just wondering if its worth the effort of apealing the assessment.
Also my current shared care level is 35.07%.  However every second year I get an extra 4 days contact which has not been taken into consideration?
Just one possible solution that may be available is to ring them each year that this happens and tell them of the change, they will then have to comply with an increase to this new figure.

I believe they only consider the current year.

D4E said
Just one possible solution that may be available is to ring them each year that this happens and tell them of the change, they will then have to comply with an increase to this new figure.
Unfortunately not as easy as this. There is a new piece of legislation that says unless you have 7.1% change of contact you cannot move across a band of care. This is a simplified post on the issue as we (SPCA) have raised a lot of questions around which are pending replies from FaCSIA, but the bottom line is you cannot just add 4 days , move into a new band and get a new deal calculated.

Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
necroyp said
….Under the new legislation the family tax benefit has some step changes.  I have just received a assessment and spoken to the department which has my family tax benefit reduced.  There response was that because I have 35.07% care they round down to 35%.  Then because I do not have more than 35% care I am only entitled to 25% of the family tax benefit.
I thought it was up to 34.99% and if you had 35% you were in the next band of care. You can check out the FAQ's in the web guide under child support.

Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
Thanks SPCA.

After doing the calculations it means the extra 4 still wouldn't come close to the magic figure.

Can I assume in neocryp's case the 7.1% would be 9 days per year to achieve a change it would need to be greater than this figure ? then this would take him over the 36% of care.
Would this put neocryp in a better financial situation or does that come in at 37% ?.

I guess the other question would be if it's over combined care or just neocryp I seem to remember it would be based on a change in neocryp care arrangements.

Forgive my ignorance but this new system seems to be a little bias in some ways and confusing.



Note : I'll leave this here SSPCA although you have already answered the questions as I procrastinated about asking the questions ( wow that was quick ) :thumbs:
D4E in much haste and not trying to put you off I suggest you get into the FAQ area on the site. See my previous post. I am in the middle of urgent Press Releases around Minister Ludwig's statements yesterday. There is much more to this 7.1% than meets the eye. MikeT is over the issues and we are awaiting a response from FaCSIA. I have chased this up.

Executive Secretary - Shared Parenting Council of Australia
 Was my post helpful? If so, please let others know about the FamilyLawWebGuide whenever you see the opportunity
 
No put off at all SSPCA I know very little about this and should look to the area you have directed and I appreciate the helpful push in the right direction.

I thank you for taking the time, this is one time of the year that all concerned with the running of FLWG and there portal counterparts will be very busy.

Thank You D4E.
The situation with Centrelink (CLK) rounding percentages works like this.  If your level of care is less than 50%, then CLK will round down, so if you have 34.97% shared care, you dont get rounded up to the magic 35%, you get rounded down to 34%…similarly, if you have 51.4%, you would get rounded up to 52%…its a unique approach to traditional mathemeatics and one that will make a lot of people angry I suspect.  Got this info directly from a CLK FTB trainer.
Things are getting complicated with several topics running on the staged changes in the new legislation, so here is a summary of this topic, hopefully with all salient points in and errors out.

necroyp said
….Under the new legislation the family tax benefit has some step changes. I have just received a assessment and spoken to the department which has my family tax benefit reduced. There response was that because I have 35.07% care they round down to 35%. Then because I do not have more than 35% care I am only entitled to 25% of the family tax benefit.
Secretary SPCA said
I thought it was up to 34.99% and if you had 35% you were in the next band of care. You can check out the FAQ's in the web guide under child support.
 

Yes, necroyp, you are in the next band of care, but you are also right about the 24%.

Although you are in the 35% - 48% care band, you cannot get more than 24% of Family Tax Benefit until you are at 36% or more.  This is effectively a band within a band.

Here it is direct from the legislation




Schedule 8  Amendments relating to family tax benefit (commencing on 1 July 2008)


Part 1  Regular care children


Division 1  Amendments


A New Tax System (Family Assistance) Act 1999


55  Section 59


Repeal the section, substitute:

59 Shared care percentages where individual is FTB child of more than one person who are not members of the same couple


(1) An individual has a shared care percentage under this section for an FTB child of the individual if the Secretary has determined, under subsection 22(6A), a percentage of the period mentioned in that subsection during which the child was, or will be, in the care of the individual.

Note: The Secretary is taken to have made a determination under subsection 22(6A) in a blended family case (see paragraph 27(2)(b)).


(2) The individual's shared care percentage for the FTB child is the relevant percentage specified in column 2 of the table.


Shared care percentages
Item Column 1


Individual's percentage determined under subsection 22(6A)
Column 2


Shared care percentage
1 35% to less than 48% 25% plus 2% for each percentage point over 35%
2 48% to 52% 50%
3 more than 52% to 65% 51% plus 2% for each percentage point over 53%
4 more than 65% to 100% 100%





 
D4E said
 After doing the calculations it means the extra 4 still wouldn't come close to the magic figure.

 Can I assume in neocryp's case the 7.1% would be 9 days per year to achieve a change it would need to be greater than this figure ?
 
The 7.1% is the percentage of the total year - therefore, the quantum of change always has to be 26 days, even where a single day would move a payer or payee from one band to another.

I can't find the 7.1% rule in the Family Tax Benefit part of the legislation - I think it only applies to child support, not Family Tax Benefit.

D4E said
then this would take him over the 36% of care.
 Would this put neocryp in a better financial situation or does that come in at 37% ?.
 
The benefit comes in by 2% increments from 36% to 65%


LifeInsight said
 The 7.1% change of care legislation.

 Is it for C$A care or FTB care or for both calculations?

 I have a friend in Centrelink who is currently doing all the PD on the FTB changes and knows nothing of the the 7.1% change of care rule. He has checked for me further up the command chain and there is still nothing on it.

 Can I have please see the Legislation?
 


 
Child Support (Assessment) Act 1989 said
(2)   However, if the amendment relates to a person's percentage of care for a child, the Registrar must not amend an administrative assessment unless:
    (a)   the change to the person's percentage of care is at least 7.1%, and the change affects the annual rate of child support payable for the child; or
    (b)   the person's percentage of care falls below 14%; or
    ©   the person's percentage of care increases to 14%, or above 14%; or
    (d)   the child is a relevant dependent child and the Registrar has become aware that the child was not taken into account for the purpose of making the assessment.
 Note:   7.1% is one night per fortnight.
 
 
 
realdad said
The situation with Centrelink (CLK) rounding percentages works like this.  If your level of care is less than 50%, then CLK will round down, so if you have 34.97% shared care, you dont get rounded up to the magic 35%, you get rounded down to 34%…similarly, if you have 51.4%, you would get rounded up to 52%…its a unique approach to traditional mathemeatics and one that will make a lot of people angry I suspect.  Got this info directly from a CLK FTB trainer.
 
Yes, that is exactly what the legislation says.

Very creative - I would have thought rounding should be towards the centre - up for under 50%, down for over, but there you go.



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