Shared Care
- What is shared care?
- What is an assessment period?
- How to calculate shared care percentages
- What information do I have to provide if I am sharing care?
- Have you recently separated from your partner?
What is shared care?
You can only be considered to have shared care if your child spends between 35 per cent and 65 per cent of the time with you, that is between 128 and 237 nights a year. Parents whose level of care is below 35 per cent will not be considered to have shared care and will not be entitled to receive a portion of Family Tax Benefit. If your care level is between 14 and less than 35 per cent of the time, which is between 52 and 127 nights a year, you are considered to have regular care.
There are special rules for shared care which will affect how much Family Tax Benefit you can be paid. To be paid Family Tax Benefit, you must have care of your child for at least 35 per cent of the assessment period. A Family Tax Benefit shared care percentage will be worked out based on the percentage of the time that your child is in your care. This is based primarily on the number of nights a year your child spends with you. If you have your child for more than 65 per cent of the time, you will be entitled to receive 100 per cent of the Family Tax Benefit for your child (subject to the income test and the maintenance income test).
What is an assessment period?
An assessment period:
- begins on 1 July or the day the care of your child starts to be shared between two or more people (whichever is the later); and
- ends on the day the care arrangements change or on 30 June of the financial year in which the assessment period began (whichever is the earlier).
How to calculate FTB shared care percentages
If you have care for at least 35 per cent of the time and qualify to receive Family Tax Benefit you need to be aware that your share of care is not the same as your share of the payment.
The table below demonstrates how the number of nights you have with your child translates into a percentage of care and a share of Family Tax Benefit.
| No. of nights care annually) | Percentage of care | Family Tax Benefit shared care percentage |
|---|---|---|
| 0 to 51 | 0% to less than 14% | Not eligible for FTB |
| 52 to 127 | 14% to less than 35% | Not eligible for child related components of Family Tax Benefit.May be eligible for rent assistance and other government benefits |
| 128 to 175 | 35% to less than 48% | 25% plus 2% for each percentage point over 35% |
| Example: If you have care of your childfor 40% of the time, your Family Tax Benefit shared care percentage is25% + [(40-35 )x 2] = 35% | ||
| 176 to 189 | 48% to 52% | 50% |
| 190 to 237 | More than 52% to 65% | 51% plus 2% for each percentage point over 53% |
| Example: If you have care of your child for 60% of the time, your FTB shared care percentage is 51% + [(60-53 )x 2] = 65% | ||
| 238 to 365 | More than 65% to 100% | 100% |
To calculate the percentage of time your child is in your care, simply:
- Add the number of nights you have care of the child in the assessment period,
- divide this amount by the number of days in the assessment period, then
- multiply your result by 100.
If you only have care of your child during the day, you must agree with the other parent an equivalent number of nights or contact us to help you work it out.
Example 1
If your child lives with you for 300 nights during the assessment period which in this example is the full financial year (365 days), the 'shared care' percentage is calculated as follows:
300 nights (care during assessment period) / 365 nights (assessment period) x 100 = 82%
Using the above example, you would have 82 per cent care of your child and you would be eligible to receive 100 per cent of Family Tax Benefit for your child.
Example 2
If your child lives with you for 300 nights during the assessment period, which in this example is the full financial year (365 days), the 'shared care' percentage is calculated as follows:
As you have between 53 and 65 per cent care, the formula is as follows:
(51 + [60-53] x 2)
You are entitled to receive 65 per cent of Family Tax Benefit for your child.
As you have between 53 and 65 per cent care, the formula is as follows:
(25 + [40-35] x 2)
David is entitled to 35 per cent of Family Tax Benefit for Ben.
What information do I have to provide if I am sharing care?
If you and the child's other parent agree on the care arrangements for the child:
- You can tell us what your percentage of care is, based on these arrangements; or
- You can tell us what your agreed arrangements are and we will work out your percentage of care for you.
We may contact the child's other parent to verify the care arrangements. You may also need to give us any court order, child support agreement, parenting plan, or other documentation that explains the care arrangements.
If you and the child's other parent are having trouble agreeing on the amount of time each of you cares for the child or children, contact us to make an appointment to discuss the situation.
To reduce your risk of being overpaid, you must tell the Family Assistance Office if your care arrangements change for any Family Tax Benefit child in your care.
Please note: To qualify for more than the base rate of Family Tax Benefit Part A, you also need to meet the Maintenance Action Test. The Maintenance Action Test helps to ensure that you receive any amount of child support to which you may be entitled. The amount of child support you receive may affect the amount of Family Tax Benefit Part A you receive. You can collect child support through the Child Support Agency or privately.
Have you recently separated from your partner?
If you have recently separated from your partner, you may be able to get some assistance. You should contact us as soon as possible.
To be paid more than the base rate of Family Tax Benefit Part A you must take reasonable action to obtain child support payments, if you are caring for children from a previous relationship. If you share the care of children with your ex-partner, you'll need to have at least 35 per cent care to qualify for Family Tax Benefit.
You have 13 weeks to take reasonable steps to obtain a child support assessment.
The date you become eligible to claim for child support for your child is the later of:
- the date of birth of your child
- the date you separated from your child's other parent
- the date the child came into your care
- the date your percentage of care increases to 35 per cent or above; or
- the date you became entitled to a rate of Family Tax Benefit Part A greater than the base rate and you have not previously taken maintenance action.
If you do not take reasonable action to get child support payments, you will only receive the base rate of Family Tax Benefit Part A after the allowable time has expired.
If you feel that it is difficult for you to take action to obtain child support you should contact us to discuss your situation.
Please note: Shared care rules are not applicable to the Child Care Benefit or Child Care Rebate. When two families share the care of a child each of them will be able to apply for their full Child Care Benefit and/or Child Care Rebate.
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