Examples of calculating 25% of family tax credit entitlement
Example 1 - Sole parent, 2 children
Client has two children and gets a total family tax credit of $275.69 a week (1 April 2026). The maximum rate of family tax credit payable for the eldest child is $151.91 a week (1 April 2026).
Use 25% of $151.91 as this is the lesser amount (less than 25% of $275.69).
The client's portion of family tax credit entitlement for the contribution calculation is:
- 25% of $151.91 = $37.97 (based on the maximum rate of family tax credit payable for the eldest child, which is lower than the client's total family tax credit entitlement)
Example 2 - Single parent, child in shared care
Client has one child aged 10, who lives with them 4 nights a week under a shared care arrangement with their former partner.
The maximum rate of family tax credit payable for the eldest child is $151.91 a week (1 April 2026).
Under the shared care arrangement, the client's family tax credit is apportioned, based on the 4 nights the child lives with them as follows:
4 divided by 7 multiplied by $151.91 = $86.80. The client's total family tax credit is $86.80.
Use 25% of $86.80 as this is the lesser amount (lesser than 25% of $151.91).
The client's portion of family tax credit entitlement for the contribution calculation is:
- 25% of $86.80 = $21.70
Example 3 - Non-beneficiary parent, qualifies for family tax credit but does not get it paid
Client has one child aged 12. The client does not get a main benefit and qualifies for (but does not get paid) a total family tax credit of $41.00 (excluding in-work tax credit).
$41.00 is less than the maximum rate of family tax credit payable for the eldest child of $151.91 (1 April 2026).
Use 25% of $41.00, as this is the lesser amount (less than 25% of $151.91).
The client's portion of family tax credit entitlement for the contribution calculation is:
- 25% of $41.00 = $10.25
