adjusted taxable income (ATI) explained: what counts for CCS and FTB
last updated: february 2026
william samuels is a stay-at-home dad and former teacher from Adelaide. he writes about school readiness, early learning, and navigating the childcare system for mini mode.
here's a conversation I've had half a dozen times at the school pickup. a parent checks their CCS percentage, sees it's lower than expected, and can't work out why. their taxable income is well under the top bracket, they've maxed out salary sacrifice, and yet Services Australia has them at 72%. nine times out of ten the answer is the same: you're thinking about taxable income, but Centrelink uses adjusted taxable income.
ATI is a quietly brutal number. it strips out a lot of the clever accounting most households use to reduce their tax bill, which means the figure you see in myGov for CCS and FTB is usually higher than the one on your tax return.
here's exactly what goes into ATI, what doesn't, and why a nurse earning $90,000 with a big super sacrifice can end up with an ATI of $105,000.
what ATI actually means
adjusted taxable income is the income definition Services Australia uses for means-tested family payments — Family Tax Benefit, Child Care Subsidy, Parenting Payment, and the Commonwealth Seniors Health Card. it's defined in the A New Tax System (Family Assistance) Act 1999, not the tax law, and that's why it differs from what the ATO uses.
the basic formula is:
- taxable income (as per your ATO notice of assessment)
- plus reportable fringe benefits (adjusted)
- plus reportable employer super contributions
- plus total net investment losses (negative gearing and share losses)
- plus tax-free pensions and benefits
- plus foreign income not already taxed
- plus child support you paid to another parent
for a couple, Services Australia adds both partners' ATIs together to get the family figure used for CCS and FTB Part A.
what gets added back
these are the items that catch most families out. each one is an amount you legitimately shelter from tax — but Services Australia adds it back on the basis that it still represents real economic capacity.
| add-back item | what it is |
|---|---|
| reportable fringe benefits | novated leases, employer-provided housing, salary packaging at hospitals and NFPs |
| reportable employer super | salary sacrifice to super above the compulsory SG amount |
| total net investment losses | negative gearing on rentals, margin loan losses on shares |
| tax-free pensions | DVA disability pension, carer payment for veterans, invalidity service pension |
| foreign income | overseas earnings not already in your taxable income |
| child support paid | amounts you paid to the other parent via the agency or privately |
the two that bite hardest in ordinary Australian households are the reportable super contributions and the fringe benefits. if you work for a public hospital and package $9,010 a year plus $2,650 meal entertainment, that's roughly $21,900 grossed-up that gets added back to your ATI for CCS purposes.
what doesn't count
a few things that feel like they should affect ATI don't:
- HELP/HECS repayments:your student loan doesn't reduce your ATI — it's paid out of taxable income but doesn't get deducted for family assistance purposes
- compulsory super (SG):the 12% your employer is legally required to contribute isn't added back — only salary sacrifice on top of it is
- non-reportable fringe benefits: things like work laptops, minor benefits, and otherwise-deductible expenses
- Family Tax Benefit itself:FTB payments aren't counted as income for ATI
- Child Care Subsidy: CCS is a fee reduction paid to providers, not income in your hands
- tax-free threshold:the first $18,200 of earnings still sits inside taxable income — don't subtract it
worked example: nurse on $90K base
meet Rachel, an emergency department nurse at a public hospital in Adelaide. her gross salary is $90,000. she salary-sacrifices the full $9,010 NFP cap plus $2,650 meal entertainment, and salary-sacrifices another $8,000 a year to super on top of her employer's SG contributions. she has a negatively geared investment property running at a $4,000 annual loss.
| item | amount |
|---|---|
| gross salary | $90,000 |
| less NFP packaging (pre-tax) | −$11,660 |
| less salary sacrifice to super | −$8,000 |
| less investment property loss | −$4,000 |
| taxable income | $66,340 |
| add reportable fringe benefits (grossed up) | +$21,900 |
| add reportable super contributions | +$8,000 |
| add net investment loss | +$4,000 |
| adjusted taxable income | $100,240 |
on paper Rachel looks like a $66K earner. for CCS and FTB purposes she's a $100K earner. that shifts her CCS percentage down by about 3 percentage points once the taper kicks in above $85,279, and knocks a good chunk off any FTB Part A entitlement. none of it is avoidable — it's baked into the definition.
finding your ATI
ATI isn't a single line on your notice of assessment, but all the components are. here's where to look:
- taxable income: front page of your ATO notice of assessment
- reportable fringe benefits: Income Tests section, item IT1
- reportable super: Income Tests section, item IT2
- net investment losses: Income Tests section, items IT5 (rental) and IT6 (financial)
- child support paid: IT7
Services Australia pulls these directly from the ATO once you lodge your tax return, then reconciles your CCS and FTB for the year. if you don't lodge, they'll eventually raise a debt at the highest estimate of your income — which is rarely the result you want.
frequently asked questions
what is adjusted taxable income?
it's the income definition Services Australia uses for family payments. it starts with taxable income and adds reportable fringe benefits, reportable employer super, investment losses, tax-free pensions, foreign income, and child support paid.
is ATI the same as taxable income?
no — ATI is usually higher. the items added back are things that reduce tax but Services Australia treats as available income, like salary sacrifice to super and novated leases.
does salary sacrifice to super reduce ATI?
no. it reduces taxable income but gets added back as a reportable employer super contribution. your CCS percentage and FTB entitlement don't improve by salary sacrificing to super.
where do I find my ATI on my tax return?
it isn't a single line — you add up your taxable income and the items in the Income Tests section of your return (IT1, IT2, IT5, IT6, IT7) plus any tax-free pensions. Services Australia does this automatically from your lodged return.
estimate your CCS with ATI
once you've worked out your family ATI, you can get a realistic CCS percentage rather than a surprise at reconciliation. plug it straight into the calculator.