Commonwealth Consolidated Acts Commonwealth Consolidated ActsNote: See subsection 58(1).
Part 1 -- Overall rate calculation process
1 Overall rate calculation process
(1) To work out an individual's annual rate of family tax benefit, add:
(a) the individual's Part A rate calculated under Part 2 (clauses 3 to 24) or Part 3 (clauses 25 to 28); and
(b) the individual's Part B rate calculated under Part 4 (clauses 29 to 33).
(2) To work out the individual's Part A rate:
(a) use Part 2 (clauses 3 to 24) if:
(i) the individual's adjusted taxable income does not exceed the individual's higher income free area; or
(ii) the individual, or the individual's partner, is receiving a social security pension, a social security benefit or a service pension; and
(b) use Part 3 (clauses 25 to 28) if:
(i) the individual's adjusted taxable income exceeds the individual's higher income free area; and
(ii) neither the individual, nor the individual's partner, is receiving a social security pension, a social security benefit or a service pension.
Use Schedule 3 to work out the individual's adjusted taxable income. Use clause 2 to work out the individual's higher income free area.
For the purposes of this Part, an individual's higher income free area is worked out using the following table. An individual's higher income free area is the basic amount in column 1 plus an additional amount in column 2 for each FTB child of the individual (after the first).
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Higher income free area |
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|
Column 1 Basic amount |
Column 2 Additional amount |
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1 |
$73,000 |
$3,000 |
Part 2 -- Part A rate (Method 1)
Division 1 -- Overall rate calculation process
3 Method of calculating Part A rate
Subject to the operation of clauses 4A, 4B and 5, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:
Method statement
Step 1. Add the following amounts:
(a) the individual's standard rate under Division 2 of this Part (clauses 7 to 11);
(b) the individual's large family supplement (if any) under Division 1 of Part 5 (clauses 34 and 35);
(c) the individual's multiple birth allowance (if any) under Division 2 of Part 5 (clauses 36 to 38);
(ca) the individual's FTB Part A supplement under Division 2A of Part 5 (clause 38A);
(d) the individual's rent assistance (if any) under Division 3 of this Part (clauses 12 to 16).
The result is the individual's maximum rate .
Step 2. Apply the income test in Division 4 of this Part (clauses 17 to 19) to work out any reduction for adjusted taxable income. Take any reduction away from the individual's maximum rate: the result is the individual's income tested rate .
Step 3. Apply the maintenance income test in Division 5 of this Part (clauses 20 to 24) to work out any reduction for maintenance income. Take any reduction away from the individual's income tested rate: the result is the individual's income and maintenance tested rate .
Step 4. The individual's Part A rate is:
(a) the individual's income and maintenance tested rate if it is equal to or greater than the individual's base rate (see clause 4); or
(b) the individual's base rate (see clause 4) if it is more than the individual's income and maintenance tested rate.
The individual's base rate is the rate that would be the individual's maximum rate under clause 25 if the individual's Part A rate were worked out using Part 3.
4A Offsetting for duplicate rent assistance under family assistance and social security law
When this clause applies
(1) This clause applies if:
(a) a decision (the social security decision ) was made that rent assistance was to be included when calculating an individual's, or an individual's eligible partner's, rate of social security payment for a day; and
(b) when the social security decision was made, no decision (the family assistance decision ) to make a determination that includes, or to vary a determination to include, rent assistance when calculating the individual's Part A rate of family tax benefit for that day had been made; and
(c) after the social security decision was made, the family assistance decision was made; and
(d) the day mentioned in paragraphs (a) and (b) comes before the day on which the family assistance decision was made.
Note: For the definition of eligible partner see subclause (5).
Part A rate to be reduced
(2) The individual's Part A rate for that day (as calculated or recalculated because of the making of the family assistance decision) is to be reduced:
(a) first, by the individual's annual social security RA amount for that day (see subclause (3)); and
(b) then, by the individual's eligible partner's annual social security RA amount for that day (see subclause (4)).
However, it is not to be reduced to less than:
(c) if it has been calculated for the first time under clause 3 because of the making of the family assistance decision--nil; and
(d) if it has been recalculated under clause 3 because of the making of the family assistance decision--the Part A rate as it was immediately before the recalculation.
(3) The individual's annual social security RA amount for that day is the amount worked out as follows:
Method statement
Step 1 . Work out the rate (if any) of social security payment (the actual payment ) that was payable to the individual for that day.
Step 2 . Work out the rate (if any) of social security payment (the notional payment ) that would have been payable to the individual for that day if rent assistance were not included when calculating the rate of the individual's social security payment for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the individual's daily social security RA amount for that day.
Step 4. Multiply the individual's daily social security RA amount for that day by 365. The result is the individual's annual social security RA amount for that day.
(4) The individual's eligible partner's annual social security RA amount for that day is the amount worked out as follows:
Method statement
Step 1 . Work out the rate (if any) of social security payment (the actual payment ) that was payable to the individual's eligible partner for that day.
Step 2 . Work out the rate (if any) of social security payment (the notional payment ) that would have been payable to the eligible partner for that day if rent assistance were not included when calculating the rate of the eligible partner's social security payment for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the eligible partner's daily social security RA amount for that day.
Step 4. Multiply the eligible partner's daily social security RA amount for that day by 365. The result is the individual's eligible partner's annual social security RA amount for that day.
(5) For the purposes of this clause, an individual is the eligible partner of another individual if both individuals are members of a couple (other than an illness separated couple, a respite care couple or a temporarily separated couple).
4B Offsetting for duplicate rent assistance under family assistance and veterans' entitlements law
When this clause applies
(1) This clause applies if:
(a) a decision (the veterans' entitlements decision ) was made that rent assistance was to be included when calculating an individual's, or an individual's eligible partner's, rate of service pension or income support supplement for a day; and
(b) when the veterans' entitlements decision was made, no decision (the family assistance decision ) to make a determination that includes, or to vary a determination to include, rent assistance when calculating the individual's Part A rate of family tax benefit for that day had been made; and
(c) after the veterans' entitlements decision was made, the family assistance decision was made; and
(d) the day mentioned in paragraphs (a) and (b) comes before the day on which the family assistance decision was made.
Note: For the definition of eligible partner see subclause (5).
Part A rate to be reduced
(2) The individual's Part A rate for that day (as calculated or recalculated because of the making of the family assistance decision and as reduced (if at all) under clause 4A) is to be reduced:
(a) first, by the individual's annual veterans' entitlements RA amount for that day (see subclause (3)); and
(b) then, by the individual's eligible partner's annual veterans' entitlements RA amount for that day (see subclause (4)).
However, it is not to be reduced to less than:
(c) if it has been calculated for the first time under clause 3 because of the making of the family assistance decision--nil; and
(d) if it has been recalculated under clause 3 because of the making of the family assistance decision--the Part A rate as it was immediately before the recalculation.
(3) The individual's annual veterans' entitlements RA amount for that day is the amount worked out as follows:
Method statement
Step 1 . Work out the rate (if any) of service pension or income support supplement (the actual payment ) that was payable to the individual for that day.
Step 2 . Work out the rate (if any) of service pension or income support supplement (the notional payment ) that would have been payable to the individual for that day if rent assistance were not included when calculating the rate of the individual's service pension or income support supplement for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the individual's provisional veterans' entitlements RA amount for that day.
Step 4. Divide the individual's provisional veterans' entitlements RA amount for that day by 364, then multiply it by 365. The result is the individual's annual veterans' entitlements RA amount for that day.
(4) The individual's eligible partner's annual veterans' entitlements RA amount for that day is the amount worked out as follows:
Method statement
Step 1 . Work out the rate (if any) of service pension or income support supplement (the actual payment ) that was payable to the individual's eligible partner for that day.
Step 2 . Work out the rate (if any) of service pension or income support supplement (the notional payment ) that would have been payable to the eligible partner for that day if rent assistance were not included when calculating the amount of the eligible partner's service pension or income support supplement for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the eligible partner's provisional veterans' entitlements RA amount for that day.
Step 4. Divide the eligible partner's provisional veterans' entitlements RA amount for that day by 364, then multiply it by 365. The result is the individual's eligible partner's annual veterans' entitlements RA amount for that day.
(5) For the purposes of this clause, an individual is the eligible partner of another individual if both individuals are members of a couple (other than an illness separated couple or a respite care couple).
5 Family tax benefit advance to individual
(1) Subject to subclause (2), if family tax benefit advance is paid to an individual, the individual's Part A rate (as reduced (if at all) under clauses 4A and 4B) during the individual's family tax benefit advance period is to be reduced by the FTB advance rate.
(2) If, at any time, the FTB advance rate in respect of an individual would equal or exceed the individual's Part A rate were subclause (1) to be disregarded, then, with effect from that time, subclause (1) ceases to have effect.
Subject to clauses 8 to 11, an individual's standard rate is worked out using the following table. Work out which category applies to each FTB child of the individual. The FTB child rate is the corresponding amount in column 2. The standard rate is the sum of the FTB child rates.
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Standard rates (Part A--Method 1) |
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Column 1 Category of FTB child |
Column 2 Standard rate |
|
1 |
FTB child who is under 13 years of age |
$2,920.00 |
|
2 |
FTB child who has reached 13, but is under 16, years of age |
$3,697.45 |
|
3 |
FTB child who has reached 16, but is under 18, years of age |
$956.30 |
|
4 |
FTB child who has reached 18, but is under 25, years of age |
$1,306.70 |
For the purposes of this Division, the base FTB child rate for an FTB child of an individual is the rate that would be the FTB child rate under subclause 26(2) if:
(a) the individual's Part A rate were being worked out under Part 3; and
(b) clause 27 did not apply.
9 FTB child rate--recipient of other periodic payments
The FTB child rate for an FTB child of an individual is the base FTB child rate (see clause 8) if:
(a) the individual or the individual's partner is receiving a periodic payment under a law of the Commonwealth and the law provides for an increase in the rate of payment by reference to an FTB child of the individual; or
(b) the individual or the individual's partner is receiving a periodic payment under a scheme administered by the Commonwealth and the scheme provides for an increase in the rate of payment by reference to an FTB child of the individual.
10 Effect of maintenance rights
The FTB child rate for an FTB child of an individual is the base FTB child rate (see clause 8) if:
(a) the individual or the individual's partner is entitled to claim or apply for maintenance for the child; and
(b) the Secretary considers that it is reasonable for the individual or partner to take action to obtain maintenance; and
(c) the individual or partner does not take action that the Secretary considers reasonable to obtain maintenance.
11 Sharing family tax benefit (determination under subsection 59(1))
If the Secretary has determined under subsection 59(1) the percentage (the specified percentage ) that is to be the individual's percentage of family tax benefit for an FTB child of the individual, the FTB child rate for the child, in working out the individual's standard rate, is the specified percentage of the FTB child rate that would otherwise apply to the child.
(1) An individual's eligibility for, and rate of, rent assistance is affected by whether an FTB child of the individual is a rent assistance child of the individual.
(2) An FTB child of an individual is a rent assistance child of the individual if the FTB child rate for the child:
(a) exceeds the base FTB child rate (see clause 8); or
(b) would exceed the base FTB child rate but for clause 11.
13 Eligibility for rent assistance
(1) An amount by way of rent assistance for a period is to be added in working out an individual's maximum rate if:
(a) the individual has at least one rent assistance child; and
(b) the individual's claim for family tax benefit is not a claim to which subclause (2) applies; and
(ba) neither the individual nor the individual's partner is receiving payments of incentive allowance under clause 36 of Schedule 1A to the Social Security Act 1991 ; and
(c) the individual is not an ineligible homeowner; and
(d) the individual is not an aged care resident; and
(e) the individual pays, or is liable to pay, rent (other than Government rent); and
(f) if the individual is not a relevant shared carer--the rent is payable at a rate of more than:
(i) if the individual is not a member of a couple--$2,485.65 per year; or
(ii) if the individual is a member of a couple but is not partnered (partner in gaol) or a member of an illness separated couple, a respite care couple or a temporarily separated couple--$3,675.55 per year; or
(iii) if the individual is partnered (partner in gaol) or is a member of an illness separated couple or a respite care couple--$2,485.65 per year; or
(iv) if the individual is a member of a temporarily separated couple--$2,485.65 per year; and
(fa) if the individual is a relevant shared carer--the rent is payable at a rate of more than:
(i) if the individual is not a member of a couple--$1,898.00 per year; or
(ii) if the individual is a member of a couple but is not partnered (partner in gaol) or a member of an illness separated couple, a respite care couple or a temporarily separated couple--$3,087.90 per year; or
(iii) if the individual is partnered (partner in gaol) or is a member of an illness separated couple or a respite care couple--$1,898.00 per year; or
(iv) if the individual is a member of a temporarily separated couple--$1,898.00 per year; and
(g) if the individual is outside Australia:
(i) the person was paying rent (other than Government rent) for accommodation in Australia immediately before the individual left Australia; and
(ii) the person continues to pay rent for the same accommodation while outside Australia.
(2) This subclause applies to an individual's claim for family tax benefit if:
(a) the claim is for family tax benefit for a past period that occurs in the first or second income year before the one in which the claim is made; and
(b) when the claim is made the individual:
(i) is eligible for family tax benefit; and
(ii) is not prevented by section 9 of the A New Tax System (Family Assistance) (Administration) Act 1999 from making an effective claim for payment of family tax benefit by instalment; and
(c) the claim is not accompanied by a claim for family tax benefit by instalment.
14 Rate of rent assistance payable to individual who is not a relevant shared carer
The rate of rent assistance payable to an individual who is not a relevant shared carer is worked out using the following table. Work out the individual's family situation and calculate Rate A for the individual using the corresponding formula in column 2. This will be the individual's rate of rent assistance but only up to the individual's maximum rent assistance rate. The individual's maximum rent assistance rate is Rate B worked out using column 3.
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Rent assistance payable to individual who is not a relevant shared carer (Part A--Method 1) |
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Column 1 Family situation |
Column 2 Rate A |
Column 3 Rate B |
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Column 3A |
Column 3B |
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1 or 2 rent assistance children |
3 or more rent assistance children |
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1 |
|
$2,310.45 |
$2,606.10 |
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|
2 |
Member of a couple other than a person who is partnered (partner in gaol) or a member of an illness separated couple, a respite care couple or a temporarily separated couple |
|
$2,310.45 |
$2,606.10 |
|
3 |
Person who is partnered (partner in gaol) or a member of an illness separated couple or a respite care couple |
|
$2,310.45 |
$2,606.10 |
|
4 |
Member of a temporarily separated couple |
|
$2,310.45 |
$2,606.10 |
14A Rate of rent assistance payable to individual who is a relevant shared carer
The rate of rent assistance payable to an individual who is a relevant shared carer is the higher of:
(a) the rate of rent assistance that would be payable to that individual if that individual were not a relevant shared carer; and
(b) the rate of rent assistance worked out using the following table.
In working out rent assistance, work out the individual's family situation using column 1 and calculate Rate A for the individual using the corresponding formula in column 2. This will be the individual's rate of rent assistance in accordance with the table but only up to Rate B specified in column 3.
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Rent assistance payable to individual who is a relevant shared carer (Part A--Method 1) |
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|
Column 1 Family situation |
Column 2 Rate A |
Column 3 Rate B |
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1 |
|
$1,981.95 |
|
|
2 |
Member of a couple other than a person who is partnered (partner in gaol) or a member of an illness separated couple, a respite care couple or a temporarily separated couple |
|
$1,865.15 |
|
3 |
Person who is partnered (partner in gaol) or a member of an illness separated couple or a respite care couple |
|
$1,981.95 |
|
4 |
Member of a temporarily separated couple |
|
$1,865.15 |
Annual rent in the table in clause 14 is the annual rate of rent paid or payable by the individual whose rate is being calculated.
16 Rent paid by a member of a couple
If an individual is a member of a couple and is living with his or her partner in their home, any rent paid or payable by the partner is to be treated as paid or payable by the individual.
16A Rent paid by a member of an illness separated, respite care or temporarily separated couple
If an individual is a member of an illness separated, respite care or temporarily separated couple, any rent that the individual's partner pays or is liable to pay in respect of the premises occupied by the individual is to be treated as paid or payable by the individual.
17 Application of income test to pension and benefit recipients and their partners
If the individual, or the individual's partner, is receiving a social security pension, a social security benefit, a service pension or income support supplement:
(a) the individual's income excess is nil; and
(b) the individual's income tested rate is the same as the individual's maximum rate.
This is how to work out an individual's reduction for adjusted taxable income if clause 17 does not apply to the individual:
Method statement
Step 1. Work out the individual's income free area using clause 19.
Step 2. Work out whether the individual's adjusted taxable income exceeds the individual's income free area.
Step 3. If the individual's adjusted taxable income does not exceed the individual's income free area, the individual's income excess is nil.
Step 4. If the individual's adjusted taxable income exceeds the individual's income free area, the individual's income excess is the individual's adjusted taxable income less the individual's income free area.
Step 5. The individual's reduction for adjusted taxable income is 20% of the income excess.
An individual's income free area is $40,000.
Division 5 -- Maintenance income test
Subdivision A -- Maintenance income test
19A Extended meaning of receiving maintenance income
In this Division, if the FTB child of an individual receives maintenance income, the individual is taken to have received the maintenance income.
19B Application of maintenance income test to certain pension and benefit recipients and their partners
If the individual, or the individual's partner, is:
(a) permanently blind; and
(b) receiving:
(i) an age pension (under Part 2.2 of the Social Security Act 1991 ); or
(ii) a disability support pension (under Part 2.3 of the Social Security Act 1991 ); or
(iii) a service pension; or
(iv) income support supplement (under Part IIIA of the Veterans' Entitlements Act 1986 );
then:
(c) the individual's maintenance income excess is nil; and
(d) the individual's income and maintenance tested rate is the same as the individual's income tested rate.
20 Effect of maintenance income on family tax benefit rate
(1) This is how to work out an individual's reduction for maintenance income if clause 19B does not apply:
Method statement
Step 1. Work out the annualised amount of the individual's maintenance income . In doing so:
(a) disregard any maintenance income for an FTB child for whom the FTB child rate under clause 7 does not exceed the base FTB child rate (see clause 8); and
(b) disregard the operation of clause 11 (sharing of family tax benefit) in applying paragraph (a); and
(c) disregard any amount that, for the income year for which the individual's reduction for maintenance income is being worked out, is required under clause 24E to be depleted from a maintenance income credit balance of the individual and, if the individual is a member of a couple, from a maintenance income credit balance of the individual's partner.
Step 2. Work out the individual's maintenance income free area using clauses 22 and 23.
Step 3. Work out whether the individual's maintenance income exceeds the individual's maintenance income free area.
Step 4. If the individual's maintenance income does not exceed the individual's maintenance income free area, the individual's maintenance income excess is nil and there is no reduction for maintenance income.
Step 5. If the individual's maintenance income exceeds the individual's maintenance income free area, the individual's maintenance income excess is the individual's maintenance income less the individual's maintenance income free area.
Step 6. The individual's reduction for maintenance income is half the maintenance income excess.
(2) Paragraph (c) of step 1 of the method statement in subclause (1) does not apply unless and until the individual has satisfied the FTB reconciliation conditions in section 32B of the Family Assistance Administration Act for all of the same‑rate benefit periods (within the meaning of that section) that are included in the income year for which the individual's reduction for maintenance income is being worked out.
(3) Paragraph (c) of step 1 of the method statement in subclause (1) does not apply to an amount received by the individual (or the individual's partner) in an income year if:
(a) the subclause applies in relation to a claim for payment of family tax benefit for a past period (as mentioned in paragraph 7(1)(b) of the A New Tax System (Family Assistance) (Administration) Act 1999 ) that falls wholly within that year; and
(b) the claim is made in a form approved by an officer of the Australian Taxation Office for the purposes of subsection 7(2) of that Act, acting under a delegation from the Secretary under section 221 of that Act.
20A Annualised amount of maintenance income
Object of clause
(1) The object of this clause is to annualise the maintenance income (other than capitalised maintenance income) ( CMI ) of an individual during an income year.
Annualisation of maintenance income other than CMI
(2) If an individual receives maintenance income (other than CMI) from another individual during any period or periods (the relevant period or periods ) in an income year, the annualised amount of the maintenance income of the individual is worked out using the following formula:
Commencement of relevant period
(3) If:
(a) an individual ( payee ) receives maintenance income (other than CMI) from another individual ( payer ) in an income year under a maintenance liability; and
(b) subsection (4) does not apply;
the relevant period in respect of the maintenance income commences:
(c) in the case where the maintenance liability arises after 1 July of the income year in which the maintenance income is received--on the day that the maintenance liability arises; or
(d) in the case where the maintenance liability exists on 1 July of the income year in which the maintenance income is received--1 July.
(4) If:
(a) a payee receives maintenance income (other than CMI) from a payer in an income year under a maintenance liability; and
(b) the payee has received maintenance income (other than CMI) from that payer previously during a period in the income year, but not under a maintenance liability; and
(c) in between the time the payee receives maintenance income under paragraph (a) and the end of the period referred to in paragraph (b):
(i) the payee and the payer were not members of the same couple; and
(ii) the payee was entitled to claim, or apply for, maintenance from the payer;
the relevant period in respect of the maintenance income commences:
(d) on the day the payee first received the previously received maintenance income in the income year; or
(e) on such earlier day in respect of the previously received maintenance income that the Secretary determines.
(5) If a payee receives maintenance income (other than CMI) from a payer during a period in an income year but not under a maintenance liability, the relevant period, in respect of the maintenance income, commences:
(a) on the day that the payee first received the maintenance income during that period; or
(b) on such earlier day that the Secretary determines.
End of relevant period
(6) A relevant period, in respect of maintenance income (other than CMI) received under a maintenance liability in an income year, ends either when the maintenance liability ceases (if it ceases before the end of the income year) or on 30 June of the income year.
(7) If:
(a) a payee receives maintenance income (other than CMI) in an income year; and
(b) the maintenance income is not received under a maintenance liability;
the relevant period ends in respect of the payee either:
(c) unless subclause (8) applies--when the payee ceases to receive the maintenance income (if the payee ceases to receive the income before the end of the income year); or
(d) on 30 June of the income year.
(8) If:
(a) a payee receives maintenance income (other than CMI) from a payer in an income year under a maintenance liability; and
(b) the payee has received maintenance income (other than CMI) from that payer previously during a period in the income year, but not under a maintenance liability; and
(c) in between the time the payee receives maintenance income under paragraph (a) and the end of the period referred to in paragraph (b):
(i) the payee and the payer were not members of the same couple; and
(ii) the payee was entitled to claim, or apply for, maintenance from the payer;
the relevant period ends either when the maintenance liability ceases (if it ceases before the end of the income year) or on 30 June of the income year.
Relevant period where payee elects to end an assessment
(9) If:
(a) a payee receives maintenance income (other than CMI) in an income year from a payer under a maintenance liability which is an assessment under Part 5 of the Child Support (Assessment) Act 1989 ; and
(b) the payee and payer become members of the same couple; and
(c) the payee elects under the Child Support (Assessment) Act 1989 to end the assessment from a specified day before the day the payee and payer became members of the same couple;
for the purpose of determining the commencement or end of the relevant period, the assessment is taken to end from the day the payee and the payer became a member of the same couple or from such earlier day as the Secretary determines (not being a day earlier than the specified day).
Meaning of maintenance liability
(10) In this clause, maintenance liability means a liability to provide:
(a) child support; or
(b) maintenance (other than child support) that arises as a result of:
(i) the order of a court; or
(ii) a maintenance agreement (within the meaning of the Family Law Act 1975 ) that has been registered in, or approved by, a court in Australia or an external Territory; or
(iii) a financial agreement within the meaning of that Act; or
(iv) any other agreement with respect to the maintenance of a person that has been registered in, or approved by, a court in Australia or an external Territory.
Day a maintenance liability arises
(11) The day a maintenance liability arises is:
(a) if the liability is to provide child support, the day that the liability arises under the Child Support (Assessment) Act 1989 ; or
(b) if the liability is to provide maintenance that arises as set out in paragraph (10)(b), the day that the order of the court or the agreement has effect from.
21 Maintenance income of members of couple to be added
The annualised amount of the maintenance income of an individual who is a member of a couple is the sum of the amounts that, apart from this clause, would be the respective annualised amounts of each of the members of the couple.
22 How to calculate an individual's maintenance income free area
An individual's maintenance income free area is worked out using the following table. Work out which family situation in the table applies to the individual. The maintenance income free area is the corresponding amount in column 2 plus an additional corresponding amount in column 3 for each FTB child after the first (other than a child for whom maintenance income is disregarded under step 1 of the method statement in clause 20).
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Maintenance income free area (Part A--Method 1) |
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|
Column 1 Individual's family situation |
Column 2 Basic amount |
Column 3 Additional amount |
|
1 |
Not a member of a couple |
$952.65 |
$317.55 |
|
2 |
Partnered (both the individual and the partner have an annualised amount of maintenance income) |
$1,905.30 |
$317.55 |
|
3 |
Partnered (only one has an annualised amount of maintenance income) |
$952.65 |
$317.55 |
23 Only maintenance actually received taken into account in applying clause 22
In determining whether or not item 2 or 3 of the table in clause 22 applies to an individual, clause 21 is to be disregarded. This has the effect of taking into account only maintenance income that the individual actually receives rather than any maintenance income that the individual is taken to receive because of maintenance income received by the individual's partner.
24 Apportionment of capitalised maintenance income
(1) The object of this clause is to spread capitalised maintenance income so that it is taken into account over the whole of the period in respect of which it is received.
(2) If an individual receives capitalised maintenance income, the maintenance income of the individual that is attributable to the capitalised maintenance income during any period (the relevant period ) in the capitalisation period is the amount worked out using the formula:
(2A) For the capitalisation period in an income year, the annualised amount of an individual's capitalised maintenance income is worked out using the following formula:
Capitalisation period--court order or agreement
(3) If:
(a) the capitalised maintenance income is received under or as a result of:
(i) the order of a court; or
(ii) a maintenance agreement (within the meaning of the Family Law Act 1975 ) that has been registered in, or approved by, a court in Australia or an external Territory; or
(iii) a financial agreement within the meaning of that Act; or
(iv) any other agreement with respect to the maintenance of a person that has been registered in, or approved by, a court in Australia or an external Territory; and
(b) the order or agreement specified the period in relation to which the capitalised maintenance income was to be provided; and
(c) the length of the period could be ascertained with reasonable certainty when the order was made or the agreement was so registered or approved;
the capitalisation period is, subject to subclause (6), the period specified in the order or agreement.
Capitalisation period--FTB child under 18
(4) If:
(a) the capitalised maintenance income relates to the maintenance of an FTB child of the individual; and
(b) the child has not turned 18 on the day on which the income is received; and
(c) subclause (3) does not apply to the capitalised maintenance income;
the capitalisation period is, subject to subclause (6), the period that starts on the day on which the income is received and ends on the day immediately before the day on which the child turns 18.
Capitalisation period--partner under 65
(5) If:
(a) the capitalised maintenance income relates to the maintenance of the individual by the individual's partner or former partner; and
(b) the individual has not turned 65 on the day on which the income is received; and
(c) subclause (3) does not apply to the capitalised maintenance income;
the capitalisation period is, subject to subclause (6), the period that starts on the day on which the income is received and ends on the day immediately before the day on which the individual turns 65.
Capitalisation period--other cases
(6) If:
(a) the Secretary considers:
(i) in a case falling within subclause (3) where the period referred to in that subclause was specified in an order of a court that was made by consent or in an agreement referred to in subparagraph (3)(a)(ii), (iii) or (iv)--that the period is not appropriate in the circumstances of the case; or
(ii) in a case falling within subclause (4) or (5)--that the period referred to in that subclause is not appropriate in the circumstances of the case; or
(b) no capitalisation period is applicable in relation to the capitalised maintenance income under subclause (3), (4) or (5);
the capitalisation period is such period as the Secretary considers appropriate in the circumstances of the case.
Subdivision B -- Maintenance income credit balances
24A Maintenance income credit balances
(1) A maintenance income credit balance , for a registered entitlement of an individual, is, at any particular time, the balance at that time of the accruals under clause 24B and the depletions under clause 24E in relation to that entitlement.
(2) Despite subclause (1), a maintenance income credit balance for a registered entitlement, at the end of an income year, cannot exceed the total arrears owing from that registered entitlement, at that time, for all income years for which the entitlement has existed.
(3) If:
(a) but for the condition in subclause 24B(3) not being met in relation to an income year, there would be an accrual to a maintenance income credit balance of an individual for a day in that income year; and
(b) after there has been an accrual under clause 24C for a day in a later income year or a depletion under clause 24E for a later income year, that condition is met in relation to the earlier income year;
the maintenance income credit balance is recalculated, taking into account the accrual for the day in the earlier income year before taking into account the accrual or depletion mentioned in paragraph (b).
(4) This Subdivision continues to apply in relation to a maintenance income credit balance of an individual whether or not the individual or the individual's partner continues to be eligible for family tax benefit.
24B Accruals to a maintenance income credit balance
Accrual if conditions are satisfied
(1) There is an accrual to a maintenance income credit balance for a registered entitlement of an individual, for a day in an income year, of the amount worked out under clause 24C for that day, if all the conditions in this clause are satisfied.
Conditions that must be satisfied
(2) Either or both of the following must apply:
(a) the individual is eligible for family tax benefit for the day;
(b) if the individual is a member of a couple on the day--the individual's partner is eligible for family tax benefit for the day.
(3) The eligible person must have satisfied the FTB reconciliation conditions in section 32B of the Family Assistance Administration Act for all of the same‑rate benefit periods (within the meaning of that section) that are included in the income year.
(4) The annualised amount of the maintenance income of the eligible person for the day must be less than the maintenance income free area that applied to the eligible person for that day.
(5) The maintenance income that the individual received in the income year from the registered entitlement must be less than the amount due in the income year from the registered entitlement.
24C Amount of accrual to a maintenance income credit balance
(1) This is how to work out the amount of the accrual under clause 24B, for a day in an income year, to a maintenance income credit balance for a registered entitlement of an individual who is, or is the partner of, an eligible person under subclause 24B(2):
Method statement
Step 1. Work out the global maintenance entitlement of the eligible person for the day using clause 24D.
Step 2. Identify the lower of:
(a) that global maintenance entitlement; and
(b) the maintenance income free area that applied to the eligible person for the day.
Step 3. Subtract from the lower amount identified in step 2 the annualised amount of the maintenance income of the eligible person for the day.
Step 4. Divide the result of step 3 by 365 and round the result of the division to the nearest cent (rounding 0.5 cents upwards).
Step 5. Unless subclause (2) applies to the individual, the amount that accrues to the maintenance income credit balance of the individual for the day is the amount worked out under step 4.
If subclause (2) applies to the individual, take the amount worked out under step 4 and apply the method statement in subclause (2).
(2) If either or both of the following apply:
(a) the individual has more than one registered entitlement for the day in respect of which the condition in subclause 24B(5) is met;
(b) if the individual is a member of a couple on the day--the individual's partner has one or more registered entitlements for the day in respect of which the condition in subclause 24B(5) is met;
this is how to work out the amount of the accrual under clause 24B, for a day in an income year, to each of the maintenance income credit balances (the relevant balances ) for those entitlements:
Method statement
Step 1. Work out the daily cap for each relevant balance as follows:
(a) work out the annualised amount mentioned in paragraph 24D(1)(a) that is due in the income year from the registered entitlement to which the balance relates, and any related private collection entitlement;
(b) work out under subclause (4) the annualised amount of maintenance income received in the income year from that registered entitlement, and any related private collection entitlement;
(c) the daily cap is the excess of the amount mentioned in paragraph (a) over the amount mentioned in paragraph (b), divided by 365 and rounded to the nearest cent (rounding 0.5 cents upwards).
Step 2. Distribute the amount worked out under step 4 of the method statement in subclause (1) equally among each relevant balance, up to the amount of the daily cap for the relevant balance.
Step 3. Distribute any remaining amount equally among each relevant balance for which the daily cap has not been reached, up to the amount of the daily cap for the relevant balance.
Step 4. Reapply step 3 to any remaining amount until:
(a) there is no remaining amount to distribute; or
(b) the daily cap for each relevant balance is reached.
Step 5. The amount that accrues to each of the relevant balances for the day is the sum of the amount distributed under step 2 and any additional amounts distributed under steps 3 and 4, with that sum rounded to the nearest cent (rounding 0.5 cents upwards).
(3) To avoid doubt, clauses 24B and 24C apply only once for a day in relation to
