Commonwealth Consolidated Acts

A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 - SCHEDULE 1

Note:       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 24S), Part 3 (clauses 25 to 28) or Part 3A (clause 28A); and

                     (b)  the individual's Part B rate calculated under Part 4 (clauses 28B to 33).

             (2)  To work out the individual's Part A rate:

                     (a)  use Part 2 (clauses 3 to 24S) if the individual has at least one FTB child and:

                              (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, a service pension or income support supplement; and

                     (b)  use Part 3 (clauses 25 to 28) if the individual has at least one FTB child and:

                              (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, a service pension or income support supplement; and

                     (c)  use Part 3A (clause 28A) if the individual has no FTB children.

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.

2   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).

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 5, 38J and 38K, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

4   Base 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.

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 38J and 38K) 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.

Division 2 -- Standard rate

7   Standard rate

                   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.

8   Base FTB child rate

                   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 (shared care percentages)

                   If an individual has a shared care percentage for an FTB child of the individual, the FTB child rate for the child, in working out the individual's standard rate, is the individual's shared care percentage of the FTB child rate that would otherwise apply to the child.

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.

19AA   References to applying for maintenance income

                   A reference in this Division to an individual being, or not being, entitled to apply for maintenance income includes an individual who is, or is not, entitled to so apply under the Child Support (Assessment) Act 1989 or the Family Law Act 1975 .

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:

             (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, or Part VIIIAB 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.

20B   Working out amounts of child maintenance using notional assessments

             (1)  If:

                     (a)  an individual receives child maintenance for an FTB child of the individual under a child support agreement or court order; and

                     (b)  there is, in relation to the agreement or order, a notional assessment of the annual rate of child support that would be payable to the individual for the child for a particular day in a child support period if that annual rate were payable under Part 5 of the Child Support (Assessment) Act 1989 instead of under the agreement or order;

then the amount of child maintenance that the individual is taken to have received in an income year under the agreement or order for the child for a period is worked out in accordance with this clause.

Note:          The amount worked out in accordance with this clause is annualised under clause 20A.

Individual taken to have received notional assessed amount

             (2)  For the purposes of this Act, the amount of child maintenance that the individual is taken to have received under the agreement or order for the child for the period is, subject to this clause, the amount (the notional assessed amount ) that the individual would have received if the individual had received the annual rate of child support for the child for the period that is included in the notional assessment, disregarding so much of that rate as is attributable to the individual receiving disability expenses maintenance.

Underpayments

             (3)  If the amount received in an income year by the individual under the agreement or order for the child for the period is less than the amount that is payable to the individual under the agreement or order for the child for the period (such that a debt arises for the period under the agreement or order), then, for the purposes of this Act, the amount of child maintenance that the individual is taken to have received under the agreement or order for the child for the period is the following amount (the notional amount paid ):

Note:          This subclause only applies in respect of enforceable maintenance liabilities (see subclause (7)).

Underpayments--non‑periodic payments and lump sum payments

          (3A)  For the purposes of the formula in subclause (3), the amount received by the individual under the agreement or order, for the child for the period, is taken to include:

                     (a)  if the agreement or order is a non‑periodic payments agreement or order--the amount by which the annual rate of child support payable for the child is reduced for the period under the agreement or order; and

                     (b)  if the agreement or order is a lump sum payments agreement or order--the total amount of the lump sum payment that is credited for each day in the period under section 69A of the Child Support (Registration and Collection) Act 1988 against the amount payable under the liability under the agreement or order.

          (3B)  If the agreement or order is a non‑periodic payments agreement or order, for the purposes of the formula in subclause (3), the amount payable to the individual under the agreement or order for the child for the period is taken to include the amount by which the annual rate of child support payable for the child is reduced for the period under the agreement or order.

Arrears

             (4)  If the amount received in an income year by the individual under the agreement or order for the child for the period exceeds the amount that is payable to the individual under the agreement or order for the child for the period, then, for the purposes of this Act, the amount of child maintenance that the individual is taken to have received under the agreement or order for the child for the period is:

Note:          This subclause only applies in respect of enforceable maintenance liabilities (see subclause (7)).

             (5)  The notional arrears amount , in respect of a debt arising for a previous period under the agreement or order, is:

             (6)  For the purposes of subclause (5), if:

                     (a)  an individual has more than one debt that arose under an agreement or order for previous periods; and

                     (b)  the amount received in an income year by the individual under the agreement or order for a child for a period exceeds the amount that is payable to the individual under the agreement or order for the child for the period;

then:

                     (c)  the individual is taken to have received the excess to pay off each debt in the order in which the debts arose; and

                     (d)  each debt is reduced by the amount of the debt that is paid off.

             (7)  Subclauses (3) and (4) only apply in respect of enforceable maintenance liabilities (within the meaning of the Child Support (Registration and Collection) Act 1988 ).

             (8)  In this clause:

"lump sum payments agreement or order" means:

                     (a)  an agreement containing lump sum payment provisions (within the meaning of the Child Support (Assessment) Act 1989 ); or

                     (b)  a court order made under section 123A of that Act.

"non-periodic payments agreement or order" means:

                     (a)  an agreement containing non‑periodic payment provisions (within the meaning of the Child Support (Assessment) Act 1989 ); or

                     (b)  a court order made under section 124 of that Act that includes a statement made under section 125 of that Act that the annual rate of child support payable by a liable parent under an administrative assessment is to be reduced.

20C   Working out amounts of child maintenance in relation to lump sum payments

             (1)  This clause applies if an individual receives in an income year child maintenance for an FTB child of the individual under:

                     (a)  a child support agreement, containing lump sum payment provisions (within the meaning of paragraph 84(1)(e) of the Child Support (Assessment) Act 1989 ), to which clause 20B does not apply; or

                     (b)  a court order made under section 123A of that Act;

in the form of a lump sum payment that is to be credited under section 69A of the Child Support (Registration and Collection) Act 1988 against the amount payable under a liability under an administrative assessment.

             (2)  For the purposes of this Act, the amount of child maintenance that the individual is taken to have received in an income year under the agreement or order for the child for a period is the amount that is credited under section 69A of the Child Support (Registration and Collection) Act 1988 against the amount payable under the liability under the administrative assessment for the child for the period.

Note:          The amount worked out under this clause is annualised under clause 20A.

             (3)  Subclause (2) does not apply in relation to the individual and the child for a period if subclause 20B(2), (3) or (4) has applied in relation to the individual and the child for that period.

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, disregarding any child:

                     (a)  for whom maintenance income is disregarded under paragraph (a) of step 1 of the method statement in clause 20; or

                     (b)  in respect of whom neither the individual, nor the individual's partner, is entitled to apply for maintenance income.

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, or Part VIIIAB 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):

             (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:

             (3)  To avoid doubt, clauses 24B and 24C apply only once for a day in relation to any relevant balance.

             (4)  For the purposes of step 1 of the method statement in subclause (2), the annualised amount of maintenance income received in an income year from a registered entitlement, and any related private collection entitlement, of an individual (or an individual's partner) is the amount worked out by using this formula:

             (5)  In this clause:

"related private collection entitlement" , in relation to a registered entitlement, has the same meaning as in clause 24D.

24D   Global maintenance entitlement of an eligible person

             (1)  For the purposes of step 1 of the method statement in subclause 24C(1), the global maintenance entitlement of the eligible person under subclause 24B(2) for the day is the sum of:

                     (a)  the annualised amounts worked out using the formula in subclause (2) for:

                              (i)  each registered entitlement for the day, and any related private collection entitlement, of the eligible person; and

                             (ii)  if the eligible person is a member of a couple on the day--each registered entitlement for the day, and any related private collection entitlement, of the eligible person's partner; and

                     (b)  any amounts worked out under subclause (3); and

                     (c)  the annualised amount of any capitalised maintenance income of the eligible person and, if the eligible person is a member of a couple on the day, of the eligible person's partner, for the day; and

                     (d)  the annualised amount of any maintenance income of the eligible person and, if the eligible person is a member of a couple on the day, of the eligible person's partner, for the day:

                              (i)  that is not from a registered entitlement; and

                             (ii)  that is not capitalised maintenance income.

             (2)  For the purposes of paragraph (1)(a), the formula is:

             (3)  If:

                     (a)  in respect of:

                              (i)  a registered entitlement for the day, and any related private collection entitlement, of the eligible person; or

                             (ii)  if the eligible person is a member of a couple on the day--a registered entitlement for the day, and any related private collection entitlement, of the eligible person's partner;

                            the maintenance income received by the eligible person or partner for the income year exceeds the amount due in the income year from the registered entitlement, and any related private collection entitlement; and

                     (b)  that excess, or any part of it (the relevant excess ), is not disregarded for the purposes of paragraph (c) of step 1 of the method statement in clause 20;

an amount for the purposes of paragraph (1)(b) is worked out by using this formula:

             (4)  For the purposes of this clause, an individual's private collection entitlement is related to the individual's registered entitlement if the private collection entitlement and registered entitlement relate to the same registrable maintenance liability, within the meaning of the Child Support (Registration and Collection) Act 1988 .

             (5)  In this clause:

"private collection entitlement" , of an individual, means the individual's entitlement to receive maintenance income from a particular payer, if the payer's liability to pay that maintenance income is a registrable maintenance liability that is not an enforceable maintenance liability, within the meaning of the Child Support (Registration and Collection) Act 1988 .

24E   Depletions from a maintenance income credit balance

             (1)  There is a depletion from the maintenance income credit balance for a registered entitlement of an individual, for an income year, of the amount worked out under subclause (2), if:

                     (a)  the income year has ended; and

                     (b)  the maintenance income that the individual received in the income year from the entitlement is more than the amount due in the income year from the entitlement.

             (2)  The amount by which the maintenance income credit balance is depleted is the lower of:

                     (a)  the excess of the maintenance income that the individual received in the income year from the entitlement over the amount due in the income year from the entitlement; and

                     (b)  the amount of the maintenance income credit balance.

             (3)  For the purposes of paragraphs (1)(b) and (2)(a), in working out the maintenance income received in an income year or the amount of maintenance income due in an income year:

                     (a)  disregard any maintenance income received or due 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).

24EA   Amounts due under notional assessments

             (1)  This clause applies if:

                     (a)  an individual receives child maintenance for an FTB child of the individual under a child support agreement or court order; and

                     (b)  there is, in relation to the agreement or order, a notional assessment of the annual rate of child support that would be payable to the individual for the child for a particular day in a child support period if that annual rate were payable under Part 5 of the Child Support (Assessment) Act 1989 instead of under the agreement or order; and

                     (c)  the child maintenance is received, wholly or in part, from a registered entitlement.

             (2)  For the purposes of this Subdivision, the amount of child maintenance that is taken to be due to the individual under the agreement or order (whether from the registered entitlement or from a related private collection entitlement within the meaning of clause 24D), for the child for a period, is the amount that would have been due if the amount due to the individual had been the annual rate of child support for the child for the period that is included in the notional assessment.

             (3)  To avoid doubt, subclause (2) does not apply in relation to the total arrears owing from a registered entitlement, as mentioned in subclause 24A(2).

Subdivision C -- Maintenance income ceiling for Method 1

24F   Subdivision not always to apply

                   This Subdivision does not apply to an individual if:

                     (a)  the individual, and the individual's partner, between them are entitled to apply for maintenance income:

                              (i)  from only one other individual; and

                             (ii)  in respect of all of the FTB children of the individual; and

                     (b)  the individual has no regular care children who are rent assistance children.

24G   Overall method for working out maintenance income ceiling for Method 1

                   For the purposes of paragraph (d) of step 1 of the method statement in clause 20, this is how to work out an individual's maintenance income ceiling for maintenance income received by the individual, or the individual's partner, from another individual (the maintenance payer ) if the individual's Part A rate is worked out using this Part (Method 1):

24H   How to work out an individual's above base standard amount

                   The individual's above base standard amount for the maintenance income is the difference between:

                     (a)  the individual's standard rate under Division 2 of this Part (clauses 7 to 11) for the FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer; and

                     (b)  the individual's standard rate under Division 2 of Part 3 (clauses 26 and 27) for those children (assuming that the individual's Part A rate were calculated under Part 3).

24J   How to work out an individual's RA (rent assistance) amount

                   This is how to work out the individual's RA amount for the maintenance income:

24K   How to work out an individual's MIFA (maintenance income free area) amount

             (1)  If the individual, and the individual's partner, between them are entitled to apply for maintenance income from only one maintenance payer, then the individual's MIFA amount for the maintenance income is the amount of the individual's maintenance income free area.

Apportioning the maintenance income free area

             (2)  If the individual, and the individual's partner, between them are entitled to apply for maintenance income from more than one maintenance payer, the individual's MIFA amount for maintenance income received from a particular maintenance payer is worked out using the following formula:

where:

"individual's no child amount" is the amount worked out using the following formula:

24L   How to work out an individual's maintenance income ceiling

                   The individual's maintenance income ceiling for the maintenance income is worked out using the following formula:

Subdivision D -- Maintenance income ceiling for purposes of comparison for Method 2

24M   Subdivision not always to apply

                   This Subdivision does not apply to an individual if:

                     (a)  the individual, and the individual's partner, between them are entitled to apply for maintenance income:

                              (i)  from only one other individual; and

                             (ii)  in respect of all of the FTB children of the individual; and

                     (b)  the individual has no regular care children who are rent assistance children.

24N   Overall method for working out maintenance income ceiling for purposes of comparison for Method 2

                   For the purposes of the comparison in step 3 of the method statement in clause 25, this is how to work out an individual's maintenance income ceiling for maintenance income received by the individual, or the individual's partner, from another individual (the maintenance payer ) if the individual's Part A rate is worked out using Part 3 of this Schedule (Method 2):

24P   How to work out an individual's standard amount

                   The individual's standard amount for the maintenance income is the individual's standard rate under Division 2 of this Part (clauses 7 to 11) for the FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer.

24Q   How to work out an individual's LFS (large family supplement) amount

                   This is how to work out the individual's LFS amount for the maintenance income:

24R   How to work out an individual's supplement amount

                   The individual's supplement amount for the maintenance income is the individual's FTB Part A supplement under Division 2A of Part 5 (clause 38A) for the FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer.

24S   How to work out an individual's maintenance income ceiling

                   The individual's maintenance income ceiling for the maintenance income is worked out using the following formula:

Part 3 -- Part A rate (Method 2)

Division 1 -- Overall rate calculation process

25   Method of calculating Part A rate

                   Subject to the operation of clause 25A, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

25A   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 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.

             (3)  In subclause (2), the reference to the individual's Part A rate includes a reference to a nil rate.

Division 2 -- Standard rate

26   Standard rate

             (1)  Subject to clause 27, an individual's standard rate is the total obtained by adding the FTB child rates for each of the individual's FTB children.

             (2)  The FTB child rate for the purpose of subclause (1) is:

                     (a)  for an FTB child who has not turned 18--$956.30; or

                     (b)  for an FTB child who has turned 18--$1,306.70.

27   Sharing family tax benefit (shared care percentages)

                   If an individual has a shared care percentage for an FTB child of the individual, the FTB child rate for the child, in working out the individual's standard rate under clause 26, is the individual's shared care percentage of the FTB child rate that would otherwise apply to the child.

Division 3 -- Income test

28   Income test

                   This is how to work out an individual's reduction for adjusted taxable income:

Part 3A -- Part A rate (Method 3)

28A   Method of calculating Part A rate

                   Subject to the operation of clauses 38J and 38K, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

Part 4 -- Part B rate

Division 1 -- Overall rate calculation process

Subdivision AA -- When Part B rate is nil

28B   When Part B rate is nil

             (1)  Despite Subdivisions A and B, an individual's Part B rate is nil if the individual's adjusted taxable income is more than $150,000.

Note:          If the individual is a member of a couple, the individual's adjusted taxable income is the higher of the individual's adjusted taxable income and the adjusted taxable income of the individual's partner: see clause 3 of Schedule 3.

             (2)  However, subclause (1) does not apply while the individual, or the individual's partner, is receiving a social security pension, a social security benefit, a service pension or income support supplement.

Subdivision A -- General method of calculating Part B rate

29   General method of calculating Part B rate

             (1)  The individual's Part B rate is the amount worked out by adding the following amounts if the individual is not a member of a couple:

                     (a)  the individual's standard rate under Division 2 (clauses 30 and 31);

                     (b)  the individual's FTB Part B supplement under Division 2A (clause 31A).

             (2)  The individual's Part B rate is worked out using the following method statement if the individual is a member of a couple:

Note:          An individual who is a member of a couple works out his or her Part B rate under Subdivision B if the secondary earner of the couple returns to paid work after the birth of a child etc.

             (3)  In applying this Part to an individual, disregard an FTB child who has turned 16 years of age unless:

                     (a)  the child is undertaking full‑time study; and

                     (b)  the calendar year in which the child turned 18 has not ended.

If disregarding the child means that neither item 1 nor item 2 in the table in clause 30 applies to the individual, the individual's Part B rate is nil.

Subdivision B -- Method of calculating Part B rate for those who return to paid work after the birth of a child etc.

29A   Method of calculating Part B rate for those who return to paid work after the birth of a child etc.

Application of clause

             (1)  The Part B rate that an individual is eligible for in respect of a day in an income year is worked out under subclause (2) if:

                     (a)  the individual is a member of a couple on the day; and

                     (b)  the conditions in subclauses (3) to (8) of this clause are met; and

                     (c)  the conditions in clause 29C are met in respect of the day.

Method of calculating Part B rate

             (2)  The Part B rate that the individual is eligible for in respect of the day is the amount worked out by adding the following amounts:

                     (a)  the individual's standard rate under Division 2 in respect of the day (clauses 30 and 31);

                     (b)  the individual's FTB Part B supplement under Division 2A in respect of the day (clause 31A).

Conditions

             (3)  During a period during the income year in which the day occurs, the secondary earner of the couple (who might be the individual mentioned in subclause (1)):

                     (a)  is not engaging in paid work; and

                     (b)  is not receiving passive employment income in respect of that period.

             (4)  Later during that income year, the secondary earner returns to paid work for the first time since a child became an FTB child of the secondary earner.

          (4A)  If, in different income years, more than one secondary earner returns to paid work for the first time in respect of the same child, the Part B rate of the individual is not calculated under this clause in respect of a return to paid work that is not the earliest return to paid work.

          (4B)  If, in the same income year, more than one secondary earner returns to paid work for the first time in respect of the same child, the Part B rate of the individual is not calculated under this clause in respect of a secondary earner for whom the period mentioned under paragraph 29C(1)(a) does not begin first.

             (5)  The conditions in clause 29B are met in respect of that child.

             (6)  The individual mentioned in subclause (1) has satisfied the FTB reconciliation conditions under section 32B of the Family Assistance Administration Act for all of the same‑rate benefit periods in that income year.

             (7)  If subclause (8) does not apply--either or both of the following apply:

                     (a)  the individual notifies the Secretary of the secondary earner's return to paid work before the end of the income year following the income year in which the secondary earner returns to paid work;

                     (b)  the Secretary becomes aware of the secondary earner's return to paid work before the end of the income year following the income year in which the secondary earner returns to paid work.

             (8)  If, during the second income year following a particular income year, a claim is made under the Family Assistance Administration Act for payment of family tax benefit for a past period that occurs in the particular income year, the Secretary is notified in the claim that the secondary earner returned to paid work during the particular income year.

29B   Conditions to be met in respect of an FTB child

             (1)  For the purpose of subclause 29A(5), the conditions in this clause are met in respect of a child if the conditions in subclauses (2) and (3) of this clause are met in respect of the child on any single day that meets the conditions in clause 29C.

Conditions in respect of FTB child

             (2)  Of all the FTB children of the secondary earner, either:

                     (a)  the child most recently became an FTB child of the secondary earner; or

                     (b)  if all of the children became FTB children of the secondary earner at the same time--the child is the youngest FTB child of the secondary earner.

Generally, only one individual calculates Part B rate under clause 29A

             (3)  No other individual's Part B rate has been calculated under clause 29A as a result of the conditions in this clause being met in respect of the child.

Exception--section 59 determination (shared care)

             (4)  If another individual's Part B rate has been calculated as mentioned in subclause (3), the condition in that subclause is taken to be met in respect of the child if:

                     (a)  on the day on which the other individual or his or her partner returns to paid work, the other individual has a shared care percentage for the child; and

                     (b)  the secondary earner is not a member of the same couple as the other individual on either:

                              (i)  the day mentioned in paragraph (a); or

                             (ii)  the day on which the secondary earner returns to paid work.

Exception--section 28 and 29 determinations (members of a couple in a blended family or members of a separated couple) etc.

             (5)  If another individual's Part B rate has been calculated as mentioned in subclause (3), the condition in that subclause is taken to be met in respect of the child if:

                     (a)  at some time during the income year, the other individual is the partner of:

                              (i)  the secondary earner; or

                             (ii)  the individual mentioned in subclause 29A(1) (if he or she is not the secondary earner); and

                     (b)  the other individual's Part B rate has been calculated under clause 29A in respect of the same return to paid work, and the same FTB child, of the secondary earner.

29C   Conditions to be met in respect of a day

             (1)  For the purposes of paragraph 29A(1)(c) and clause 29B, the conditions in this clause are met in respect of a day in an income year if:

                     (a)  the day falls in the period that starts on the latest of the following days:

                              (i)  1 July of the income year;

                             (ii)  the day after the secondary earner stops paid work;

                            (iii)  the day after the secondary earner stops receiving passive employment income in respect of a period;

                            and ends immediately before the day on which the secondary earner returns to paid work; and

                     (b)  the secondary earner is not receiving passive employment income in respect of the day.

             (2)  For the purpose of subclause (1), the day on which an individual returns to paid work is:

                     (a)  if the individual returns to paid work because of subsection 3B(2)--the first day of the 4 week period mentioned in that subsection on which the individual is engaging in paid work; and

                     (b)  if the individual returns to paid work because of subsection 3B(3)--the first day on which the individual is engaging in paid work.

             (3)  To avoid doubt, the first and last days of the period mentioned in paragraph (1)(a) fall in that period.

Division 2 -- Standard rate

30   Standard rate

                   Subject to clause 31, an individual's standard rate is worked out using the following table. Work out which family situation applies to the individual. The standard rate is the corresponding amount in column 2.

31   Sharing family tax benefit (shared care percentages)

             (1)  If:

                     (a)  an individual has a shared care percentage for an FTB child of the individual; and

                     (b)  the child is the individual's only FTB child;

the individual's standard rate is the individual's shared care percentage of the standard rate that would otherwise apply.

             (2)  If:

                     (a)  an individual has a shared care percentage for an FTB child of the individual; and

                     (b)  the child is not the individual's only FTB child;

the individual's standard rate is to be worked out as follows:

                     (c)  for each of the individual's FTB children for whom the individual does not have a shared care percentage, work out the rate that would be the individual's standard rate under clause 30 if that child were the individual's only FTB child;

                     (d)  for each of the individual's FTB children for whom the individual has a shared care percentage, work out the rate that would be the individual's standard rate under clause 30 if:

                              (i)  that child were the individual's only FTB child; and

                             (ii)  subclause (1) of this clause applied to the child;

                     (e)  the individual's standard rate is the highest of the rates obtained under paragraphs (c) and (d).

Division 2A -- FTB Part B supplement

31A   Rate of FTB Part B supplement

             (1)  The amount of the FTB Part B supplement to be added in working out an individual's Part B rate under clause 29 or 29A is:

                     (a)  if the individual has one FTB child, or more than one FTB child, and the individual does not have a shared care percentage for that child, or for at least one of those children--the FTB (B) gross supplement amount; or

                     (b)  if the individual has only one FTB child and the individual has a shared care percentage for the child--the shared care percentage of the FTB (B) gross supplement amount; or

                     (c)  if the individual has more than one FTB child and the individual has a shared care percentage for each of those children--the highest of those percentages of the FTB (B) gross supplement amount.

             (2)  For the purposes of subclause (1), the FTB (B) gross supplement amount is $302.95.

             (3)  To avoid doubt, when the FTB (B) gross supplement amount is indexed on a 1 July under Part 2 of Schedule 4, the amount, as it stood before that indexation, continues to apply in working out an individual's Part B rate under clause 29 or 29A for the income year ending just before that 1 July.

Division 3 -- Income test

32   Income test

                   This is how to work out an individual's reduction for adjusted taxable income:

33   Income free area

                   An individual's income free area is $4,000.

Part 5 -- Common provisions

Division 1 -- Large family supplement

34   Eligibility for large family supplement

                   An amount by way of large family supplement is to be added in working out an individual's maximum rate under clause 3 or 25 if the individual has 3 or more FTB children.

35   Rate of large family supplement

                   The amount of the large family supplement is worked out using the formula:

Division 2 -- Multiple birth allowance

36   Eligibility for multiple birth allowance

             (1)  An amount by way of multiple birth allowance is to be added in working out an individual's maximum rate under clause 3 or 25 if:

                     (a)  the individual has 3 or more FTB children; and

                     (b)  at least 3 of those children were born during the same multiple birth and satisfy the requirements of subclause (2).

             (2)  For the purposes of paragraph (1)(b), the requirements of this subclause are satisfied by a child if:

                     (a)  the child is under the age of 16 years; or

                     (b)  both:

                              (i)  the child has turned 16 and is undertaking full‑time study; and

                             (ii)  the calendar year has not ended in which the first born of the children in the multiple birth who are undertaking full‑time study turns 18.

37   Rate of multiple birth allowance

                   The amount of the multiple birth allowance is:

                     (a)  if the number of the FTB children born during the same multiple birth who satisfy the requirements of subclause 36(2) is 3--$2,467.40; and

                     (b)  if the number of the FTB children born during the same multiple birth who satisfy the requirements of subclause 36(2) is 4 or more--$3,292.30.

38   Sharing multiple birth allowance (determinations under section 59A)

                   If the Secretary has made a determination under section 59A in respect of an FTB child of the individual, multiple birth allowance under this Division is to be dealt with in accordance with the determination.

Division 2A -- FTB Part A supplement

38A   Rate of FTB Part A supplement

             (1)  The amount of the FTB Part A supplement to be added in working out an individual's maximum rate under clause 3 or 25 is:

                     (a)  if the individual has one FTB child--the applicable supplement amount for that child; or

                     (b)  if the individual has 2 or more FTB children--the sum of the applicable supplement amounts for each of those children.

             (2)  For the purposes of subclause (1), the applicable supplement amount for an FTB child of the individual is:

                     (a)  if the individual has a shared care percentage for the FTB child--the individual's shared care percentage of the FTB gross supplement amount; or

                     (b)  in any other case--the FTB gross supplement amount.

             (3)  For the purposes of subclause (2), the FTB gross supplement amount is $600.

             (4)  To avoid doubt, when the FTB gross supplement amount is indexed on a 1 July under Part 2 of Schedule 4, the amount, as it stood before that indexation, continues to apply in working out an individual's maximum rate under clause 3 or 25 for the income year ending just before that 1 July.

Division 2B -- Rent assistance

Subdivision A -- Rent assistance

38B   Rent assistance children

             (1)  An individual's eligibility for, and rate of, rent assistance is affected by whether an FTB child, or a regular care child, of the individual is also 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.

             (3)  A regular care child of an individual is a rent assistance child of the individual if:

                     (a)  the regular care child is under 16 years of age; and

                     (b)  the regular care child is not an absent overseas regular care child.

38C   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 has at least one FTB child and 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--$3,073.30 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--$4,547.90 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--$3,073.30 per year; or

                            (iv)  if the individual is a member of a temporarily separated couple--$3,073.30 per year; and

                    (fa)  if the individual is a relevant shared carer, or has only one or more regular care children (but no FTB children)--the rent is payable at a rate of more than:

                              (i)  if the individual is not a member of a couple--$2,332.35 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--$3,806.95 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--$2,332.35 per year; or

                            (iv)  if the individual is a member of a temporarily separated couple--$2,332.35 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.

38D   Rate of rent assistance payable to individual who has at least one FTB child and who is not a relevant shared carer

                   The rate of rent assistance payable to an individual who has at least one FTB child and 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.

38E   Rate of rent assistance payable to individual who is a relevant shared carer or who has only one or more regular care children

                   The rate of rent assistance payable to an individual who is a relevant shared carer, or who has only one or more regular care children (but no FTB children), is the higher of:

                     (a)  the rate of rent assistance that would be payable to that individual if that individual's rate were worked out using clause 38D; 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.

38F   Annual rent

                   Annual rent in the tables in clauses 38D and 38E is the annual rate of rent paid or payable by the individual whose rate is being calculated.

38G   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.

38H   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.

Subdivision B -- Offsetting for duplicate rent assistance

38J   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 or 28A because of the making of the family assistance decision--nil; and

                     (d)  if it has been recalculated under clause 3 or 28A 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:

             (4)  The individual's eligible partner's annual social security RA amount for that day is the amount worked out as follows:

             (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).

38K   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 38J) 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 or 28A because of the making of the family assistance decision--nil; and

                     (d)  if it has been recalculated under clause 3 or 28A 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:

             (4)  The individual's eligible partner's annual veterans' entitlements RA amount for that day is the amount worked out as follows:

             (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).

Division 2C -- Income test

38L   Application of income test to pension and benefit recipients and their partners

                   If an individual, or an 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.

38M   Income test

                   This is how to work out an individual's reduction for adjusted taxable income if clause 38L does not apply to the individual:

38N   Income free area

                   An individual's income free area is $40,000.

Division 3 -- Certain recipients of pensions under the Veterans' Entitlements Act

39   Rate of benefit for certain recipients of pensions under the Veterans' Entitlements Act

             (1)  In this clause:

30 June 2000 rate , in relation to an individual, means the amount worked out according to subclause (6).

"dependant" has the same meaning as in Division 5 of Part II of the Income Tax Rates Act 1986 as that Act applied to the income year that commenced on 1 July 1999.

"family tax assistance person" means:

                     (a)  if the Secretary is satisfied in relation to an individual as described in subparagraph (2)(a)(iii)--the individual; or

                     (b)  if the Secretary is not so satisfied--the individual's partner.

"partner" , in relation to an individual, means the person who:

                     (a)  was the partner of that individual immediately before 1 July 2000; and

                     (b)  has continued, at all times on and after that day, to be the partner of the individual.

"special Part A rate" , in relation to an individual, means the amount worked out according to subclause (7).

             (2)  Subject to subclause (3), this clause applies to an individual if:

                     (a)  one or more of the following subparagraphs are satisfied:

                              (i)  immediately before 1 July 2000, the individual or the individual's partner was receiving family allowance under Part 2.17 of the Social Security Act 1991 ;

                             (ii)  immediately before 1 July 2000, the individual or the individual's partner was receiving family tax payment under Part 2.17AA of that Act;

                            (iii)  the Secretary is satisfied that Schedule 7 to the Income Tax Rates Act 1986 applied to the individual or the individual's partner, in respect of the income year that commenced on 1 July 1999, in accordance with subsection 20C(2) of that Act or would have so applied if sections 20E, 20F and 20H of that Act had not been enacted; and

                     (b)  the individual or the individual's partner was receiving, immediately before 1 July 2000, and has continued, at all times on and after that day, to receive:

                              (i)  a pension under Part II of the Veterans' Entitlements Act 1986 payable to the individual or partner as a veteran; or

                             (ii)  a pension under Part II of that Act payable to the individual or partner as the widow or widower of a deceased veteran; or

                            (iii)  a pension under Part IV of that Act payable to the individual or partner as a member of the Forces or as a member of a Peacekeeping Force; or

                            (iv)  a pension under Part IV of that Act payable to the individual or partner as the widow or widower of a deceased member of the Forces or as the widow or widower of a deceased member of a Peacekeeping Force; and

                     (c)  neither the individual nor the individual's partner was receiving, immediately before 1 July 2000, or has received at any time on or after that day:

                              (i)  a social security pension; or

                             (ii)  a social security benefit; or

                            (iii)  a service pension; or

                            (iv)  income support supplement under Part IIIA of the Veterans' Entitlements Act 1986 ; and

                     (d)  at all times on and after 1 July 2000:

                              (i)  the individual or the individual's partner has been eligible for family tax benefit or would have been so eligible if the individual or partner had not been receiving a pension referred to in paragraph (b); and

                             (ii)  the individual's or partner's Part A rate of family tax benefit has been, or would have been, greater than nil; and

                     (e)  the individual's adjusted taxable income for the purposes of this Act (other than Part 4 of this Schedule) for an income year that commenced on or after 1 July 2000 until 1 July 2007 (inclusive) has exceeded the individual's income free area under clause 19 of this Schedule; and

                    (ea)  the individual's adjusted taxable income for the purposes of this Act (other than Part 4 of this Schedule) for the income year that commenced on 1 July 2008 and every succeeding income year has exceeded the individual's income free area under clause 38N of this Schedule; and

                      (f)  the individual's Part A rate worked out according to Part 2, 3 or 3A of this Schedule is not, and never has been, equal to, or greater than, the individual's 30 June 2000 rate.

             (3)  Subparagraph (2)(a)(iii) cannot be satisfied in relation to an individual unless the individual or the individual's partner had, immediately before 1 July 2000, at least one dependant.

             (4)  In spite of any other provision of this Schedule, the Part A rate of an individual to whom this clause applies is the individual's saved Part A rate.

             (5)  An individual's saved Part A rate is the lower of:

                     (a)  the individual's 30 June 2000 rate; and

                     (b)  the individual's special Part A rate.

             (6)  The 30 June 2000 rate for an individual is worked out using the following method statement.

             (7)  An individual's special Part A rate is the individual's Part A rate of family tax benefit worked out:

                     (a)  in accordance with Part 2, 3 or 3A of this Schedule; and

                     (b)  as if neither the individual nor the individual's partner was receiving a pension referred to in paragraph (2)(b).

             (8)  An individual's 1999‑2000 family tax assistance component is the amount worked out according to the formula:

where:

"number of dependants" is the total number of dependants the family tax assistance person had on 30 June 2000.