A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 - SCHEDULE 4 Indexation and adjustment of amounts

A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 - SCHEDULE 4

Note:   See section   85.

Part   1 -- Preliminary

1   Analysis of Schedule

    This Schedule provides for:

  (a)   the indexation, in line with CPI (Consumer Price Index) increases, of the amounts in column 1 of the table at the end of clause   3; and

  (c)   the adjustment of other amounts in line with the increases in the amounts indexed under the Social Security Act 1991 .

2   Indexed and adjusted amounts

    The following table sets out:

  (a)   each monetary amount that is to be indexed or adjusted under this Schedule; and

  (b)   the abbreviation used in this Schedule for referring to that amount; and

  (c)   the provision or provisions in which that amount is to be found.

Part   2 -- Indexation

3   CPI Indexation Table

  (1)   An amount referred to in the following table is to be indexed under this Part on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding amount:

Highest quarter

  (2)   A reference in the table in subclause   (1) to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.

No indexation of certain FTB rates and reductions on 1   July 2017 and 1   July 2018

  (3)   The FTB child rate (A1), the FTB child rate (A2), the reduction to those rates, the FTB standard rate (B) and the FTB standard ACO rate are not to be indexed on 1   July 2017 and 1   July 2018.

First indexation of stillborn baby payment income limit

  (4A)   The first indexation under subclause   (1) of the stillborn baby payment income limit is to take place on 1   July 2017.

Indexation rules for certain income limits for certain years

  (7)   The FTB basic HIFA (A) is not to be indexed on 1   July 2019 and 1   July 2020.

  (7A)   For the purposes of working out the indexed amount for the FTB basic HIFA (A) on 1   July 2021, the current figure for the FTB basic HIFA (A) immediately before that day is taken to be $98,988.

  (7B)   The FTB income limit (B) is not to be indexed on 1   July 2019 and 1   July 2020.

No indexation of FTB gross supplement amount (A) and (B) for certain years

  (8)   The FTB gross supplement amount (A) and the FTB gross supplement amount (B) are not to be indexed on 1   July 2011, 1   July 2012, 1   July 2013, 1   July 2014, 1   July 2015 and 1   July 2016.

No indexation for CCS lower income (base rate) threshold in 2023

  (9)   The CCS lower income (base rate) threshold is not to be indexed on the first day of the first CCS fortnight of the income year starting on 1   July 2023.

3A   One - off 6 - month indexation of FTB gross supplement amount (B) for 2005 - 2006 income year

    The FTB gross supplement amount (B) is to be indexed under this Part on the indexation day, using the reference quarter, base quarter and indexation day and rounding off to the nearest multiple of the rounding base, where:

"base quarter" means June quarter 2004.

"indexation day" means 1   July 2005.

"reference quarter" means December quarter 2004.

"rounding base" means $3.65.

4   Indexation of amounts

  (1)   If an amount is to be indexed under this Part on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.

  (2)   This is how to work out the indexed amount for an amount that is to be indexed under this Part on an indexation day:

5   Indexation factor

  (1)   Subject to subclauses   (2) and (3) and clauses   10 and 11, the indexation factor for an amount that is to be indexed under this Part on an indexation day is:

worked out to 3 decimal places.

  (2)   If an indexation factor worked out under subclause   (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.

  (3)   If an indexation factor worked out under subclauses   (1) and (2) would be less than 1, the indexation factor is to be increased to 1.

  (4)   Subject to subclause   (5), if at any time (whether before or after the commencement of this clause), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this clause.

  (5)   If at any time (whether before or after the commencement of this clause) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this clause after the change takes place, only to index numbers published in terms of the new index reference period.

6   Rounding off indexed amounts

  (1)   If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.

  (2)   If a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.

  (3)   If a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.

Method statement

Step 1.   Add the following amounts:

  (a)   the individual's standard rate under Division   2 of this Part (clauses   7 to 11);

  (ba)   the individual's newborn supplement (if any) under Division   1A of Part   5 (clauses   35A and 35B);

  (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);

  (cb)   the individual's energy supplement (Part A) under Subdivision A of Division   2AA of Part   5 (clause   38AA);

  (d)   the individual's rent assistance (if any) under Subdivision A of Division   2B of Part   5 (clauses   38B to 38H).

  The result is the individual's maximum rate .

  Note:   Paragraph   (cb) does not apply to certain individuals: see clause   6A.

Step 2.   Apply the income test in Division   2C of Part   5 (clauses   38L to 38N) 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.

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; and

  (d)   disregard any maintenance income that is received by the individual, or the individual's partner, from another individual if the income is over the maintenance income ceiling for the income (see Subdivisions C and D).

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.

    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.

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).

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).

Method statement

Step 1.   Work out the individual's above base standard amount for the maintenance income using clause   24H.

Step 1A.   Work out the individual's above base energy supplement amount for the maintenance income using clause   24HA.

Step 2.   Work out the individual's RA amount for the maintenance income using clause   24J.

Step 3.   Work out the individual's MIFA amount for the maintenance income using clause   24K.

Step 4.   Work out the individual's maintenance income ceiling for the maintenance income using clause   24L.

Method statement

Step 1.   Work out the individual's rent assistance (if any) under Subdivision A of Division   2B of Part   5.

Step 2.   Work out the amount that would be the individual's rent assistance (if any) under that Subdivision if rent assistance were paid for only those children in respect of whom neither the individual, nor the individual's partner, is entitled to apply for maintenance income.

Step 3.   If the individual, and the individual's partner, between them are entitled to apply for maintenance income from only one maintenance payer, the difference between the amount worked out under step 1 and the amount worked out under step 2 is the individual's RA amount for the maintenance income.

Step 4.   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 RA amount for maintenance income received from a particular maintenance payer is worked out using the formula:

Method statement

Step 1.   Work out the individual's standard amount for the maintenance income using clause   24P.

Step 2A.   Work out the individual's newborn supplement (if any) under Division   1A of Part   5 (clauses   35A and 35B) for 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.

Step 3.   Work out the individual's multiple birth allowance (if any) under Division   2 of Part   5 (clauses   36 to 38) for 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.

Step 4.   Work out the individual's supplement amount for the maintenance income using clause   24R.

Step 4A.   Work out the individual's energy supplement amount for the maintenance income using clause   24RA.

Step 5.   Work out the individual's RA amount for the maintenance income using clause   24J.

Step 6.   Work out the individual's MIFA amount for the maintenance income using clause   24K.

Step 7.   Work out the individual's maintenance income ceiling for the maintenance income using clause   24S.

Method statement

Step 1.   Add the following amounts:

  (a)   the individual's standard rate under Division   2 of this Part (clauses   26 and 27);

  (ba)   the individual's newborn supplement (if any) under Division   1A of Part   5 (clauses   35A and 35B);

  (c)   the individual's multiple birth allowance (if any) under Division   2 of Part   5 (clauses   36 to 38);

  (d)   the individual's FTB Part A supplement under Division   2A of Part   5 (clause   38A);

  (e)   the individual's energy supplement (Part A) under Subdivision B of Division   2AA of Part   5 (clause   38AF).

  The result is the individual's Method 2 base rate .

  Note:   Paragraph   (e) does not apply to certain individuals: see clause   25C.

Step 2.   Apply the income test in Division   3 of this Part (clause   28) to work out any reduction for adjusted taxable income. Take any reduction away from the individual's Method 2 base rate: the result is the individual's provisional Part A rate .

Step 3.   Work out the rate that would be the individual's income and maintenance tested rate under step 3 of the method statement in clause   3 if the individual's Part A rate were to be calculated using Part   2 (but disregarding clause   24G): the result is the individual's Method 2 income and maintenance tested rate .

  Note:   Clause   25D modifies the application of this step.

Step 4.   The individual's Part A rate is:

  (a)   the individual's provisional Part A rate if it is equal to or greater than the individual's Method 2 income and maintenance tested rate; or

  (b)   the individual's Method 2 income and maintenance tested rate if it is greater than the individual's provisional Part A rate.

Step 2.   Subtract the individual's income free area (worked out under clause   38N) from the individual's higher income free area (worked out under clause   2).

Step 2A.   Work out 20% of the amount at step 2.

Step 2B.   Subtract the individual's higher income free area (worked out under clause   2) from the individual's adjusted taxable income.

Step 2C.   Work out 30% of the amount at step 2B.

Step 2D.   The individual's reduction for adjusted taxable income is the sum of the amounts at steps 2A and 2C. Take that reduction away from the individual's maximum rate: the result is the individual's income tested rate .

Method statement

Step 1.   Work out the individual's higher income free area using clause   2.

Step 2.   Work out whether the individual's adjusted taxable income exceeds the individual's higher income free area.

Step 3.   If the individual's adjusted taxable income does not exceed the individual's higher income free area, the individual's income excess is nil.

Step 4.   If the individual's adjusted taxable income exceeds the individual's higher income free area, the individual's income excess is the individual's adjusted taxable income less the individual's higher income free area.

Step 5.   The individual's reduction for income is 30% of the income excess.

Method statement

Step 1.   Work out the individual's rent assistance (if any) under Subdivision A of Division   2B of Part   5 (clauses   38B to 38H). The result is the individual's maximum rate .

Step 2.   Apply the income test in Division   2C of Part   5 (clauses   38L to 38N) 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.   The individual's Part A rate is the individual's income tested rate.

Method statement

Step 1.   Add the following amounts:

  (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);

  (c)   the individual's energy supplement (Part B) under Division   2B (clause   31B).

  The result is the individual's maximum rate .

  Note:   Paragraph   (c) does not apply to certain individuals: see clause   29AA.

Step 2.   Work out the individual's reduction for adjusted taxable income using Division   3 (clauses   32 and 33).

Step 3.   The individual's Part B rate is the maximum rate less the reduction for adjusted taxable income.

Method statement

Step 1.   Work out the individual's income free area using clause   33.

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 income is 20% of the income excess.

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.

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.

Method statement

Step 1.   Work out the rate (if any) of service pension, income support supplement or veteran payment (the actual payment ) that was payable to the individual for that day.

Step 2.   Work out the rate (if any) of service pension, income support supplement or veteran 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 service pension, income support supplement or veteran payment 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.

Method statement

Step 1.   Work out the rate (if any) of service pension, income support supplement or veteran 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 service pension, income support supplement or veteran 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 amount of the eligible partner's service pension, income support supplement or veteran payment 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.

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

Method statement

Step 1.   Work out the individual's income free area using clause   38N.

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.

Method statement

Step 1.   If the individual or the individual's partner was receiving family allowance, but not family tax payment, immediately before 1   July 2000, the fortnightly rate of that family allowance is the individual's fortnightly rate .

Step 2.   If the individual or the individual's partner was receiving family tax payment, but not family allowance, immediately before 1   July 2000, the individual's or partner's fortnightly Part A rate of family tax payment immediately before 1   July 2000 is the individual's fortnightly rate .

Step 3.   If the individual or the individual's partner was receiving family allowance and family tax payment immediately before 1   July 2000, add the following amounts:

  (a)   the individual's or partner's fortnightly rate of family allowance immediately before 1   July 2000;

  (b)   the individual's or partner's fortnightly Part A rate of family tax payment immediately before 1   July 2000.

  The result is the individual's fortnightly rate .

Step 4.   From the individual's fortnightly rate subtract any amount of guardian allowance included in the individual's or the individual's partner's family allowance by virtue of Module F of the Family Allowance Rate Calculator in section   1069 of the Social Security Act 1991 , as in force immediately before 1   July 2000: the result is the individual's net fortnightly rate .

Step 5.   Divide the individual's net fortnightly rate by 14. If the result is not a whole number of cents or dollars or a whole number of dollars and a whole number of cents, round the result upwards to the nearest cent and multiply the rounded amount by 365: the result of the multiplication is the individual's annual rate .

Step 6.   If neither the individual nor the individual's partner was receiving family allowance or family tax payment immediately before 1   July 2000, the individual's annual rate is nil.

Step 7.   If either or both of subparagraphs   (2)(a)(i) and (ii) are satisfied but subparagraph   (2)(a)(iii) is not satisfied, the individual's annual rate is his or her 30   June 2000 rate .

Step 8.   If subparagraph   (2)(a)(iii) is satisfied but subparagraph   (2)(a)(ii) is not satisfied, add the following amounts:

  (a)   the individual's annual rate;

  (b)   the individual's 1999 - 2000 family tax assistance component.

  The result is the individual's 30   June 2000 rate .

Method statement

Step 1.   Take each advance, in the order in which the advances were paid.

Step 2.   If the unreduced Part A rate, less any amounts by which the individual's Part A rate has been reduced under a previous application of this step, equals or exceeds the standard reduction for the advance, the individual's Part A rate is to be reduced by an amount equal to the standard reduction.

Step 3.   If the unreduced Part A rate, less any amounts by which the individual's Part A rate has been reduced under a previous application of step 2, does not equal or exceed the standard reduction for the advance (but is greater than nil), the Secretary must determine that the number of days in the repayment period for the advance is to be increased so that the individual's Part A rate is reduced by an amount that is no more than the remainder.

Step 4.   If the unreduced Part A rate, less any amounts by which the individual's Part A rate has been reduced under a previous application of step 2 or step 3, is nil, the Secretary must determine that the repayment period for the advance is to be suspended while the determination is in force.

Method statement

Step 1.   Work out the individual's activity test result, in relation to the child, for the CCS fortnight that includes the week (see clause   11 of this Schedule).

  If the activity test result is zero, the amount of child care subsidy for the individual for the week, for the sessions of care provided by the service to the child, is nil.

  Otherwise, go to step 3.

Step 3.   Identify all the sessions of care:

  (a)   provided by the service to the child in the week; and

  (b)   for which the individual is eligible for CCS.

Step 4.   Work out the hourly rate of CCS for the individual for each of those sessions of care (see clause   2).

  If the applicable percentage is 0% for each of those sessions of care, the amount of child care subsidy for the individual for the week, for those sessions, is nil.

  Otherwise, go to step 5.

Step 5.   Work out:

  (a)   the activity - tested amount of CCS for those sessions of care (see clause   4); and

  (b)   if at least one of those sessions of care is a session of care to which clause   4A applies--the adjusted activity - tested amount of CCS for those sessions of care (see clause   4A).

  If paragraph   (b) applies, go to step 7.

  Otherwise, go to step 6.

Step 6.   The amount of CCS for the individual for the week, for the sessions of care identified in step 3, is the activity - tested amount.

Step 7.   If at least one of the sessions of care identified in step 3 is a session of care to which clause   4A applies, the amount of CCS for the individual for the week, for the sessions of care, is the adjusted activity - tested amount.

Method statement

Step 1.   Work out the provider's deemed activity test result for the child and service for the CCS fortnight that includes the week (see clause   16).

Step 2.   Identify all the sessions of care:

  (a)   provided by the service to the child in the week; and

  (b)   for which the provider is eligible for ACCS (child wellbeing).

Step 3.   Work out the hourly rate of ACCS for the provider for each of those sessions of care (see clause   9).

Step 4.   Work out the activity - tested amount of ACCS for those sessions of care (see clause   10).

Step 5.   The amount of ACCS (child wellbeing) for the provider for the week, for the sessions of care identified in step 2, is the activity - tested amount.

Method statement

Step 1.   Use clause   5 to work out the indexation factor for the amount on the indexation day.

Step 2.   Work out the current figure for the amount immediately before the indexation day.

Step 3.   Multiply the current figure by the indexation factor: the result is the provisional indexed amount .

Step 4 .   Use clause   6 to round off the provisional indexed amount: the result is the indexed amount.