A NEW TAX SYSTEM (FAMILY ASSISTANCE) (ADMINISTRATION) ACT 1999 - SECT 31E Continuous adjustment of daily rate of family tax benefit
A NEW TAX SYSTEM (FAMILY ASSISTANCE) (ADMINISTRATION) ACT 1999 - SECT 31E
Continuous adjustment of daily rate of family tax benefit(a) a determination is in force in an income year under which a claimant is entitled to be paid family tax benefit by instalment; and
(b) one of the following applies:
(i) a variation of the determination under subsection 31A(1) has effect on a day in the income year that is after 1 July;
(ii) a variation of the determination under subsection 31B(1) has effect on a day in the income year that is after 1 July;
(iii) a variation of the determination under subsection 31C(1) has effect on a day in the income year that is after 1 July;
(iv) a variation of the determination under subsection 31D(1) has effect on a day in the income year that is after 1 July;
(v) on a day in the income year, the claimant provides the Secretary with a revised estimate of the claimant's adjusted taxable income for the income year that does not result in a variation of the determination under subsection 31A(1);
(vi) on a day in the income year that is after 1 July, the Secretary makes a revised estimate of the claimant's maintenance income that does not result in a variation of the determination under subsection 31B(1);
(vii) the determination ceases to be in force in the income year and another determination comes into force in that income year under which the claimant is entitled to be paid family tax benefit by instalment or family tax benefit for a past period that falls wholly within that income year.
(2) The Secretary must apply the following method statement to work out if there is a daily overpayment rate:
Method statement
Step 1. Work out the total amount of family tax benefit the claimant is or was entitled to be paid during the period beginning at the start of the income year and ending at the end of the day before the applicable day.
Step 2. Work out the total amount of family tax benefit the claimant would have been entitled to be paid during that period if the claimant's rate of family tax benefit were calculated using:
(a) if subparagraph (1)(b)(i) applies--the revised estimate concerned; or
(b) if subparagraph (1)(b)(ii) applies--the revised estimate concerned; or
(c) if subparagraph (1)(b)(iii) applies--the indexed estimate concerned; or
(d) if subparagraph (1)(b)(iv) applies--the indexed actual income concerned; or
(e) if subparagraph (1)(b)(v) applies--the revised estimate concerned; or
(f) if subparagraph (1)(b)(vi) applies--the revised estimate concerned; or
(g) if subparagraph (1)(b)(vii) applies--the estimate of the claimant's adjusted taxable income for the income year, and the estimate of the claimant's maintenance income in that income year, that were used in determining the claimant's rate of family tax benefit under the other determination referred to in that subparagraph.
Step 3. Take the amount worked out at step 2 away from the amount worked out at step 1.
Step 4. If the amount worked out at step 3 is greater than zero, work out the number of days during the period beginning on the applicable day and ending at the end of the last day in the income year.
Step 5. Work out the daily overpayment rate by dividing the amount worked out at step 3 by the number of days worked out at step 4, and rounding the result of the division to the nearest cent (rounding 0.5 cents upwards).
(3) If there is a daily overpayment rate, the Secretary must vary the applicable determination so that the claimant's daily rate of family tax benefit for the period beginning on the applicable day and ending at the end of the last day in the income year is reduced (but not below nil) by that daily overpayment rate.
(3A) For the purposes of subsection (3), the applicable determination is:
(a) if subparagraph (1)(b)(i), (ii), (iii), (iv), (v) or (vi) applies--the determination referred to in paragraph (1)(a); or
(b) if subparagraph (1)(b)(vii) applies--the other determination referred to in that subparagraph.
(4) This section may have more than one application in relation to the claimant during the income year.
(a) if subparagraph (1)(b)(i), (ii), (iii) or (iv) applies--the day on which the variation concerned has effect; and
(b) if subparagraph (1)(b)(v) or (vi) applies--the first day of the instalment period in which the Secretary applies the method statement because of that subparagraph applying; and
(c) if subparagraph (1)(b)(vii) applies--the first day in
the income year for which the claimant's entitlement to be paid family tax
benefit arose under the other determination referred to in that subparagraph.