Instalment case

(1)

The single amount of family tax benefit an individual is eligible for under subsection 32(1) is worked out as follows:

Method statement

Step 1 . Work out the rate of family tax benefit for which the individual would be eligible under this Act (other than under section 31) for the period (the lump sum period ) beginning on the request day (see subsection 32(1)) and ending at the end of the section 31 accrual period (see subsection 32(1)) by applying the Rate Calculator in Schedule 1 on the following assumptions:

(a) that the child who died did not die and is an FTB child of the individual for each day in the lump sum period; (b) if on the request day the individual had any other children who were FTB children—that each of those children is an FTB child of the individual for each day in the lump sum period, other than an excluded day (see subsection (2)) in relation to the child; (c) if the lump sum period extends over 2 income years—that the individual's adjusted taxable income for the lump sum period is the same as the individual's adjusted taxable income for the first of those income years.

Step 2 . If paragraph (b) of step 1 applies, work out the rate of family tax benefit for which the individual would be eligible under this Act (other than under section 31) for the lump sum period by applying the Rate Calculator in Schedule 1 on the following assumptions:

(a) that each child mentioned in that paragraph is an FTB child of the individual for each day in that period, other than an excluded day (see subsection (2)) in relation to the child; (b) if paragraph (c) of step 1 applies—the assumption in that paragraph.

Step 3 . The single amount is the step 1 amount less the step 2 amount (if any).

(2)

For the purposes of the method statement in subsection (1), a day in the lump sum period is an excluded day in relation to the child if:

(a)

where the child was undertaking full-time study at the time the child died—the child would have been aged 25 on that day if the child had not died; or

(b)

in any other case—the child would have been aged 21 on that day if the child had not died.

Other cases

(3)

The single amount of family tax benefit an individual is eligible for under subsection 32(2) is worked out:

(a)

by applying the method statement in subsection (1) of this section (disregarding paragraph (c) of step 1, and paragraph (b) of step 2, of the statement) as if a reference to the request day in that statement were a reference to the first day of the second of those income years (see subsection 32(2)); and

(b)

on the assumption that the individual's adjusted taxable income for the period falling in the second of those income years is the same as the individual's adjusted taxable income for the first of those income years.