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A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 NO. 80, 1999 - SCHEDULE 1

- Family Tax Benefit Rate Calculator
Note: See subsection 58(1).

Part 1—Overall rate calculation process

- SECT 1
Overall rate calculation process
(1)
To work out an individual's annual rate of family tax benefit, add:

(a)
the individual's Part A rate calculated under Part 2 (clauses 3 to 24) or Part 3 (clauses 25 to 28); and

(b)
the individual's Part B rate calculated under Part 4 (clauses 29 to 33).

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

(a)
use Part 2 (clauses 3 to 24) if the individual's adjusted taxable income does not exceed the individual's higher income free area; or

(b)
use Part 3 (clauses 25 to 28) if the individual's adjusted taxable income exceeds the individual's higher income free area.

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.

- SECT 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).

Higher income free area
Column 1 Basic amount Column 2 Additional amount
1 $73,000 $3,000

Part 2—Part A rate (Method 1) Division 1—Overall rate calculation process - SECT 3
Method of calculating Part A rate
Subject to clauses 5 and 6, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

Method statement

Step 1. Add the following amounts:

(a) the individual's standard rate under Division 2 of this Part (clauses 7 to 11); (b) the individual's large family supplement (if any) under Division 1 of Part 5 (clauses 34 and 35); (c) the individual's multiple birth allowance (if any) under Division 2 of Part 5 (clauses 36 to 38); (d) the individual's rent assistance (if any) under Division 3 of this Part (clauses 12 to 16).

The result is the individual's maximum rate . Step 2. Apply the income test in Division 4 of this Part (clauses 17 to 19) to work out any reduction for adjusted taxable income. Take any reduction away from the individual's maximum rate: the result is the individual's income tested rate . Step 3. Apply the maintenance income test in Division 5 of this Part (clauses 20 to 24) to work out any reduction for maintenance income. Take any reduction away from the individual's income tested rate: the result is the individual's income and maintenance tested rate . Step 4. The individual's Part A rate is:

(a) the individual's income and maintenance tested rate if it is equal to or greater than the individual's base rate (see clause 4); or (b) the individual's base rate (see clause 4) if it is more than the individual's income and maintenance tested rate.

- SECT 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.

- SECT 5
Family tax benefit advance to individual
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.

- SECT 6
Family tax benefit advance to partner
If:

(a)
an individual is a member of a couple at a particular time in a standard advance period; and

(b)
either:

(i)
the individual's partner dies at that time; or
(ii)
the individual's partner's family tax benefit is terminated at that time; and
(c)
family tax benefit advance was paid to the individual's partner during that standard advance period;

the individual's Part A rate during the partner's family tax benefit advance period is to be reduced by the FTB a dvance rate.

Division 2—Standard rate - SECT 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.

Standard rates (Part A—Method 1)
Column 1 Category of FTB child Column 2 Standard rate
1 FTB child who is under 13 years of age $2,920.00
2 FTB child who has reached 13, but is under 16, years of age $3,697.45
3 FTB child who has reached 16, but is under 18, years of age $956.30
4 FTB child who has reached 18, but is under 25, years of age $1,306.70

- SECT 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.

- SECT 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.

- SECT 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.

- SECT 11
Sharing family tax benefit (determination under subsection
59(1))
If the Secretary has determined under subsection 59(1) the percentage (the specified percentage ) that is to be the individual's percentage of family tax benefit for an FTB child of the individual, the FTB child rate for the child, in working out the individual's standard rate, is the specified percentage of the FTB child rate that would otherwise apply to the child.

Division 3—Rent assistance - SECT 12
Rent assistance children
(1)
An individual's eligibility for, and rate of, rent assistance is affected by whether an FTB child of the individual is a rent assistance child of the individual.

(2)
An FTB child of an individual is a rent assistance child of the individual if the FTB child rate for the child:

(a)
exceeds the base FTB child rate (see clause 8); or

(b)
would exceed the base FTB child rate but for clause 11.

- SECT 13
Eligibility for rent assistance
(1)
An amount by way of rent assistance for a period is to be added in working out an individual's maximum rate if:

(a)
the individual has at least one rent assistance child; and

(b)
either:

(i)
the individual is entitled to be paid family tax benefit for the period by instalment under Part 3 of the A New Tax System (Family Assistance)
(Administration)
Act 1999 ; or
(ii)
the individual is entitled to be paid family tax benefit for the period, the period is a past period and the Secretary determines that it is appropriate to include rent assistance for that period; 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)
the rent is payable at a rate of more than:

(i)
if the individual is not a member of a couple—$2,485.65 per year; or
(ii)
if the individual is a member of a couple (other than an illness separated couple, a respite care couple or a temporarily separated couple)—$3,675.55 per year; or
(iii)
if the individual is a member of an illness separated couple, a respite care couple or a temporarily separated couple—$2,485.65 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)
A determination under subparagraph (1)(b)(ii) is to be made in accordance with guidelines in force under subclause (3).

(3)
The Minister may, by determination in writing, make guidelines relating to the making of determinations under subparagraph (1)(b)(ii).

(4)
A determination under subclause (3) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .

- SECT 14
Rate of rent assistance
The rate of rent assistance 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.

Rent assistance (Part A—Method 1)
Column 1 Family situation Column 2 Rate A Column 3 Rate B
Column 3A Column 3B
1 or 2 rent assistance children 3 or more rent assistance children
1 Not member of a couple $2,310.45 $2,606.10
2 Member of a couple (other than an illness separated couple, a respite care couple or a temporarily separated couple) $2,310.45 $2,606.10
3 Member of an illness separated couple, a respite care couple or a temporarily separated couple $2,310.45 $2,606.10
- SECT 15
Annual rent
Annual rent in the table in clause 14 is the annual rate of rent paid or payable by the individual whose rate is being calculated.

- SECT 16
Rent paid by a member of a couple
If an individual is a member of a couple and is living with his or her partner in their home, any rent paid or payable by the partner is to be treated as paid or payable by the individual.

Division 4—Income test - SECT 17
Application of income test to pension and benefit recipients and
their partners
If the individual, or the individual's partner, is receiving a social security pension, a social security benefit or a service pension:

(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.

- SECT 18
Income test
This is how to work out an individual's reduction for adjusted taxable income if clause 17 does not apply to the individual:

Method statement

Step 1. Work out the individual's income free area using clause 19. Step 2. Work out whether the individual's adjusted taxable income exceeds the individual's income free area. Step 3. If the individual's adjusted taxable income does not exceed the individual's income free area, the individual's income excess is nil. Step 4. If the individual's adjusted taxable income exceeds the individual's income free area, the individual's income excess is the individual's adjusted taxable income less the individual's income free area. Step 5. The individual's reduction for adjusted taxable income is 30% of the income excess.

- SECT 19
Income free area
An individual's income free area is $28,200.

Division 5—Maintenance income test - SECT 20
Effect of maintenance income on family tax benefit rate
This is how to work out an individual's reduction for maintenance income:

Method statement

Step 1. Work out the annual rate 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).

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.

- SECT 21
Maintenance income of members of couple to be added
The annual rate of the maintenance income of an individual who is a member of a couple is the sum of the rates that, apart from this clause, would be the respective annual rates of each of the members of the couple.

- SECT 22
How to calculate an individual's maintenance income free
area
An individual's maintenance income free area is worked out using the following table. Work out which family situation in the table applies to the individual. The maintenance income free area is the corresponding amount in column 2 plus an additional corresponding amount in column 3 for each FTB child after the first (other than a child for whom maintenance income is disregarded under step 1 of the method statement in clause 20).

Maintenance income free area (Part A—Method 1)
Column 1 Individual's family situation Column 2 Basic amount Column 3 Additional amount
1 Not a member of a couple $952.65 $317.55
2 Partnered (both the individual and the partner have maintenance income) $1,905.30 $317.55
3 Partnered (only one has maintenance income) $952.65 $317.55
- SECT 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.

- SECT 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:

Capitalisation period—court order or registered or approved maintenance 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 registered in, or approved by, a court under the Family Law Act 1975 or the law of a State or 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 a maintenance agreement—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.

Part 3—Part A rate (Method 2) Division 1—Overall rate calculation process - SECT 25
Method of calculating Part A rate
If the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

Method statement

Step 1. Add the following amounts:

(a) the individual's standard rate under Division 2 of this Part (clauses 26 and 27); (b) the individual's large family supplement (if any) under Division 1 of Part 5 (clauses 34 and 35); (c) the individual's multiple birth allowance (if any) under Division 2 of Part 5 (clauses 36 to 38);

The result is the individual's maximum rate . 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 maximum rate: the result is the individual's Part A rate .

Division 2—Standard rate
- SECT 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.

- SECT 27
Sharing family tax benefit (determination under subsection
59(1))
If the Secretary has determined under subsection 59(1) the percentage (the specified percentage ) that is to be an individual's percentage of family tax benefit for an FTB child of the individual, the FTB child rate for the child, in working out the individual's standard rate under clause 26, is the specified percentage of the FTB child rate that would otherwise apply to the child.

Division 3—Income test - SECT 28
Income test
This is how to work out an individual's reduction for adjusted taxable income:

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.

Part 4—Part B rate Division 1—Overall rate calculation process - SECT 29
Method of calculating Part B rate
(1)
The individual's Part B rate is the individual's standard rate worked out using Division 2 (clauses 30 and 31) if the individual is not a member of a couple.

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

Method statement

Step 1. Work out the individual's standard rate using Division 2 (clauses 30 and 31). 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 standard rate less the reduction for adjusted taxable income.

(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 standard rate is nil.

Division 2—Standard rate - SECT 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.

Standard rates(Part B)
Column 1 Family situation Column 2 Standard rate
1 youngest FTB child is under 5 years of age $2,569.60
2 youngest FTB child is 5 years of age or over $1,781.20
- SECT 31
Sharing family tax benefit (determination under subsection
59(1))
(1)
If:

(a)
the Secretary has determined under subsection 59(1) the percentage (the specified percentage ) that is to be an individual's percentage of family tax benefit 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 specified percentage of the standard rate that would otherwise apply.

(2)
If:

(a)
the Secretary has determined under subsection 59(1) the percentage that is to be an individual's percentage of family tax benefit 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 who are not covered by a determination under subsection 59(1), 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 who are covered by a determination under subsection 59(1), 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 3—Income test - SECT 32
Income test
This is how to work out an individual's 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 30% of the income excess.

- SECT 33
Income free area
An individual's income free area is $1,616.

Part 5—Common provisions Division 1—Large family supplement - SECT 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 4 or more FTB children.

- SECT 35
Rate of large family supplement
The amount of the large family supplement is worked out using the formula:

Division 2—Multiple birth allowance - SECT 36
Eligibility for multiple birth allowance
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 are under the age of 6 years.

- SECT 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 is 3—$2,467.40; and

(b)
if the number of the FTB children born during the same multiple birth is 4 or more—$3,292.30 .

- SECT 38
Sharing multiple birth allowance between 2 people (determination
under subsection 59(1))
If:

(a)
the Secretary has determined under subsection 59(1) the percentage that is to be an individual's percentage of family tax benefit for an FTB child of the individual; and

(b)
the child is one of at least 3 children who were born during the same multiple birth;

multiple birth allowance under this Division in respect of the multiple birth is to be dealt with in accordance with the determination (see subsection 59(2)).


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