Commonwealth Numbered Acts

SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 1069

1069. The rate of a person's family allowance is to be calculated in
accordance with the Rate Calculator at the end of this section.
FAMILY ALLOWANCE RATE CALCULATOR
MODULE A-OVERALL RATE CALCULATION PROCESS Method of calculating rate
1069-A1. The rate of family allowance of a person with an FA child or FA
children is a fortnightly rate calculated as follows:
Method statement Step 1. Work out the person's maximum basic rate using MODULE
B below. Step 2. Add to the maximum basic rate any applicable amounts for
multiple birth using MODULE C below: the result is the maximum payment rate.
Step 3. Apply the taxable income test using MODULE D below to work out the
person's reduction for taxable income. Step 4. Take the person's reduction for
taxable income away from the person's maximum payment rate: the result is the
person's rate of family allowance.
MODULE B - MAXIMUM BASIC RATE Maximum basic rate
1069-B1. A person's maximum basic rate is worked out using Table B. Work out
which category applies to each FA child of the person. The FA child rate for
that child is the corresponding rate in column 3. The maximum basic rate is
the sum of the FA child rates.
TABLE B
MAXIMUM BASIC RATE column 1
column 2
column 3 item
category of FA child
rate per fortnight 1. first, second or third FA child of the person
$18.60 2. fourth or subsequent FA child of the person
$24.80 3. FA child specified in a determination under point 260-B3
$24.80
Note: for "FA child" see sections 831 to 837.
1069-B2. If:

   (a)  a dependent child of a person is not an FA child of the person because
        of section 837; and

   (b)  the person has an FA child or FA children; then, for the purposes of
        working out, under point 1069-B1, the FA child rate for the person's
        FA child or FA children referred to in paragraph (b), the child
        referred to in paragraph (a) is to be treated as if the child were an
        FA child of the person. Sharing family allowance (determination under
        subsection 868 (1))
1069-B3. If:

   (a)  2 people are each qualified for family allowance for the same child;
        and

   (b)  the Secretary has made a declaration under subsection 868 (1); and

   (c)  the declaration specifies the percentage of family allowance
        in respect of the child that a person is to receive; the FA child rate
        for that child, in working out the rate of family allowance payable to
        that person, is the specified percentage of the FA child rate that
        would otherwise apply to the child. 2 people qualify for family
        allowance for same child (no determination under subsection 868 (1))
1069-B4. If:

   (a)  2 people are each qualified for family allowance for the same child;
        and

   (b)  the Secretary has not made a declaration under subsection 868 (1) in
        respect of the family allowance for the child; and

   (c)  the family allowance rate of one of the people includes an FA child
        rate for the child; an FA child rate for the child is not to be
        included in the family allowance rate of the other person.
MODULE C - MULTIPLE BIRTH ALLOWANCE Qualification for multiple birth allowance
1069-C1. An amount by way of a multiple birth allowance is to be added to a
person's maximum basic rate for a family payment payday if:

   (a)  the person has 3 or more FA children; and

   (b)  at least 3 of those children were born during under the age of 6
        years. Rate of multiple birth allowance
1069-C2. The rate of multiple birth allowance is:

   (a)  where the number of the FA children born during the same multiple
        birth is 3 - $74.50; and

   (b)  where the number of the FA children born during the same multiple
        birth is 4 or more - $99.40. Note: the multiple birth allowances are
        indexed annually in line with CPI increases (see sections 1191 to
        1194). Sharing family allowance between 2 people (declaration under
        subsection 868 (1))
1069-C3. If:

   (a)  2 people are each qualified for family allowance for the same child;
        and

   (b)  the Secretary has made a declaration under subsection 868 (1) in
        respect of the family allowance payable in respect of the child; and

   (c)  the child is one of at least 3 children who were born during the same
        multiple birth; multiple birth allowance under this Module
        in respect of the multiple birth is to be dealt with in accordance
        with the declaration. 2 people qualified for family allowance for the
        same subsection 868 (1))
1069-C4. If:

   (a)  2 people are each qualified for family allowance for the same child;
        and

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

   (c)  the Secretary has not made a declaration under subsection 868 (1) in
        respect of family allowance payable in respect of the child; and

   (d)  the family allowance rate of one of the people includes a multiple
        birth allowance in respect of the child; the family allowance rate of
        the other person is not to include any amount by way of multiple birth
        allowance under this Module.
MODULE D - TAXABLE INCOME TEST Effect of taxable income on maximum payment
rate
1069-D1. This is how to work out the effect of a person's taxable income on
the person's maximum payment rate on a family payment payday.
Method statement Step 1. Work out which tax year is the appropriate one for
that payday using points 1069-D2 to 1069-D6 below. Step 2. Work out the
person's taxable income for that tax year.
Note: for the treatment of the taxable incomes of members of couples see point
1069-D7. Step 3. Work out the person's taxable income free area limit using
point 1069-D8 below. Step 4. Take the person's taxable income free area limit
away from the person's taxable income for that tax year: the result is the
person's taxable income excess. Step 5. Use the person's taxable income excess
to work out the person's reduction for taxable income under points 1069-D9 and
1069-D11. Appropriate tax year
1069-D2. Subject to points 1069-D4, 1069-D5 and 1069-D6, the appropriate tax
year for a family payment payday is the base tax year for Base tax year
1069-D3. The base tax year for a family payment payday is the tax year that
ended on 30 June in the calendar year that came immediately before the
calendar year in which the payday occurs. Example: a family payment payday
occurs on 25 January 1990 - this day occurs in the calendar year 1 January
1990 to 31 December 1990 - the calendar year that came immediately before this
one is the calendar year 1 January 1989 to 31 December 1989 - the base
tax year is the tax year that ended on 30 that commenced on 1 July 1988).
Change to appropriate tax year because of assumed notifiable event
1069-D4. If:

   (a)  an assumed notifiable event in relation to the person occurs after the
        end of the base tax year and before the beginning of the FA period;
        and

   (b)  the person's taxable income for the tax year in which the assumed
        notifiable event occurs:

   (i)  exceeds 125% of the person's taxable income for the base tax year; and

   (ii) exceeds the person's taxable income free area limit; the
        appropriate tax year, for the purposes of applying this Module to the
        person from the beginning of the FA period, is the tax year in which
        the assumed notifiable event occurs.
Note: for "assumed notifiable event" see section 857. Change to
appropriate tax year because of notifiable event
1069-D5. If:

   (a)  a notifiable event occurs in relation to a person; and

   (b)  the person's taxable income for the tax year in which the notifiable
        event occurs:

   (i)  exceeds 125% of the person's taxable income for the base tax year; and

   (ii) exceeds the person's taxable income free area limit; the
        appropriate tax year, for the purposes of applying this Module to the
        person for a family payment payday that occurs after the
        notifiable event, is the tax year in which the notifiable event
        occurs.
Note: for "notifiable event" see section 858. Changes to appropriate tax year
at recipient's request
1069-D6. If:

   (a)  a person requests the Secretary to make a determination under section
        859; and

   (b)  as a result, the Secretary determines under that section that the
        appropriate tax year, for the purposes of applying this Module to the
        person for a family payment payday after the day on which the request
        is made, is the tax year in which the person makes the request; the
        appropriate tax year, for those purposes, is the tax year in which the
        person makes the request. Person's taxable income for base year -
        member of a couple
1069-D7. If a person is a member of a couple, the person's taxable income for
a tax year is to be taken to include the taxable income of the person's
partner for that year. Taxable income free area limit
1069-D8. A person's taxable income free area limit for a family payment payday
is worked out using Table D. The taxable income free area limit is the amount
in column 1 plus an additional amount in column 2 for each FA child (after the
first).
TABLE D
TAXABLE INCOME FREE AREA LIMITS column 1
column 2 basic free area
additional free area for each FA child
(after the first) $57,620
$2,882 Note: these amounts are indexed in line with CPI increases (see
sections 1191 to 1194). Reduction for taxable income
1069-D9. Subject to point 1069-D10 below, a person's taxable income reduction
for a family payment payday is:
taxable income excess
104 Note 1: for taxable income excess see point 1069-D11 below. Note 2:
derivation of taxable income reduction formula - start with the person's
taxable income excess - divide by 26 to convert from a yearly to a fortnightly
basis-divide by 4 to give a 25% taper. Amounts for certain children not
affected by taxable income test
1069-D10. If a person has an exempt FA child or exempt FA children, the
person's family allowance rate for a family payment payday is not to fall
below the amount, or the sum of the amounts, included in the person's maximum
basic rate under point 1069-B1 in respect of the exempt FA child or the exempt
FA children.
Note: for "exempt FA child" see subsection 5 (1). Taxable income excess
1069-D11. A person's taxable income excess for a family payment payday is the
person's taxable income for the appropriate tax year for the family
allowance payday less the person's taxable income free area limit for that
payday. Note: if the person's taxable income for the appropriate tax year does
not exceed the person's taxable income free area limit, the person's taxable
income excess and reduction for taxable income are both nil.