Commonwealth Consolidated Acts

A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 - SCHEDULE 1

Note:   See subsection   58(1).

Part   1 -- Overall rate calculation process

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 24S), Part   3 (clauses   25 to 28) or Part   3A (clause   28A); and

  (b)   the individual's Part B rate calculated under Part   4 (clauses   28B to 33).

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

  (a)   use Part   2 (clauses   3 to 24S) if the individual has at least one FTB child and:

  (i)   the individual's adjusted taxable income does not exceed the individual's higher income free area; or

  (ii)   the individual, or the individual's partner, is receiving a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment; and

  (b)   use Part   3 (clauses   25 to 28) if the individual has at least one FTB child and:

  (i)   the individual's adjusted taxable income exceeds the individual's higher income free area; and

  (ii)   neither the individual, nor the individual's partner, is receiving a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment; and

  (c)   use Part   3A (clause   28A) if the individual has no FTB children.

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.

2   Higher income free area

    For the purposes of this Part, an individual's higher income free area is the basic amount in column 1 of the following table.

Part   2 -- Part A rate (Method 1)

Division   1 -- Overall rate calculation process

3   Method of calculating Part A rate

    Subject to the operation of clauses   5, 6A, 38J and 38K, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

4   Base rate

    The individual's base rate is the rate that would be the individual's Method 2 base rate under clause   25 if the individual's Part A rate were worked out using Part   3.

5   Family tax benefit advance to individual

  (1)   If:

  (a)   an individual is entitled to be paid family tax benefit by instalment; and

  (b)   the individual is paid a family tax benefit advance; and

  (c)   the individual has not repaid the whole of the advance; and

  (d)   the amount of unrepaid family tax benefit advance is not an FTB advance debt;

then, subject to clauses   44 and 49, the individual's Part A rate (as reduced (if at all) under clauses   38J and 38K) is to be reduced in accordance with Division   4 of Part   5 (clauses   40 to 51).

  (2)   If an individual satisfies paragraphs   (1)(a) to (d) for more than one family tax benefit advance, the individual's Part A rate is to be reduced under subclause   (1) for each of those advances.

6   Components of Part A rates under this Part

    The Minister may, by legislative instrument, determine a method for working out the extent to which Part A rates under this Part are attributable to the amounts referred to in step 1 of the method statement in clause   3.

6A   Energy supplement

  (1)   Paragraph   (cb) of step 1 of the method statement in clause   3 does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   (cb) of step 1 of the method statement in clause   3 does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

Division   2 -- Standard rate

7   Standard rate

  (1)   Subject to subclauses   (2) and (3) and 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.

Reduction during reduction period for failing to have health check or meet immunisation requirements

  (2)   If either or both section   61A and subparagraph   61B(1)(b)(ii) apply in relation to an individual and an FTB child of the individual, the annual FTB child rate in relation to the child is reduced by $737.30 for each day in the FTB child rate reduction period (except any day in a past period to which subclause   (3) applies).

Reduction of past period claims for failing to meet immunisation requirements

  (3)   The annual FTB child rate in relation to an FTB child of an individual is reduced by $737.30 if subparagraph   61B(1)(b)(i) applies in relation to the individual and the child.

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.

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.

10   Effect of certain maintenance rights

  (1)   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.

  (2)   Subclause   (1) does not apply to maintenance that is:

  (a)   a liability under an administrative assessment (within the meaning of the Child Support (Assessment) Act 1989 ); and

  (b)   not an enforceable maintenance liability (within the meaning of the Child Support (Registration and Collection) Act 1988 ).

11   Sharing family tax benefit (shared care percentages)

    If an individual has a shared care percentage for an FTB child of the individual, the FTB child rate for the child, in working out the individual's standard rate, is the individual's shared care percentage of the FTB child rate that would otherwise apply to the child.

Division   5 -- Maintenance income test

Subdivision A -- Maintenance income test

19A   Extended meaning of receiving maintenance income

    In this Division, if the FTB child of an individual receives maintenance income, the individual is taken to have received the maintenance income.

19AA   References to applying for maintenance income

    A reference in this Division to an individual being, or not being, entitled to apply for maintenance income includes an individual who is, or is not, entitled to so apply under the Child Support (Assessment) Act 1989 or the Family Law Act 1975 .

19B   Application of maintenance income test to certain pension and benefit recipients and their partners

    If the individual, or the individual's partner, is:

  (a)   permanently blind; and

  (b)   receiving:

  (i)   an age pension (under Part   2.2 of the Social Security Act 1991 ); or

  (ii)   a disability support pension (under Part   2.3 of the Social Security Act 1991 ); or

  (iii)   a service pension; or

  (iv)   income support supplement (under Part   IIIA of the Veterans' Entitlements Act 1986 ); or

  (v)   a veteran payment;

then:

  (c)   the individual's maintenance income excess is nil; and

  (d)   the individual's income and maintenance tested rate is the same as the individual's income tested rate.

20   Effect of maintenance income on family tax benefit rate

  (1)   This is how to work out an individual's reduction for maintenance income if clause   19B does not apply:

  (2)   Paragraph   (c) of step 1 of the method statement in subclause   (1) does not apply unless and until the individual has satisfied the FTB reconciliation conditions in section   32B of the Family Assistance Administration Act for all of the same - rate benefit periods (within the meaning of that section) that are included in the income year for which the individual's reduction for maintenance income is being worked out.

20A   Annualised amount of maintenance income

Object of clause

  (1)   The object of this clause is to annualise the maintenance income (other than capitalised maintenance income) ( CMI ) of an individual during an income year.

Annualisation of maintenance income other than CMI

  (2)   If an individual receives maintenance income (other than CMI) from another individual during any period or periods (the relevant period or periods ) in an income year, the annualised amount of the maintenance income of the individual is worked out using the following formula:

Commencement of relevant period

  (3)   If:

  (a)   an individual ( payee ) receives maintenance income (other than CMI) from another individual ( payer ) in an income year under a maintenance liability; and

  (b)   subsection   (4) does not apply;

the relevant period in respect of the maintenance income commences:

  (c)   in the case where the maintenance liability arises after 1   July of the income year in which the maintenance income is received--on the day that the maintenance liability arises; or

  (d)   in the case where the maintenance liability exists on 1   July of the income year in which the maintenance income is received--1   July.

  (4)   If:

  (a)   a payee receives maintenance income (other than CMI) from a payer in an income year under a maintenance liability; and

  (b)   the payee has received maintenance income (other than CMI) from that payer previously during a period in the income year, but not under a maintenance liability; and

  (c)   in between the time the payee receives maintenance income under paragraph   (a) and the end of the period referred to in paragraph   (b):

  (i)   the payee and the payer were not members of the same couple; and

  (ii)   the payee was entitled to claim, or apply for, maintenance from the payer;

the relevant period in respect of the maintenance income commences:

  (d)   on the day the payee first received the previously received maintenance income in the income year; or

  (e)   on such earlier day in respect of the previously received maintenance income that the Secretary determines.

  (5)   If a payee receives maintenance income (other than CMI) from a payer during a period in an income year but not under a maintenance liability, the relevant period, in respect of the maintenance income, commences:

  (a)   on the day that the payee first received the maintenance income during that period; or

  (b)   on such earlier day that the Secretary determines.

End of relevant period

  (6)   A relevant period, in respect of maintenance income (other than CMI) received under a maintenance liability in an income year, ends either when the maintenance liability ceases (if it ceases before the end of the income year) or on 30   June of the income year.

  (7)   If:

  (a)   a payee receives maintenance income (other than CMI) in an income year; and

  (b)   the maintenance income is not received under a maintenance liability;

the relevant period ends in respect of the payee either:

  (c)   unless subclause   (8) applies--when the payee ceases to receive the maintenance income (if the payee ceases to receive the income before the end of the income year); or

  (d)   on 30   June of the income year.

  (8)   If:

  (a)   a payee receives maintenance income (other than CMI) from a payer in an income year under a maintenance liability; and

  (b)   the payee has received maintenance income (other than CMI) from that payer previously during a period in the income year, but not under a maintenance liability; and

  (c)   in between the time the payee receives maintenance income under paragraph   (a) and the end of the period referred to in paragraph   (b):

  (i)   the payee and the payer were not members of the same couple; and

  (ii)   the payee was entitled to claim, or apply for, maintenance from the payer;

the relevant period ends either when the maintenance liability ceases (if it ceases before the end of the income year) or on 30   June of the income year.

Relevant period where payee elects to end an assessment

  (9)   If:

  (a)   a payee receives maintenance income (other than CMI) in an income year from a payer under a maintenance liability which is an assessment under Part   5 of the Child Support (Assessment) Act 1989 ; and

  (b)   the payee and payer become members of the same couple; and

  (c)   the payee elects under the Child Support (Assessment) Act 1989 to end the assessment from a specified day before the day the payee and payer became members of the same couple;

for the purpose of determining the commencement or end of the relevant period, the assessment is taken to end from the day the payee and the payer became a member of the same couple or from such earlier day as the Secretary determines (not being a day earlier than the specified day).

Meaning of maintenance liability

  (10)   In this clause, maintenance liability means a liability to provide:

  (a)   child support; or

  (b)   maintenance (other than child support) that arises as a result of:

  (i)   the order of a court; or

  (ii)   a maintenance agreement (within the meaning of the Family Law Act 1975 ) that has been registered in, or approved by, a court in Australia or an external Territory; or

  (iii)   a financial agreement, or Part   VIIIAB financial agreement, within the meaning of that Act; or

  (iv)   any other agreement with respect to the maintenance of a person that has been registered in, or approved by, a court in Australia or an external Territory.

Day a maintenance liability arises

  (11)   The day a maintenance liability arises is:

  (a)   if the liability is to provide child support, the day that the liability arises under the Child Support (Assessment) Act 1989 ; or

  (b)   if the liability is to provide maintenance that arises as set out in paragraph   (10)(b), the day that the order of the court or the agreement has effect from.

20B   Working out amounts of child maintenance using notional assessments

  (1)   If:

  (a)   an individual receives child maintenance for an FTB child of the individual under a child support agreement or court order; and

  (b)   there is, in relation to the agreement or order, a notional assessment of the annual rate of child support that would be payable to the individual for the child for a particular day in a child support period if that annual rate were payable under Part   5 of the Child Support (Assessment) Act 1989 instead of under the agreement or order;

then the amount of child maintenance that the individual is taken to have received in an income year under the agreement or order for the child for a period is worked out in accordance with this clause.

Note:   The amount worked out in accordance with this clause is annualised under clause   20A.

Individual taken to have received notional assessed amount

  (2)   For the purposes of this Act, the amount of child maintenance that the individual is taken to have received under the agreement or order for the child for the period is, subject to this clause, the amount (the notional assessed amount ) that the individual would have received if the individual had received the annual rate of child support for the child for the period that is included in the notional assessment, disregarding so much of that rate as is attributable to the individual receiving disability expenses maintenance.

Underpayments

  (3)   If the amount received in an income year by the individual under the agreement or order for the child for the period is less than the amount that is payable to the individual under the agreement or order for the child for the period (such that a debt arises for the period under the agreement or order), then, for the purposes of this Act, the amount of child maintenance that the individual is taken to have received under the agreement or order for the child for the period is the following amount (the notional amount paid ):

Note:   This subclause only applies in respect of enforceable maintenance liabilities (see subclause   (7)).

Underpayments--non - periodic payments and lump sum payments

  (3A)   For the purposes of the formula in subclause   (3), the amount received by the individual under the agreement or order, for the child for the period, is taken to include:

  (a)   if the agreement or order is a non - periodic payments agreement or order--the amount by which the annual rate of child support payable for the child is reduced for the period under the agreement or order; and

  (b)   if the agreement or order is a lump sum payments agreement or order--the total amount of the lump sum payment that is credited for each day in the period under section   69A of the Child Support (Registration and Collection) Act 1988 against the amount payable under the liability under the agreement or order.

  (3B)   If the agreement or order is a non - periodic payments agreement or order, for the purposes of the formula in subclause   (3), the amount payable to the individual under the agreement or order for the child for the period is taken to include the amount by which the annual rate of child support payable for the child is reduced for the period under the agreement or order.

Arrears

  (4)   If the amount received in an income year by the individual under the agreement or order for the child for the period exceeds the amount that is payable to the individual under the agreement or order for the child for the period, then, for the purposes of this Act, the amount of child maintenance that the individual is taken to have received under the agreement or order for the child for the period is:

Note:   This subclause only applies in respect of enforceable maintenance liabilities (see subclause   (7)).

  (5)   The notional arrears amount , in respect of a debt arising for a previous period under the agreement or order, is:

  (6)   For the purposes of subclause   (5), if:

  (a)   an individual has more than one debt that arose under an agreement or order for previous periods; and

  (b)   the amount received in an income year by the individual under the agreement or order for a child for a period exceeds the amount that is payable to the individual under the agreement or order for the child for the period;

then:

  (c)   the individual is taken to have received the excess to pay off each debt in the order in which the debts arose; and

  (d)   each debt is reduced by the amount of the debt that is paid off.

  (7)   Subclauses   (3) and (4) only apply in respect of enforceable maintenance liabilities (within the meaning of the Child Support (Registration and Collection) Act 1988 ).

  (8)   In this clause:

"lump sum payments agreement or order" means:

  (a)   an agreement containing lump sum payment provisions (within the meaning of the Child Support (Assessment) Act 1989 ); or

  (b)   a court order made under section   123A of that Act.

"non-periodic payments agreement or order" means:

  (a)   an agreement containing non - periodic payment provisions (within the meaning of the Child Support (Assessment) Act 1989 ); or

  (b)   a court order made under section   124 of that Act that includes a statement made under section   125 of that Act that the annual rate of child support payable by a liable parent under an administrative assessment is to be reduced.

20C   Working out amounts of child maintenance in relation to lump sum payments

  (1)   This clause applies if an individual receives in an income year child maintenance for an FTB child of the individual under:

  (a)   a child support agreement, containing lump sum payment provisions (within the meaning of paragraph   84(1)(e) of the Child Support (Assessment) Act 1989 ), to which clause   20B does not apply; or

  (b)   a court order made under section   123A of that Act;

in the form of a lump sum payment that is to be credited under section   69A of the Child Support (Registration and Collection) Act 1988 against the amount payable under a liability under an administrative assessment.

  (2)   For the purposes of this Act, the amount of child maintenance that the individual is taken to have received in an income year under the agreement or order for the child for a period is the amount that is credited under section   69A of the Child Support (Registration and Collection) Act 1988 against the amount payable under the liability under the administrative assessment for the child for the period.

Note:   The amount worked out under this clause is annualised under clause   20A.

  (3)   Subclause   (2) does not apply in relation to the individual and the child for a period if subclause   20B(2), (3) or (4) or 20D(2) has applied in relation to the individual and the child for that period.

20D   Working out amounts of child maintenance for administrative assessments privately collected

  (1)   This clause applies if, during a period in an income year:

  (a)   an individual is entitled to receive an amount of child maintenance for an FTB child of the individual under a liability under an administrative assessment (within the meaning of the Child Support (Assessment) Act 1989 ); and

  (b)   the liability is not an enforceable maintenance liability (within the meaning of the Child Support (Registration and Collection) Act 1988 ); and

  (c)   the child maintenance is not maintenance to which clause   20B applies; and

  (d)   the Secretary considers that it is reasonable for the individual to take action to obtain the amount.

Individual taken to have received full entitlement

  (2)   For the purposes of this Act, the individual is taken to have received, for the period in the income year, the amount of child maintenance for the child that the individual is entitled to receive under the liability, disregarding so much of that amount as is attributable to the individual receiving disability expenses maintenance.

21   Maintenance income of members of couple to be added

    The annualised amount of the maintenance income of an individual who is a member of a couple is the sum of the amounts that, apart from this clause, would be the respective annualised amounts of each of the members of the couple.

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, disregarding any child:

  (a)   for whom maintenance income is disregarded under paragraph   (a) of step 1 of the method statement in clause   20; or

  (b)   in respect of whom neither the individual, nor the individual's partner, is entitled to apply for maintenance income.

23   Only maintenance actually received taken into account in applying clause   22

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:

  (2A)   For the capitalisation period in an income year, the annualised amount of an individual's capitalised maintenance income is worked out using the following formula:

Capitalisation period--court order or 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 (within the meaning of the Family Law Act 1975 ) that has been registered in, or approved by, a court in Australia or an external Territory; or

  (iii)   a financial agreement, or Part   VIIIAB financial agreement, within the meaning of that Act; or

  (iv)   any other agreement with respect to the maintenance of a person that has been registered in, or approved by, a court in Australia or an external 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 an agreement referred to in subparagraph   (3)(a)(ii), (iii) or (iv)--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.

Subdivision B -- Maintenance income credit balances

24A   Maintenance income credit balances

  (1)   A maintenance income credit balance , for a registered entitlement of an individual, is, at any particular time, the balance at that time of the accruals under clause   24B and the depletions under clause   24E in relation to that entitlement.

  (2)   Despite subclause   (1), a maintenance income credit balance for a registered entitlement, at the end of an income year, cannot exceed the total arrears owing from that registered entitlement, at that time, for all income years for which the entitlement has existed.

  (3)   If:

  (a)   but for the condition in subclause   24B(3) not being met in relation to an income year, there would be an accrual to a maintenance income credit balance of an individual for a day in that income year; and

  (b)   after there has been an accrual under clause   24C for a day in a later income year or a depletion under clause   24E for a later income year, that condition is met in relation to the earlier income year;

the maintenance income credit balance is recalculated, taking into account the accrual for the day in the earlier income year before taking into account the accrual or depletion mentioned in paragraph   (b).

  (4)   This Subdivision continues to apply in relation to a maintenance income credit balance of an individual whether or not the individual or the individual's partner continues to be eligible for family tax benefit.

24B   Accruals to a maintenance income credit balance

Accrual if conditions are satisfied

  (1)   There is an accrual to a maintenance income credit balance for a registered entitlement of an individual, for a day in an income year, of the amount worked out under clause   24C for that day, if all the conditions in this clause are satisfied.

Conditions that must be satisfied

  (2)   Either or both of the following must apply:

  (a)   the individual is eligible for family tax benefit for the day;

  (b)   if the individual is a member of a couple on the day--the individual's partner is eligible for family tax benefit for the day.

  (3)   The eligible person must have satisfied the FTB reconciliation conditions in section   32B of the Family Assistance Administration Act for all of the same - rate benefit periods (within the meaning of that section) that are included in the income year.

  (4)   The annualised amount of the maintenance income of the eligible person for the day must be less than the maintenance income free area that applied to the eligible person for that day.

  (5)   The maintenance income that the individual received in the income year from the registered entitlement must be less than the amount due in the income year from the registered entitlement.

24C   Amount of accrual to a maintenance income credit balance

  (1)   This is how to work out the amount of the accrual under clause   24B, for a day in an income year, to a maintenance income credit balance for a registered entitlement of an individual who is, or is the partner of, an eligible person under subclause   24B(2):

  (2)   If either or both of the following apply:

  (a)   the individual has more than one registered entitlement for the day in respect of which the condition in subclause   24B(5) is met;

  (b)   if the individual is a member of a couple on the day--the individual's partner has one or more registered entitlements for the day in respect of which the condition in subclause   24B(5) is met;

this is how to work out the amount of the accrual under clause   24B, for a day in an income year, to each of the maintenance income credit balances (the relevant balances ) for those entitlements:

  (3)   To avoid doubt, clauses   24B and 24C apply only once for a day in relation to any relevant balance.

  (4)   For the purposes of step 1 of the method statement in subclause   (2), the annualised amount of maintenance income received in an income year from a registered entitlement, and any related private collection entitlement, of an individual (or an individual's partner) is the amount worked out by using this formula:

  (5)   In this clause:

"related private collection entitlement" , in relation to a registered entitlement, has the same meaning as in clause   24D.

24D   Global maintenance entitlement of an eligible person

  (1)   For the purposes of step 1 of the method statement in subclause   24C(1), the global maintenance entitlement of the eligible person under subclause   24B(2) for the day is the sum of:

  (a)   the annualised amounts worked out using the formula in subclause   (2) for:

  (i)   each registered entitlement for the day, and any related private collection entitlement, of the eligible person; and

  (ii)   if the eligible person is a member of a couple on the day--each registered entitlement for the day, and any related private collection entitlement, of the eligible person's partner; and

  (b)   any amounts worked out under subclause   (3); and

  (c)   the annualised amount of any capitalised maintenance income of the eligible person and, if the eligible person is a member of a couple on the day, of the eligible person's partner, for the day; and

  (d)   the annualised amount of any maintenance income of the eligible person and, if the eligible person is a member of a couple on the day, of the eligible person's partner, for the day:

  (i)   that is not from a registered entitlement; and

  (ii)   that is not capitalised maintenance income.

  (2)   For the purposes of paragraph   (1)(a), the formula is:

  (3)   If:

  (a)   in respect of:

  (i)   a registered entitlement for the day, and any related private collection entitlement, of the eligible person; or

  (ii)   if the eligible person is a member of a couple on the day--a registered entitlement for the day, and any related private collection entitlement, of the eligible person's partner;

    the maintenance income received by the eligible person or partner for the income year exceeds the amount due in the income year from the registered entitlement, and any related private collection entitlement; and

  (b)   that excess, or any part of it (the relevant excess ), is not disregarded for the purposes of paragraph   (c) of step 1 of the method statement in clause   20;

an amount for the purposes of paragraph   (1)(b) is worked out by using this formula:

  (4)   For the purposes of this clause, an individual's private collection entitlement is related to the individual's registered entitlement if the private collection entitlement and registered entitlement relate to the same registrable maintenance liability, within the meaning of the Child Support (Registration and Collection) Act 1988 .

  (5)   In this clause:

"private collection entitlement" , of an individual, means the individual's entitlement to receive maintenance income from a particular payer, if the payer's liability to pay that maintenance income is a registrable maintenance liability that is not an enforceable maintenance liability, within the meaning of the Child Support (Registration and Collection) Act 1988 .

24E   Depletions from a maintenance income credit balance

  (1)   There is a depletion from the maintenance income credit balance for a registered entitlement of an individual, for an income year, of the amount worked out under subclause   (2), if:

  (a)   the income year has ended; and

  (b)   the maintenance income that the individual received in the income year from the entitlement is more than the amount due in the income year from the entitlement.

  (2)   The amount by which the maintenance income credit balance is depleted is the lower of:

  (a)   the excess of the maintenance income that the individual received in the income year from the entitlement over the amount due in the income year from the entitlement; and

  (b)   the amount of the maintenance income credit balance.

  (3)   For the purposes of paragraphs   (1)(b) and (2)(a), in working out the maintenance income received in an income year or the amount of maintenance income due in an income year:

  (a)   disregard any maintenance income received or due 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).

24EA   Amounts due under notional assessments

  (1)   This clause applies if:

  (a)   an individual receives child maintenance for an FTB child of the individual under a child support agreement or court order; and

  (b)   there is, in relation to the agreement or order, a notional assessment of the annual rate of child support that would be payable to the individual for the child for a particular day in a child support period if that annual rate were payable under Part   5 of the Child Support (Assessment) Act 1989 instead of under the agreement or order; and

  (c)   the child maintenance is received, wholly or in part, from a registered entitlement.

  (2)   For the purposes of this Subdivision, the amount of child maintenance that is taken to be due to the individual under the agreement or order (whether from the registered entitlement or from a related private collection entitlement within the meaning of clause   24D), for the child for a period, is the amount that would have been due if the amount due to the individual had been the annual rate of child support for the child for the period that is included in the notional assessment.

  (3)   To avoid doubt, subclause   (2) does not apply in relation to the total arrears owing from a registered entitlement, as mentioned in subclause   24A(2).

Subdivision C -- Maintenance income ceiling for Method 1

24F   Subdivision not always to apply

    This Subdivision does not apply to an individual if:

  (a)   the individual, and the individual's partner, between them are entitled to apply for maintenance income:

  (i)   from only one other individual; and

  (ii)   in respect of all of the FTB children of the individual; and

  (b)   the individual has no regular care children who are rent assistance children.

24G   Overall method for working out maintenance income ceiling for Method 1

    For the purposes of paragraph   (d) of step 1 of the method statement in clause   20, this is how to work out an individual's maintenance income ceiling for maintenance income received by the individual, or the individual's partner, from another individual (the maintenance payer ) if the individual's Part A rate is worked out using this Part (Method 1):

24H   How to work out an individual's above base standard amount

    The individual's above base standard amount for the maintenance income is the difference between:

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

  (b)   the individual's standard rate under Division   2 of Part   3 (clauses   26 and 27) for those children (assuming that the individual's Part A rate were calculated under Part   3).

24HA   How to work out an individual's above base energy supplement amount

  (1)   The individual's above base energy supplement amount for the maintenance income is the difference between:

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

  (b)   the individual's energy supplement (Part A) under Subdivision B of Division   2AA of Part   5 (clause   38AF) for those children (assuming that the individual's Part A rate were calculated under Part   3).

  (2)   However, the individual's above base energy supplement amount for the maintenance income is nil if paragraph   (cb) of step 1 of the method statement in clause   3 does not apply to the individual because of clause   6A.

24J   How to work out an individual's RA (rent assistance) amount

    This is how to work out the individual's RA amount for the maintenance income:

24K   How to work out an individual's MIFA (maintenance income free area) amount

  (1)   If the individual, and the individual's partner, between them are entitled to apply for maintenance income from only one maintenance payer, then the individual's MIFA amount for the maintenance income is the amount of the individual's maintenance income free area.

Apportioning the maintenance income free area

  (2)   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 MIFA amount for maintenance income received from a particular maintenance payer is worked out using the following formula:

where:

"individual's no child amount" is the amount worked out using the following formula:

24L   How to work out an individual's maintenance income ceiling

    The individual's maintenance income ceiling for the maintenance income is worked out using the following formula:

Subdivision D -- Maintenance income ceiling for purposes of comparison for Method 2

24M   Subdivision not always to apply

    This Subdivision does not apply to an individual if:

  (a)   the individual, and the individual's partner, between them are entitled to apply for maintenance income:

  (i)   from only one other individual; and

  (ii)   in respect of all of the FTB children of the individual; and

  (b)   the individual has no regular care children who are rent assistance children.

24N   Overall method for working out maintenance income ceiling for purposes of comparison for Method 2

    For the purposes of the comparison in step 4 of the method statement in clause   25, this is how to work out an individual's maintenance income ceiling for maintenance income received by the individual, or the individual's partner, from another individual (the maintenance payer ) if the individual's Part A rate is worked out using Part   3 of this Schedule (Method 2):

24P   How to work out an individual's standard amount

    The individual's standard amount for the maintenance income is the individual's standard rate under Division   2 of this Part (clauses   7 to 11) for the 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.

24R   How to work out an individual's supplement amount

    The individual's supplement amount for the maintenance income is the individual's FTB Part A supplement under Division   2A of Part   5 (clause   38A) for the 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.

24RA   How to work out an individual's energy supplement amount

  (1)   The individual's energy supplement amount for the maintenance income is the individual's energy supplement (Part A) under Subdivision A of Division   2AA of Part   5 (clause   38AA) for the 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.

  (2)   However, the individual's energy supplement amount for the maintenance income is nil if paragraph   (e) of step 1 of the method statement in clause   25 does not apply to the individual because of clause   25C.

24S   How to work out an individual's maintenance income ceiling

    The individual's maintenance income ceiling for the maintenance income is worked out using the following formula:

Part   3 -- Part A rate (Method 2)

Division   1 -- Overall rate calculation process

25   Method of calculating Part A rate

    Subject to the operation of clauses   25A, 25C and 25D, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

25A   Family tax benefit advance to individual

  (1)   If:

  (a)   an individual is entitled to be paid family tax benefit by instalment; and

  (b)   the individual is paid a family tax benefit advance; and

  (c)   the individual has not repaid the whole of the advance; and

  (d)   the amount of unrepaid family tax benefit advance is not an FTB advance debt;

then, subject to clauses   44 and 49, the individual's Part A rate is to be reduced in accordance with Division   4 of Part   5 (clauses   40 to 51).

  (2)   If an individual satisfies paragraphs   (1)(a) to (d) for more than one family tax benefit advance, the individual's Part A rate is to be reduced under subclause   (1) for each of those advances.

25B   Components of Part A rates under this Part

    The Minister may, by legislative instrument, determine a method for working out the extent to which Part A rates under this Part are attributable to the amounts referred to in step 1 of the method statement in clause   25.

25C   Energy supplement

  (1)   Paragraph   (e) of step 1 of the method statement in clause   25 does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   (e) of step 1 of the method statement in clause   25 does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

25D   Working out the Method 2 income and maintenance tested rate

    In applying step 3 of the method statement in clause   25, step 2 of the method statement in clause   3 is taken to be replaced with the following:

Division   2 -- Standard rate

26   Standard rate

  (1)   Subject to subclauses   (3) and (4) and 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 $1,416.20.

Reduction during reduction period for failing to have health check or meet immunisation requirements

  (3)   If either or both section   61A and subparagraph   61B(1)(b)(ii) apply in relation to an individual and an FTB child of the individual, the annual FTB child rate in relation to the child is reduced by $737.30 for each day in the FTB child rate reduction period (except any day in a past period to which subclause   (4) applies).

Reduction of past period claims for failing to meet immunisation requirements

  (4)   The annual FTB child rate in relation to an FTB child of an individual is reduced by $737.30 if subparagraph   61B(1)(b)(i) applies in relation to the individual and the child.

27   Sharing family tax benefit (shared care percentages)

    If an individual has a shared care percentage 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 individual's shared care percentage of the FTB child rate that would otherwise apply to the child.

Division   3 -- Income test

28   Income test

    This is how to work out an individual's reduction for adjusted taxable income:

Part   3A -- Part A rate (Method 3)

28A   Method of calculating Part A rate

    Subject to the operation of clauses   38J and 38K, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

Part   4 -- Part B rate

Division   1 -- Overall rate calculation process

Subdivision AA -- When Part B rate is nil

28B   Adjusted taxable income exceeding $100,000

  (1)   Despite Subdivisions A and B, an individual's Part B rate is nil if the individual's adjusted taxable income is more than $100,000.

Note:   If the individual is a member of a couple, the individual's adjusted taxable income is the higher of the individual's adjusted taxable income and the adjusted taxable income of the individual's partner: see clause   3 of Schedule   3.

  (2)   However, subclause   (1) does not apply while the individual, or the individual's partner, is receiving a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment.

28C   Paid parental leave

    Despite Subdivisions A and B, the Part B rate that an individual is eligible for in respect of a day is nil if the day is a day for which parental leave pay is payable to the individual, or the individual's partner.

28D   Member of a couple whose youngest FTB child has turned 13

  (1)   Despite Subdivisions A and B, an individual's Part B rate is nil if:

  (a)   the individual is a member of a couple; and

  (b)   the youngest FTB child of the individual has turned 13 years of age.

  (2)   Subclause   (1) does not apply if the individual is a grandparent or great - grandparent of that FTB child.

  (3)   In determining, for the purposes of this clause, whether an individual is a grandparent or great - grandparent of another person, treat the following relationships as if they were biological child - parent relationships:

  (a)   the relationship between an adopted child and his or her adoptive parent;

  (b)   the relationship between a step - child and his or her step - parent;

  (c)   the relationship between a relationship child and his or her relationship parent.

  (4)   In this clause:

"adoptive parent" , of a person (the child ), means the person who adopted the child under a law of any place (whether in Australia or not) relating to the adoption of children.

"step-parent" , of a person (the child ), means the person who:

  (a)   is the current or former partner of the biological parent, adoptive parent or relationship parent of the child; and

  (b)   is not the biological parent, adoptive parent or relationship parent of the child.

Subdivision A -- General method of calculating Part B rate

29   General method of calculating Part B rate

  (1)   Subject to clause   29AA, the individual's Part B rate is the amount worked out by adding the following amounts if the individual is not a member of a couple:

  (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).

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

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

Note:   An individual who is a member of a couple works out his or her Part B rate under Subdivision B if the secondary earner of the couple returns to paid work after the birth of a child etc.

  (2A)   The Minister may, by legislative instrument, determine a method for working out the extent to which Part B rates under subclause   (2) are attributable to the amounts referred to in step 1 of the method statement in subclause   (2).

  (3)   In applying this Part to an individual, disregard an FTB child who has turned 16 years of age unless the FTB child is a senior secondary school child. If disregarding the FTB child means that neither item   1 nor item   2 in the table in clause   30 applies to the individual, the individual's Part B rate is nil.

29AA   Energy supplement

  (1)   Paragraph   29(1)(c) of this Schedule, or paragraph   (c) of step 1 of the method statement in subclause   29(2) of this Schedule, does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   29(1)(c) of this Schedule, or paragraph   (c) of step 1 of the method statement in subclause   29(2) of this Schedule, does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

Subdivision B -- Method of calculating Part B rate for those who return to paid work after the birth of a child etc.

29A   Method of calculating Part B rate for those who return to paid work after the birth of a child etc.

Application of clause

  (1)   The Part B rate that an individual is eligible for in respect of a day in an income year is worked out under subclause   (2) if:

  (a)   the individual is a member of a couple on the day; and

  (b)   the conditions in subclauses   (3) to (8) of this clause are met; and

  (c)   the conditions in clause   29C are met in respect of the day.

Method of calculating Part B rate

  (2)   Subject to clause   29D, the Part B rate that the individual is eligible for in respect of the day is the amount worked out by adding the following amounts:

  (a)   the individual's standard rate under Division   2 in respect of the day (clauses   30 and 31);

  (b)   the individual's FTB Part B supplement under Division   2A in respect of the day (clause   31A);

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

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

Conditions

  (3)   During a period during the income year in which the day occurs, the secondary earner of the couple (who might be the individual mentioned in subclause   (1)):

  (a)   is not engaging in paid work; and

  (b)   is not receiving passive employment income in respect of that period.

  (4)   Later during that income year, the secondary earner returns to paid work for the first time since a child became an FTB child of the secondary earner.

  (4A)   If, in different income years, more than one secondary earner returns to paid work for the first time in respect of the same child, the Part B rate of the individual is not calculated under this clause in respect of a return to paid work that is not the earliest return to paid work.

  (4B)   If, in the same income year, more than one secondary earner returns to paid work for the first time in respect of the same child, the Part B rate of the individual is not calculated under this clause in respect of a secondary earner for whom the period mentioned under paragraph   29C(1)(a) does not begin first.

  (5)   The conditions in clause   29B are met in respect of that child.

  (6)   The individual mentioned in subclause   (1) has satisfied the FTB reconciliation conditions under section   32B of the Family Assistance Administration Act for all of the same - rate benefit periods in that income year.

  (7)   If subclause   (8) does not apply--either or both of the following apply:

  (a)   the individual notifies the Secretary of the secondary earner's return to paid work before the end of the income year following the income year in which the secondary earner returns to paid work;

  (b)   the Secretary becomes aware of the secondary earner's return to paid work before the end of the income year following the income year in which the secondary earner returns to paid work.

  (8)   If, during the second income year following a particular income year, a claim is made under the Family Assistance Administration Act for payment of family tax benefit for a past period that occurs in the particular income year, the Secretary is notified in the claim that the secondary earner returned to paid work during the particular income year.

29B   Conditions to be met in respect of an FTB child

  (1)   For the purpose of subclause   29A(5), the conditions in this clause are met in respect of a child if the conditions in subclauses   (2) and (3) of this clause are met in respect of the child on any single day that meets the conditions in clause   29C.

Conditions in respect of FTB child

  (2)   Of all the FTB children of the secondary earner, either:

  (a)   the child most recently became an FTB child of the secondary earner; or

  (b)   if all of the children became FTB children of the secondary earner at the same time--the child is the youngest FTB child of the secondary earner.

Generally, only one individual calculates Part B rate under clause   29A

  (3)   No other individual's Part B rate has been calculated under clause   29A as a result of the conditions in this clause being met in respect of the child.

Exception--section   59 determination (shared care)

  (4)   If another individual's Part B rate has been calculated as mentioned in subclause   (3), the condition in that subclause is taken to be met in respect of the child if:

  (a)   on the day on which the other individual or his or her partner returns to paid work, the other individual has a shared care percentage for the child; and

  (b)   the secondary earner is not a member of the same couple as the other individual on either:

  (i)   the day mentioned in paragraph   (a); or

  (ii)   the day on which the secondary earner returns to paid work.

Exception--section   28 and 29 determinations (members of a couple in a blended family or members of a separated couple) etc.

  (5)   If another individual's Part B rate has been calculated as mentioned in subclause   (3), the condition in that subclause is taken to be met in respect of the child if:

  (a)   at some time during the income year, the other individual is the partner of:

  (i)   the secondary earner; or

  (ii)   the individual mentioned in subclause   29A(1) (if he or she is not the secondary earner); and

  (b)   the other individual's Part B rate has been calculated under clause   29A in respect of the same return to paid work, and the same FTB child, of the secondary earner.

29C   Conditions to be met in respect of a day

  (1)   For the purposes of paragraph   29A(1)(c) and clause   29B, the conditions in this clause are met in respect of a day in an income year if:

  (a)   the day falls in the period that starts on the latest of the following days:

  (i)   1   July of the income year;

  (ii)   the day after the secondary earner stops paid work;

  (iii)   the day after the secondary earner stops receiving passive employment income in respect of a period;

    and ends immediately before the day on which the secondary earner returns to paid work; and

  (b)   the secondary earner is not receiving passive employment income in respect of the day.

  (2)   For the purpose of subclause   (1), the day on which an individual returns to paid work is:

  (a)   if the individual returns to paid work because of subsection   3B(2)--the first day of the 4 week period mentioned in that subsection on which the individual is engaging in paid work; and

  (b)   if the individual returns to paid work because of subsection   3B(3)--the first day on which the individual is engaging in paid work.

  (3)   To avoid doubt, the first and last days of the period mentioned in paragraph   (1)(a) fall in that period.

29D   Energy supplement

  (1)   Paragraph   29A(2)(c) of this Schedule does not apply to an individual on or after the commencement of this clause unless:

  (a)   the individual was entitled to be paid family tax benefit in respect of 19   September 2016; and

  (b)   the individual's Part A rate of family tax benefit in respect of 19   September 2016 was not worked out under Part   3A of this Schedule.

  (2)   However, if:

  (a)   the individual ceases to be entitled to be paid family tax benefit in respect of a day (the applicable day ) on or after 20   September 2016; or

  (b)   the individual's Part A rate of family tax benefit is worked out under Part   3A of this Schedule in respect of a day (the applicable day ) on or after 20   September 2016;

then paragraph   29A(2)(c) of this Schedule does not apply, and never again applies, to the individual from:

  (c)   if the applicable day is before the commencement of this clause--the start of the day this clause commences; or

  (d)   if the applicable day is on or after the commencement of this clause--the start of the applicable day.

Division   2 -- Standard rate

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.

31   Sharing family tax benefit (shared care percentages)

  (1)   If:

  (a)   an individual has a shared care percentage 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 individual's shared care percentage of the standard rate that would otherwise apply.

  (2)   If:

  (a)   an individual has a shared care percentage 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 for whom the individual does not have a shared care percentage, 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 for whom the individual has a shared care percentage, 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   2A -- FTB Part B supplement

31A   Rate of FTB Part B supplement

  (1)   The amount of the FTB Part B supplement to be added in working out an individual's Part B rate under clause   29 or 29A is:

  (a)   if the individual has one FTB child, or more than one FTB child, and the individual does not have a shared care percentage for that child, or for at least one of those children--the FTB (B) gross supplement amount; or

  (b)   if the individual has only one FTB child and the individual has a shared care percentage for the child--the shared care percentage of the FTB (B) gross supplement amount; or

  (c)   if the individual has more than one FTB child and the individual has a shared care percentage for each of those children--the highest of those percentages of the FTB (B) gross supplement amount.

  (2)   For the purposes of subclause   (1), the FTB (B) gross supplement amount is $302.95.

  (3)   To avoid doubt, when the FTB (B) gross supplement amount is indexed on a 1   July under Part   2 of Schedule   4, the amount, as it stood before that indexation, continues to apply in working out an individual's Part B rate under clause   29 or 29A for the income year ending just before that 1   July.

Division   2B -- Energy supplement (Part B)

31B   Energy supplement (Part B)

  (1)   Subject to clause   31C, the amount of the energy supplement (Part B) to be added in working out an individual's Part B rate under clause   29 or 29A is worked out using the following table.

Note:   For certain individuals, energy supplement (Part B) is not to be added in working out the Part B rate: see clauses   29AA and 29D.

  (3)   This clause does not apply in relation to a day if an election made by the individual under subsection   58A(1) is in force on that day.

Note:   If that election is in force on one or more days in a quarter, then the Secretary must review the instalment determination taking into account this Division: see section   105B of the Family Assistance Administration Act.

31C   Sharing family tax benefit (shared care percentages)

  (1)   If:

  (a)   an individual has a shared care percentage for an FTB child of the individual; and

  (b)   the child is the individual's only FTB child;

the individual's energy supplement (Part B) is the individual's shared care percentage of the energy supplement (Part B) that would otherwise apply.

  (2)   If:

  (a)   an individual has a shared care percentage for an FTB child of the individual; and

  (b)   the child is not the individual's only FTB child;

the individual's energy supplement (Part B) is to be worked out as follows:

  (c)   for each of the individual's FTB children for whom the individual does not have a shared care percentage, work out the amount that would be the individual's energy supplement (Part B) under clause   31B if that child were the individual's only FTB child;

  (d)   for each of the individual's FTB children for whom the individual has a shared care percentage, work out the amount that would be the individual's energy supplement (Part B) under clause   31B 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 energy supplement (Part B) is the highest of the amounts obtained under paragraphs   (c) and (d).

Division   3 -- Income test

32   Income test

    This is how to work out an individual's reduction for adjusted taxable income:

33   Income free area

    An individual's income free area is $4,000.

Part   5 -- Common provisions

Division   1A -- Newborn supplement

35A   Eligibility for newborn supplement

  (1)   Subject to this clause, an amount of newborn supplement is to be added, for a day, in working out an individual's maximum rate under clause   3, or an individual's Method 2 base rate under clause   25, if subclause   (2), (5) or (7) of this clause applies for that day in relation to the individual and an FTB child of the individual.

Parent of child

  (2)   This subclause applies for a day in relation to the individual and an FTB child of the individual if:

  (a)   the individual, or the individual's partner, is a parent of the child on that day; and

  (b)   the child is aged less than one on that day; and

  (c)   if this subclause were to apply for that day, the individual's Part A rate, disregarding reductions (if any) under clause   5 or 25A of this Schedule and disregarding section   58A and subclauses   38AA(3) and 38AF(3) of this Schedule, would be greater than nil on that day; and

  (d)   that day occurs in the period of 13 weeks beginning on the first day that paragraphs   (a) to (c) are satisfied; and

  (e)   if the individual is, under a law (the registration law ) of a State or Territory, responsible (whether alone or jointly) for registering the birth of the child in accordance with the law--the Secretary is notified, or becomes aware, at any time before the end of whichever of the following periods is applicable, that the birth registration requirement is met:

  (i)   the first income year after the income year (the relevant income year ) in which occurs the last day on which paragraphs   (a) to (d) are satisfied;

  (ii)   if a further period in respect of the individual's claim for payment of family tax benefit in respect of the child was allowed under paragraph   10(2)(b) of the Family Assistance Administration Act and that claim is for a past period falling within the relevant income year--such further period (if any) as the Secretary allows in special circumstances.

  (3)   For the purposes of paragraph   (2)(e), the birth registration requirement is the requirement that:

  (a)   the birth of the child has been registered in accordance with the registration law; or

  (b)   the individual, or the individual's partner, has applied to have the birth of the child registered in accordance with the registration law.

  (4)   Any further period allowed by the Secretary under subparagraph   (2)(e)(ii) must end no later than the end of the second income year after the relevant income year.

Child entrusted to care of individual or individual's partner

  (5)   This subclause applies for a day in relation to the individual and an FTB child of the individual if:

  (a)   neither the individual, nor the individual's partner, is a parent of the child on that day; and

  (b)   on or before that day, the child became entrusted to the care of the individual or the individual's partner; and

  (c)   the child is aged less than one on that day; and

  (d)   if this subclause were to apply for that day, the individual's Part A rate, disregarding reductions (if any) under clause   5 or 25A of this Schedule and disregarding section   58A and subclauses   38AA(3) and 38AF(3) of this Schedule, would be greater than nil on that day; and

  (e)   that day occurs in the period of 13 weeks beginning on the first day that paragraphs   (a) to (d) are satisfied.

  (6)   However, subclause   (5) does not apply, and is taken never to have applied, in relation to the individual and the FTB child of the individual if the child is not an FTB child of the individual for a continuous period of at least 13 weeks beginning on the first day that paragraphs   (5)(a) to (d) are satisfied.

Adoption

  (7)   This subclause applies for a day in relation to the individual and an FTB child of the individual if:

  (a)   on or before that day, the child became entrusted to the care of the individual or the individual's partner; and

  (b)   it is an authorised party that entrusts the child to the care of the individual or the individual's partner; and

  (c)   the authorised party does so as part of the process for the adoption of the child by the individual or the individual's partner; and

  (d)   if this subclause were to apply for that day, the individual's Part A rate, disregarding reductions (if any) under clause   5 or 25A of this Schedule and disregarding section   58A and subclauses   38AA(3) and 38AF(3) of this Schedule, would be greater than nil on that day; and

  (e)   that day occurs in the period of 13 weeks beginning on the first day that paragraphs   (a) to (d) are satisfied; and

  (f)   that day occurs before the end of the period of 12 months beginning on the day the child became entrusted to the care of the individual or the individual's partner.

Exceptions

  (8)   This clause does not apply, and is taken never to have applied, in relation to the individual and the FTB child of the individual if parental leave pay is payable to the individual for that child.

  (9)   This clause does not apply, and is taken never to have applied, in relation to the individual and the FTB child of the individual if:

  (a)   parental leave pay is payable to a person (other than the individual) for a flexible PPL day for that child; and

  (b)   the person and the individual are members of a couple on that day.

  (10)   If:

  (a)   under this clause, an amount of newborn supplement is added in relation to an individual and an FTB child of the individual for a period of 13 weeks; and

  (b)   the individual is a member of a couple throughout that period; and

  (c)   throughout that period there is no determination in force under section   28 or 29 in relation to both members of the couple and that child;

then this clause does not apply in relation to the other member of that couple and that child.

  (11)   An amount of newborn supplement is not to be added under this clause for a day or days in relation to an individual and an FTB child of the individual in the circumstances prescribed in a legislative instrument under subclause   (12).

  (12)   The Minister may, by legislative instrument, prescribe circumstances for the purposes of either or both of subsection   58AA(3) and subclause   (11) of this clause.

  (13)   The circumstances, in relation to an individual and an FTB child of the individual, must relate to one or more of the following:

  (a)   the payability of parental leave pay to another individual for that child;

  (b)   the addition of newborn supplement under this clause in relation to another individual and that child;

  (c)   the individual being a member of a couple or a former member of a couple.

Definition

  (14)   In this clause:

"parent" includes a relationship parent.

35B   Annualised rate of newborn supplement

General rule

  (1)   Subject to this clause, the amount of newborn supplement for an individual in respect of an FTB child is as follows:

  (a)   if subclause   35A(2) applies and the child is the first child born alive to the woman who gave birth to the child--the amount worked out using the formula:

  (b)   if subclause   35A(5) applies and the child is the first child that becomes entrusted to the care of the individual, or the individual's partner, in the circumstances mentioned in paragraphs 35A(5)(b) and (c)--the amount worked out using the formula:

  (c)   if subclause   35A(7) applies and the child is the first child that becomes entrusted to the care of the individual, or the individual's partner, in the circumstances mentioned in paragraphs 35A(7)(a) to (c)--the amount worked out using the formula:

  (d)   otherwise--the amount worked out using the formula:

Note:   The amount of the newborn supplement added under this Division forms part of the calculation of an individual's annual rate of family tax benefit, which is then converted to a daily rate of family tax benefit: see subsection   58(3). That daily rate, to the extent it relates to the newborn supplement, is paid for a maximum of 13 weeks: see clause   35A.

Multiple children cases

  (2)   If 2 or more children are born during the same multiple birth (including any stillborn child) and subclause   35A(2) applies in relation to an individual and one or more of those children (each of whom is a qualifying child ), the amount of newborn supplement for the individual in respect of each qualifying child is the amount worked out using the formula:

  (3)   If subclause   35A(5) applies in relation to an individual and 2 or more children who become entrusted to the care of the individual, or the individual's partner, as part of the same entrustment to care process, the amount of newborn supplement for the individual in respect of each child is the amount worked out using the formula:

  (4)   If subclause   35A(7) applies in relation to an individual and 2 or more children who become entrusted to the care of the individual, or the individual's partner, as part of the same adoption process, the amount of newborn supplement for the individual in respect of each child is the amount worked out using the formula:

Division   2 -- Multiple birth allowance

36   Eligibility for multiple birth allowance

  (1)   An amount by way of multiple birth allowance is to be added in working out an individual's maximum rate under clause   3, or an individual's Method 2 base rate under clause   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 satisfy the requirements of subclause   (2).

  (2)   For the purposes of paragraph   (1)(b), the requirements of this subclause are satisfied by a child if:

  (a)   the child is under the age of 16 years; or

  (b)   the child has turned 16 and is a senior secondary school child.

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 who satisfy the requirements of subclause   36(2) is 3--$2,467.40; and

  (b)   if the number of the FTB children born during the same multiple birth who satisfy the requirements of subclause   36(2) is 4 or more--$3,292.30.

38   Sharing multiple birth allowance (determinations under section   59A)

    If the Secretary has made a determination under section   59A in respect of an FTB child of the individual, multiple birth allowance under this Division is to be dealt with in accordance with the determination.

Division   2A -- FTB Part A supplement

38A   Rate of FTB Part A supplement

  (1A)   Despite any other provision of this clause, the amount of the FTB Part A supplement to be added in working out an individual's maximum rate under clause   3, or an individual's Method 2 base rate under clause   25, is nil if the individual's adjusted taxable income is more than $80,000.

Note:   If the individual is a member of a couple, the individual's adjusted taxable income includes the adjusted taxable income of the individual's partner: see clause   3 of Schedule   3.

  (1)   The amount of the FTB Part A supplement to be added in working out an individual's maximum rate under clause   3, or an individual's Method 2 base rate under clause   25, is:

  (a)   if the individual has one FTB child--the applicable supplement amount for that child; or

  (b)   if the individual has 2 or more FTB children--the sum of the applicable supplement amounts for each of those children.

  (2)   For the purposes of subclause   (1), the applicable supplement amount for an FTB child of the individual is:

  (a)   if the individual has a shared care percentage for the FTB child--the individual's shared care percentage of the FTB gross supplement amount; or

  (b)   in any other case--the FTB gross supplement amount.

  (3)   For the purposes of subclause   (2), the FTB gross supplement amount is $600.

  (4)   To avoid doubt, when the FTB gross supplement amount is indexed on a 1   July under Part   2 of Schedule   4, the amount, as it stood before that indexation, continues to apply in working out an individual's maximum rate under clause   3, or an individual's Method 2 base rate under clause   25, for the income year ending just before that 1   July.

Division   2AA -- Energy supplement (Part A)

Subdivision A -- Energy supplement (Part A--Method 1)

38AA   Energy supplement (Part A--Method 1)

  (1)   The amount of the energy supplement (Part A) to be added in working out an individual's maximum rate under clause   3 is worked out using the following table. Subject to clauses   38AB to 38AE, work out the FTB energy child amount for each FTB child of the individual. The energy supplement (Part A) is the sum of the FTB energy child amounts.

Note:   For certain individuals, energy supplement (Part A) is not to be added in working out the Part A rate: see clause   6A.

  (3)   This clause does not apply in relation to a day if an election made by the individual under subsection   58A(1) is in force on that day.

Note:   If that election is in force on one or more days in a quarter, then the Secretary must review the instalment determination taking into account this Subdivision: see section   105B of the Family Assistance Administration Act.

38AB   Base FTB energy child amount

    For the purposes of this Division, the base FTB energy child amount for an FTB child of an individual is the amount that would be the FTB energy child amount under subclause   38AF(2) if the individual's energy supplement (Part A) were being worked out under Subdivision B and clause   38AG did not apply.

38AC   FTB energy child amount--recipient of other periodic payments

    The FTB energy child amount for an FTB child of an individual is the base FTB energy child amount (see clause   38AB) 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.

38AD   Effect of certain maintenance rights

  (1)   The FTB energy child amount for an FTB child of an individual is the base FTB energy child amount (see clause   38AB) 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.

  (2)   Subclause   (1) does not apply to maintenance that is:

  (a)   a liability under an administrative assessment (within the meaning of the Child Support (Assessment) Act 1989 ); and

  (b)   not an enforceable maintenance liability (within the meaning of the Child Support (Registration and Collection) Act 1988 ).

38AE   Sharing family tax benefit (shared care percentages)

    If an individual has a shared care percentage for an FTB child of the individual, the FTB energy child amount for the child, in working out the individual's energy supplement (Part A), is the individual's shared care percentage of the FTB energy child amount that would otherwise apply to the child.

Subdivision B -- Energy supplement (Part A--Method 2)

38AF   Energy supplement (Part A--Method 2)

  (1)   The amount of the energy supplement (Part A) to be added in working out an individual's Method 2 base rate under clause   25 is the sum of the FTB energy child amounts, worked out under subclause   (2) of this clause and clause   38AG, for each FTB child of the individual.

Note:   For certain individuals, energy supplement (Part A) is not to be added in working out the Part A rate: see clause   25C.

  (2)   For the purposes of subclause   (1), the FTB energy child amount , for an FTB child of the individual, is $36.50.

  (3)   This clause does not apply in relation to a day if an election made by the individual under subsection   58A(1) is in force on that day.

Note:   If that election is in force on one or more days in a quarter, then the Secretary must review the instalment determination taking into account this Subdivision: see section   105B of the Family Assistance Administration Act.

38AG   Sharing family tax benefit (shared care percentages)

    If an individual has a shared care percentage for an FTB child of the individual, the FTB energy child amount for the child, in working out the individual's energy supplement (Part A), is the individual's shared care percentage of the FTB energy child amount that would otherwise apply to the child.

Division   2B -- Rent assistance

Subdivision A -- Rent assistance

38B   Rent assistance children

  (1)   An individual's eligibility for, and rate of, rent assistance is affected by whether an FTB child, or a regular care child, of the individual is also 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.

  (3)   A regular care child of an individual is a rent assistance child of the individual.

38C   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)   the individual's claim for family tax benefit is not a claim to which subclause   (2) applies; and

  (ba)   neither the individual nor the individual's partner is receiving payments of incentive allowance under clause   36 of Schedule   1A to the Social Security Act 1991 ; 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)   if the individual has at least one FTB child and is not a relevant shared carer--the rent is payable at a rate of more than:

  (i)   if the individual is not a member of a couple--$5,000.50 per year; or

  (ii)   if the individual is a member of a couple but is not partnered (partner in gaol) or a member of an illness separated couple, a respite care couple or a temporarily separated couple--$7,391.25 per year; or

  (iii)   if the individual is partnered (partner in gaol) or is a member of an illness separated couple or a respite care couple--$5,000.50 per year; or

  (iv)   if the individual is a member of a temporarily separated couple--$5,000.50 per year; and

  (fa)   if the individual is a relevant shared carer, or has only one or more regular care children (but no FTB children)--the rent is payable at a rate of more than:

  (i)   if the individual is not a member of a couple--$3,803.30 per year; or

  (ii)   if the individual is a member of a couple but is not partnered (partner in gaol) or a member of an illness separated couple, a respite care couple or a temporarily separated couple--$6,186.75 per year; or

  (iii)   if the individual is partnered (partner in gaol) or is a member of an illness separated couple or a respite care couple--$3,803.30 per year; or

  (iv)   if the individual is a member of a temporarily separated couple--$3,803.30 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)   This subclause applies to an individual's claim for family tax benefit if:

  (a)   the claim is for family tax benefit for a past period that occurs in the first or second income year before the one in which the claim is made; and

  (b)   when the claim is made the individual:

  (i)   is eligible for family tax benefit; and

  (ii)   is not prevented by section   9 of the A New Tax System (Family Assistance) (Administration) Act 1999 from making an effective claim for payment of family tax benefit by instalment; and

  (c)   the claim is not accompanied by a claim for family tax benefit by instalment.

  (3)   Paragraph   (2)(c) does not apply if, at the time the claim for payment of family tax benefit for a past period is made, subsection   32AE(2) of the Family Assistance Administration Act applies in respect of the individual or subsection   32AE(5) of that Act applies in respect of the individual's partner.

38D   Rate of rent assistance payable to individual who has at least one FTB child and who is not a relevant shared carer

    The rate of rent assistance payable to an individual who has at least one FTB child and who is not a relevant shared carer 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.

38E   Rate of rent assistance payable to individual who is a relevant shared carer or who has only one or more regular care children

    The rate of rent assistance payable to an individual who is a relevant shared carer, or who has only one or more regular care children (but no FTB children), is the higher of:

  (a)   the rate of rent assistance that would be payable to that individual if that individual's rate were worked out using clause   38D; and

  (b)   the rate of rent assistance worked out using the following table.

In working out rent assistance, work out the individual's family situation using column 1 and calculate Rate A for the individual using the corresponding formula in column 2. This will be the individual's rate of rent assistance in accordance with the table but only up to Rate B specified in column 3.

38F   Annual rent

    Annual rent in the tables in clauses   38D and 38E is the annual rate of rent paid or payable by the individual whose rate is being calculated.

38G   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.

38H   Rent paid by a member of an illness separated, respite care or temporarily separated couple

    If an individual is a member of an illness separated, respite care or temporarily separated couple, any rent that the individual's partner pays or is liable to pay in respect of the premises occupied by the individual is to be treated as paid or payable by the individual.

Subdivision B -- Offsetting for duplicate rent assistance

38J   Offsetting for duplicate rent assistance under family assistance and social security law

When this clause applies

  (1)   This clause applies if:

  (a)   a decision (the social security decision ) was made that rent assistance was to be included when calculating an individual's, or an individual's eligible partner's, rate of social security payment for a day; and

  (b)   when the social security decision was made, no decision (the family assistance decision ) to make a determination that includes, or to vary a determination to include, rent assistance when calculating the individual's Part A rate of family tax benefit for that day had been made; and

  (c)   after the social security decision was made, the family assistance decision was made; and

  (d)   the day mentioned in paragraphs   (a) and (b) comes before the day on which the family assistance decision was made.

Note:   For the definition of eligible partner see subclause   (5).

Part A rate to be reduced

  (2)   The individual's Part A rate for that day (as calculated or recalculated because of the making of the family assistance decision) is to be reduced:

  (a)   first, by the individual's annual social security RA amount for that day (see subclause   (3)); and

  (b)   then, by the individual's eligible partner's annual social security RA amount for that day (see subclause   (4)).

However, it is not to be reduced to less than:

  (c)   if it has been calculated for the first time under clause   3 or 28A because of the making of the family assistance decision--nil; and

  (d)   if it has been recalculated under clause   3 or 28A because of the making of the family assistance decision--the Part A rate as it was immediately before the recalculation.

  (3)   The individual's annual social security RA amount for that day is the amount worked out as follows:

  (4)   The individual's eligible partner's annual social security RA amount for that day is the amount worked out as follows:

  (5)   For the purposes of this clause, an individual is the eligible partner of another individual if both individuals are members of a couple (other than an illness separated couple, a respite care couple or a temporarily separated couple).

38K   Offsetting for duplicate rent assistance under family assistance and veterans' entitlements law

When this clause applies

  (1)   This clause applies if:

  (a)   a decision (the veterans' entitlements decision ) was made that rent assistance was to be included when calculating an individual's, or an individual's eligible partner's, rate of service pension, income support supplement or veteran payment for a day; and

  (b)   when the veterans' entitlements decision was made, no decision (the family assistance decision ) to make a determination that includes, or to vary a determination to include, rent assistance when calculating the individual's Part A rate of family tax benefit for that day had been made; and

  (c)   after the veterans' entitlements decision was made, the family assistance decision was made; and

  (d)   the day mentioned in paragraphs   (a) and (b) comes before the day on which the family assistance decision was made.

Note:   For the definition of eligible partner see subclause   (5).

Part A rate to be reduced

  (2)   The individual's Part A rate for that day (as calculated or recalculated because of the making of the family assistance decision and as reduced (if at all) under clause   38J) is to be reduced:

  (a)   first, by the individual's annual veterans' entitlements RA amount for that day (see subclause   (3)); and

  (b)   then, by the individual's eligible partner's annual veterans' entitlements RA amount for that day (see subclause   (4)).

However, it is not to be reduced to less than:

  (c)   if it has been calculated for the first time under clause   3 or 28A because of the making of the family assistance decision--nil; and

  (d)   if it has been recalculated under clause   3 or 28A because of the making of the family assistance decision--the Part A rate as it was immediately before the recalculation.

  (3)   The individual's annual veterans' entitlements RA amount for that day is the amount worked out as follows:

  (4)   The individual's eligible partner's annual veterans' entitlements RA amount for that day is the amount worked out as follows:

  (5)   For the purposes of this clause, an individual is the eligible partner of another individual if both individuals are members of a couple (other than an illness separated couple or a respite care couple).

Division   2C -- Income test

38L   Application of income test to pension and benefit recipients and their partners

    If an individual, or an individual's partner, is receiving a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment:

  (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.

38M   Income test

38N   Income free area

    An individual's income free area is $40,000.

Division   3 -- Certain recipients of pensions under the Veterans' Entitlements Act

39   Rate of benefit for certain recipients of pensions under the Veterans' Entitlements Act

  (1)   In this clause:

"30 June 2000 rate" , in relation to an individual, means the amount worked out according to subclause   (6).

"dependant" has the same meaning as in Division   5 of Part   II of the Income Tax Rates Act 1986 as that Act applied to the income year that commenced on 1   July 1999.

"family tax assistance person" means:

  (a)   if the Secretary is satisfied in relation to an individual as described in subparagraph   (2)(a)(iii)--the individual; or

  (b)   if the Secretary is not so satisfied--the individual's partner.

"partner" , in relation to an individual, means the person who:

  (a)   was the partner of that individual immediately before 1   July 2000; and

  (b)   has continued, at all times on and after that day, to be the partner of the individual.

"special Part A rate" , in relation to an individual, means the amount worked out according to subclause   (7).

  (2)   Subject to subclause   (3), this clause applies to an individual if:

  (a)   one or more of the following subparagraphs are satisfied:

  (i)   immediately before 1   July 2000, the individual or the individual's partner was receiving family allowance under Part   2.17 of the Social Security Act 1991 ;

  (ii)   immediately before 1   July 2000, the individual or the individual's partner was receiving family tax payment under Part   2.17AA of that Act;

  (iii)   the Secretary is satisfied that Schedule   7 to the Income Tax Rates Act 1986 applied to the individual or the individual's partner, in respect of the income year that commenced on 1   July 1999, in accordance with subsection   20C(2) of that Act or would have so applied if sections   20E, 20F and 20H of that Act had not been enacted; and

  (b)   the individual or the individual's partner was receiving, immediately before 1   July 2000, and has continued, at all times on and after that day, to receive:

  (i)   a pension under Part   II of the Veterans' Entitlements Act 1986 payable to the individual or partner as a veteran; or

  (ii)   a pension under Part   II of that Act payable to the individual or partner as the widow or widower of a deceased veteran; or

  (iii)   a pension under Part   IV of that Act payable to the individual or partner as a member of the Forces or as a member of a Peacekeeping Force; or

  (iv)   a pension under Part   IV of that Act payable to the individual or partner as the widow or widower of a deceased member of the Forces or as the widow or widower of a deceased member of a Peacekeeping Force; and

  (c)   neither the individual nor the individual's partner was receiving, immediately before 1   July 2000, or has received at any time on or after that day:

  (i)   a social security pension; or

  (ii)   a social security benefit; or

  (iii)   a service pension; or

  (iv)   income support supplement under Part   IIIA of the Veterans' Entitlements Act 1986 ; and

  (d)   at all times on and after 1   July 2000:

  (i)   the individual or the individual's partner has been eligible for family tax benefit or would have been so eligible if the individual or partner had not been receiving a pension referred to in paragraph   (b); and

  (ii)   the individual's or partner's Part A rate of family tax benefit has been, or would have been, greater than nil; and

  (e)   the individual's adjusted taxable income for the purposes of this Act (other than Part   4 of this Schedule) for an income year that commenced on or after 1   July 2000 until 1   July 2007 (inclusive) has exceeded the individual's income free area under clause   19 of this Schedule; and

  (ea)   the individual's adjusted taxable income for the purposes of this Act (other than Part   4 of this Schedule) for the income year that commenced on 1   July 2008 and every succeeding income year has exceeded the individual's income free area under clause   38N of this Schedule; and

  (f)   the individual's Part A rate worked out according to Part   2, 3 or 3A of this Schedule is not, and never has been, equal to, or greater than, the individual's 30   June 2000 rate.

  (3)   Subparagraph   (2)(a)(iii) cannot be satisfied in relation to an individual unless the individual or the individual's partner had, immediately before 1   July 2000, at least one dependant.

  (4)   In spite of any other provision of this Schedule, the Part A rate of an individual to whom this clause applies is the individual's saved Part A rate.

  (5)   An individual's saved Part A rate is the lower of:

  (a)   the individual's 30   June 2000 rate; and

  (b)   the individual's special Part A rate.

  (6)   The 30   June 2000 rate for an individual is worked out using the following method statement.

  (7)   An individual's special Part A rate is the individual's Part A rate of family tax benefit worked out:

  (a)   in accordance with Part   2, 3 or 3A of this Schedule; and

  (b)   as if neither the individual nor the individual's partner was receiving a pension referred to in paragraph   (2)(b).

  (8)   An individual's 1999 - 2000 family tax assistance component is the amount worked out according to the formula:

where:

"number of dependants" is the total number of dependants the family tax assistance person had on 30   June 2000.

Division   4 -- Reduction for family tax benefit advance

40   Reduction for family tax benefit advance

  (1)   Subject to subclause   (2) and clauses   43 and 44, the amount by which an individual's Part A rate is to be reduced under clause   5 or 25A to repay a family tax benefit advance is worked out using the following formula:

Member of a couple in a blended family

  (2)   If a determination under section   28 that an individual is eligible for a percentage (the section   28 percentage ) of the family tax benefit for FTB children of the individual is in force, the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A to repay the family tax benefit advance is worked out using the following formula:

Meaning of repayment period

  (3)   The repayment period in relation to a family tax benefit advance that is paid to an individual:

  (a)   begins on:

  (i)   the first day of the instalment period after the individual is paid the family tax benefit advance; or

  (ii)   if it is not practicable for the reduction to start on the day referred to in subparagraph   (i)--the first day on which it is practicable to reduce the individual's Part A rate; or

  (iii)   if the determination of the individual's entitlement to the family tax benefit advance is a determination referred to in subsection   35B(3) of the Family Assistance Administration Act (regular family tax benefit advances)--the day the determination is made; or

  (iv)   such other day determined by the Secretary under this Division; and

  (b)   is a period of 182 days or such other period determined by the Secretary under this Division.

41   Standard reduction

  (1)   Subject to subclause   (2), the standard reduction for a family tax benefit advance is the amount worked out using the following formula:

Member of a couple in a blended family

  (2)   If a determination under section   28 that an individual is eligible for a percentage (the section   28 percentage ) of the family tax benefit for FTB children of the individual is in force, the standard reduction for a family tax benefit advance paid to the individual is the amount worked out using the following formula:

Meaning of original repayment period

  (3)   The original repayment period for a family tax benefit advance is a period of 182 days, unless the Secretary has determined a different period for the advance under clause   42 or 51.

42   Secretary determines shorter repayment period

    When determining an individual's entitlement to a family tax benefit advance under section   35A of the Family Assistance Administration Act, the Secretary may determine that the repayment period for the family tax benefit advance is a period of less than 182 days, if the Secretary is satisfied that it is appropriate to determine the shorter repayment period having regard to:

  (a)   circumstances affecting the individual's eligibility for family tax benefit; and

  (b)   circumstances affecting the rate of family tax benefit that the individual is entitled to be paid.

43   Part A rate insufficient to cover reduction--single family tax benefit advance

  (1)   This clause applies if:

  (a)   under clause   5 or 25A, the individual's Part A rate is to be reduced to repay a family tax benefit advance (the unrepaid advance ); and

  (b)   the individual's Part A rate is not to be reduced under clause   5 or 25A to repay any other family tax benefit advance; and

  (c)   the amount by which the individual's Part A rate would be reduced under clause   5 or 25A to repay the unrepaid advance would exceed the amount of the individual's Part A rate before reduction (the unreduced Part A rate ), if the amount were worked out under clause   40.

  (2)   Subject to clause   45, the Secretary must determine that the number of days in the repayment period for the unrepaid advance is to be increased so that the individual's Part A rate is reduced under clause   5 or 25A by an amount that is no more than the individual's unreduced Part A rate.

  (3)   If the individual's unreduced Part A rate later exceeds the amount by which the individual's Part A rate would be reduced under clause   40, the Secretary may determine that the number of days in the repayment period for the unrepaid advance is to be decreased.

  (4)   However, the amount by which the individual's Part A rate is to be reduced as a result of a determination under subclause   (3) must be no more than the standard reduction.

Note:   The individual may also request that the Secretary determine a shorter or longer repayment period under clause   46 or 47.

44   Part A rate insufficient to cover reduction--multiple family tax benefit advances

  (1)   This clause applies if:

  (a)   under clause   5 or 25A, the individual's Part A rate is to be reduced to repay more than one family tax benefit advance (the unrepaid advances ); and

  (b)   the sum of the amounts by which the individual's Part A rate would be reduced under clause   5 or 25A to repay the unrepaid advances would exceed the amount of the individual's Part A rate before reduction (the unreduced Part A rate ), if the amounts were worked out under clause   40.

  (2)   Subject to clause   45, the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A to repay the unrepaid advances is worked out using the following method statement:

  (3)   The Secretary may vary a determination made under step 3 of the method statement in subclause   (2).

  (4)   The Secretary may revoke a determination made under step 4 of the method statement in subclause   (2).

  (5)   Subject to clause   45, if the Secretary revokes a determination made under step 4 of the method statement in subclause   (2) in relation to a family tax benefit advance, the Secretary must determine the number of days remaining in the repayment period for the advance.

  (6)   The Secretary must not vary a determination under subclause   (3), or make a determination under subclause   (5), in relation to a family tax benefit advance so that the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A to repay the advance is more than the standard reduction.

45   Part A rate insufficient to cover reduction--discretion to create FTB advance debt

  (1)   The Secretary may, instead of making a determination under subclause   43(2), step 3 of the method statement in subclause   44(2) or under subclause   44(5), determine that the amount of unrepaid family tax benefit advance is to be a debt.

Note:   See subsection   71A(7) of the Family Assistance Administration Act.

  (2)   However, the Secretary must not make a determination under subclause   (1) unless the individual's Part A rate before reduction under clause   5 or 25A is less than the amount that would, under clause   26, be the FTB child rate if:

  (a)   the individual's Part A rate were required to be worked out using Part   3 of this Schedule; and

  (b)   clause   27 did not apply.

46   Changing the repayment period--individual requests shorter period

Request for shorter repayment period

  (1)   The Secretary may determine that the number of days in a repayment period for a family tax benefit advance paid to an individual is to be decreased if:

  (a)   the individual has made a request in accordance with subclause   (2) for a shorter repayment period; and

  (b)   the Secretary is satisfied that the individual would not suffer severe financial hardship if the number of days in the repayment period were decreased as determined.

  (2)   The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.

Request for variation of the determination

  (3)   On the request of the individual, the Secretary may, in writing, vary the determination so as to increase the number of days in the repayment period.

  (4)   However, the Secretary must not vary the determination under subclause   (3) if, as a result of the variation, the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A would be less than the standard reduction.

Note:   If, after a variation under subclause   (3), the reduction in the individual's Part A rate under clause   5 or 25A would cause the individual to suffer severe financial hardship, the individual may request a longer repayment period under clause   47.

47   Changing the repayment period--individual requests longer period

Request for longer repayment period

  (1)   The Secretary may determine that the number of days in a repayment period for a family tax benefit advance paid to an individual is to be increased if:

  (a)   the individual has made a request in accordance with subclause   (2) for a longer repayment period; and

  (b)   the Secretary is satisfied that:

  (i)   special circumstances relevant to the repayment of the advance exist in relation to the individual that could not reasonably have been foreseen at the time of the individual's request for a family tax benefit advance; and

  (ii)   the individual would suffer severe financial hardship if the number of days in the repayment period were not increased as determined.

  (2)   The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.

Secretary may vary the determination

  (3)   The Secretary may, in writing, vary the determination so as to reduce the number of days in the repayment period but only if:

  (a)   the Secretary is satisfied that the individual would not suffer severe financial hardship because of the variation; and

  (b)   the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A, as a result of the variation, is not greater than the standard reduction.

48   Changing the repayment period--recalculation of amount of unrepaid family tax benefit advance

  (1)   This clause applies if, during the repayment period for a family tax benefit advance, the amount of the family tax benefit advance that is unrepaid is increased, due to a variation in a determination, or a variation or substitution of a decision on review (other than a variation under subsection   28(2) or (6) of the Family Assistance Administration Act), so that the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A is an amount that is more than the standard reduction.

  (2)   The Secretary must determine that the number of days in a repayment period is to be increased so that the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A is an amount that is no more than the standard reduction.

Note:   The individual may also request that the Secretary determine a shorter or longer repayment period under clause   46 or 47.

49   Suspension of repayment period

Request for suspension of repayment period

  (1)   The Secretary may determine that the repayment period for a family tax benefit advance paid to an individual is to be suspended while the determination is in force.

  (2)   However, the Secretary may only make a determination under subclause   (1) if:

  (a)   the individual has made a request in accordance with subclause   (3) for the repayment period to be suspended; and

  (b)   the Secretary is satisfied that:

  (i)   special circumstances relevant to the repayment of the advance exist in relation to the individual that could not reasonably have been foreseen at the time of the individual's request for a family tax benefit advance; and

  (ii)   the individual would suffer severe financial hardship if the individual's Part A rate were to be reduced for that period.

  (3)   The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.

Secretary may revoke the suspension

  (4)   The Secretary may in writing, at any time, revoke the determination, but only if the Secretary is satisfied that the individual would not suffer severe financial hardship from the individual's Part A rate being reduced under clause   5 or 25A as a result of the revocation.

Determination of repayment period on revocation of suspension

  (5)   If the Secretary revokes the determination, the Secretary must determine the number of days remaining in the repayment period so that the amount by which the individual's Part A rate is to be reduced under clause   5 or 25A is an amount that is no more than the standard reduction.

Note:   The individual may also request that the Secretary determine a shorter or longer repayment period under clause   46 or 47.

50   Repayment of family tax benefit advance by another method

  (1)   The Secretary may determine that an individual may repay all or part of an amount of unrepaid family tax benefit advance by a method other than by reduction under clause   5 or 25A if:

  (a)   the individual has made a request in accordance with subclause   (2); and

  (b)   the method is acceptable to both the individual and the Secretary.

  (2)   The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.

51   Recalculation of amount of unrepaid family tax benefit advance

  (1)   This clause applies if:

  (a)   an individual is paid a family tax benefit advance (the old advance ); and

  (b)   the individual's Part A rate has been reduced under clause   5 or 25A to repay the old advance; and

  (c)   the repayment period for the old advance has expired; and

  (d)   due to a variation in a determination, or a variation or substitution of a decision on review (other than a variation under subsection   28(2) or (6) of the Family Assistance Administration Act), the reduction in the individual's Part A rate under clause   5 or 25A has not been sufficient to repay the old advance; and

  (e)   at the time of the variation of the determination, or the variation or substitution of the decision on review:

  (i)   the individual is entitled to be paid family tax benefit by instalment; and

  (ii)   the individual's Part A rate is greater than nil (before reduction under clause   5 or 25A).

Note:   If a variation or review occurs during the repayment period for a family tax benefit advance, the Secretary may be required to make a determination under clause   48.

  (2)   The Secretary must determine that the individual is to be taken to have been paid a family tax benefit advance (the new advance ) equal to the amount of the old advance left unrepaid on the day on which the Part A rate is recalculated.

  (3)   If an individual is taken to have been paid a new advance under subclause   (2), the individual is taken to have repaid the old advance.

  (4)   The Secretary must determine the repayment period for the new advance and the day on which the repayment period is to begin.

  (5)   The Secretary must not make a determination under subclause   (4) that would cause the individual to suffer severe financial hardship.

  (6)   The Secretary may vary or revoke a determination made under subclause   (2) or (4), if a subsequent variation in the determination, or a variation or substitution of the decision on review, occurs.