Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where a person:
(a) is a married person on the last day of the year of income; or
(b) is entitled to a tax offset under Subdivision 61 - A of the Income Tax Assessment Act 1997 for the year of income in respect of the person's child (within the meaning of that Act); or
(c) is entitled to a notional tax offset under Subdivision 961 - B of the Income Tax Assessment Act 1997 for the year of income;
and the family income in relation to the person does not exceed the family income threshold in relation to the person, no levy is payable by the person upon the taxable income of the person.
(2) Subject to subsection (3), where a person (in this subsection referred to as the relevant person ):
(a) was a married person on the last day of the year of income; or
(b) is entitled to a tax offset under Subdivision 61 - A of the Income Tax Assessment Act 1997 for the year of income in respect of the person's child (within the meaning of that Act); or
(c) is entitled to a notional tax offset under Subdivision 961 - B of the Income Tax Assessment Act 1997 for the year of income;
and the family income in relation to the relevant person exceeds the family income threshold in relation to the relevant person, the amount of the levy payable by the relevant person upon the taxable income of the relevant person but for this section and section 9 shall be reduced by the amount (if any) calculated in accordance with the formula:
(3) Where:
(a) but for this subsection, the amount of levy payable by a person upon the taxable income of the person but for this section and section 9 would be reduced by an amount (in this subsection referred to as the reduction amount ) ascertained in accordance with subsection (2);
(b) the person was a married person on the last day of the year of income; and
(c) but for this section and section 9, the spouse of the person would be liable to pay levy upon the taxable income of the spouse;
the reduction amount shall, subject to subsection (4), be reduced by so much of the reduction amount as bears to the reduction amount the same proportion as the amount of the taxable income of the spouse bears to the family income in relation to the person.
(4) Where:
(a) subsection (3) applies for the purposes of ascertaining the levy payable by a person upon the taxable income of the person but for section 9; and
(b) the amount of the reduction of that levy ascertained in accordance with subsections (2) and (3) exceeds the amount of the levy payable by the person upon the taxable income of the person but for this section and section 9;
the amount of levy payable by the spouse of the person upon the taxable income of the spouse but for this subsection and section 9 shall be reduced by the amount of the excess.
(5) In this section:
"family income" , in relation to a person, means:
(a) if the person was a married person on the last day of the year of income--the sum of the taxable income of the person and the taxable income of the spouse of the person; and
(b) in any other case--the taxable income of the person.
"family income threshold" , in relation to a person (the relevant person ), means $43,846 increased by $4,027 for each person covered by paragraph 961 - 5(1)(c) of the Income Tax Assessment Act 1997 in respect of whom:
(a) in a case to which paragraph (b) does not apply--the relevant person; or
(b) if the relevant person was a married person on the last day of the year of income--the relevant person or the spouse of the relevant person;
is entitled to a notional tax offset under Subdivision 961 - A of the Income Tax Assessment Act 1997 for the year of income.
(6) In the application of the definition of family income threshold in subsection (5) in determining the family income threshold in relation to a person in relation to a year of income, being a person who was not a married person on the last day of the year of income, the amount of $43,846 referred to in that definition shall not be increased on account of another person unless family tax benefit under the A New Tax System (Family Assistance) (Administration) Act 1999 was payable to the first - mentioned person in respect of that other person in respect of the whole or any part of the year of income.
(7) Subsections (5) and (6) apply in relation to a person who is entitled for the year of income to a rebate under section 160AAAA of the Assessment Act as if each reference to $43,846 were a reference to $57,198.