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A New Tax System (Family Assistance) Bill 1999

1998-99

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

A New Tax System (Family Assistance) Bill 1999

 

No.      , 1999

 

(Family and Community Services)

 

 

 

A Bill for an Act to implement A New Tax System by providing assistance to families, and for related purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                              1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 2

Part 2—Interpretation                                                                                                         3

Division 1—Definitions                                                                                                 3

3............ Definitions.......................................................................................... 3

Division 2—Immunisation rules                                                                            11

4............ Minister’s power to make determinations for the purposes of the definition of immunised      11

5............ Meaning of conscientious objection .................................................. 11

6............ Immunisation requirements............................................................... 11

7............ Minister may make determinations in relation to the immunisation requirements     13

Division 3—Various interpretative provisions                                              14

8............ Extended meaning of Australian resident —hardship and special circumstances      14

9............ Session of care.................................................................................. 14

10.......... Effect of absence of child from care of approved child care service.. 15

11.......... Minister may make determinations in relation to the absence of child from child care              16

12.......... Effect of absence of child from care of registered carer..................... 17

13.......... School holidays................................................................................. 17

14.......... Meaning of satisfies the work/training/study test .............................. 17

15.......... Work/training/study test—recognised work or work related commitments              18

16.......... Work/training/study test—recognised training commitments............ 18

17.......... Work/training/study test—recognised study commitments............... 18

18.......... Meaning of school child .................................................................... 19

19.......... Maintenance income.......................................................................... 19

Division 4—Approved care organisations                                                       21

20.......... Approval of organisations providing residential care services to young people       21

Part 3—Eligibility for family assistance                                                                  22

Division 1—Eligibility for family tax benefit                                                  22

Subdivision A—Eligibility of individuals for family tax benefit in normal circumstances        22

21.......... When an individual is eligible for family tax benefit in normal circumstances          22

22.......... When an individual is an FTB child of another individual................ 22

23.......... Effect of FTB child ceasing to be in individual’s care without consent 25

24.......... Effect of certain absences of FTB child etc. from Australia.............. 26

25.......... Effect of FTB child being in individual’s care for less than 10% of a period           27

26.......... Only 1 member of a couple eligible for family tax benefit................. 28

27.......... Extension of meaning of FTB child in a blended family case............ 28

28.......... Eligibility for family tax benefit of members of a couple in a blended family           29

29.......... Eligibility for family tax benefit of separated members of a couple for period before separation              30

30.......... Only 1 individual eligible for family tax benefit at the same time...... 30

Subdivision B—Eligibility of individuals for family tax benefit where death occurs   31

31.......... Continued eligibility for family tax benefit if an FTB child dies........ 31

32.......... Eligibility for a single amount of family tax benefit if an FTB child dies  32

33.......... Eligibility for family tax benefit if an eligible individual dies............ 33

Subdivision C—Eligibility of approved care organisations for family tax benefit       34

34.......... When an approved care organisation is eligible for family tax benefit 34

35.......... When an approved care organisation is not eligible for family tax benefit                35

Division 2—Eligibility for maternity allowance                                            37

Subdivision A—Eligibility of individuals for maternity allowance in normal circumstances   37

36.......... When an individual is eligible for maternity allowance in normal circumstances      37

37.......... Only one individual eligible for maternity allowance in respect of a child                38

Subdivision B—Eligibility of individuals for maternity allowance where death occurs              39

38.......... What happens if an individual eligible for maternity allowance dies. 39

Division 3—Eligibility for maternity immunisation allowance             40

Subdivision A—Eligibility of individuals for maternity immunisation allowance in normal circumstances        40

39.......... When an individual is eligible for maternity immunisation allowance in normal circumstances               40

Subdivision B—Eligibility of individuals for maternity immunisation allowance where death occurs   41

40.......... What happens if an individual eligible for maternity immunisation allowance dies  41

Division 4—Eligibility for child care benefit                                                   43

Subdivision A—Eligibility for child care benefit by instalment for care provided by approved child care service in normal circumstances                                                                43

41.......... When an individual is conditionally eligible for child care benefit by instalment to an approved child care service  43

42.......... When an individual is eligible for child care benefit by instalment to an approved child care service       44

Subdivision B—Eligibility for child care benefit for past periods for care provided by approved child care service in normal circumstances                                                            45

43.......... When an individual is eligible for child care benefit.......................... 45

44.......... Individual not eligible for child care benefit if service eligible under Subdivision C                47

Subdivision C—Eligibility for child care benefit for care provided by approved child care service in special circumstances                                                                               47

45.......... When an approved child care service is eligible for child care benefit for an initial 13 week period         47

46.......... When an approved child care service is conditionally eligible for child care benefit by instalment           49

47.......... When an approved child care service is eligible for child care benefit by instalment                49

48.......... Minister’s determinations.................................................................. 51

Subdivision D—Eligibility for child care benefit for past periods of care provided by registered carers              51

49.......... When an individual is eligible for child care benefit.......................... 51

Subdivision E—Limitations on eligibility for child care benefit                  53

50.......... No multiple eligibility for same care.................................................. 53

51.......... Person not eligible for child care benefit if child in care under a welfare law or child in exempt class of children   53

52.......... When eligibility for child care benefit for care provided by an approved child care service is limited to 20 hours per week.......................................................................................................... 54

53.......... Determinations for the purposes of section 52.................................. 56

54.......... When eligibility for child care benefit for care provided by an approved child care service limited to 50 hours per week.......................................................................................................... 58

55.......... Determinations for the purposes of section 54.................................. 58

56.......... Rules about the making of determinations under sections 52 to 55... 60

Subdivision F—Eligibility for child care benefit where death occurs         61

57.......... Eligibility for child care benefit if an eligible individual dies............. 61

Part 4—Rate of family assistance                                                                                62

Division 1—Family tax benefit                                                                               62

58.......... Rate of family tax benefit.................................................................. 62

59.......... Secretary may make determination where individual is FTB child of 2 people who are not members of the same couple.......................................................................................................... 62

60.......... Sharing family tax benefit between members of a couple in a blended family          63

61.......... Sharing family tax benefit between separated members of a couple for period before separation             63

62.......... Effect on individual’s rate of the individual’s absence from Australia 63

63.......... Effect on family tax benefit rate of FTB child’s absence from Australia  65

64.......... Calculation of rate of family tax benefit for death of FTB child........ 66

65.......... Calculation of single amount for death of FTB child......................... 66

Division 2—Maternity allowance                                                                          69

66.......... Amount of maternity allowance........................................................ 69

Division 3—Maternity immunisation allowance                                           70

67.......... Amount of maternity immunisation allowance.................................. 70

68.......... When the maternity immunisation allowance is shared..................... 70

Division 4—Child care benefit                                                                                71

Subdivision A—Care provided by approved child care service                   71

69.......... Application of Subdivision to parts of sessions of care.................... 71

70.......... Rate of child care benefit for care provided by approved child care service              71

71.......... Rate of child care benefit in special circumstances............................ 72

72.......... Weekly limit on benefit for care provided by approved child care service                74

Subdivision B—Care provided by registered carer                                         74

73.......... Rate of child care benefit for care provided by registered carer......... 74

74.......... Weekly limit on benefit for care provided by registered carer........... 74

Division 5—Indexation                                                                                               76

75.......... Indexation of amounts used in rate calculations................................ 76

Schedule 1—Family Tax Benefit Rate Calculator                      77

Part 1—Overall rate calculation process                                                                 77

1............ Overall rate calculation process......................................................... 77

2............ Higher income free area.................................................................... 77

Part 2—Part A rate (Method 1)                                                                                   79

Division 1—Overall rate calculation process                                                 79

3............ Method of calculating Part A rate...................................................... 79

4............ Base rate............................................................................................ 80

5............ Family tax benefit advance to individual........................................... 80

6............ Family tax benefit advance to partner................................................ 80

Division 2—Standard rate                                                                                        81

7............ Standard rate..................................................................................... 81

8............ Base FTB child rate........................................................................... 81

9............ FTB child rate—recipient of other periodic payments....................... 81

10.......... Effect of maintenance rights.............................................................. 82

11.......... Sharing family tax benefit (determination under subsection 59(1))... 82

Division 3—Rent assistance                                                                                     83

12.......... Rent assistance children.................................................................... 83

13.......... Eligibility for rent assistance............................................................. 83

14.......... Rate of rent assistance....................................................................... 84

15.......... Annual rent....................................................................................... 85

16.......... Rent paid by a member of a couple................................................... 86

Division 4—Income test                                                                                             87

17.......... Application of income test to pension and benefit recipients and their partners        87

18.......... Income test........................................................................................ 87

19.......... Income free area................................................................................ 88

Division 5—Maintenance income test                                                                 89

20.......... Effect of maintenance income on family tax benefit rate.................... 89

21.......... Maintenance income of members of couple to be added................... 90

22.......... How to calculate an individual’s maintenance income free area........ 90

23.......... Only maintenance actually received taken into account in applying clause 22          91

24.......... Apportionment of capitalised maintenance income............................ 91

Part 3—Part A rate (Method 2)                                                                                   94

Division 1—Overall rate calculation process                                                 94

25.......... Method of calculating Part A rate...................................................... 94

Division 2—Standard rate                                                                                        95

26.......... Standard rate..................................................................................... 95

27.......... Sharing family tax benefit (determination under subsection 59(1))... 95

Division 3—Income test                                                                                             96

28.......... Income test........................................................................................ 96

Part 4—Part B rate                                                                                                              97

Division 1—Overall rate calculation process                                                 97

29.......... Method of calculating Part B rate...................................................... 97

Division 2—Standard rate                                                                                        98

30.......... Standard rate..................................................................................... 98

31.......... Sharing family tax benefit (determination under subsection 59(1))... 98

Division 3—Income test                                                                                           100

32.......... Income test...................................................................................... 100

33.......... Income free area.............................................................................. 100

Part 5—Common provisions                                                                                        101

Division 1—Large family supplement                                                              101

34.......... Eligibility for large family supplement............................................ 101

35.......... Rate of large family supplement...................................................... 101

Division 2—Multiple birth allowance                                                                102

36.......... Eligibility for multiple birth allowance............................................ 102

37.......... Rate of multiple birth allowance...................................................... 102

38.......... Sharing multiple birth allowance between 2 people (determination under subsection 59(1))    102

Schedule 2—Child care benefit rate calculator                           103

Part 1—Overall rate calculation process                                                               103

1............ Method of calculating rate of child care benefit............................... 103

2............ Adjustment percentage.................................................................... 103

3............ Number of children in care of a particular kind............................... 104

Part 2—Standard hourly rate                                                                                     106

4............ Standard hourly rate—basic meaning.............................................. 106

Part 3—Multiple child %                                                                                               107

5............ Multiple child %.............................................................................. 107

Part 4—Taxable income %                                                                                           108

6............ Income thresholds........................................................................... 108

7............ Method of calculating taxable income %......................................... 108

8............ Taxable income % if adjusted taxable income exceeds lower income threshold and if neither individual nor partner on income support................................................................................ 108

9............ Income threshold............................................................................. 109

10.......... Taper %........................................................................................... 110

11.......... Maximum weekly benefit................................................................ 110

12.......... Minimum taxable income %............................................................ 112

Schedule 3—Adjusted taxable income                                                  113

1............ Adjusted taxable income relevant to family tax benefit and child care benefit           113

2............ Adjusted taxable income................................................................. 113

3............ Adjusted taxable income of members of couple.............................. 113

4............ Adjusted fringe benefits total.......................................................... 114

5............ Target foreign income..................................................................... 114

6............ Net rental property loss................................................................... 115

7............ Tax free pension or benefit.............................................................. 115

8............ Deductible child maintenance expenditure....................................... 116

Schedule 4—Indexation and adjustment of amounts          118

Part 1—Preliminary                                                                                                          118

1............ Analysis of Schedule...................................................................... 118

2............ Indexed and adjusted amounts........................................................ 118

Part 2—Indexation                                                                                                             121

3............ CPI Indexation Table...................................................................... 121

4............ Indexation of amounts..................................................................... 128

5............ Indexation factor............................................................................. 128

6............ Rounding off indexed amounts....................................................... 129

Part 3—Adjustment of other rates                                                                           130

7............ Adjustment of FTB child rates........................................................ 130

Part 4—Transitional indexation provision                                                          131

8............ Transitional indexation of amounts used to calculate family assistance rates            131



A Bill for an Act to implement A New Tax System by providing assistance to families, and for related purposes

The Parliament of Australia enacts:



Schedule 1 Family Tax Benefit Rate Calculator

Note:       See subsection 58(1).