Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Family Assistance Amendment (Further 2008 Budget Measures) Bill 2009

Schedule 1 Continuous adjustment of rate of family tax benefit by instalment

   

A New Tax System (Family Assistance) (Administration) Act 1999

1  After section 31D

Insert:

31E   Continuous adjustment of daily rate of family tax benefit payable by instalment

             (1)  This section applies if:

                     (a)  a determination is in force in an income year under which a claimant is entitled to be paid family tax benefit by instalment; and

                     (b)  one of the following applies:

                              (i)  a variation of the determination under subsection 31A(1) has effect on a day in the income year that is after 1 July;

                             (ii)  a variation of the determination under subsection 31B(1) has effect on a day in the income year that is after 1 July;

                            (iii)  a variation of the determination under subsection 31C(1) has effect on a day in the income year that is after 1 July;

                            (iv)  a variation of the determination under subsection 31D(1) has effect on a day in the income year that is after 1 July;

                             (v)  on a day in the income year, the claimant provides the Secretary with a revised estimate of the claimant’s adjusted taxable income for the income year that does not result in a variation of the determination under subsection 31A(1);

                            (vi)  on a day in the income year that is after 1 July, the Secretary makes a revised estimate of the claimant’s maintenance income that does not result in a variation of the determination under subsection 31B(1).

             (2)  The Secretary must apply the following method statement to work out if there is a daily overpayment rate:

Method statement

Step 1.   Work out the total amount of family tax benefit the claimant is or was entitled to be paid during the period beginning at the start of the income year and ending at the end of the day before the applicable day.

Step 2.   Work out the total amount of family tax benefit the claimant would have been entitled to be paid during that period if the claimant’s rate of family tax benefit were calculated using:

               (a)     if subparagraph (1)(b)(i) applies—the revised estimate concerned; or

              (b)     if subparagraph (1)(b)(ii) applies—the revised estimate concerned; or

               (c)     if subparagraph (1)(b)(iii) applies—the indexed estimate concerned; or

              (d)     if subparagraph (1)(b)(iv) applies—the indexed actual income concerned; or

               (e)     if subparagraph (1)(b)(v) applies—the revised estimate concerned; or

               (f)     if subparagraph (1)(b)(vi) applies—the revised estimate concerned.

Step 3.   Take the amount worked out at step 2 away from the amount worked out at step 1.

Step 4.   If the amount worked out at step 3 is greater than zero, work out the number of days during the period beginning on the applicable day and ending at the end of the last day in the income year.

Step 5.   Work out the daily overpayment rate by dividing the amount worked out at step 3 by the number of days worked out at step 4.

             (3)  If there is a daily overpayment rate, the Secretary must vary the determination so that the claimant’s daily rate of family tax benefit for the period beginning on the applicable day and ending at the end of the last day in the income year is reduced (but not below nil) by that daily overpayment rate.

             (4)  This section may have more than one application in relation to the claimant during the income year.

             (5)  In this section:

applicable day means:

                     (a)  if subparagraph (1)(b)(i), (ii), (iii) or (iv) applies—the day on which the variation concerned has effect; and

                     (b)  if subparagraph (1)(b)(v) or (vi) applies—the first day of the instalment period in which the Secretary applies the method statement because of that subparagraph applying.

2  Application

(1)       Subparagraphs 31E(1)(b)(i) to (iv) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as inserted by this Act, apply in relation to variations made under subsection 31A(1), 31B(1), 31C(1) or 31D(1) of that Act on or after the commencement of this item (regardless of whether the determination referred to in paragraph 31E(1)(a) of that Act was made before, on or after that commencement).

(2)       Subparagraphs 31E(1)(b)(v) and (vi) of the A New Tax System (Family Assistance) (Administration) Act 1999 , as inserted by this Act, apply in relation to revised estimates provided or made on or after the commencement of this item (regardless of whether the determination referred to in paragraph 31E(1)(a) of that Act was made before, on or after that commencement).