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Carbon Pollution Reduction Scheme Amendment (Household Assistance) Bill 2009 [No. 2]

Schedule 2 Assistance to families

   

A New Tax System (Family Assistance) Act 1999

1  At the end of subclause 1(1) of Schedule 1

Add:

             ; and (c)  the individual’s FTB combined supplement calculated under Part 6 (clauses 40 and 41).

2  At the end of Schedule 1

Add:

Part 6 FTB combined supplement

   

40   Eligibility for FTB combined supplement

                   An amount by way of FTB combined supplement is to be added in working out an individual’s annual rate of family tax benefit if:

                     (a)  the individual’s Part A rate is greater than nil; and

                     (b)  the individual’s Part B rate is greater than nil; and

                     (c)  the individual’s adjusted taxable income exceeds $60,000.

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.

41   Amount of FTB combined supplement

                   The amount of an individual’s FTB combined supplement is worked out as follows:

Method statement

Step 1.   Work out the individual’s adjusted taxable income (rounded down to the nearest dollar).

Step 2.   Reduce the amount worked out at step 1 by $60,000.

Step 3.   Multiply the amount worked out at step 2 by 0.04.

Step 4.   For the 2011-12 income year, if the amount worked out at step 3 is less than or equal to $240, the amount of the individual’s FTB combined supplement is the amount worked out at step 3.

Step 5.   For the 2011-12 income year, if the amount worked out at step 3 is more than $240, the amount of the individual’s FTB combined supplement is $240.

Step 6.   For the 2012-13 income year or a later income year, if the amount worked out at step 3 is less than or equal to $680, the amount of the individual’s FTB combined supplement is the amount worked out at step 3.

Step 7.   For the 2012-13 income year or a later income year, if the amount worked out at step 3 is more than $680, the amount of the individual’s FTB combined supplement is $680.

3  Subclause 3(1) of Schedule 3

Omit “Part 4”, substitute “Parts 4 and 6”.

4  At the end of clause 3 of Schedule 3

Add:

             (3)  For the purposes of Part 6 of Schedule 1, if an individual is a member of a couple, the individual’s adjusted taxable income for an income year is:

                     (a)  the individual’s adjusted taxable income for that year; or

                     (b)  the adjusted taxable income for that year of the individual’s partner if it is more than the individual’s adjusted taxable income for that year.

5  Subclause 5(1) of Schedule 4

After “subclauses (2) and (3)”, insert “and clauses 10 to 12”.

6  Part 4 of Schedule 4 (heading)

Repeal the heading, substitute:

Part 4 Transitional indexation provisions

7  At the end of Part 4 of Schedule 4

Add:

10   Increase in indexation factor for certain amounts on 1 July 2011

1% increase

             (1)  For the following amounts that are to be indexed under Part 2 of this Schedule on 1 July 2011, the indexation factor worked out under clause 5 for that day is to be increased by 0.01:

                     (a)  FTB under 13 child rate (A1);

                     (b)  FTB 13-15 child rate (A1);

                     (c)  FTB gross supplement amount (A);

                     (d)  FTB standard rate (B);

                     (e)  FTB gross supplement amount (B).

Note:          The 1% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. The change to the indexation factor for 1 July 2012 under clause 11 takes account of this brought forward increase.

2.7% increase

             (2)  For the following amounts that are to be indexed under Part 2 of this Schedule on 1 July 2011, the indexation factor worked out under clause 5 for that day is to be increased by 0.027:

                     (a)  FTB 16-24 child rate (A1), to the extent that it applies to item 3 of the table in clause 7 of Schedule 1;

                     (b)  FTB child rate (A2), to the extent that it applies to paragraph 26(2)(a) of Schedule 1;

                     (c)  FTB ACO rate.

Note:          The 2.7% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. The change to the indexation factor for 1 July 2012 under clause 11 takes account of this brought forward increase.

2.5% increase

             (3)  For the following amounts that are to be indexed under Part 2 of this Schedule on 1 July 2011, the indexation factor worked out under clause 5 for that day is to be increased by 0.025:

                     (a)  FTB 16-24 child rate (A1), to the extent that it applies to item 4 of the table in clause 7 of Schedule 1;

                     (b)  FTB child rate (A2), to the extent that it applies to paragraph 26(2)(b) of Schedule 1.

Note:          The 2.5% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.4% for the 2011-2012 financial year, which has been brought forward. The change to the indexation factor for 1 July 2012 under clause 11 takes account of this brought forward increase.

11   Increase in indexation factor for certain amounts on 1 July 2012

1.4% increase

             (1)  For the following amounts that are to be indexed under Part 2 of this Schedule on 1 July 2012, the indexation factor worked out under clause 5 for that day is to be increased by 0.014:

                     (a)  FTB under 13 child rate (A1);

                     (b)  FTB 13-15 child rate (A1);

                     (c)  FTB gross supplement amount (A);

                     (d)  FTB standard rate (B);

                     (e)  FTB gross supplement amount (B).

Note:          The 1.4% increase is equal to a 1.8% increase less the 0.4% brought forward increase under clause 10. The 1.4% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. Clause 12 deals with later reductions to the indexation factor because of this second brought forward increase.

4.8% increase

             (2)  For the following amounts that are to be indexed under Part 2 of this Schedule on 1 July 2012, the indexation factor worked out under clause 5 for that day is to be increased by 0.048:

                     (a)  FTB 16-24 child rate (A1), to the extent that it applies to item 3 of the table in clause 7 of Schedule 1;

                     (b)  FTB child rate (A2), to the extent that it applies to paragraph 26(2)(a) of Schedule 1;

                     (c)  FTB ACO rate.

Note:          The 4.8% increase is equal to a 5.2% increase less the 0.4% brought forward increase under clause 10. The 4.8% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. Clause 12 deals with later reductions to the indexation factor because of this second brought forward increase.

4.5% increase

             (3)  For the following amounts that are to be indexed under Part 2 of this Schedule on 1 July 2012, the indexation factor worked out under clause 5 for that day is to be increased by 0.045:

                     (a)  FTB 16-24 child rate (A1), to the extent that it applies to item 4 of the table in clause 7 of Schedule 1;

                     (b)  FTB child rate (A2), to the extent that it applies to paragraph 26(2)(b) of Schedule 1.

Note:          The 4.5% increase is equal to a 4.9% increase less the 0.4% brought forward increase under clause 10. The 4.5% increase includes the Carbon Pollution Reduction Scheme’s estimated cost of living increase of 0.8% for the 2012-2013 financial year, which has also been brought forward. Clause 12 deals with later reductions to the indexation factor because of this second brought forward increase.

12   Reduction in indexation factor for certain amounts on and after 1 July 2013

             (1)  For each amount covered by subclauses 11(1), (2) and (3), the indexation factor, worked out under clause 5 for each indexation day that is on or after 1 July 2013, is to be reduced by the brought forward indexation amount, but not below 1.

             (2)  In this clause:

brought forward indexation amount , in relation to an indexation day, means 0.008 less any reduction made under this clause for a previous indexation day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example:    Assume that the indexation factor worked out under clause 5 on 1 July 2013 is 1.005. The brought forward indexation amount in relation to 1 July 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 1 July 2013.

                   Further assume that on 1 July 2014 the indexation factor is 1.010. The brought forward indexation amount in relation to 1 July 2014 is 0.003. That indexation factor is reduced to 1.007 on 1 July 2014.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

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

8  After paragraph 32A(2)(c)

Insert:

                    (ca)  clause 40 of Schedule 1 to the Family Assistance Act;

Note:       The heading to section 32A is altered by omitting “ and FTB Part B supplement ” and substituting “ , FTB Part B supplement and FTB combined supplement ”.

9  Subparagraph 105A(2)(a)(iii)

Omit “and”.

Note:       The heading to section 105A is altered by omitting “ or FTB Part B supplement ” and substituting “ , FTB Part B supplement or FTB combined supplement ”.

10  At the end of paragraph 105A(2)(a)

Add:

                            (iv)  clause 40 of Schedule 1 to the Family Assistance Act; and