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Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Bill 2008

Schedule 2 Baby bonus

Part 1 Income limit for baby bonus

A New Tax System (Family Assistance) Act 1999

1  Subparagraph 36(2)(b)(i)

Omit “13”, substitute “26”.

2  Subparagraph 36(2)(c)(iii)

Omit “26”, substitute “52”.

3  At the end of subsection 36(2)

Add:

            ; and (d)  the claim for payment of baby bonus contains an estimate of the sum of:

                              (i)  the individual’s adjusted taxable income; and

                             (ii)  if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual’s partner;

                            for the period of 6 months beginning on the day of the child’s birth; and

                     (e)  that estimate is less than or equal to $75,000 and the Secretary considers that estimate to be reasonable.

4  Subsection 36(2A)

Omit “26”, substitute “52”.

5  Subsection 36(3)

Omit “13” (wherever occurring), substitute “26”.

6  At the end of subsection 36(3)

Add:

             ; and (e)  the claim for payment of baby bonus contains an estimate of the sum of:

                              (i)  the individual’s adjusted taxable income; and

                             (ii)  if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual’s partner;

                            for the period of 6 months beginning on the day the child is entrusted to care as mentioned in paragraph (b); and

                      (f)  that estimate is less than or equal to $75,000 and the Secretary considers that estimate to be reasonable.

7  Subparagraph 36(4)(b)(i)

Omit “13”, substitute “26”.

8  At the end of subsection 36(4)

Add:

             ; and (c)  the claim for payment of baby bonus contains an estimate of the sum of:

                              (i)  the individual’s adjusted taxable income; and

                             (ii)  if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual’s partner;

                            for the period of 6 months beginning on the day of the child’s delivery; and

                     (d)  that estimate is less than or equal to $75,000 and the Secretary considers that estimate to be reasonable.

9  Subparagraph 36(5)(c)(i)

Omit “13”, substitute “26”.

10  At the end of subsection 36(5)

Add:

            ; and (d)  the claim for payment of baby bonus contains an estimate of the sum of:

                              (i)  the individual’s adjusted taxable income; and

                             (ii)  if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual’s partner;

                            for the period of 6 months beginning on the day the child is entrusted to the care of the individual; and

                     (e)  that estimate is less than or equal to $75,000 and the Secretary considers that estimate to be reasonable.

11  At the end of section 36

Add:

Estimate of adjusted taxable income

             (6)  For the purposes of paragraph (2)(d), (3)(e), (4)(c) or (5)(d):

                     (a)  a reference in Schedule 3 to an income year is taken to be a reference to the 6 month period mentioned in that paragraph; and

                     (b)  disregard subclause 2(2) and clauses 3 and 3A of that Schedule.

12  Subparagraph 38(e)(i)

Omit “26”, substitute “52”.

13  Subsection 39(3)

Repeal the subsection, substitute:

Stillborn child

             (3)  Second, an individual is eligible for maternity immunisation allowance in respect of a child if:

                     (a)  the child is a stillborn child; and

                     (b)  if the child had been born alive, the child would have been an FTB child of the individual at birth; and

                     (c)  either:

                              (i)  the individual would have been eligible for family tax benefit in respect of the FTB child, at any time within the period of 13 weeks starting on the day of the child’s delivery, assuming the child had not been a stillborn child; or

                             (ii)  the individual would have been so eligible on the assumption described in subparagraph (i) except that the individual’s rate of family tax benefit, worked out under Division 1 of Part 4, is nil.

14  Clause 2 of Schedule 4 (after table item 17A)

Insert:

 

17AAA

Income limit for baby bonus

baby bonus income limit

[paragraphs 36(2)(e), (3)(f), (4)(d) and (5)(e)]

15  Subclause 3(1) of Schedule 4 (after table item 17A)

Insert:

 

17AAA

baby bonus income limit

1 July

December

highest December quarter before reference quarter (but not earlier than December quarter 2007)

$1.00

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

16  After paragraph 38(2)(a)

Insert:

                    (aa)  in the case of a claim for baby bonus—the claim contains an estimate of the sum of:

                              (i)  the individual’s adjusted taxable income; and

                             (ii)  if the individual is a member of a couple on the day the claim is made—the adjusted taxable income of the individual’s partner;

                            for the 6 month period mentioned in paragraph 36(2)(d), (3)(e), (4)(c) or (5)(d) of the Family Assistance Act; and

17  At the end of section 38

Add:

Estimate of adjusted taxable income

             (3)  For the purposes of paragraph (2)(aa):

                     (a)  a reference in Schedule 3 to the Family Assistance Act to an income year is taken to be a reference to the 6 month period referred to in that paragraph; and

                     (b)  disregard subclause 2(2) and clauses 3 and 3A of that Schedule.

18  Subsection 39(2)

Omit “26”, substitute “52”.

19  Subsection 39(3)

Omit “26”, substitute “52”.

Note:       The heading to subsection 39(3) is altered by omitting “ 26 ” and substituting “ 52 ”.

20  Paragraphs 41(3)(d) and (e)

Omit “13”, substitute “26”.

21  Paragraphs 41(4)(a) and (b)

Omit “13”, substitute “26”.

22  Application

(1)       The amendments made by items 1 to 11 and 16 to 21 apply in relation to:

                     (a)  so far as those amendments relate to subsection 36(2) of the A New Tax System (Family Assistance) Act 1999 —children born on or after 1 January 2009; and

                     (b)  so far as those amendments relate to subsection 36(3) of that Act—children entrusted to care on or after 1 January 2009; and

                     (c)  so far as those amendments relate to subsection 36(4) of that Act—children delivered on or after 1 January 2009; and

                     (d)  so far as those amendments relate to subsection 36(5) of that Act—children entrusted to care on or after 1 January 2009.

(2)       The amendment made by item 12 applies in relation to an individual if the individual mentioned in paragraph 38(a) of the A New Tax System (Family Assistance) Act 1999 is eligible for baby bonus under section 36 of that Act (as amended by this Part).

(3)       The amendment made by item 13 applies in relation to children delivered on or after 1 January 2009.

(4)       The amendment made by item 15 applies in relation to the indexation day that is 1 July 2009 and all later indexation days.



 

Part 2 Payment of baby bonus by instalments

A New Tax System (Family Assistance) Act 1999

23  Subparagraph 38(c)(ii)

Omit “47(1A), (2) or (3)”, substitute “47(1AA)”.

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

24  Before subsection 47(1)

Insert:

Payment of baby bonus

       (1AA)  If the claimant is entitled to be paid baby bonus, the Secretary must, after each of the first 13 instalment periods that end after the determination granting the claim is made, pay to the claimant 1 / 13 of the amount of baby bonus that the claimant is entitled to be paid. The Secretary must pay it at such time as the Secretary considers appropriate and to the credit of a bank account nominated and maintained by the claimant.

       (1AB)  However, the Secretary may direct that the whole or a part of an amount which is to be paid for the purposes of subsection (1AA) is to be paid in a manner other than by payment to the credit of a bank account nominated and maintained by the claimant. If the Secretary gives the direction, the amount is to be paid in accordance with the direction (despite that subsection).

25  Subsection 47(1)

Omit “baby bonus or”.

Note:       The following heading to subsection 47(1) is inserted “ Payment of maternity immunisation allowance ”.

26  Subsections 47(1A) to (3A)

Repeal the subsections.

27  Subsection 47(4)

Omit “(1A), (2) or (3)”, substitute “(1AA)”.

28  After subsection 47(4)

Insert:

Alternative payment arrangements—baby bonus

          (4A)  If:

                     (a)  the claimant is entitled to be paid baby bonus because of eligibility under subsection 36(2), (3) or (5) of the Family Assistance Act and the child dies before the claimant is paid all of the amounts for the purposes of subsection (1AA) of this section; or

                     (b)  the claimant is entitled to be paid baby bonus because of eligibility under subsection 36(4) of the Family Assistance Act; or

                     (c)  the Secretary makes a determination under paragraph 37(3)(b) of the Family Assistance Act;

the Secretary may direct that the whole or a part of an amount which is to be paid for the purposes of subsection (1AA) of this section is to be paid in a different way from that provided for by that subsection. If the Secretary gives the direction, the amount is to be paid in accordance with the direction (despite that subsection).

29  Subsection 47(5)

Omit “this section”, substitute “subsection (1)”.

Note:       The heading to subsection 47(5) is altered by adding at the end “ —maternity immunisation allowance ”.

30  Subsection 47(5)

Omit “subsection (1) or (2)”, substitute “that subsection”.

31  Subsection 47(5)

Omit “those subsections”, substitute “that subsection”.

32  Subsection 47(6)

Omit “(1A), (2) or (3)”, substitute “(1AA)”.

33  Paragraph 66(2)(a)

Omit “47(2),”.

34  Application and transitional

(1)       The amendments made by items 24 to 33 apply in relation to:

                     (a)  for claimants entitled to be paid baby bonus because of eligibility under subsection 36(2) of the A New Tax System (Family Assistance) Act 1999 or section 38 of that Act (so far as it relates to that subsection)—children born on or after 1 January 2009; and

                     (b)  for claimants entitled to be paid baby bonus because of eligibility under subsection 36(3) of that Act or section 38 of that Act (so far as it relates to that subsection)—children born on or after 1 January 2009; and

                     (c)  for claimants entitled to be paid baby bonus because of eligibility under subsection 36(4) of that Act or section 38 of that Act (so far as it relates to that subsection)—children delivered on or after 1 January 2009; and

                     (d)  for claimants entitled to be paid baby bonus because of eligibility under subsection 36(5) of that Act or section 38 of that Act (so far as it relates to that subsection)—children entrusted to care on or after 1 January 2009.

(2)       Subparagraph 38(c)(ii) of the A New Tax System (Family Assistance) Act 1999 applies on and after 1 January 2009 as if a reference in that subparagraph to subsection 47(1AA) of the A New Tax System (Family Assistance) (Administration) Act 1999 included a reference to subsection 47(1A), (2) or (3) of the A New Tax System (Family Assistance) (Administration) Act 1999 (as in force immediately before 1 January 2009).



 

Part 3 Baby bonus indexation

A New Tax System (Family Assistance) Act 1999

35  Subclause 3(1) of Schedule 4 (table item 17A)

Repeal the item, substitute:

 

17A

baby bonus

1 July

December

highest December quarter before reference quarter (but not earlier than December quarter 2007)

$1.00

36  Application

The amendment made by item 35 applies in relation to the indexation day that is 1 July 2009 and all later indexation days.



 

Part 4 Eligibility for baby bonus for adopted children

A New Tax System (Family Assistance) Act 1999

37  Paragraph 36(5)(b)

Omit “2”, substitute “16”.

38  Paragraph 36(5)(ba)

Repeal the paragraph.

39  Subsections 37(1) and (2)

After “bonus”, insert “under subsection 36(2), (3) or (4)”.

40  Subsection 37(3)

After “for baby bonus”, insert “under subsection 36(2), (3) or (4)”.

41  Subsection 37(4)

After “couple is eligible for baby bonus”, insert “under subsection 36(2), (3), (4) or (5)”.

42  Subsection 66(1)

After “bonus”, insert “for an individual”.

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

43  Paragraphs 39(2)(b) and (c)

Repeal the paragraphs, substitute:

                     (b)  if the circumstances covered by the claim involve eligibility under subsection 36(5) of the Family Assistance Act—the time the child is entrusted to the care of the claimant.

44  Application

The amendments made by items 37, 38 and 43 apply in relation to children entrusted to care on or after 1 January 2009.