Child Support Legislation Amendment (Reform of the Child Support Scheme - New Formula and Other Measures) Act 2006 (146 of 2006)

Schedule 8   Amendments relating to family tax benefit (commencing on 1 July 2008)

Part 1   Regular care children

Division 1   Amendments

A New Tax System (Family Assistance) Act 1999

78   After Part 3 of Schedule 1

Insert:

Part 3A - Part A rate (Method 3)

28A Method of calculating Part A rate

Subject to the operation of clauses 38J and 38K, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

Method statement

Step 1. Work out the individual's rent assistance (if any) under Subdivision A of Division 2B of Part 5 (clauses 38B to 38H). The result is the individual's maximum rate .

Step 2. Apply the income test in Division 2C of Part 5 (clauses 38L to 38N) to work out any reduction for adjusted taxable income. Take any reduction away from the individual's maximum rate: the result is the individual's income tested rate .

Step 3. The individual's Part A rate is the individual's income tested rate.