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A New Tax System (Family Assistance) Act 1999

Schedules

Schedule 1 - Family Tax Benefit Rate Calculator  

Part 3 - Part A rate (Method 2)  

Division 3 - Income test  

28  

28   Income test  
This is how to work out an individual ' s reduction for adjusted taxable income: Method statement


Step 1.

Work out the individual ' s higher income free area using clause 2.


Step 2.

Work out whether the individual ' s adjusted taxable income exceeds the individual ' s higher income free area.


Step 3.

If the individual ' s adjusted taxable income does not exceed the individual ' s higher income free area, the individual ' s income excess is nil.


Step 4.

If the individual ' s adjusted taxable income exceeds the individual ' s higher income free area, the individual ' s income excess is the individual ' s adjusted taxable income less the individual ' s higher income free area.


Step 5.

The individual ' s reduction for income is 30% of the income excess.


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