Family Assistance Legislation Amendment (Extension of Time Limits) Act 2004 (33 of 2004)

Schedule 1   Extension of time limits relating to family tax benefit and child care benefit

Part 1   Amendment of the A New Tax System (Family Assistance) (Administration) Act 1999

2   Subsection 28(3)

Repeal the subsection, substitute:

Consequence where income tax returns are later lodged

(3) If:

(a) after the Secretary varies the determination under subsection (2), an assessment is made under theIncome Tax Assessment Act 1936 for the cancellation income year for everyone (the taxpayers involved ):

(i) who was required to lodge an income tax return as mentioned in subparagraph (1)(b)(iii); and

(ii) in respect of whom an assessment had not been made before the determination was varied; and

(b) the Secretary is satisfied that the claimant was eligible for an amount (the recalculated amount ) of family tax benefit for the cancellation days;

the Secretary must again vary the determination so that it has the effect that, for the cancellation days, the claimant is entitled to be paid:

(c) if income tax returns for the cancellation year for the taxpayers involved were lodged with the Commissioner of Taxation during the income year that began 2 years after the beginning of the cancellation income year - the recalculated amount; or

(d) in any other case - the lesser of:

(i) the recalculated amount; and

(ii) the amount that the claimant was entitled to be paid before the variation under subsection (2) was made.