Family Assistance Legislation Amendment (More Help for Families - Increased Payments) Act 2004 (59 of 2004)
Schedule 1 Amendments relating to FTB Part A supplement
Part 1 Amendments
A New Tax System (Family Assistance) (Administration) Act 1999
9 At the end of Division 1 of Part 3
Add:
Subdivision D - FTB reconciliation conditions
32A FTB Part A supplement to be disregarded unless and until individual has satisfied the FTB reconciliation conditions
(1) This section applies to a decision of the Secretary to make or vary a section 16 or 17 determination if, as a result of the decision, an individual (the first individual ) is entitled to be paid family tax benefit at a particular rate in respect of a period (the same-rate benefit period ) that consists of, or is included in, a particular income year (the relevant income year ).
(2) In making or varying the determination, the Secretary must disregard the following provisions:
(a) paragraph (ca) of step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act;
(b) paragraph (d) of step 1 of the method statement in clause 25 of Schedule 1 to the Family Assistance Act;
(c) subclause 38A(1) of Schedule 1 to the Family Assistance Act;
unless and until:
(d) if the same-rate benefit period to which the decision relates is the only same-rate benefit period for the first individual for the relevant income year - the first individual has satisfied the FTB reconciliation conditions for the same-rate benefit period; or
(e) if the same-rate benefit period to which the decision relates is one of 2 or more same-rate benefit periods for the first individual for the relevant income year - the first individual has satisfied the FTB reconciliation conditions for each of those same-rate benefit periods.
Note 1: If those provisions are disregarded, they will be taken into account when the determination or variation is reviewed under section 105 - see section 105A.
Note 2: To work out when the first individual has satisfied the FTB reconciliation conditions, see section 32B.
32B When FTB reconciliation conditions are satisfied
For the purposes of this Act, the first individual satisfies the FTB reconciliation conditions for a same-rate benefit period:
(a) if only one of sections 32C to 32Q applies to the first individual for the same-rate benefit period - at the relevant reconciliation time; or
(b) if 2 or more of sections 32C to 32Q apply to the first individual for the same-rate benefit period - at whichever of the relevant reconciliation times is the latest.
32C Relevant reconciliation time - member of a couple, income tax return lodged within 2 years
(1) This section applies to the first individual for a same-rate benefit period if:
(a) both:
(i) the first individual was a member of a couple throughout the same-rate benefit period; and
(ii) the first individual continues to be a member of the couple until the end of the second income year following the relevant income year; and
(b) the first individual or the other member of the couple is or was required to lodge an income tax return for the relevant income year.
(2) If only one member of the couple was required to lodge an income tax return for the relevant income year, the relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the member's taxable income for the relevant income year, so long as the member's income tax return for the relevant income year was lodged before the end of the second income year following the relevant income year.
(3) If:
(a) both members of the couple were required to lodge an income tax return for the relevant income year; and
(b) both members of the couple lodged an income tax return for the relevant income year before the end of the second income year following the relevant income year;
the relevant reconciliation time is whichever is the later of the following:
(c) the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year;
(d) the time when an assessment is made under the Income Tax Assessment Act 1936 of the other member's taxable income for the relevant income year.
32D Relevant reconciliation time - individual not member of a couple, income tax return lodged within 2 years
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual was not a member of a couple at any time during the same-rate benefit period; and
(b) the first individual is or was required to lodge an income tax return for the relevant income year; and
(c) clause 17 of Schedule 1 to the Family Assistance Act did not apply to the first individual at any time during the same-rate benefit period.
(2) The relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, so long as the first individual's income tax return for the relevant income year was lodged before the end of the second income year following the relevant income year.
32E Relevant reconciliation time - couple separates before the end of the relevant income year, individual lodges income tax return
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual was a member of a couple throughout the same-rate benefit period; and
(b) the first individual is not a member of the couple just before the end of the relevant income year; and
(c) the first individual is or was required to lodge an income tax return for the relevant income year.
(2) The relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, so long as the first individual's income tax return for the relevant income year was lodged before the end of the second income year following the relevant income year.
32F Relevant reconciliation time - couple separates after the end of the relevant income year, at least one member of the couple lodges income tax return
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual was a member of a couple throughout the same-rate benefit period; and
(b) the first individual ceased to be a member of the couple during the period:
(i) beginning at the start of the next income year; and
(ii) ending at the end of the designated date in the next income year; and
(c) the first individual or the other member of the couple is or was required to lodge an income tax return for the relevant income year; and
(d) at least one of the members of the couple lodged an income tax return for the relevant income year before the end of the designated date in the next income year.
(2) If both members of the couple lodged an income tax return for the relevant income year before the end of the designated date in the next income year, the relevant reconciliation time is whichever is the later of the following:
(a) the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year;
(b) the time when an assessment is made under the Income Tax Assessment Act 1936 of the other member's taxable income for the relevant income year.
(3) If:
(a) the first individual lodged an income tax return for the relevant income year before the end of the designated date in the next income year; and
(b) the other member of the couple was not required to lodge an income tax return for the relevant income year;
the relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year.
(4) If:
(a) the first individual lodged an income tax return for the relevant income year before the end of the designated date in the next income year; and
(b) the other member of the couple is or was required to lodge an income tax return for the relevant income year, but did not lodge an income tax return for the relevant income year before the end of the designated date in the next income year;
the relevant reconciliation time is the end of the designated date in the next income year.
(5) If:
(a) the other member of the couple lodged an income tax return for the relevant income year before the end of the designated date in the next income year; and
(b) the first individual was not required to lodge an income tax return for the relevant income year;
the relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the other member's taxable income for the relevant income year.
(6) If:
(a) the other member of the couple lodged an income tax return for the relevant income year before the end of the designated date in the next income year; and
(b) the first individual is or was required to lodge an income tax return for the relevant income year, but did not lodge an income tax return for the relevant income year before the end of the designated date in the next income year;
the relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, so long as the first individual's income tax return for the relevant income year was lodged before the end of the second income year following the relevant income year.
Note: For designated date , see section 32R.
32G Relevant reconciliation time - couple separates after the end of the relevant income year, neither have lodged a tax return by the end of the designated date
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual was a member of a couple throughout the same-rate benefit period; and
(b) the first individual ceased to be a member of the couple during the period:
(i) beginning at the start of the next income year; and
(ii) ending at the end of the designated date in the next income year; and
(c) the first individual or the other member of the couple is or was required to lodge an income tax return for the relevant income year; and
(d) neither the first individual, nor the other member of the couple, have lodged an income tax return for the relevant income year at a time before the end of the designated date in the next income year.
(2) The relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, so long as the first individual's income tax return for the relevant income year was lodged before the end of the second income year following the relevant income year.
Note: For designated date , see section 32R.
32H Relevant reconciliation time - couple separates after the end of the designated date
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual was a member of a couple throughout the same-rate benefit period; and
(b) the first individual ceased to be a member of the couple during the period:
(i) beginning just after the designated date in the next income year; and
(ii) ending at the end of the second income year after the relevant income year; and
(c) the first individual is or was required to lodge an income tax return for the relevant income year.
(2) If the first individual ceased to be a member of the couple before the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, the relevant reconciliation time is the time when the assessment is made, so long as the first individual's income tax return for the relevant income year was lodged before the end of the second income year following the relevant income year.
(3) If the first individual ceased to be a member of the couple after the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, the relevant reconciliation time is the time when the first individual ceased to be a member of the couple.
Note: For designated date , see section 32R.
32J Relevant reconciliation time - individual not required to lodge an income tax return
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual; or
(b) any other individual (other than an FTB child of the first individual) whose adjusted taxable income is relevant in working out the first individual's entitlement to, or rate of, family tax benefit for the same-rate benefit period;
is not required to lodge an income tax return for the relevant income year.
(2) The relevant reconciliation time is whichever is the earlier of the following times:
(a) the time after the end of the relevant income year when the first individual notifies the Secretary of the amount of the first individual's adjusted taxable income for the relevant income year;
(b) the time after the end of the relevant income year when the Secretary becomes satisfied that the first individual's adjusted taxable income for the relevant income year can be worked out without receiving a notification from the first individual.
32K Relevant reconciliation time - child aged 5 or more and less than 16
(1) This section applies to the first individual for a same-rate benefit period if the following conditions are satisfied in relation to another individual:
(a) the other individual is aged 5 or more and less than 16;
(b) the other individual is not undertaking full-time study or primary education;
(c) before the end of the relevant income year, the first individual gives the Secretary an estimate of the other individual's adjusted taxable income for the relevant income year;
(d) assuming that the other individual had adjusted taxable income for the relevant income year that is less than the cut-out amount (as defined by subsection 22A(2) of the Family Assistance Act), the other individual would be an FTB child of the first individual.
(2) The relevant reconciliation time is whichever is the earlier of the following times:
(a) the time after the end of the relevant income year when the first individual notifies the Secretary of the amount of the other individual's adjusted taxable income for the relevant income year;
(b) the time after the end of the relevant income year when the Secretary becomes satisfied that the amount of the other individual's adjusted taxable income for the relevant income year can be worked out without receiving a notification from the first individual.
(3) For the purposes of this section, the question whether the other individual is undertaking primary education is to be determined in the same way as that question is determined under section 22A of the Family Assistance Act.
32L Relevant reconciliation time - child aged 16 or more
(1) This section applies to the first individual for a same-rate benefit period if the following conditions are satisfied in relation to another individual:
(a) the other individual is aged 16 or more;
(b) before the end of the relevant income year, the first individual gives the Secretary an estimate of the other individual's adjusted taxable income for the relevant income year;
(c) assuming that the other individual had adjusted taxable income for the relevant income year that is less than the cut-out mount (as defined by subsection 22A(2) of the Family Assistance Act), the other individual would be an FTB child of the first individual.
(2) The relevant reconciliation time is whichever is the earlier of the following times:
(a) the time after the end of the relevant income year when the first individual notifies the Secretary of the amount of the other individual's adjusted taxable income for the relevant income year;
(b) the time after the end of the relevant income year when the Secretary becomes satisfied that the amount of the other individual's adjusted taxable income for the relevant income year can be worked out without receiving a notification from the first individual.
32M Relevant reconciliation time - target foreign income, tax free pension/benefit or child maintenance expenditure
(1) This section applies to the first individual for a same-rate benefit period if any of the following were taken into account in working out the first individual's adjusted taxable income for the relevant income year:
(a) the first individual's target foreign income for the relevant income year (as defined by clause 5 of Schedule 3 to the Family Assistance Act);
(b) the first individual's tax free pension or benefit for the relevant income year (as defined by clause 7 of Schedule 3 to the Family Assistance Act);
(c) the first individual's child maintenance expenditure for the relevant income year (as defined by clause 8 of Schedule 3 to the Family Assistance Act);
(d) another individual's target foreign income for the relevant income year (as defined by clause 5 of Schedule 3 to the Family Assistance Act);
(e) another individual's tax free pension or benefit for the relevant income year (as defined by clause 7 of Schedule 3 to the Family Assistance Act);
(f) another individual's child maintenance expenditure for the relevant income year (as defined by clause 8 of Schedule 3 to the Family Assistance Act).
(2) The relevant reconciliation time is whichever is the earlier of the following times:
(a) the time after the end of the relevant income year when the first individual notifies the Secretary of the amount of the first individual's adjusted taxable income for the relevant income year;
(b) the time after the end of the relevant income year when the Secretary becomes satisfied that the first individual's adjusted taxable income for the relevant income year can be worked out without receiving a notification from the first individual.
32N Relevant reconciliation time - individual has maintenance income
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual has an annualised amount of maintenance income (as defined by Division 5 of Part 2 of Schedule 1 to the Family Assistance Act) for the relevant income year; and
(b) clause 19B of Schedule 1 to the Family Assistance Act did not apply to the first individual at any time during the same-rate benefit period.
(2) The relevant reconciliation time is whichever is the earlier of the following times:
(a) the time after the end of the relevant income year when the first individual notifies the Secretary of information that is sufficient to work out the first individual's annualised amount of maintenance income for the relevant income year;
(b) the time after the end of the relevant income year when the Secretary becomes satisfied that the first individual's annualised amount of maintenance income for the relevant income year can be worked out without receiving a notification from the first individual.
32P Relevant reconciliation time - individual not member of a couple, no maintenance income etc.
(1) This section applies to the first individual for a same-rate benefit period if:
(a) the first individual was not a member of a couple at any time during the same-rate benefit period; and
(b) clause 17 of Schedule 1 to the Family Assistance Act applied to the first individual throughout the same-rate benefit period; and
(c) either:
(i) the first individual did not have an annualised amount of maintenance income (as defined by Division 5 of Part 2 of Schedule 1 to the Family Assistance Act) for the relevant income year; or
(ii) clause 19B of Schedule 1 to the Family Assistance Act applied to the first individual throughout the same-rate benefit period; and
(d) the first individual does not have an FTB child whose adjusted taxable income is relevant in working out the first individual's entitlement to, or rate of, family tax benefit for the same-rate benefit period.
(2) The relevant reconciliation time is the end of the relevant income year.
32Q Relevant reconciliation time - individual covered by determination made by the Secretary
(1) The Secretary may, by writing, determine that:
(a) this section applies to a specified class of individuals for a same-rate benefit period in specified circumstances; and
(b) the relevant reconciliation time applicable to that class for the same-rate benefit period is the time ascertained in accordance with the determination.
(2) A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
32R Designated date
(1) The Secretary may, by writing, determine that a specified date is the designated date for the purposes of this Subdivision.
(2) A determination under subsection (1) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
(3) In subsection (1):
date means a date that recurs each income year.