Family and Community Services Legislation Amendment (Family Assistance and Related Measures) Act 2005 (61 of 2005)

Schedule 3   Family assistance amendments

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

8   At the end of section 28

Add:

Consequence where claimant and partner separate after determination varied

(4) After the Secretary varies the determination under subsection (2) or (6), the Secretary must again vary the determination if the following conditions are met:

(a) the claimant and the partner mentioned in subparagraph (1)(b)(iii) (the ex-partner ) ceased to be members of the same couple during the income year (the later income year ) that began 2 years after the beginning of the cancellation income year;

(b) at the time when the Secretary would vary the determination under this subsection, the claimant and the ex-partner are not members of the same couple;

(c) if the claimant was required to lodge an income tax return for the cancellation income year - an assessment is or has been made under the Income Tax Assessment Act 1936 of the claimant's taxable income for the cancellation income year;

(d) in any case - the ex-partner was required to lodge an income tax return for the cancellation income year but still had not done so by:

(i) if paragraph (c) applies - the later of the time when the claimant and the ex-partner last ceased to be members of the same couple and the time when the assessment of the claimant's taxable income is made; or

(ii) otherwise - the time when the claimant and the ex-partner last ceased to be members of the same couple;

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

(5) The Secretary must vary the determination under subsection (4) so that it has the effect that, for the cancellation days, the claimant is entitled to be paid:

(a) if:

(i) the claimant was required to lodge an income tax return for the cancellation income year and the claimant lodged the return with the Commissioner of Taxation before the end of the later income year; or

(ii) the claimant was not required to lodge an income tax return for the cancellation income year;

the recalculated amount; or

(b) 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) or (6) was made.

Consequence where claimant and ex-partner reconcile after separation

(6) If:

(a) after the Secretary varies the determination under subsection (4), the claimant and the ex-partner become members of the same couple again; and

(b) the ex-partner has still not lodged an income tax return for the cancellation income year by the time when the claimant and the ex-partner become members of the same couple;

the Secretary must vary the determination so that it has the effect that the claimant is not, and never was, entitled to family tax benefit for the cancellation days.