Social Services and Other Legislation Amendment (Promoting Sustainable Welfare) Act 2018 (168 of 2018)

Schedule 5   Other amendments

Part 2   Taper rate for Part A rate of family tax benefit (Method 2)

A New Tax System (Family Assistance) Act 1999

10   At the end of Division 1 of Part 3 of Schedule 1

Add:

25D Working out the Method 2 income and maintenance tested rate

In applying step 3 of the method statement in clause 25, step 2 of the method statement in clause 3 is taken to be replaced with the following:

Step 2. Subtract the individual's income free area (worked out under clause 38N) from the individual's higher income free area (worked out under clause 2).

Step 2A. Work out 20% of the amount at step 2.

Step 2B. Subtract the individual's higher income free area (worked out under clause 2) from the individual's adjusted taxable income.

Step 2C. Work out 30% of the amount at step 2B.

Step 2D. The individual's reduction for adjusted taxable income is the sum of the amounts at steps 2A and 2C. Take that reduction away from the individual's maximum rate: the result is the individual's income tested rate .