A New Tax System (Bonuses for Older Australians) Act 1999 (REPEALED)

Part 2 - Family and Community Services customers who qualify for bonus payment  

Division 5 - Amount of bonus payment etc  

16   Amount of bonus payment  

(1)    
The amount of a Family and Community Services customer's bonus payment is:

(a) if he or she is qualified for only the aged persons savings bonus component of the bonus payment - the amount of that component; or

(b) if he or she is qualified for only the self-funded retirees supplementary bonus component of the bonus payment - the amount of that component; or

(c) if he or she is qualified for both the aged persons savings bonus component and the self-funded retirees supplementary bonus component of the bonus payment - the sum of those components.

Aged persons savings bonus component

(2)    
The aged persons savings bonus component of a bonus payment is worked out in accordance with the following table:

Example:

David has annual retirement income of $23,000 and annual savings and investment income of $1,500.

David's aged persons savings bonus component is worked out as follows.

David's annual savings and investment income of $1,500 exceeds the maximum of $1,000, so only $1,000 is potentially allowable.

The phasing out fraction of the $1,000 then needs to be subtracted. The fraction is:

$23,000 − $20,000 $10,000

=

3   10

Therefore 3/10 of $1,000 (i.e. $300) needs to be subtracted. This leaves an aged persons savings bonus component of $700.

Self-funded retirees supplementary bonus component - person aged 60 or more

(3)    
The self-funded retirees supplementary bonus component of a bonus payment for a Family and Community Services customer aged 60 or more is worked out in accordance with the following table:

Example:

Kath, aged 63, has annual retirement income of $24,000 and annual savings and investment income of $5,000.

Kath's self-funded retirees supplementary bonus component is worked out as follows.

Kath's annual savings and investment income of $5,000 exceeds the lower limit of $1,000 by $4,000, but this is only allowable up to a maximum of $2,000.

The phasing out fraction of the $2,000 then needs to be subtracted. The fraction is:

$24,000 − $20,000 $10,000

=

4   10

Therefore 4/10 of $2,000 (i.e. $800) needs to be subtracted. This leaves a self-funded retirees supplementary bonus component of $1,200.

Kath is also entitled to an aged persons savings bonus component of $600: worked out under subsection (2).

Kath is entitled to a bonus payment of $1,800.

Self-funded retirees supplementary bonus component - person aged under 60

(4)    
The self-funded retirees supplementary bonus component of a bonus payment for a Family and Community Services customer aged under 60 is worked out in accordance with the following table:

Example:

Dawn, aged 59, has annual retirement income of $24,000, all of which is annual savings and investment income.

Dawn's self-funded retirees supplementary bonus component is worked out as follows.

Dawn's savings and investment income of $24,000 is only allowable up to a maximum of $2,000.

The phasing out fraction of the $2,000 then needs to be subtracted. The fraction is:

$24,000 − $20,000 $10,000

=

4   10

Therefore 4/10 of $2,000 (i.e. $800) needs to be subtracted. This leaves a self-funded retirees supplementary bonus component of $1,200.

Bonus payments less than $1 rounded up to $1

(5)    
If the amount of a Family and Community Services customer's bonus payment worked out under this section is greater than nil and less than $1, the amount is rounded up to $1.

Phasing out fraction

(6)    
In this section:

phasing out fraction
means the following fraction:

Family and Community Services customer's annual retirement income	− $20,000
$10,000