Taxation Laws Amendment Act (No. 3) 1994 (138 of 1994)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 5   Amendments relating to home child care allowance and dependant rebate

58   Rebates for dependants

Section 159J of the Principal Act is amended:

(a) by omitting from subsection (1B) "1 or";
          

(b) by inserting after subsection (1B) the following subsection:
          

"(1C) If:

(a) apart from subsection (1A), a taxpayer would be entitled in his or her assessment in respect of income of a year of income to a rebate under this section in respect of a dependant included in class 3 or 4 in the table in subsection (2); and

(b) disregarding this subsection and subsections (3) to (6), the taxpayer is entitled in that assessment to a rebate under this section in respect of a dependant included in class 1 in that table; and

(c) the amount of the rebate mentioned in paragraph (b) is not more than $1,452;

the entitlement to a rebate under this section in respect of the dependant included in class 1 in the table is to be calculated as if the amount applicable under the table in respect of that dependant were $1,452.";

(c) by inserting after subsection (5D) the following subsection:
          

"(5E) If:

(a) after taking into account any reduction because of the application of any other provision of this section, a rebate is allowable to a taxpayer under this section for a year of income in respect of a dependant who is the spouse of the taxpayer; and

(b) an amount or amounts of home child care allowance (within the meaning of the Social Security Act 1991) were paid to the spouse at any time during the year of income;

the rebate is to be reduced or further reduced, as the case requires, by the amount, or the sum of the amounts, of the home child care allowance.";

(d) by inserting "home child care allowance," before "or a child disability allowance" in paragraph (a) of the definition of "separate net income" in subsection (6).