A New Tax System (Family Assistance) Act 1999

Schedules

Schedule 1 - Family Tax Benefit Rate Calculator  

Part 2 - Part A rate (Method 1)  

Division 5 - Maintenance income test  

Subdivision A - Maintenance income test  

20   Effect of maintenance income on family tax benefit rate  

(1)    
This is how to work out an individual ' s reduction for maintenance income if clause 19B does not apply: Method statement


Step 1.

Work out the annualised amount of the individual ' s maintenance income . In doing so:

  • (a) disregard any maintenance income for an FTB child for whom the FTB child rate under clause 7 does not exceed the base FTB child rate (see clause 8 ); and
  • (b) disregard the operation of clause 11 (sharing of family tax benefit) in applying paragraph (a); and
  • (c) disregard any amount that, for the income year for which the individual ' s reduction for maintenance income is being worked out, is required under clause 24E to be depleted from a maintenance income credit balance of the individual and, if the individual is a member of a couple, from a maintenance income credit balance of the individual ' s partner; and
  • (d) disregard any maintenance income that is received by the individual, or the individual ' s partner, from another individual if the income is over the maintenance income ceiling for the income (see Subdivisions C and D).

  • Step 2.

    Work out the individual ' s maintenance income free area using clauses 22 and 23.


    Step 3.

    Work out whether the individual ' s maintenance income exceeds the individual ' s maintenance income free area.


    Step 4.

    If the individual ' s maintenance income does not exceed the individual ' s maintenance income free area, the individual ' s maintenance income excess is nil and there is no reduction for maintenance income.


    Step 5.

    If the individual ' s maintenance income exceeds the individual ' s maintenance income free area, the individual ' s maintenance income excess is the individual ' s maintenance income less the individual ' s maintenance income free area.


    Step 6.

    The individual ' s reduction for maintenance income is half the maintenance income excess.


    (2)    
    Paragraph (c) of step 1 of the method statement in subclause (1) does not apply unless and until the individual has satisfied the FTB reconciliation conditions in section 32B of the Family Assistance Administration Act for all of the same-rate benefit periods (within the meaning of that section) that are included in the income year for which the individual ' s reduction for maintenance income is being worked out.


    (3)    
    (Repealed by No 48 of 2009)



     

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