A New Tax System (Family Assistance) Act 1999

Schedules

Schedule 3 - Adjusted taxable income  

8   Deductible child maintenance expenditure  

(1)   Deductible child maintenance expenditure.  

For the purposes of this Schedule, if an individual incurs an amount of child maintenance expenditure during an income year, 100% of the amount of the expenditure is the individual ' s deductible child maintenance expenditure in respect of that year.

(2)   Child maintenance expenditure.  

For the purposes of this clause, an individual incurs child maintenance expenditure if:

(a)    the individual (the payer ) pays a payment (either one-off or periodic) or provides benefits; and

(b)    

the payment or benefits are paid or provided in respect of the payer ' s natural, adopted or relationship child; and

(c)    the payment or benefits are paid or provided to another individual other than the payer ' s partner (if any) for the maintenance of the child.

(3)   Amount of child maintenance expenditure.  

For the purposes of this clause, if an individual incurs child maintenance expenditure, the amount of the child maintenance expenditure incurred by the individual is the amount of the payment paid or the value of the benefits to the individual who provided them.

(4)   Value of a benefit provided  

For the purposes of subclause (3), the value of a benefit , in relation to the individual providing the benefit, has the meaning set out in subclauses (5) and (6).

(5)   Value of benefit where provider is a party to a child support agreement.  

If:

(a)    an individual providing a benefit is a party to a child support agreement under the Child Support (Assessment) Act 1989 ; and

(b)    the agreement contains:

(i) non-periodic payment provisions (within the meaning of that Act) under which the individual is providing child support to another individual for a child; and

(ii) a statement that the annual rate of child support payable under any relevant administrative assessment is to be reduced by a specified amount that represents an annual value of the child support to be provided; and

(c)    the individual provides the support;

the value of the benefit provided by the individual is the specified amount.

(6)   Value of benefit where provider is not a party to a child support agreement.  

If an individual providing a benefit is not a party to a child support agreement under the Child Support (Assessment) Act 1989 , the value of the benefit provided by the individual is the cost of the benefit to the individual.