A New Tax System (Family Assistance) (Administration) Act 1999

PART 3 - PAYMENT OF FAMILY ASSISTANCE (OTHER THAN CHILD CARE SUBSIDY AND ADDITIONAL CHILD CARE SUBSIDY)  

Division 1 - Family tax benefit  

Subdivision CB - Non-entitlement to FTB on estimated income basis  

SECTION 32AG   Exception - greater than nil rate of FTB for later income year  

Scope

32AG(1)    
This section applies if, in respect of an income year (the payment year ) after the later of the consecutive years, the Secretary, taking into account the individual ' s adjusted taxable income as finally determined in respect of the payment year by the Secretary, determines either or both of the following on a day (the payment day ):

(a) the individual ' s Part A rate of family tax benefit is greater than nil on one or more days in the payment year;

(b) the individual ' s Part B rate of family tax benefit is greater than nil on one or more days in the payment year.

Payment day is in same income year as exclusion day

32AG(2)    
If the payment day is in the income year in which the exclusion day occurs, then:

(a) if this section applies in relation to the Part A rate of family tax benefit - paragraph 32AF(2)(a) is taken not to have applied in relation to the individual; and

(b) if this section applies in relation to the Part B rate of family tax benefit - paragraph 32AF(2)(b) is taken not to have applied in relation to the individual.

Example:

Assume that under section 32AF the consecutive years are 2009-10 and 2010-11. Assume that the individual is not entitled, on and after 1 July 2012, to be paid the Part A rate and Part B rate of family tax benefit worked out on an estimated income basis. The exclusion day is 1 July 2012.

Assume that on 1 November 2012 the Secretary determines, under subsection (1), that the individual ' s Part A rate and Part B rate of family tax benefit are greater than nil on one or more days in 2011-12. The payment day is 1 November 2012.

Under subsection (2), subsection 32AF(2) is taken not to have prevented the individual from being entitled, on and after 1 July 2012, to be paid family tax benefit worked out on an estimated income basis.

Payment day is in income year later than that of exclusion day

32AG(3)    
If the payment day is in an income year that is later than the income year in which the exclusion day occurs, then:

(a) if this section applies in relation to the Part A rate of family tax benefit - paragraph 32AF(2)(a) ceases to apply in relation to the individual on 1 July of the later income year; and

(b) if this section applies in relation to the Part B rate of family tax benefit - paragraph 32AF(2)(b) ceases to apply in relation to the individual on 1 July of the later income year.

Example:

Assume that under section 32AF the consecutive years are 2009-10 and 2010-11. Assume that the individual is not entitled, on and after 1 July 2012, to be paid the Part A rate and Part B rate of family tax benefit worked out on an estimated income basis. The exclusion day is 1 July 2012.

Assume that on 1 November 2013 the Secretary determines, under subsection (1), that the individual ' s Part A rate and Part B rate of family tax benefit are greater than nil on one or more days in 2011-12. The payment day is 1 November 2013.

Under subsection (3), subsection 32AF(2) ceases to prevent the individual from being entitled, on and after 1 July 2013, to be paid family tax benefit worked out on an estimated income basis.

Note:

For the meaning of consecutive year , see subsection 32AF(1) . For the meaning of exclusion day , see subsection 32AF(3) .