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 32AH   Exception - resumption of eligibility for FTB  

Scope

32AH(1)    
This section applies if:

(a) the individual is not eligible for family tax benefit for the whole of an income year (the applicable year ) that is after the later of the consecutive years (other than because of the individual ' s income or the individual ' s partner ' s income); and

(b) after the applicable year, the individual makes a claim for family tax benefit in relation to the income year (the current year ) in which the claim is made; and

(c) the Secretary has finally determined the individual ' s adjusted taxable income in respect of the applicable year; and

(d) the Secretary is satisfied that, if the Secretary were to take into account that adjusted taxable income, either or both of the following would apply in respect of one or more days in the current year:

(i) the individual ' s Part A rate of family tax benefit would be greater than nil;

(ii) the individual ' s Part B rate of family tax benefit would be greater than nil, or would be nil (other than because of subclause 28B(1) of Schedule 1 to the Family Assistance Act).

Exclusion day is in current year

32AH(2)    
If the exclusion day is in the current year, 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 the individual is not eligible for family tax benefit for the whole of 2011-12 (the applicable year). Assume that in 2012-13 (the current year) the individual makes a claim for family tax benefit for 2012-13.

Assume that the Secretary is satisfied that, if the Secretary were to take into account the individual ' s final adjusted taxable income for 2011-12, the individual ' s Part A rate and Part B rate of family tax benefit would be greater than nil on one or more days in 2012-13.

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.

Current year is later than that of exclusion day

32AH(3)    
If the current year 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 current 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 current year.

Example:

Assume that under section 32AF the consecutive years are 2010-11 and 2011-12. 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 the individual is not eligible for family tax benefit for the whole of 2012-13 (the applicable year). Assume that in 2013-14 (the current year) the individual makes a claim for family tax benefit for 2013-14.

Assume that the Secretary is satisfied that, if the Secretary were to take into account the individual ' s final adjusted taxable income for 2012-13, the individual ' s Part A rate and Part B rate of family tax benefit would be greater than nil on one or more days in 2013-14.

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) .