Family and Community Services Legislation Amendment Act 2003 (30 of 2003)

Schedule 2   Amendments of the family assistance law and certain related Acts

Part 1   Amendments commencing on Royal Assent

A New Tax System (Family Assistance) Act 1999

10   At the end of Part 5 of Schedule 1

Add:

Division 3 - Certain recipients of pensions under the Veterans' Entitlements Act

39 Rate of benefit for certain recipients of pensions under the Veterans' Entitlements Act

(1) In this clause:

30 June 2000 rate , in relation to an individual, means the amount worked out according to subclause (6).

dependant has the same meaning as in Division 5 of Part II of the Income Tax Rates Act 1986 as that Act applied to the income year that commenced on 1 July 1999.

family tax assistance person means:

(a) if the Secretary is satisfied in relation to an individual as described in subparagraph (2)(a)(iii) - the individual; or

(b) if the Secretary is not so satisfied - the individual's partner.

partner , in relation to an individual, means the person who:

(a) was the partner of that individual immediately before 1 July 2000; and

(b) has continued, at all times on and after that day, to be the partner of the individual.

special Part A rate , in relation to an individual, means the amount worked out according to subclause (7).

(2) Subject to subclause (3), this clause applies to an individual if:

(a) one or more of the following subparagraphs are satisfied:

(i) immediately before 1 July 2000, the individual or the individual's partner was receiving family allowance under Part 2.17 of the Social Security Act 1991;

(ii) immediately before 1 July 2000, the individual or the individual's partner was receiving family tax payment under Part 2.17AA of that Act;

(iii) the Secretary is satisfied that Schedule 7 to the Income Tax Rates Act 1986 applied to the individual or the individual's partner, in respect of the income year that commenced on 1 July 1999, in accordance with subsection 20C(2) of that Act or would have so applied if sections 20E, 20F and 20H of that Act had not been enacted; and

(b) the individual or the individual's partner was receiving, immediately before 1 July 2000, and has continued, at all times on and after that day, to receive:

(i) a pension under Part II of the Veterans' Entitlements Act 1986 payable to the individual or partner as a veteran; or

(ii) a pension under Part II of that Act payable to the individual or partner as the widow or widower of a deceased veteran; or

(iii) a pension under Part IV of that Act payable to the individual or partner as a member of the Forces or as a member of a Peacekeeping Force; or

(iv) a pension under Part IV of that Act payable to the individual or partner as the widow or widower of a deceased member of the Forces or as the widow or widower of a deceased member of a Peacekeeping Force; and

(c) neither the individual nor the individual's partner was receiving, immediately before 1 July 2000, or has received at any time on or after that day:

(i) a social security pension; or

(ii) a social security benefit; or

(iii) a service pension; or

(iv) income support supplement under Part IIIA of the Veterans' Entitlements Act 1986; and

(d) at all times on and after 1 July 2000:

(i) the individual or the individual's partner has been eligible for family tax benefit or would have been so eligible if the individual or partner had not been receiving a pension referred to in paragraph (b); and

(ii) the individual's or partner's Part A rate of family tax benefit has been, or would have been, greater than nil; and

(e) the individual's adjusted taxable income for the purposes of this Act (other than Part 4 of this Schedule) for the income year that commenced on 1 July 2000 and every succeeding income year has exceeded the individual's income free area under clause 19 of this Schedule; and

(f) the individual's Part A rate worked out according to Part 2 or 3 of this Schedule is not, and never has been, equal to, or greater than, the individual's 30 June 2000 rate.

(3) Subparagraph (2)(a)(iii) cannot be satisfied in relation to an individual unless the individual or the individual's partner had, immediately before 1 July 2000, at least one dependant.

(4) In spite of any other provision of this Schedule, the Part A rate of an individual to whom this clause applies is the individual's saved Part A rate.

(5) An individual's saved Part A rate is the lower of:

(a) the individual's 30 June 2000 rate; and

(b) the individual's special Part A rate.

(6) The 30 June 2000 rate for an individual is worked out using the following method statement.

Method statement

Step 1. If the individual or the individual's partner was receiving family allowance, but not family tax payment, immediately before 1 July 2000, the fortnightly rate of that family allowance is the individual's fortnightly rate .

Step 2. If the individual or the individual's partner was receiving family tax payment, but not family allowance, immediately before 1 July 2000, the individual's or partner's fortnightly Part A rate of family tax payment immediately before 1 July 2000 is the individual's fortnightly rate .

Step 3. If the individual or the individual's partner was receiving family allowance and family tax payment immediately before 1 July 2000, add the following amounts:

(a) the individual's or partner's fortnightly rate of family allowance immediately before 1 July 2000;

(b) the individual's or partner's fortnightly Part A rate of family tax payment immediately before 1 July 2000.

The result is the individual's fortnightly rate .

Step 4. From the individual's fortnightly rate subtract any amount of guardian allowance included in the individual's or the individual's partner's family allowance by virtue of Module F of the Family Allowance Rate Calculator in section 1069 of the Social Security Act 1991, as in force immediately before 1 July 2000: the result is the individual's net fortnightly rate .

Step 5. Divide the individual's net fortnightly rate by 14. If the result is not a whole number of cents or dollars or a whole number of dollars and a whole number of cents, round the result upwards to the nearest cent and multiply the rounded amount by 365: the result of the multiplication is the individual's annual rate .

Step 6. If neither the individual nor the individual's partner was receiving family allowance or family tax payment immediately before 1 July 2000, the individual's annual rate is nil.

Step 7. If either or both of subparagraphs (2)(a)(i) and (ii) are satisfied but subparagraph (2)(a)(iii) is not satisfied, the individual's annual rate is his or her 30 June 2000 rate .

Step 8. If subparagraph (2)(a)(iii) is satisfied but subparagraph (2)(a)(ii) is not satisfied, add the following amounts:

(a) the individual's annual rate;

(b) the individual's 1999-2000 family tax assistance component.

The result is the individual's 30 June 2000 rate .

(7) An individual's special Part A rate is the individual's Part A rate of family tax benefit worked out:

(a) in accordance with Part 2 or 3 of this Schedule; and

(b) as if neither the individual nor the individual's partner was receiving a pension referred to in paragraph (2)(b).

(8) An individual's 1999-2000 family tax assistance component is the amount worked out according to the formula:

$200 x Number of dependants

where:

number of dependants is the total number of dependants the family tax assistance person had on 30 June 2000.