Clean Energy (Household Assistance Amendments) Act 2011 (141 of 2011)

Schedule 2   Clean energy payments under the family assistance law

Part 1   Clean energy advances for individuals

A New Tax System (Family Assistance) Act 1999

3   After Part 7

Insert:

Part 8 - Clean energy advances

Division 1 - Entitlement to clean energy advances

103 Entitlement in normal circumstances

Entitlement for days 14 May 2012 to 30 June 2012

(1) The Secretary may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that an individual is entitled to a clean energy advance if:

(a) in relation to that day:

(i) a determination under section 16 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; or

(ii) a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 32 of this Act; and

(b) the individual is in Australia on that day; and

(c) the individual's rate of family tax benefit on that day, worked out under Division 1 of Part 4 but disregarding reductions (if any) under clause 5 or 25A of Schedule 1, is greater than nil; and

(d) that rate was worked out taking into account at least one FTB child of the individual who is in Australia on that day; and

(e) on that day, neither section 32AA nor 32AD of the Family Assistance Administration Act prevents the Secretary from making a payment of family tax benefit to the individual, or the individual's partner, worked out on the basis referred to in subsection 20(1), (2A) or (3) of that Act.

Note: The amount of the advance is worked out under sections 105 and 106.

Entitlement for days 1 July 2012 to 30 June 2013

(2) The Secretary may determine that an individual is entitled to a clean energy advance if:

(a) in relation to any day during the period starting on 1 July 2012 and ending on 30 June 2013:

(i) a determination under section 16 or 17 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; or

(ii) a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 32 of this Act; and

(b) the individual is not an absent overseas recipient on that day (disregarding section 63A); and

(c) the individual's rate of family tax benefit on that day, worked out under Division 1 of Part 4 but disregarding reductions (if any) under clause 5 or 25A of Schedule 1, is greater than nil; and

(d) that rate was worked out taking into account at least one FTB child of the individual who is not an absent overseas FTB child on that day (disregarding section 63A).

Note: The amount of the advance is worked out under sections 105 and 106.

(3) However, the Secretary must not make a determination under subsection (2) on a day before 1 July 2013 if:

(a) on that day:

(i) the individual is outside Australia and the individual left Australia before 1 April 2013; and

(ii) the individual is not an absent overseas recipient (disregarding section 63A); or

(b) on that day:

(i) each FTB child of the individual is outside Australia and each FTB child of the individual left Australia before 1 April 2013; and

(ii) each FTB child of the individual is not an absent overseas FTB child (disregarding section 63A).

Operation of section 32

(4) For the purposes of paragraphs (1)(c) and (d) and (2)(c) and (d), disregard section 32.

One clean energy advance only

(5) An individual is not entitled to more than one clean energy advance under this section.

104 Entitlement where death occurs

(1) The Secretary may determine that an individual is entitled to a clean energy advance if:

(a) in relation to any day during the period starting on 1 July 2012 and ending on 30 June 2013, a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 33 of this Act because of the death of another individual; and

(b) either:

(i) the Secretary has determined that the other individual was entitled to an amount of a clean energy advance, but the other individual died before the amount was paid; or

(ii) the Secretary is satisfied that the other individual would have become entitled to an amount of a clean energy advance if the other individual had not died.

Note: The amount of the advance is worked out under section 107.

(2) If the Secretary makes a determination under subsection (1), no-one else is, or can become, entitled to a clean energy advance because of the death of the other individual.

Division 2 - Amount of clean energy advance

105 Amount of advance where entitlement under section 103

(1) On the day (the decision day ) that the Secretary determines that an individual is entitled to a clean energy advance under section 103, the Secretary must work out the amount of the advance.

Secretary determines entitlement before 1 July 2012

(2) If the decision day is before 1 July 2012, the amount of the individual's clean energy advance is, subject to subsections (5) and (6), worked out as follows:

Method statement

Step 1. Work out the individual's clean energy daily rate (see section 106) on the decision day (assuming that any rate or amount that is to be indexed on 1 July 2012 had already been indexed on the decision day).

Step 2. Multiply the amount at step 1 by 365: the result is the amount of the individual's clean energy advance.

Secretary determines entitlement in the 2012-13 income year

(3) If the decision day is on or after 1 July 2012 and before 1 July 2013, the amount of the individual's clean energy advance is, subject to subsections (5) and (6), worked out as follows:

Method statement

Step 1. Work out the sum of the individual's clean energy daily rates (see section 106) for each day in the period beginning on 1 July 2012 and ending on the decision day.

Step 2. Multiply the individual's clean energy daily rate on the decision day by the number of days in the 2012-13 income year that are after the decision day.

Step 3. Work out the sum of the amounts at steps 1 and 2: the result is the amount of the individual's clean energy advance.

Secretary determines entitlement on or after 1 July 2013

(4) If the decision day is on or after 1 July 2013, the amount of the individual's clean energy advance is, subject to subsections (5) and (6), the sum of the individual's clean energy daily rates (see section 106) for each day in the 2012-13 income year.

Reduced amount if rate took account of a section 28 or 29 percentage determination

(5) If, in relation to any of the following days:

(a) if the decision day is before 1 July 2012 - the decision day;

(b) if the decision day is on or after 1 July 2012 and before 1 July 2013 - a day in the period beginning on 1 July 2012 and ending on the decision day;

(c) if the decision day is on or after 1 July 2013 - a day in the 2012-13 income year;

a determination under section 28 or 29 of a particular percentage in relation to one or more FTB children of the individual is in effect, the clean energy daily rate for that day is that percentage of the clean energy daily rate that would otherwise apply.

Legislative instrument

(6) If:

(a) an individual is entitled to a clean energy advance under section 103 in relation to an FTB child; and

(b) before the decision day in relation to the individual, a former partner of the individual was entitled to a clean energy advance under section 103 or 108 in relation to that FTB child; and

(c) at the time the former partner became so entitled, the individual and the former partner were members of the same couple;

then:

(d) subsections (2) to (5) do not apply in relation to working out the amount of the individual's clean energy advance; and

(e) the amount of the individual's clean energy advance is worked out in accordance with an instrument made under subsection (7) (which may be nil).

(7) The Minister may, by legislative instrument, specify a method for working out the amount of clean energy advances for the purposes of subsection (6).

106 Clean energy daily rate

(1) An individual's clean energy daily rate for a day is worked out as follows:

Method statement

Step 1. If the individual's rate of family tax benefit on that day (disregarding reductions (if any) under clause 5 or 25A of Schedule 1) consisted of or included a Part A rate greater than nil:

(a) if the Part A rate is worked out under clause 3 of Schedule 1 and the individual's income and maintenance tested rate exceeds the individual's base rate - work out the sum of the amounts at paragraphs (a) and (ca) of step 1 of the method statement in that clause; or

(b) if the Part A rate is worked out under clause 3 of Schedule 1 and the individual's income and maintenance tested rate is less than or equal to the individual's base rate - work out the sum of the amounts at paragraphs (a) and (d) of step 1 of the method statement in clause 25 of that Schedule; or

(c) if the Part A rate is worked out under clause 25 of Schedule 1 and the individual's Method 2 income and maintenance tested rate is less than or equal to the individual's provisional Part A rate - work out the sum of the amounts at paragraphs (a) and (d) of step 1 of the method statement in that clause; or

(d) if the Part A rate is worked out under clause 25 of Schedule 1 and the individual's Method 2 income and maintenance tested rate exceeds the individual's provisional Part A rate - work out the sum of the amounts at paragraphs (a) and (ca) of step 1 of the method statement in clause 3 of that Schedule.

Step 2. If the individual's rate of family tax benefit on that day consisted of or included a Part B rate greater than nil, work out whichever of the following amounts is appropriate:

(a) the sum of the amounts under paragraphs 29(1)(a) and (b) of Schedule 1;

(b) the sum of the amounts at paragraphs (a) and (b) of step 1 of the method statement in subclause 29(2) of Schedule 1;

(c) the sum of the amounts under paragraphs 29A(2)(a) and (b) of Schedule 1.

Step 3. Work out the sum of the amounts at steps 1 and 2.

Step 4. Multiply the amount at step 3 by 0.017.

Step 5. Divide the amount at step 4 by 365 (rounded to the nearest cent (rounding 0.5 cents upwards)): the result is the individual's clean energy daily rate for that day.

(2) If steps 1 and 2 of the method statement in subsection (1) do not apply in relation to an individual on a day, the individual's clean energy daily rate for that day is nil.

(3) An individual's clean energy daily rate for a day is nil if the individual is an absent overseas recipient on that day (disregarding section 63A).

(4) The calculation under subsection (1) for a day is to be done disregarding any FTB child of the individual who is an absent overseas FTB child (disregarding section 63A) on that day.

(5) The calculation under subsection (1) is to be done disregarding section 32.

(6) If:

(a) the decision day (see subsection 105(1)) is before 1 July 2013; and

(b) on the decision day:

(i) an FTB child of the individual is outside Australia and the FTB child left Australia before 1 April 2013; and

(ii) that FTB child is not an absent overseas FTB child (disregarding section 63A);

then the calculation under subsection (1) of this section on the decision day is to be done disregarding that FTB child.

(7) If the child referred to in subsection (6) returns to Australia before 1 July 2013, then, for the purposes of section 108, there is taken to be a change in the individual's circumstances on the day of the child's return.

(8) If the child referred to in subsection (6) does not return to Australia before 1 July 2013, then, for the purposes of section 108, there is taken to be a trigger day of 30 June 2013 in relation to the individual.

107 Amount of advance where entitlement under section 104

If the Secretary makes a determination under subsection 104(1) that an individual is entitled to a clean energy advance, the amount of the advance is the amount referred to in subparagraph 104(1)(b)(i) or (ii) (as the case requires).

Division 3 - Top-up payments of clean energy advance

108 - Top-up payments of clean energy advance

General case

(1) If:

(a) the Secretary pays a clean energy advance (the original payment ) to an individual in circumstances where the Secretary determined the individual is entitled to the advance under section 103 and where the amount of the advance is not worked out under subsection 105(6); and

(b) the decision day (see subsection 105(1)) is before 1 July 2013; and

(c) on a day (the trigger day ) after the decision day and before 1 July 2013, the individual's circumstances change so that:

(i) if the individual has not previously become entitled to a payment under this section - the amount of the original payment is less than the amount of the clean energy advance that would have been paid to the individual if the decision day had been the trigger day; or

(ii) if the individual has previously become entitled to one or more payments under this section - the sum of those payments and the original payment is less than the amount of the clean energy advance that would have been paid to the individual if the decision day had been the trigger day;

then the individual is entitled to a further payment of clean energy advance equal to the amount of the shortfall.

Case involving former partner

(2) If:

(a) the Secretary pays a clean energy advance (the original payment ) to an individual in circumstances where the Secretary determined the individual is entitled to the advance under section 103 and where the amount of the advance is worked out under subsection 105(6); and

(b) the decision day (see subsection 105(1)) is before 1 July 2013; and

(c) on a day after the decision day and before 1 July 2013, the individual's circumstances change; and

(d) the individual is entitled to a further payment of clean energy advance in accordance with an instrument made under subsection (3);

then the amount of the individual's further clean energy advance is worked out in accordance with an instrument made under subsection (3) (which may be nil).

(3) The Minister may, by legislative instrument:

(a) specify the circumstances in which individuals are entitled to further payments of clean energy advances for the purposes of subsection (2); and

(b) specify a method for working out the amount of further clean energy advances for the purposes of subsection (2).

Interpretation

(4) For the purposes of this section, there is taken not to be a change in the individual's circumstances merely because a determination under section 28 in relation to the individual is varied or ceases to be in force.

Division 4 - General rules

109 General rules

If:

(a) an individual is entitled to a clean energy advance under section 103 or 108 in relation to an FTB child; and

(b) the amount of the advance was not worked out by applying subsection 105(5);

then, while the individual is a member of a couple, the other member of the couple is not entitled to a clean energy advance under section 103 or 108 in relation to that child.