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

Schedule 2   Clean energy payments under the family assistance law

Part 5   Other amendments

A New Tax System (Family Assistance) Act 1999

46   At the end of Part 4 of Schedule 4

Add:

10 Adjustment of indexation factor for certain amounts on and after 1 July 2013

(1) This clause applies to the following amounts:

(a) FTB child rate (A1);

(b) FTB child rate (A2);

(c) FTB standard rate (B);

(d) FTB standard ACO rate.

(2) For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day that is on or after 1 July 2013, is to be reduced by the brought forward indexation amount, but not below 1.

(3) In this clause:

brought forward indexation amount , in relation to an indexation day, means 0.007 less any reduction made under this clause for a previous indexation day.

Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example: Assume that the indexation factor worked out under clause 5 on 1 July 2013 is 1.004. The brought forward indexation amount in relation to 1 July 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 1 July 2013.

Further assume that on 1 July 2014 the indexation factor is 1.010. The brought forward indexation amount in relation to 1 July 2014 is 0.003. That indexation factor is reduced to 1.007 on 1 July 2014.

The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

11 Adjustment of indexation factor for certain amounts on and after 1 July 2014

(1) This clause applies to the following amounts:

(a) FTB gross supplement amount (A);

(b) FTB gross supplement amount (B).

(2) For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day (a reduction day ) that is on or after 1 July 2014, is to be reduced by the brought forward indexation amount, but not below 1.

(3) In this clause:

brought forward indexation amount , in relation to a reduction day, means 0.007 less:

(a) any reduction made under subclause 10(2) on 1 July 2013; and

(b) any reduction made under this clause for a previous reduction day.

Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example: Assume that the indexation factor worked out under clause 5 on 1 July 2014 is 1.010 and that there was a reduction of 0.004 under subclause 10(2) on 1 July 2013.

The brought forward indexation amount in relation to 1 July 2014 is 0.003. The indexation factor worked out under clause 5 on 1 July 2014 is reduced to 1.007.

The brought forward indexation amount in relation to later reduction days is now zero so there is no further reduction of the indexation factor.