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

Schedule 8   Single income family supplement

A New Tax System (Family Assistance) Act 1999

5   After Division 4A of Part 4

Insert:

Division 4B - Rate of single income family supplement

84G Rate of single income family supplement

(1) An individual's rate of single income family supplement is worked out in accordance with this section.

(2) For the purposes of this section:

(a) the main income earner is:

(i) if the individual is not a member of a couple - the individual; or

(ii) if the individual is a member of a couple - the member of the couple whose taxable income for the income year is the highest (or the individual if those taxable incomes are equal); and

(b) if the individual is a member of a couple - the low income earner is the member of the couple whose taxable income for the income year is the lowest (or the individual's partner if those taxable incomes are equal).

Annual rate

(3) An individual's annual rate of single income family supplement is nil if the main income earner's taxable income for the income year (rounded down to the nearest dollar) is:

(a) $68,000 or less; or

(b) $150,000 or more.

(4) An individual's annual rate of single income family supplement is worked out as follows if the main income earner's taxable income for the income year (rounded down to the nearest dollar) is more than $68,000 and less than $150,000:

Method statement

Step 1. Work out the main income earner's taxable income (rounded down to the nearest dollar).

Step 2. Reduce the amount at step 1 by $68,000.

Step 3. Multiply the amount worked out at step 2 by 0.025.

Step 4. If the amount at step 3 is less than or equal to $300, the provisional component is the amount at step 3.

Step 5. If the amount at step 3 is more than $300, the provisional component is:

(a) if the main income earner's taxable income exceeds $80,000 and is less than or equal to $120,000 - $300; or

(b) if the main income earner's taxable income exceeds $120,000 - $300 less $0.01 for each dollar of the excess.

Step 6. If the individual is not a member of a couple - the individual's annual rate of single income family supplement is the provisional component.

Step 7. If the individual is a member of a couple - the individual's annual rate of single income family supplement is the provisional component less any reduction under step 8.

Step 8. If the low income earner's taxable income for the income year (rounded down to the nearest dollar) exceeds $16,000, the provisional component is reduced (but not below nil) by $0.15 for each dollar of the excess.

Daily rate

(5) The daily rate of single income family supplement is the annual rate divided by 365 and rounded to the nearest cent (rounding 0.5 cents upwards). If the daily rate before rounding is above nil and below half a cent, round up to 1 cent.

84GA Sharing single income family supplement between members of a couple in a blended family

If the Secretary determines under section 57GC an individual's percentage of the single income family supplement for qualifying children of the individual, the individual's annual rate of single income family supplement is that percentage of the rate that would otherwise apply.

84GB Sharing single income family supplement between separated members of a couple for period before separation

If the Secretary determines under section 57GD an individual's percentage of the single income family supplement for a qualifying child or children of the individual for a period, the individual's annual rate of single income family supplement for that period is that percentage of the rate that would otherwise apply for the period.