A New Tax System (Family Assistance) Act 1999

Schedules

Schedule 1 - Family Tax Benefit Rate Calculator  

Part 2 - Part A rate (Method 1)  

Division 5 - Maintenance income test  

Subdivision A - Maintenance income test  

24   Apportionment of capitalised maintenance income  

(1)    
The object of this clause is to spread capitalised maintenance income so that it is taken into account over the whole of the period in respect of which it is received.

(2)    
If an individual receives capitalised maintenance income, the maintenance income of the individual that is attributable to the capitalised maintenance income during any period (the relevant period ) in the capitalisation period is the amount worked out using the formula:


Capitalised maintenance income   ×   Relevant period  
Capitalisation period


(2A)    
For the capitalisation period in an income year, the annualised amount of an individual ' s capitalised maintenance income is worked out using the following formula:


  The amount worked out
under subclause (2) in
respect of the individual
for the capitalisation period
in the income year
× Number of days in the
      income year      
Number of days in the
capitalisation period in the
income year
 


(3)   Capitalisation period - court order or agreement.  

If:


(a) the capitalised maintenance income is received under or as a result of:


(i) the order of a court; or

(ii) a maintenance agreement (within the meaning of the Family Law Act 1975 ) that has been registered in, or approved by, a court in Australia or an external Territory; or

(iii) a financial agreement, or Part VIIIAB financial agreement, within the meaning of that Act; or

(iv) any other agreement with respect to the maintenance of a person that has been registered in, or approved by, a court in Australia or an external Territory; and


(b) the order or agreement specified the period in relation to which the capitalised maintenance income was to be provided; and


(c) the length of the period could be ascertained with reasonable certainty when the order was made or the agreement was so registered or approved;

the capitalisation period is, subject to subclause (6), the period specified in the order or agreement.

(4)   Capitalisation period - FTB child under 18.  

If:


(a) the capitalised maintenance income relates to the maintenance of an FTB child of the individual; and


(b) the child has not turned 18 on the day on which the income is received; and


(c) subclause (3) does not apply to the capitalised maintenance income;

the capitalisation period is, subject to subclause (6), the period that starts on the day on which the income is received and ends on the day immediately before the day on which the child turns 18.

(5)   Capitalisation period - partner under 65.  

If:


(a) the capitalised maintenance income relates to the maintenance of the individual by the individual ' s partner or former partner; and


(b) the individual has not turned 65 on the day on which the income is received; and


(c) subclause (3) does not apply to the capitalised maintenance income;

the capitalisation period is, subject to subclause (6), the period that starts on the day on which the income is received and ends on the day immediately before the day on which the individual turns 65.

(6)   Capitalisation period - other cases  

If:


(a) the Secretary considers:


(i) in a case falling within subclause (3) where the period referred to in that subclause was specified in an order of a court that was made by consent or in an agreement referred to in subparagraph (3)(a)(ii), (iii) or (iv) - that the period is not appropriate in the circumstances of the case; or

(ii) in a case falling within subclause (4) or (5) - that the period referred to in that subclause is not appropriate in the circumstances of the case; or


(b) no capitalisation period is applicable in relation to the capitalised maintenance income under subclause (3), (4) or (5);

the capitalisation period is such period as the Secretary considers appropriate in the circumstances of the case.




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