Social Services and Other Legislation Amendment Act 2014 (14 of 2014)

Schedule 12   Other amendments

Part 2   Time periods and FTB reconciliation conditions

A New Tax System (Family Assistance) (Administration) Act 1999

16   Sections 32C to 32H

Repeal the sections, substitute:

32C Relevant reconciliation time - first individual must lodge tax return

(1) This section applies to the first individual for a same-rate benefit period if:

(a) the first individual is or was required to lodge an income tax return for the relevant income year; and

(b) clause 38L of Schedule 1 to the Family Assistance Act did not apply to the first individual at any time during the same-rate benefit period.

(2) Disregard paragraph (1)(b) if the first individual was a member of a couple at any time during the same-rate benefit period.

(3) The relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the first individual's taxable income for the relevant income year, so long as the first individual's income tax return for the relevant income year was lodged before the end of:

(a) the first income year after the relevant income year; or

(b) such further period (if any) as the Secretary allows, if the Secretary is satisfied that there are special circumstances that prevented the first individual from lodging the return before the end of that first income year.

(4) The further period under paragraph (3)(b) must end no later than the end of the second income year after the relevant income year.

32D Relevant reconciliation time - no separation of couple and partner must lodge tax return

(1) This section applies to the first individual for a same-rate benefit period if:

(a) the first individual was a member of a couple throughout that period; and

(b) the other member of the couple (the partner ) is or was required to lodge an income tax return for the relevant income year; and

(c) the first individual continues to be a member of the couple until the end of:

(i) the first income year after the relevant income year; or

(ii) such further period (if any) as the Secretary allows, if the Secretary is satisfied that there are special circumstances that prevented the partner from lodging the return before the end of that first income year.

(2) The relevant reconciliation time is the time when an assessment is made under the Income Tax Assessment Act 1936 of the partner's taxable income for the relevant income year, so long as the partner's income tax return for the relevant income year was lodged before the end of:

(a) the first income year after the relevant income year; or

(b) such further period (if any) as the Secretary allows under subparagraph (1)(c)(ii).

(3) The further period under subparagraph (1)(c)(ii) must end no later than the end of the second income year after the relevant income year.

32E Relevant reconciliation time - couple separates during next income year and partner must lodge tax return

(1) This section applies to the first individual for a same-rate benefit period if:

(a) the first individual was a member of a couple throughout that period; and

(b) the other member of the couple (the partner ) is or was required to lodge an income tax return for the relevant income year; and

(c) the first individual ceased to be a member of the couple during the first income year after the relevant income year.

(2) The relevant reconciliation time is:

(a) if the partner lodged the return before the end of the first income year after the relevant income year - when an assessment is made under the Income Tax Assessment Act 1936 of the partner's taxable income for the relevant income year; or

(b) otherwise - the end of the first income year after the relevant income year.

32F Relevant reconciliation time - couple separates after end of next income year and partner must lodge tax return

(1) This section applies to the first individual for a same-rate benefit period if:

(a) the first individual was a member of a couple throughout that period; and

(b) the other member of the couple (the partner ) is or was required to lodge an income tax return for the relevant income year; and

(c) the partner did not lodge the return before the end of the first income year after the relevant income year; and

(d) the Secretary allowed a further period for the partner to lodge the return because the Secretary was satisfied that there were special circumstances that prevented the partner from lodging the return before the end of that first income year; and

(e) the first individual ceased to be a member of the couple during the period beginning at the start of the second income year after the relevant income year and ending at the end of that further period allowed by the Secretary.

(2) The relevant reconciliation time is:

(a) if the partner lodged the return while the first individual and the partner were members of the same couple - when an assessment is made under the Income Tax Assessment Act 1936 of the partner's taxable income for the relevant income year; or

(b) otherwise - when the first individual ceased to be a member of the couple.

(3) The further period under paragraph (1)(d) must end no later than the end of the second income year after the relevant income year.