INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-20 - TAX OFFSETS  

Division 61 - Generally applicable tax offsets  

Subdivision 61-IA - Child care tax offset  

Amount of the child care tax offset

SECTION 61-485   61-485   Amount of the child care tax offset  


The amount of your *tax offset for a child care offset year is worked out in this way: Method statement

Step 1.

For each child in relation to whom you are entitled to the *tax offset for the child care offset year, work out amounts in accordance with steps 2, 3 and 4.


Step 2.

Work out the total amount of your *approved child care fees for the child in each *child care base week for you and the child in the child care base year.


Step 3.

Work out the total amount of your *entitlement to child care benefit for *approved child care for the child in each *child care base week for you and the child in the child care base year.


Step 4.

Work out the lesser of the following amounts (the child offset ) for the child:

  • (a) the amount worked out using the formula:
     


    30%   ×   (Step 2 amount   -   Step 3 amount)

  • (b) the *child care offset limit for the child care base year.

  • Step 5.

    Total the child offsets for each of those children. The result is the amount of your *tax offset for the child care offset year.


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