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-I - First child tax offset (baby bonus)  

Amount of a first child tax offset

SECTION 61-420   Component of formula - entitlement amount  

61-420(1)  
In section 61-415 , the entitlement amount is the amount (rounded up to the nearest whole dollar) worked out using the formula:

Graphic

where:

base amount
is the lesser of:


(a) one-fifth of your basic income tax liability for your *base year (as worked out in step 2 of the method statement in subsection 4-10(3) ); and


(b) $2,500.

61-420(2)  
However, if:


(a) the current income year is not your *base year; and


(b) your taxable income for the current income year is not more than $25,000; and


(c) the amount worked out under subsection (1) is less than $500;

then the entitlement amount is $500.

61-420(3)  
If the amount worked out under subsection (1) is negative, then, unless subsection (2) applies, the entitlement amount is nil.


 

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