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  

20A   Annualised amount of maintenance income  

(1)   Object of clause  

The object of this clause is to annualise the maintenance income (other than capitalised maintenance income) ( CMI ) of an individual during an income year.

(2)   Annualisation of maintenance income other than CMI  

If an individual receives maintenance income (other than CMI) from another individual during any period or periods (the relevant period or periods ) in an income year, the annualised amount of the maintenance income of the individual is worked out using the following formula:

The amount of maintenance income (other than CMI) received by the individual during the relevant period or periods

×

Number of days             in the income year             Number of days in the relevant period or periods

(3)   Commencement of relevant period  

If:

(a) an individual ( payee ) receives maintenance income (other than CMI) from another individual ( payer ) in an income year under a maintenance liability; and

(b) subsection (4) does not apply;

the relevant period in respect of the maintenance income commences:

(c) in the case where the maintenance liability arises after 1 July of the income year in which the maintenance income is received - on the day that the maintenance liability arises; or

(d) in the case where the maintenance liability exists on 1 July of the income year in which the maintenance income is received - 1 July.

(4)    
If:

(a) a payee receives maintenance income (other than CMI) from a payer in an income year under a maintenance liability; and

(b) the payee has received maintenance income (other than CMI) from that payer previously during a period in the income year, but not under a maintenance liability; and

(c) in between the time the payee receives maintenance income under paragraph (a) and the end of the period referred to in paragraph (b):

(i) the payee and the payer were not members of the same couple; and

(ii) the payee was entitled to claim, or apply for, maintenance from the payer;

the relevant period in respect of the maintenance income commences:

(d) on the day the payee first received the previously received maintenance income in the income year; or

(e) on such earlier day in respect of the previously received maintenance income that the Secretary determines.

(5)    
If a payee receives maintenance income (other than CMI) from a payer during a period in an income year but not under a maintenance liability, the relevant period, in respect of the maintenance income, commences:

(a) on the day that the payee first received the maintenance income during that period; or

(b) on such earlier day that the Secretary determines.

(6)   End of relevant period  

A relevant period, in respect of maintenance income (other than CMI) received under a maintenance liability in an income year, ends either when the maintenance liability ceases (if it ceases before the end of the income year) or on 30 June of the income year.

(7)    
If:

(a) a payee receives maintenance income (other than CMI) in an income year; and

(b) the maintenance income is not received under a maintenance liability;

the relevant period ends in respect of the payee either:

(c) unless subclause (8) applies - when the payee ceases to receive the maintenance income (if the payee ceases to receive the income before the end of the income year); or

(d) on 30 June of the income year.

(8)    
If:

(a) a payee receives maintenance income (other than CMI) from a payer in an income year under a maintenance liability; and

(b) the payee has received maintenance income (other than CMI) from that payer previously during a period in the income year, but not under a maintenance liability; and

(c) in between the time the payee receives maintenance income under paragraph (a) and the end of the period referred to in paragraph (b):

(i) the payee and the payer were not members of the same couple; and

(ii) the payee was entitled to claim, or apply for, maintenance from the payer;

the relevant period ends either when the maintenance liability ceases (if it ceases before the end of the income year) or on 30 June of the income year.

(9)   Relevant period where payee elects to end an assessment  

If:

(a) a payee receives maintenance income (other than CMI) in an income year from a payer under a maintenance liability which is an assessment under Part 5 of the Child Support (Assessment) Act 1989 ; and

(b) the payee and payer become members of the same couple; and

(c) the payee elects under the Child Support (Assessment) Act 1989 to end the assessment from a specified day before the day the payee and payer became members of the same couple;

for the purpose of determining the commencement or end of the relevant period, the assessment is taken to end from the day the payee and the payer became a member of the same couple or from such earlier day as the Secretary determines (not being a day earlier than the specified day).

(10)   Meaning of maintenance liability  

In this clause, maintenance liability means a liability to provide:

(a) child support; or

(b) maintenance (other than child support) that arises 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.

(11)   Day a maintenance liability arises  

The day a maintenance liability arises is:

(a) if the liability is to provide child support, the day that the liability arises under the Child Support (Assessment) Act 1989 ; or

(b) if the liability is to provide maintenance that arises as set out in paragraph (10)(b), the day that the order of the court or the agreement has effect from.