Child Support Legislation Amendment (Reform of the Child Support Scheme - New Formula and Other Measures) Act 2006 (146 of 2006)

Schedule 8   Amendments relating to family tax benefit (commencing on 1 July 2008)

Part 2   Maintenance income test

Division 1   Amendments

A New Tax System (Family Assistance) Act 1999

155   At the end of Division 5 of Part 2 of Schedule 1

Add:

Subdivision C - Maintenance income ceiling for Method 1

24F Subdivision not always to apply

This Subdivision does not apply if an individual, and an individual's partner, between them are entitled to apply for maintenance income:

(a) from only one other individual; and

(b) in respect of all of the FTB children of the individual.

24G Overall method for working out maintenance income ceiling for Method 1

For the purposes of paragraph (d) of step 1 of the method statement in clause 20, this is how to work out an individual's maintenance income ceiling for maintenance income received by the individual, or the individual's partner, from another individual (the maintenance payer ) if the individual's Part A rate is worked out using this Part (Method 1):

Method statement

Step 1. Work out the individual's above base standard amount for the maintenance income using clause 24H.

Step 2. Work out the individual's RA amount for the maintenance income using clause 24J.

Step 3. Work out the individual's MIFA amount for the maintenance income using clause 24K.

Step 4. Work out the individual's maintenance income ceiling for the maintenance income using clause 24L.

24H How to work out an individual's above base standard amount

The individual's above base standard amount for the maintenance income is the difference between:

(a) the individual's standard rate under Division 2 of this Part (clauses 7 to 11) for the FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer; and

(b) the individual's standard rate under Division 2 of Part 3 (clauses 26 and 27) for those children (assuming that the individual's Part A rate were calculated under Part 3).

24J How to work out an individual's RA (rent assistance) amount

This is how to work out the individual's RA amount for the maintenance income:

Method statement

Step 1. Work out the individual's rent assistance (if any) under Subdivision A of Division 2B of Part 5.

Step 2. Work out the amount that would be the individual's rent assistance (if any) under that Subdivision if rent assistance were paid for only those children in respect of whom neither the individual, nor the individual's partner, is entitled to apply for maintenance income.

Step 3. If the individual, and the individual's partner, between them are entitled to apply for maintenance income from only one maintenance payer, the difference between the amount worked out under step 1 and the amount worked out under step 2 is the individual's RA amount for the maintenance income.

Step 4. If the individual, and the individual's partner, between them are entitled to apply for maintenance income from more than one maintenance payer, the individual's RA amount for maintenance income received from a particular maintenance payer is worked out using the formula:

(Amount worked out under step 3 / Total number of FTB children in respect of whom either the individual, or the individual's partner, is entitled to apply for maintenance income) * Number of FTB children in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from that maintenance payer

24K How to work out an individual's MIFA (maintenance income free area) amount

(1) If the individual, and the individual's partner, between them are entitled to apply for maintenance income from only one maintenance payer, then the individual's MIFA amount for the maintenance income is the amount of the individual's maintenance income free area.

Apportioning the maintenance income free area

(2) If the individual, and the individual's partner, between them are entitled to apply for maintenance income from more than one maintenance payer, the individual's MIFA amount for maintenance income received from a particular maintenance payer is worked out using the following formula:

(Individual's no child amount / Total number of maintenance payers in respect of whom either the individual, or the individual's partner, is entitled to apply for maintenace income) + (Number of FTB children in respect of whom the individual, or the individual's partner is entitled to apply for maintenance income from the maintenance payer * Individual's additional amount for one child worked out under clause 22)

where:

individual's no child amount is the amount worked out using the following formula:

Individual's basic amount worked out under clause 22 - Individual's additional amount for one child worked out under clause 22

24L How to work out an individual's maintenance income ceiling

The individual's maintenance income ceiling for the maintenance income is worked out using the following formula:

[2 * (Above base stand amount for the income + RA amount for the income)] + MIFA amount for the income

Subdivision D - Maintenance income ceiling for purposes of comparison for Method 2

24M Subdivision not always to apply

This Subdivision does not apply if an individual, and an individual's partner, between them are entitled to apply for maintenance income:

(a) from only one other individual; and

(b) in respect of all of the FTB children of the individual.

24N Overall method for working out maintenance income ceiling for purposes of comparison for Method 2

For the purposes of the comparison in step 3 of the method statement in clause 25, this is how to work out an individual's maintenance income ceiling for maintenance income received by the individual, or the individual's partner, from another individual (the maintenance payer ) if the individual's Part A rate is worked out using Part 3 of this Schedule (Method 2):

Method statement

Step 1. Work out the individual's standard amount for the maintenance income using clause 24P.

Step 2. Work out the individual's LFS amount for the maintenance income using clause 24Q.

Step 3. Work out the individual's multiple birth allowance (if any) under Division 2 of Part 5 (clauses 36 to 38) for FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer.

Step 4. Work out the individual's supplement amount for the maintenance income using clause 24R.

Step 5. Work out the individual's RA amount for the maintenance income using clause 24J.

Step 6. Work out the individual's MIFA amount for the maintenance income using clause 24K.

Step 7. Work out the individual's maintenance income ceiling for the maintenance income using clause 24S.

24P How to work out an individual's standard amount

The individual's standard amount for the maintenance income is the individual's standard rate under Division 2 of this Part (clauses 7 to 11) for the FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer.

24Q How to work out an individual's LFS (large family supplement) amount

This is how to work out the individual's LFS amount for the maintenance income:

Method statement

Step 1. Work out the individual's large family supplement (if any) under Division 1 of Part 5.

Step 2. Work out the amount that would be the individual's large family supplement (if any) under that Division if large family supplement were paid for only those children in respect of whom neither the individual, nor the individual's partner, is entitled to apply for maintenance income.

Step 3. If the individual, and the individual's partner, between them are entitled to apply for maintenance income from only one maintenance payer, the difference between the amount worked out under step 1 and the amount worked out under step 2 is the individual's LFS amount for the maintenance income.

Step 4. If the individual, and the individual's partner, between them are entitled to apply for maintenance income from more than one maintenance payer, the individual's LFS amount for maintenance income received from a particular maintenance payer is worked out using the formula:

(Amount worked out under step 3 / Total number of FTB children in respect of whom either the individual, or the individual's partner, is entitled to apply for maintenance income) * Number of FTB children in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from that maintenance payer

24R How to work out an individual's supplement amount

The individual's supplement amount for the maintenance income is the individual's FTB Part A supplement under Division 2A of Part 5 (clause 38A) for the FTB children of the individual in respect of whom the individual, or the individual's partner, is entitled to apply for maintenance income from the maintenance payer.

24S How to work out an individual's maintenance income ceiling

The individual's maintenance income ceiling for the maintenance income is worked out using the following formula:

(2 * Total of the amounts worked out for the income under steps 1 to 5 of the method statement in clause 24N) + MIFA amount for the income