Section MD 10 — Income Tax Act 2007: Calculation of in-work tax credit

MD 10 Calculation of in-work tax credit Entitlement (1) A person who meets the requirements of section MD 4 is entitled to an in-work tax credit calculated using the formula in subsection (2). Formula (2) The formula is— (amount A + (amount B × (children − 3))) × weekly periods 52. Definition of items in formula (3) In the formula,— (a) amount A is $3,120: (b) amount B is $780: (c) children is the greater of— (i) 3; and (ii) the number of children for whom the person is allowed the in-work tax credit: (d) weekly periods — (i) for 2 or more entitlement periods forming 1 continuous period, is the number of whole periods of 1 week in the continuous period for which the person or their spouse, civil union partner, or de facto partner has, from the work activity, income to which section MD 9(2) refers or is a full-time earner described in section MD 9(1)(b): (ii) for an entitlement period to which subparagraph (i) does not apply, is the number of whole periods of 1 week in the entitlement period for which the person or their spouse, civil union partner, or de facto partner has, from the work activity, income to which section MD 9(2) refers or is a full-time earner described in section MD 9(1)(b). Order in Council increasing amount (4) In subsection (3)(a) and (b), the amount referred to may be increased as prescribed by the Governor-General by Order in Council under section MF 7 (Orders in Council). Defined in this Act: amount , child , civil union partner , de facto partner , entitlement period , in-work tax credit , spouse , Compare: 2004 No 35 s KD 2AAA(2) Section MD 10 heading: amended, on 1 April 2008, by section 475(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 10(1): amended, on 1 April 2008, by section 475(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 10(3)(c)(ii): amended, on 1 April 2008, by section 475(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 10(3)(d)(i): amended (with effect on 1 April 2011), on 2 November 2012, by section 127(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section MD 10(3)(d)(ii): amended (with effect on 1 April 2008), on 2 November 2012, by section 127(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section MD 10(3)(d)(ii): amended (with effect on 1 April 2011), on 2 November 2012, by section 127(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section MD 10(3)(d)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 361(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section MD 10 list of defined terms in-work payment : repealed, on 1 April 2008, by section 475(4)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 10 list of defined terms in-work tax credit : inserted, on 1 April 2008, by section 475(4)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).