Section MD 11 — Income Tax Act 2007: Entitlement to parental tax credit

MD 11 Entitlement to parental tax credit When this section applies (1) This section applies when— (a) a person qualifies under section MC 2 (Who qualifies for entitlements under family scheme?) in relation to a dependent child; and (b) neither the person nor their spouse, civil union partner, or de facto partner receives— (i) a social assistance payment or has a suspended entitlement to an income-tested benefit at any time during the first 56 days after the date of the dependent child’s birth (the parental entitlement period ); or (ii) a parental leave payment under Part 7A of the Parental Leave and Employment Protection Act 1987 at any time for the child. Entitlement (2) The person is entitled to a parental tax credit for the parental entitlement period. If dependent child dies during parental entitlement period (3) The person continues to be entitled to the parental tax credit if— (a) the dependent child dies during the parental entitlement period; and (b) the person and their spouse, civil union partner, or de facto partner otherwise meet the requirements of subsection (1). When another person cares for dependent child (4) The parental tax credit must be reduced in proportion to the time in the parental entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2 . Relationship with section 2B of Parental Leave and Employment Protection Act 1987 (5) Section 2B of the Parental Leave and Employment Protection Act 1987 applies for the purposes of subsection (1)(b) if a person— (a) gives birth to 2 or more children as a result of 1 pregnancy; or (b) assumes the care of 2 or more children with a view to adoption. Payment of parental tax credit (6) The parental tax credit is paid to the person either— (a) as a tax credit in an end-of-year assessment; or (b) in the 56 days after the date on which an application is made if— (i) the person applies to receive the parental tax credit by instalment under section MF 1 (Application for payment of tax credit by instalment); and (ii) at any time during the period of 56 days, the person and their spouse, civil union partner, or de facto partner do not receive a social assistance payment and do not have a suspended entitlement to an income-tested benefit. Defined in this Act: assessment , civil union partner , de facto partner , dependent child , income-tested benefit , parental entitlement period , parental tax credit , social assistance payment , spouse , tax credit , Compare: 2004 No 35 ss KD 2AA(3) , KD 2AB