Section MD 13 — Income Tax Act 2007: Calculation of family credit abatement

MD 13 Calculation of family credit abatement When this section applies (1) This section applies for the purposes of section MD 1 to determine the amount of a person’s family credit abatement for an entitlement period. Formula (2) The formula is— full-year abatement × days 365. Definition of items in formula (3) In the formula,— (a) full-year abatement is,— (i) if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $36,350, 21.25 cents for each complete dollar of the excess; or (ii) if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $36,350, 21.25 cents for each complete dollar of the excess: (b) days is the number of days in the entitlement period excluding the days of any calendar months in which the person receives protected family tax credit as described in section MD 14 . When 56-day period includes 31 March (4) If a person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?) receives fortnightly instalments of the parental tax credit in a 56-day period that includes 31 March, the formula is applied so that— (a) instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and (b) instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year. Order in Council increasing amount (5) In subsection (3)(a), the amounts 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 , civil union partner , de facto partner , entitlement period , family credit abatement , family scheme income , parental tax credit , protected family tax credit , relationship period , spouse , tax year , Compare: 2004 No 35 s KD 2(6), (7) Section MD 13(3)(a)(i): amended, on 1 April 2009, by section 6(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 13(3)(a)(i): amended (with effect from 1 April 2008), on 29 May 2008, by section 6(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 13(3)(a)(ii): amended, on 1 April 2009, by section 6(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 13(3)(a)(ii): amended (with effect from 1 April 2008), on 29 May 2008, by section 6(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 13(3)(b): amended, on 1 April 2008, by section 476(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 13 list of defined terms protected family support : repealed, on 1 April 2008, by section 476(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 13 list of defined terms protected family tax credit : inserted, on 1 April 2008, by section 476(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).