Section MD 3 — Income Tax Act 2007: Calculation of family tax credit

MD 3 Calculation of family tax credit Entitlement (1) A person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?) is entitled to an amount of family tax credit calculated using the formula in subsection (2). Formula (2) The formula is— prescribed amount × days 365. Definition of items in formula (3) The items in the formula are defined in subsections (4) and (5). Prescribed amount (4) Prescribed amount is the sum of the following amounts: (a) for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable: (i) $4,822, if the child is younger than 16: (ii) $5,303, if the child is 16 or older: (iii) a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period; and (b) for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable: (i) $3,351, if the child is younger than 13: (ii) $3,822, if the child is 13, 14, or 15: (iii) $4,745, if the child is 16 or older: (iv) a weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period for which those subparagraphs apply to the child, if the child turns 13 during the entitlement period: (v) a weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the entitlement period for which those subparagraphs apply to the child, if the child turns 16 during the entitlement period. Days (5) Days is the number of days in the entitlement period. Order in Council increasing amount (6) In subsection (4)(a)(i) and (ii), and (b)(i) to (iii), the amount referred to may be increased as prescribed by the Governor-General by Order in Council under section MF 7 (Orders in Council). When another person cares for dependent child (7) A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2 . Defined in this Act: amount , child , dependent child , entitlement period , family tax credit , principal caregiver , Compare: 2004 No 35 ss KD 2(3) , KD 2AA(3) Section MD 3 heading: amended, on 1 April 2008, by section 468(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 3(1): amended, on 1 April 2008, by section 468(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MD 3(4)(a)(i): amended, on 1 April 2012 (applying in respect of the 2012–13 tax year and later tax years), by clause 3(1) of the Income Tax (Family Tax Credit) Order 2011 (SR 2011/403). Section MD 3(4)(a)(ii): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 61(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section MD 3(4)(a)(ii): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 61(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section MD 3(4)(a)(ii): amended, on 1 April 2009, by section 5(2)(b) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 3(4)(a)(ii): amended (with effect from 1 April 2008), on 29 May 2008, by section 5(1)(b) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 3(4)(b)(i): amended, on 1 April 2012 (applying in respect of the 2012–13 tax year and later tax years), by clause 3(2) of the Income Tax (Family Tax Credit) Order 2011 (SR 2011/403). Section MD 3(4)(b)(ii): amended, on 1 April 2012 (applying in respect of the 2012–13 tax year and later tax years), by clause 3(3) of the Income Tax (Family Tax Credit) Order 2011 (SR 2011/403). Section MD 3(4)(b)(iii): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 61(2)(e) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section MD 3(4)(b)(iii): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 61(1)(e) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section MD 3(4)(b)(iii): amended, on 1 April 2009, by section 5(2)(e) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 3(4)(b)(iii): amended (with effect from 1 April 2008), on 29 May 2008, by section 5(1)(e) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36). Section MD 3(7): amended, on 1 April 2008, by section 468(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MC 3 list of defined terms family support : repealed, on 1 April 2008, by section 468(5)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section MC 3 list of defined terms family tax credit : inserted, on 1 April 2008, by section 468(5)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).