Section MF 4E — Income Tax Act 2007: Calculation of instalments: 1 October 2010 to 31 March 2011

MF 4E Calculation of instalments: 1 October 2010 to 31 March 2011 When this section applies (1) This section applies for calculating the amount of an instalment by way of tax credit under section MD 1 (Abating WFF tax credit), or as applicable, sections MD 1 and ME 1 (Minimum family tax credit) for the period starting on 1 October 2010 and finishing on 31 March 2011. Family tax credit formula: section MD 3 (2) The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit , the following formula: prescribed amount × days 365. Definition of items in formula in subsection (2) (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) $4,578, 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) $3,182, if the child is younger than 13: (ii) $3,629, 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. When another person cares for dependent child (6) 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 (Who qualifies for entitlements under family scheme?). Family credit abatement formula: section MD 13 (7) The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement , the following formula: full-year abatement × days 365. Definition of items in formula in subsection (7) (8) 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 $36,827, 20 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 $36,827, 20 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 (Person receiving protected family tax credit). When 56-day period includes 31 March (9) If a person who qualifies under section MC 2 receives 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. Relationship with subject matter (10) Sections MD 14 to MD 16 (which relate to family credit abatement), with necessary modifications, apply to the calculation of the family credit abatement in subsection (7). Minimum family tax credit formula: section ME 1 (11) The instalments for the relevant tax credit are calculated using, for the calculation of the minimum family tax credit , the following formula: prescribed amount − net family scheme income × weekly periods 52. Definition of items in formula in subsection (11) (12) In the formula,— (a) prescribed amount is $21,216: (b) net family scheme income is the net family scheme income, calculated using the formula in section ME 3 (Meaning of net family scheme income), for a relationship period containing the entitlement period, of–– (i) the person; or (ii) their spouse, civil union, or de facto partner; or (iii) the person and their spouse, civil union, or de facto partner: (c) weekly periods is the number of periods of 1 week in the entitlement period for which the person is a full-time earner. Relationship with subject matter (13) Sections ME 2 (Meaning of employment for this subpart) and ME 3 , with necessary modifications, apply to the calculation of the minimum family tax credit in subsection (11). Defined in this Act: amount , child , civil union partner , de facto partner , dependent child , entitlement period , family credit abatement , family scheme income , family tax credit , full-time earner , minimum family tax credit , net family scheme income , parental tax credit , principal caregiver , protected family tax credit , relationship period , spouse , tax credit , tax year Section MF 4E: inserted (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 63(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).