New Zealand Legislation: Acts

ME 3 Meaning of net family scheme income

• When this section applies

  (1) This section applies for the purposes of this subpart.

  Formula

  (2) Net family scheme income, for a person and a relationship period, means the amount calculated using the formula—

  adjusted income – adjusted liability + amount received – amount paid.

  Definition of items in formula

  (3) In the formula,—

  • (a) adjusted income is—

    • (i) the amount of the person's net income under section MB 1 (Adjustments for calculation of family scheme income) for the tax year in which the relationship period falls that is attributable to the number of weeks in which the person is a full-time earner, adjusted to an annualised amount that is found by multiplying the amount by the fraction that is 52 divided by the number of weeks in the relationship period for which the person is a full-time earner; and

    • (ii) calculated without reference to the amounts referred to in section MB 1(2) and (3):

  • (b) [Repealed]

  • (c) adjusted liability is the amount that would be the person's income tax liability—

    • (i) treating the amount of adjusted income under paragraph (a) as if it were the person's net income:

    • (ii) [Repealed]

  • (d) amount received is the amount referred to in section MB 1(2) for the tax year:

  • (e) amount paid is the amount of the deduction referred to in section MB 1(3) for the tax year.

  Defined in this Act: amount, deduction, full-time earner, income tax liability, net income, pay, relationship period, tax credit, tax year

  Compare: 2004 No 35 s OB 1 net specified income

  Section ME 3: added, on 1 April 2008, by section 482 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section ME 3(2) formula: substituted (with effect on 1 April 2008), on 6 October 2009, by section 363(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

  Section ME 3(3)(a)(i): substituted (with effect on 1 April 2008), on 6 October 2009, by section 363(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

  Section ME 3(3)(b): repealed (with effect on 1 April 2008), on 6 October 2009, by section 363(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

  Section ME 3(3)(c)(i): amended (with effect from 1 April 2008), on 29 May 2008, by section 34(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

  Section ME 3(3)(c)(ii): repealed (with effect from 1 April 2008), on 29 May 2008, by section 34(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).