Income Tax Act 2007

Family tax credit

Heading: substituted, on 1 April 2008, by section 468(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

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, $6,642; and

(b)

for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, $5,412.

Days

(5)

Days is the number of days in the entitlement period.

Order in Council increasing amount

(6)

In subsection (4)(a) and (b), 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): replaced (with effect on 1 July 2018), on 18 March 2019, by section 234(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section MD 3(4)(a): amended, on 1 April 2022, by section 10(1) (and see section 10(3) for application) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).

Section MD 3(4)(b): replaced (with effect on 1 July 2018), on 18 March 2019, by section 234(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section MD 3(4)(b): amended, on 1 April 2022, by section 10(2) (and see section 10(3) for application) of the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act 2021 (2021 No 52).

Section MD 3(6): amended (with effect on 1 July 2018), on 18 March 2019, by section 234(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

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).