MD 12 Calculation of parental tax credit
Entitlement

(1)

A person who meets the requirements of section MD 11 in an entitlement period is entitled to a parental tax credit calculated using the formula in subsection (2).

Formula

(2)

The formula is—

prescribed amount × days ÷ 70.

Definition of items in formula

(3)

In the formula,—

(a)

prescribed amount is—

(i)

$1,200 for each dependent child born on or after 1 October 1999 and before 1 April 2015; or

(ii)

$2,200 for each dependent child born on or after 1 April 2015:

(b)

days is the number of days in the entitlement period—

(i)

that are in the parental entitlement period; and

(ii)

for which the person meets the requirements of section MD 11.

Order in Council increasing amount[Repealed]

(4)

[Repealed]

Modification where 70-day period crosses 2 tax years and credit paid in lump sum

(5)

If the 70-day parental entitlement period crosses 2 tax years, and the person is paid the parental tax credit as a lump sum for the tax year of the birth, then—

(a)

an additional amount of parental tax credit for the tax year of the birth is calculated under section MD 12B, based on the number of days that are—

(i)

in the parental entitlement period; and

(ii)

in an entitlement period in the tax year following the tax year of the birth; and

(b)

the formula in subsection (2) should not be used to calculate an amount of parental tax credit for the days described in paragraph (a), except for the purposes of determining the amount of parental tax credit for the single day described in section MD 12B(3)(a)(ii).

Defined in this Act: amount, dependent child, entitlement period, parental entitlement period, parental tax credit, tax year

Compare: 2004 No 35 s KD 2(5)

Section MD 12(1): amended (with effect on 1 April 2008), on 30 March 2017, by section 171(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12(2) formula: amended, on 1 April 2015 (applying for dependent children born on or after that date), by section 7(1) of the Taxation (Parental Tax Credit) Act 2014 (2014 No 28).

Section MD 12(3)(a): replaced, on 1 April 2015 (applying for dependent children born on or after that date), by section 7(2) of the Taxation (Parental Tax Credit) Act 2014 (2014 No 28).

Section MD 12(3)(b): replaced (with effect on 1 April 2008), on 30 March 2017, by section 171(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12(4) heading: repealed, on 30 March 2021, pursuant to section 122 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section MD 12(4): repealed, on 30 March 2021, by section 122 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).

Section MD 12(5) heading: inserted (with effect on 1 April 2008), on 30 March 2017, by section 171(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12(5) heading: amended (with effect on 1 April 2015 and applying for dependent children born on or after that date), on 30 March 2017, by section 171(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12(5): inserted (with effect on 1 April 2008), on 30 March 2017, by section 171(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12(5): amended (with effect on 1 April 2015 and applying for dependent children born on or after that date), on 30 March 2017, by section 171(5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12 list of defined terms civil union partner: repealed, on 1 April 2014, by section 116(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).

Section MD 12 list of defined terms de facto partner: repealed, on 1 April 2014, by section 116(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).

Section MD 12 list of defined terms entitlement period: inserted (with effect on 1 April 2008), on 30 March 2017, by section 171(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12 list of defined terms income-tested benefit: repealed, on 1 April 2014, by section 116(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).

Section MD 12 list of defined terms social assistance payment: repealed, on 1 April 2014, by section 116(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).

Section MD 12 list of defined terms spouse: repealed, on 1 April 2014, by section 116(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).

Section MD 12 list of defined terms tax year: inserted (with effect on 1 April 2008), on 30 March 2017, by section 171(6) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).