Document ID: chunk:federal_register_of_legislation:C2004A04616:section:2:p29
Version: federal_register_of_legislation:C2004A04616
Segment Type: section
Provision Reference: s 2 (pt 29/32)
Character Range: 111186–114071

Family Payment Rate Calculator in section 1069 is amended:

  (a) by inserting after point 1069-H2B the following point:

    Foreign income of members of a couple to be added

     "1069-H2C. For the purposes of this Module, if a person is a member of a couple, the person's target foreign income for a tax year includes the target foreign income for that year of the person's partner.

     Note: For 'target foreign income' see subsection 10A(2).";

  (b) by omitting point 1069-H21 and substituting the following point:

    Income

     "1069-H21. In points 1069-H13, 1069-H14, 1069-H15, 1069-H16, 1069-H17 and 1069-H19:

      'income', in relation to a person, means:

      (a) the person's taxable income; and

      (b) the person's adjusted fringe benefits value; and

      (c) the person's target foreign income.

     Note: For 'target foreign income' see subsection 10A(2).";

   (c) by omitting Steps 6 to 9 from the Method statement in point 1069-H22 and substituting the following Steps:

   "
Step 6. Work out the person's target foreign income for that tax year.

        Note: For the treatment of target foreign income of members of a couple see point 1069-H2C.

     Step 7. Add the amounts obtained in Steps 2, 5 and 6: the result is called the person's adjusted income.

     Step 8. Work out the person's income ceiling using point 1069-H27.

     Step 9. If the person's adjusted income does not exceed the income ceiling, the person satisfies the family payment income test and the person's basic family payment rate is not affected.

     Step 10. If the person's adjusted income exceeds the income ceiling, the person does not satisfy the family payment income test and the person's basic family payment rate is nil.

         ";

(d) by adding at the end of point 1069-H22 the following Note:

   "Note 2: For 'target foreign income' see subsection 10A(2).";

   (e) by omitting Steps 6 to 12 from the Method statement in point 1069-H27 and substituting the following Steps:

   "
     Step 6. Work out the person's target foreign income for that tax year.

        Note: For the treatment of the target foreign income of members of a couple see point 1069-H2C.

     Step 7. Add the amounts obtained in Steps 2, 5 and 6: the result is called the person's adjusted income.

     Step 8. Work out the person's income free area using point 1069-H31.

        Note: A person's income free area is the amount of income that the person can have without any deduction being made from the person's additional family payment.

     Step 9. Work out whether the person's adjusted income exceeds the person's income free area.

Method statement—continued

     Step 10. If the person's adjusted income does not exceed the person's income free area, the person's annual income excess is nil.

     Step 11. If the person's adjusted income exceeds the person's