Document ID: chunk:federal_register_of_legislation:C2004A04616:front:0:p14
Version: federal_register_of_legislation:C2004A04616
Segment Type: other
Provision Reference: 
Character Range: 33728–36698

fringe benefit. For 'assessable fringe benefit' see section 10A.

Fringe benefits value free area

"1069-H23. A person's fringe benefits value free area is $1,000.00.

Person's adjusted fringe benefits value

"1069-H24. If the person's fringe benefits value exceeds the fringe benefits value free area, the person's adjusted fringe benefits value is the person's fringe benefits value less the free area.

"1069-H25. If the person's fringe benefits value does not exceed the fringe benefits value free area, the person's adjusted fringe benefits value is nil.

Income ceiling

"1069-H26. A person's income ceiling is worked out using Table H. A person's income ceiling is the basic ceiling amount in column 1 plus an additional amount in column 2 for each FP child of the person (after the first).
TABLE H
FAMILY PAYMENT BASE RATE—INCOME CEILING
column 1                                 column 2
basic ceiling                            additional amount for each FP child (after the first)
$64,938.00                               $3,249.00

   Note: The basic ceiling is indexed in line with CPI increases (see sections 1191 to 1194).

"Submodule 4—Additional family payment:
effect of family payment income test

Effect of income test on additional family payment

"1069-H27. This is how to work out the effect of a person's income on the person's additional family payment rate:
Method statement

      Step 1. Work out the person's appropriate tax year using Submodule 2.

      Step 2. Work out the person's taxable income for that tax year.

        Note: For the treatment of the taxable income of members of a couple see point 1069-H2.

      Step 3. Work out the person's fringe benefits value for that tax year using points 1069-H2A and 1069-H2B.

      Step 4. Work out the fringe benefits value free area using point 1069-H28.

      Step 5. Work out the person's adjusted fringe benefits value using points 1069-H29 and 1069-H30.

      Step 6. Add the amount obtained in Step 2 and the amount obtained in Step 5: the result is called the person's adjusted income.

Method statement—continued

      Step 7. 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 8. Work out whether the person's adjusted income exceeds the person's income free area.

      Step 9. If the person's adjusted income does not exceed the person's income free area, the person's annual income excess is nil.

      Step 10. If the person's adjusted income exceeds the person's income free area, the person's annual income excess is the person's adjusted income less the person's income free area.

      Step 11. Convert the annual income excess into a fortnightly excess using point 1069-H33.

      Step 12. Work out the amount of the person's reduction for income using point