Document ID: chunk:federal_register_of_legislation:C2004C01135:clause:3_3:p5
Version: federal_register_of_legislation:C2004C01135
Segment Type: clause
Provision Reference: sch 3 cl 3 (pt 5/8)
Character Range: 174992–177769

employee—the lesser of $3,000 and the total amount of the contributions for the person, and each family member of the person, for the appropriate tax year.

Amounts not included in actual means of a family member of claimant/recipient

 1067G‑G10 In working out the actual means, for the appropriate tax year, of a family member of the claimant/recipient, being a family member of a kind referred to in subparagraph 23(15)(b)(i), (ii) or (iii), spending or savings from any income of the family member from independent employment (except so much of such spending or savings as exceeds $6,000) is not included.

After‑tax income concession for secondary student

 1067G‑G11(1)  This point explains how a relevant person's after‑tax income concession for a secondary student referred to in subparagraph 1067G‑G9(2)(d)(v) is worked out.

 (2) The purpose of the concession is to compensate the family of a secondary student who is required to live away from home for the additional expenditure incurred in maintaining the student while he or she is required to live away from home. The compensation is effected by reducing the actual means of the family by an amount calculated by reference to the additional amount of youth allowance that is payable because the student is required to live away from home.

 (3) Accordingly, a relevant person's after‑tax income concession is the amount worked out using the formula:

 (4) In this section:

after‑tax income means the amount calculated using the formula:

income tax means the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986, that would be notionally payable by a person for the appropriate tax year if the person's taxable income were the amount obtained by dividing the parental income by the number of parents whose income is included in the claimant/recipient's combined parental income.

medicare levy means the amount of medicare levy that would be notionally payable by a married person for the appropriate tax year if:
 (a) the person's taxable income were the amount obtained by dividing the parental income by the number of parents whose income is included in the claimant/recipient's combined parental income; and
 (b) the person were a parent of the student, and of all the family members of the student who were children referred to in paragraph 23(15)(b); and
 (c) the student and each of those children had no separate net income, within the meaning of section 159J of the Income Tax Assessment Act 1936, in the appropriate tax year.

notional after‑tax income means the amount calculated using the formula:

notional income tax means the amount of income tax, before any rebates, and