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FA(Admin)Act Contents Title Page Part 1 - Preliminary Part 2 - Interpretation Part 3 - Payment of family assistance Part 4 - Overpayments and debt recovery Part 5 - Review of decisions Part 6 - Provisions relating to information Part 7 - Liability of certain employers and principals for offences Part 8 - Approval of child care services and registered carers Part 8A - Obligations of, and advances to, approved child care services Part 8B - Nominees Part 8C - Civil penalties Part 9 - Other matters NOTES Table of Amendments Table A Section Index Definition Index

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55AB.               Indexed actual incomes

 

55AB.(1)  The Secretary may calculate an indexed actual income for an individual under subsection (4), with a start day chosen by the Secretary, if:

 

(a)

the individual is a claimant for, or the partner of a claimant for, child care benefit; and

(b)

determinations of conditional eligibility under section 50F and of CCB % under section 50J are in force in respect of the claimant and the effect of the former determination is that the claimant is conditionally eligible for child care benefit by fee reduction; and

(c)

the CCB % is worked out on the basis of an indexed estimate for the claimant or an indexed actual income for the claimant; and

(d)

since the claimant was last given a notice under subsection 55AA(2) or subsection (2) of this section stating an indexed estimate or indexed actual income for an individual, the claimant has not given the Secretary an estimate of the claimant's adjusted taxable income that the Secretary considers to be reasonable; and

(e)

the adjusted taxable income for an income year (actual income) of the individual (disregarding the effect for couples of clause 3 of Schedule 3 to the Family Assistance Act) becomes known to the Secretary and it is the most recent income year for which the individual's actual income is known to the Secretary.

 

Note:        Section 55AC affects the meaning of paragraph (1)(c) for members of couples.

 

55AB.(2)  If:

 

(a)

the Secretary calculates an indexed actual income for the individual; and

(b)

the indexed actual income is greater than the individual's current ATI number (see subsection (5));

 

the Secretary may give the claimant a notice:

 

(c)

stating the indexed actual income for the individual; and

(d)

specifying the start day used in the Secretary's calculation (which must be a Monday at least 14 days after the day on which the notice is given).

 

55AB.(3)  A notice given to a claimant under subsection (2) stating an indexed actual income for an individual has no effect if, before the start day specified in the notice, the Secretary gives the claimant another notice under that subsection or a notice under subsection 55AA(2) stating an indexed estimate or indexed actual income for the same individual. Any other such notice must specify a start day that is no earlier than the start day specified in the superseded notice.

 

55AB.(4)  Calculate an indexed actual income (which may be nil) for the individual by multiplying the actual income of the individual which became known to the Secretary by the indexation factor, rounding the result to the nearest dollar and rounding 50 cents upwards. The indexation factor is the greater of 1 and the factor worked out to 3 decimal places as follows (increasing the factor by 0.001 if it would, if worked out to 4 decimal places, end in a number greater than 4):

 

 

where:

 

AWE means the amount published by the Australian Statistician in a document titled “Average Weekly Earnings” under the headings “Average Weekly Earnings, Australia–Original–Persons–All employees total earnings” (or, if any of those change, in a replacement document or under replacement headings).

 

highest previous November means the November in which, of all the Novembers from November 2004 to the November before the most recent November (inclusive), AWE was the highest.

 

most recent November means the November of the income year before the income year in which the start day occurs.

 

reference period, in a particular November, means the period described by the Australian Statistician as the last pay period ending on or before a specified day that is the third Friday of that November.

 

55AB.(5)  For the purposes of paragraph (2)(b), the individual's current ATI number is:

 

(a)

if, at the time of calculation, the Secretary has given the claimant a notice under subsection 55AA(2) or subsection (2) of this section stating an indexed estimate or indexed actual income for the individual with a start day that has not arrived–the indexed estimate or indexed actual income stated in the notice; or

(b)

if paragraph (a) does not apply and the individual is the claimant–the amount the Secretary is permitted to use for the individual under section 55 (disregarding the effect for couples of section 55AC of this Act and clause 3 of Schedule 3 to the Family Assistance Act); or

(c)

if paragraph (a) does not apply and the individual is the claimant's partner–the amount the Secretary would be permitted to use for the individual under section 55 if the individual were the claimant (disregarding the effect for couples of section 55AC of this Act and clause 3 of Schedule 3 to the Family Assistance Act).

 

55AB.(6)  A notice under subsection (2) is not a legislative instrument.

 

History

S.55AB inserted by Act No. 36, 2006, by s.3, Schedule 2(14);

 

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