Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This is how to work out whether a person satisfies the carer allowance income test on a day (the test day ).
Method statement
Step 1. Work out the amount of the person's adjusted taxable income for the reference tax year.
Note 1: Section 957B deals with how to work out adjusted taxable income.
Note 2: For reference tax year see subsections (2) and (3).
Step 2. If, on the test day, the person is a member of a couple, work out the amount of the person's partner's adjusted taxable income for the reference tax year applicable under step 1.
Note 1: Section 957B deals with how to work out adjusted taxable income.
Note 2: For reference tax year see subsections (2) and (3).
Step 3. If, on the test day, the person is not a member of a couple, the person has reached the minimum age mentioned in section 301 - 10 of the Income Tax Assessment Act 1997 and the person has at least one long - term financial asset, work out the person's deemed income amount under subsection 957D(1).
Note: For long - term financial asset see subsection (5).
Step 4. If, on the test day, the person is a member of a couple and the person, or the person's partner, or both, have reached the minimum age mentioned in section 301 - 10 of the Income Tax Assessment Act 1997 and have at least one long - term financial asset, work out the person's deemed income amount under subsection 957D(2).
Note: For long - term financial asset see subsection (5).
Step 5. Work out the sum of the amounts at steps 1, 2, 3 and 4 (as applicable).
Step 6. The person satisfies the carer allowance income test if the amount at step 5 is less than $250,000.
Reference tax year
(2) For the purposes of this section, a person's reference tax year is:
(a) if the person has received a notice of assessment of the person's taxable income for the base tax year--the base tax year; or
(b) otherwise--the tax year immediately preceding the base tax year.
Note: For base tax year see subsection (4).
(3) However, if the person has informed the Secretary in writing that the person wishes to have the person's qualification for carer allowance determined by reference to the person's adjusted taxable income for the tax year (the current tax year ) in which the test day occurred, the person's reference tax year is the current tax year.
(4) The base tax year is the tax year immediately preceding the tax year in which the test day occurred.
Note: For tax year see subsection 23(1).
Long - term financial asset
(5) For the purposes of this Subdivision, a long - term financial asset is:
(a) a financial investment within the meaning of paragraph (i) of the definition of financial investment in subsection 9(1), where the asset - tested income stream (long term) arises under a complying superannuation plan (within the meaning of the Income Tax Assessment Act 1997 ) that is not a constitutionally protected fund (within the meaning of that Act); or
(b) a financial investment within the meaning of paragraph (j) of the definition of financial investment in subsection 9(1).