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A NEW TAX SYSTEM (BONUSES FOR OLDER AUSTRALIANS) ACT 1999 - SECT 16

Amount of bonus payment
(1)
The amount of a Family and Community Services customer's bonus payment is:

(a)
if he or she is qualified for only the aged persons savings bonus component of the bonus payment—the amount of that component; or

(b)
if he or she is qualified for only the self-funded retirees supplementary bonus component of the bonus payment—the amount of that component; or

(c)
if he or she is qualified for both the aged persons savings bonus component and the self-funded retirees supplementary bonus component of the bonus payment—the sum of those components.

Aged persons savings bonus component

(2)
The aged persons savings bonus component of a bonus payment is worked out in accordance with the following table:

Amount of aged persons savings bonus component
Item If the Family and Community Services customer's annual retirement income is: ...the amount of the aged persons savings bonus component is equal to:
1 $20,000 or less his or her annual savings and investment income, up to a maximum of $1,000
2 more than $20,000 but less than $30,000 (a) his or her annual savings and investment income, up to a maximum of $1,000; less (b) the phasing out fraction (see subsection (6)) of the amount worked out under paragraph (a) of this item
Example: David has annual retirement income of $23,000 and annual savings and investment income of $1,500.

David's aged persons savings bonus component is worked out as follows.

David's annual savings and investment income of $1,500 exceeds the maximum of $1,000, so only $1,000 is potentially allowable.

The phasing out fraction of the $1,000 then needs to be subtracted. The fraction is:

Therefore 3 /10 of $1,000 (i.e. $300) needs to be subtracted. This leaves an aged persons savings bonus component of $700.

Self-funded retirees supplementary bonus component—person aged 60 or more

(3)
The self-funded retirees supplementary bonus component of a bonus payment for a Family and Community Services customer aged 60 or more is worked out in accordance with the following table:

Amount of self-funded retirees supplementary bonus component
Item If the Family and Community Services customer's annual retirement income is: ...the amount of the self-funded retirees supplementary bonus component is equal to:
1 $20,000 or less the amount, up to a maximum of $2,000, by which his or her annual savings and investment income exceeds $1,000
2 more than $20,000 but less than $30,000 (a) the amount, up to a maximum of $2,000, by which his or her annual savings and investment income exceeds $1,000; less (b) the phasing out fraction (see subsection (6)) of the amount worked out under paragraph (a) of this item
Example: Kath, aged 63, has annual retirement income of $24,000 and annual savings and investment income of $5,000.

Kath's self-funded retirees supplementary bonus component is worked out as follows.

Kath's annual savings and investment income of $5,000 exceeds the lower limit of $1,000 by $4,000, but this is only allowable up to a maximum of $2,000.

The phasing out fraction of the $2,000 then needs to be subtracted. The fraction is:

Therefore 4 /10 of $2,000 (i.e. $800) needs to be subtracted. This leaves a self-funded retirees supplementary bonus component of $1,200.

Kath is also entitled to an aged persons savings bonus component of $600: worked out under subsection (2).

Kath is entitled to a bonus payment of $1,800.

Self-funded retirees supplementary bonus component—person aged under 60

(4)
The self-funded retirees supplementary bonus component of a bonus payment for a Family and Community Services customer aged under 60 is worked out in accordance with the following table:

Amount of self-funded retirees supplementary bonus component
Item If the Family and Community Services customer's annual retirement income is: ...the amount of the self-funded retirees supplementary bonus component is equal to:
1 $20,000 or less his or her annual savings and investment income, up to a maximum of $2,000
2 more than $20,000 but less than $30,000 (a) his or her annual savings and investment income, up to a maximum of $2,000; less (b) the phasing out fraction (see subsection (6)) of the amount worked out under paragraph (a) of this item
Example: Dawn, aged 59, has annual retirement income of $24,000, all of which is annual savings and investment income.

Dawn's self-funded retirees supplementary bonus component is worked out as follows.

Dawn's savings and investment income of $24,000 is only allowable up to a maximum of $2,000.

The phasing out fraction of the $2,000 then needs to be subtracted. The fraction is:

Therefore 4 /10 of $2,000 (i.e. $800) needs to be subtracted. This leaves a self-funded retirees supplementary bonus component of $1,200.

Bonus payments less than $1 rounded up to $1

(5)
If the amount of a Family and Community Services customer's bonus payment worked out under this section is greater than nil and less than $1, the amount is rounded up to $1.

Phasing out fraction

(6)
In this section:

"phasing out fraction" means the following fraction:


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