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CLEAN ENERGY (HOUSEHOLD ASSISTANCE AMENDMENTS) ACT 2011 (NO. 141, 2011) - SCHEDULE 2

Clean energy payments under the family assistance law

Part 1 -- Clean energy advances for individuals

A New Tax System (Family Assistance) Act 1999

1  Subsection 3(1)

Insert:

"absent overseas FTB child" has the meaning given by section 63.

2  Subsection 3(1)

Insert:

"clean energy advance" means an advance to which an individual is entitled under Division 1 or 3 of Part 8.

3  After Part 7

Insert:

Part 8 -- Clean energy advances

Division 1 -- Entitlement to clean energy advances

103   Entitlement in normal circumstances

Entitlement for days 14 May 2012 to 30 June 2012

             (1)  The Secretary may, on a day during the period starting on 14 May 2012 and ending on 30 June 2012, determine that an individual is entitled to a clean energy advance if:

                     (a)  in relation to that day:

                              (i)  a determination under section 16 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; or

                             (ii)  a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 32 of this Act; and

                     (b)  the individual is in Australia on that day; and

                     (c)  the individual's rate of family tax benefit on that day, worked out under Division 1 of Part 4 but disregarding reductions (if any) under clause 5 or 25A of Schedule 1, is greater than nil; and

                     (d)  that rate was worked out taking into account at least one FTB child of the individual who is in Australia on that day; and

                     (e)  on that day, neither section 32AA nor 32AD of the Family Assistance Administration Act prevents the Secretary from making a payment of family tax benefit to the individual, or the individual's partner, worked out on the basis referred to in subsection 20(1), (2A) or (3) of that Act.

Note:          The amount of the advance is worked out under sections 105 and 106.

Entitlement for days 1 July 2012 to 30 June 2013

             (2)  The Secretary may determine that an individual is entitled to a clean energy advance if:

                     (a)  in relation to any day during the period starting on 1 July 2012 and ending on 30 June 2013:

                              (i)  a determination under section 16 or 17 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; or

                             (ii)  a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 32 of this Act; and

                     (b)  the individual is not an absent overseas recipient on that day (disregarding section 63A); and

                     (c)  the individual's rate of family tax benefit on that day, worked out under Division 1 of Part 4 but disregarding reductions (if any) under clause 5 or 25A of Schedule 1, is greater than nil; and

                     (d)  that rate was worked out taking into account at least one FTB child of the individual who is not an absent overseas FTB child on that day (disregarding section 63A).

Note:          The amount of the advance is worked out under sections 105 and 106.

             (3)  However, the Secretary must not make a determination under subsection (2) on a day before 1 July 2013 if:

                     (a)  on that day:

                              (i)  the individual is outside Australia and the individual left Australia before 1 April 2013; and

                             (ii)  the individual is not an absent overseas recipient (disregarding section 63A); or

                     (b)  on that day:

                              (i)  each FTB child of the individual is outside Australia and each FTB child of the individual left Australia before 1 April 2013; and

                             (ii)  each FTB child of the individual is not an absent overseas FTB child (disregarding section 63A).

Operation of section 32

             (4)  For the purposes of paragraphs (1)(c) and (d) and (2)(c) and (d), disregard section 32.

One clean energy advance only

             (5)  An individual is not entitled to more than one clean energy advance under this section.

104   Entitlement where death occurs

             (1)  The Secretary may determine that an individual is entitled to a clean energy advance if:

                     (a)  in relation to any day during the period starting on 1 July 2012 and ending on 30 June 2013, a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual because the Secretary is satisfied that the individual is eligible for family tax benefit under section 33 of this Act because of the death of another individual; and

                     (b)  either:

                              (i)  the Secretary has determined that the other individual was entitled to an amount of a clean energy advance, but the other individual died before the amount was paid; or

                             (ii)  the Secretary is satisfied that the other individual would have become entitled to an amount of a clean energy advance if the other individual had not died.

Note:          The amount of the advance is worked out under section 107.

             (2)  If the Secretary makes a determination under subsection (1), no-one else is, or can become, entitled to a clean energy advance because of the death of the other individual.

Division 2 -- Amount of clean energy advance

105   Amount of advance where entitlement under section 103

             (1)  On the day (the decision day ) that the Secretary determines that an individual is entitled to a clean energy advance under section 103, the Secretary must work out the amount of the advance.

Secretary determines entitlement before 1 July 2012

             (2)  If the decision day is before 1 July 2012, the amount of the individual's clean energy advance is, subject to subsections (5) and (6), worked out as follows:

Method statement

Step 1.   Work out the individual's clean energy daily rate (see section 106) on the decision day (assuming that any rate or amount that is to be indexed on 1 July 2012 had already been indexed on the decision day).

Step 2.   Multiply the amount at step 1 by 365: the result is the amount of the individual's clean energy advance.

Secretary determines entitlement in the 2012-13 income year

             (3)  If the decision day is on or after 1 July 2012 and before 1 July 2013, the amount of the individual's clean energy advance is, subject to subsections (5) and (6), worked out as follows:

Method statement

Step 1.   Work out the sum of the individual's clean energy daily rates (see section 106) for each day in the period beginning on 1 July 2012 and ending on the decision day.

Step 2.   Multiply the individual's clean energy daily rate on the decision day by the number of days in the 2012-13 income year that are after the decision day.

Step 3.   Work out the sum of the amounts at steps 1 and 2: the result is the amount of the individual's clean energy advance.

Secretary determines entitlement on or after 1 July 2013

             (4)  If the decision day is on or after 1 July 2013, the amount of the individual's clean energy advance is, subject to subsections (5) and (6), the sum of the individual's clean energy daily rates (see section 106) for each day in the 2012-13 income year.

Reduced amount if rate took account of a section 28 or 29 percentage determination

             (5)  If, in relation to any of the following days:

                     (a)  if the decision day is before 1 July 2012--the decision day;

                     (b)  if the decision day is on or after 1 July 2012 and before 1 July 2013--a day in the period beginning on 1 July 2012 and ending on the decision day;

                     (c)  if the decision day is on or after 1 July 2013--a day in the 2012-13 income year;

a determination under section 28 or 29 of a particular percentage in relation to one or more FTB children of the individual is in effect, the clean energy daily rate for that day is that percentage of the clean energy daily rate that would otherwise apply.

Legislative instrument

             (6)  If:

                     (a)  an individual is entitled to a clean energy advance under section 103 in relation to an FTB child; and

                     (b)  before the decision day in relation to the individual, a former partner of the individual was entitled to a clean energy advance under section 103 or 108 in relation to that FTB child; and

                     (c)  at the time the former partner became so entitled, the individual and the former partner were members of the same couple;

then:

                     (d)  subsections (2) to (5) do not apply in relation to working out the amount of the individual's clean energy advance; and

                     (e)  the amount of the individual's clean energy advance is worked out in accordance with an instrument made under subsection (7) (which may be nil).

             (7)  The Minister may, by legislative instrument, specify a method for working out the amount of clean energy advances for the purposes of subsection (6).

106   Clean energy daily rate

             (1)  An individual's clean energy daily rate for a day is worked out as follows:

Method statement

Step 1.   If the individual's rate of family tax benefit on that day (disregarding reductions (if any) under clause 5 or 25A of Schedule 1) consisted of or included a Part A rate greater than nil:

               (a)     if the Part A rate is worked out under clause 3 of Schedule 1 and the individual's income and maintenance tested rate exceeds the individual's base rate--work out the sum of the amounts at paragraphs (a) and (ca) of step 1 of the method statement in that clause; or

              (b)     if the Part A rate is worked out under clause 3 of Schedule 1 and the individual's income and maintenance tested rate is less than or equal to the individual's base rate--work out the sum of the amounts at paragraphs (a) and (d) of step 1 of the method statement in clause 25 of that Schedule; or

               (c)     if the Part A rate is worked out under clause 25 of Schedule 1 and the individual's Method 2 income and maintenance tested rate is less than or equal to the individual's provisional Part A rate--work out the sum of the amounts at paragraphs (a) and (d) of step 1 of the method statement in that clause; or

              (d)     if the Part A rate is worked out under clause 25 of Schedule 1 and the individual's Method 2 income and maintenance tested rate exceeds the individual's provisional Part A rate--work out the sum of the amounts at paragraphs (a) and (ca) of step 1 of the method statement in clause 3 of that Schedule.

Step 2.   If the individual's rate of family tax benefit on that day consisted of or included a Part B rate greater than nil, work out whichever of the following amounts is appropriate:

               (a)     the sum of the amounts under paragraphs 29(1)(a) and (b) of Schedule 1;

              (b)     the sum of the amounts at paragraphs (a) and (b) of step 1 of the method statement in subclause 29(2) of Schedule 1;

               (c)     the sum of the amounts under paragraphs 29A(2)(a) and (b) of Schedule 1.

Step 3.   Work out the sum of the amounts at steps 1 and 2.

Step 4.   Multiply the amount at step 3 by 0.017.

Step 5.   Divide the amount at step 4 by 365 (rounded to the nearest cent (rounding 0.5 cents upwards)): the result is the individual's clean energy daily rate for that day.

             (2)  If steps 1 and 2 of the method statement in subsection (1) do not apply in relation to an individual on a day, the individual's clean energy daily rate for that day is nil.

             (3)  An individual's clean energy daily rate for a day is nil if the individual is an absent overseas recipient on that day (disregarding section 63A).

             (4)  The calculation under subsection (1) for a day is to be done disregarding any FTB child of the individual who is an absent overseas FTB child (disregarding section 63A) on that day.

             (5)  The calculation under subsection (1) is to be done disregarding section 32.

             (6)  If:

                     (a)  the decision day (see subsection 105(1)) is before 1 July 2013; and

                     (b)  on the decision day:

                              (i)  an FTB child of the individual is outside Australia and the FTB child left Australia before 1 April 2013; and

                             (ii)  that FTB child is not an absent overseas FTB child (disregarding section 63A);

then the calculation under subsection (1) of this section on the decision day is to be done disregarding that FTB child.

             (7)  If the child referred to in subsection (6) returns to Australia before 1 July 2013, then, for the purposes of section 108, there is taken to be a change in the individual's circumstances on the day of the child's return.

             (8)  If the child referred to in subsection (6) does not return to Australia before 1 July 2013, then, for the purposes of section 108, there is taken to be a trigger day of 30 June 2013 in relation to the individual.

107   Amount of advance where entitlement under section 104

                   If the Secretary makes a determination under subsection 104(1) that an individual is entitled to a clean energy advance, the amount of the advance is the amount referred to in subparagraph 104(1)(b)(i) or (ii) (as the case requires).

Division 3 -- Top-up payments of clean energy advance

108   Top-up payments of clean energy advance

General case

             (1)  If:

                     (a)  the Secretary pays a clean energy advance (the original payment ) to an individual in circumstances where the Secretary determined the individual is entitled to the advance under section 103 and where the amount of the advance is not worked out under subsection 105(6); and

                     (b)  the decision day (see subsection 105(1)) is before 1 July 2013; and

                     (c)  on a day (the trigger day ) after the decision day and before 1 July 2013, the individual's circumstances change so that:

                              (i)  if the individual has not previously become entitled to a payment under this section--the amount of the original payment is less than the amount of the clean energy advance that would have been paid to the individual if the decision day had been the trigger day; or

                             (ii)  if the individual has previously become entitled to one or more payments under this section--the sum of those payments and the original payment is less than the amount of the clean energy advance that would have been paid to the individual if the decision day had been the trigger day;

then the individual is entitled to a further payment of clean energy advance equal to the amount of the shortfall.

Case involving former partner

             (2)  If:

                     (a)  the Secretary pays a clean energy advance (the original payment ) to an individual in circumstances where the Secretary determined the individual is entitled to the advance under section 103 and where the amount of the advance is worked out under subsection 105(6); and

                     (b)  the decision day (see subsection 105(1)) is before 1 July 2013; and

                     (c)  on a day after the decision day and before 1 July 2013, the individual's circumstances change; and

                     (d)  the individual is entitled to a further payment of clean energy advance in accordance with an instrument made under subsection (3);

then the amount of the individual's further clean energy advance is worked out in accordance with an instrument made under subsection (3) (which may be nil).

             (3)  The Minister may, by legislative instrument:

                     (a)  specify the circumstances in which individuals are entitled to further payments of clean energy advances for the purposes of subsection (2); and

                     (b)  specify a method for working out the amount of further clean energy advances for the purposes of subsection (2).

Interpretation

             (4)  For the purposes of this section, there is taken not to be a change in the individual's circumstances merely because a determination under section 28 in relation to the individual is varied or ceases to be in force.

Division 4 -- General rules

109   General rules

                   If:

                     (a)  an individual is entitled to a clean energy advance under section 103 or 108 in relation to an FTB child; and

                     (b)  the amount of the advance was not worked out by applying subsection 105(5);

then, while the individual is a member of a couple, the other member of the couple is not entitled to a clean energy advance under section 103 or 108 in relation to that child.

A New Tax System (Family Assistance) (Administration) Act 1999

4  After Division 4C of Part 3

Insert:

Division 4D -- Clean energy advance

65J   Payment of clean energy advance

             (1)  Subject to this section, if an individual is entitled to a clean energy advance, the Secretary must pay the advance to the individual in a single lump sum:

                     (a)  on the day that the Secretary considers to be the earliest day on which it is reasonably practicable for the advance to be paid; and

                     (b)  in such manner as the Secretary considers appropriate.

Note:          The individual does not have to make a claim for the advance.

             (2)  If:

                     (a)  the decision day (see subsection 105(1) of the Family Assistance Act) or the trigger day (see subsection 108(1) or (2) of that Act), as the case may be, is on or after 1 July 2012 and before 1 July 2013; and

                     (b)  on that day, section 32AA or 32AD of this Act prevents the Secretary from making a payment of family tax benefit to the individual, or the individual's partner, worked out on the basis referred to in subsection 20(1), (2A) or (3) of this Act;

then the Secretary must not pay the clean energy advance to the individual at a time that is earlier than the time family tax benefit is paid to the individual, or the individual's partner, in relation to that day.

             (3)  If:

                     (a)  the decision day (see subsection 105(1) of the Family Assistance Act) is on or after 1 July 2013; and

                     (b)  in relation to one or more days in the 2012-13 income year, section 32AA or 32AD of this Act prevents the Secretary from making a payment of family tax benefit to the individual, or the individual's partner, worked out on the basis referred to in subsection 20(1), (2A) or (3) of this Act;

then the Secretary must not pay the clean energy advance to the individual at a time that is earlier than the time family tax benefit is paid to the individual, or the individual's partner, in relation to those days.

5  At the end of subsection 66(1)

Add:

                    ; (j)  clean energy advance.

6  Section 70

Omit "or single income family bonus", substitute ", single income family bonus or a clean energy advance".

7  After section 71K

Insert:

71L   Debts arising in respect of clean energy advance

             (1)  This section applies in relation to an individual who has been paid a clean energy advance.

             (2)  For the purposes of this section, the relevant determination in relation to the individual is the determination referred to in paragraph 103(1)(a) or (2)(a) or 104(1)(a) of the Family Assistance Act.

Situation in which whole amount is a debt

             (3)  If:

                     (a)  after the advance was paid to the individual, the relevant determination in relation to the individual, at least so far as it relates to a day in the period starting on 1 July 2012 and ending on 30 June 2013, is or was (however described) changed, revoked, set aside or superseded by another determination; and

                     (b)  the decision to change, revoke, set aside or supersede the relevant determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and

                     (c)  had the change, revocation, setting aside or superseding occurred on or before the day the advance was paid, the advance would not have been paid;

the amount of the advance is a debt due to the Commonwealth by the individual.

Situation in which part of amount is a debt

             (4)  If:

                     (a)  after the advance was paid to the individual, the relevant determination in relation to the individual, at least so far as it relates to a day in the period starting on 1 July 2012 and ending on 30 June 2013, is or was (however described) changed, revoked, set aside or superseded by another determination; and

                     (b)  the decision to change, revoke, set aside or supersede the relevant determination is or was made for the reason, or for reasons including the reason, that the individual knowingly made a false or misleading statement, or knowingly provided false information; and

                     (c)  had the change, revocation, setting aside or superseding occurred on or before the day the advance was paid, the amount of the advance would have been reduced;

the amount by which the advance would have been reduced is a debt due to the Commonwealth by the individual.

8  Paragraph 74(a)

Omit "or single income family bonus", substitute ", single income family bonus or clean energy advance".

9  Subsection 82(3) (paragraph (a) of the definition of debt )

After "71K,", insert "71L,".

10  Subsection 93A(6) (at the end of the definition of family assistance payment )

Add:

               ; or (f)  a payment of clean energy advance.

11  Subsection 106(3)

Omit "or single income family bonus", substitute ", single income family bonus or clean energy advance".

12  Subsection 109D(4)

Omit "or single income family bonus", substitute ", single income family bonus or clean energy advance".

13  Paragraph 109D(5)(a)

Omit "or single income family bonus", substitute ", single income family bonus or clean energy advance".

14  Section 219TA (at the end of the definition of relevant benefit )

Add:

                ; or (l)  clean energy advance.


 

Part 2 -- Clean energy supplement for individuals

A New Tax System (Family Assistance) Act 1999

15  After section 58

Insert:

58A   Election to receive clean energy supplements quarterly

             (1)  If a determination under section 16 of the Family Assistance Administration Act is in force in a quarter under which an individual is entitled to be paid family tax benefit by instalment, the individual may, in a manner or way approved by the Secretary, make an election to have Division 2B of Part 4 of Schedule 1 to this Act and Division 2AA of Part 5 of that Schedule disregarded.

Note 1:       Those Divisions deal with clean energy supplement (Part A) and clean energy supplement (Part B).

Note 2:       If those Divisions are disregarded, they will be taken into account when the determination is reviewed under section 105 of the Family Assistance Administration Act after the end of a quarter--see section 105B of that Act.

             (2)  An election comes into force as soon as practicable after it is made.

             (3)  An election ceases to be in force if the individual ceases to be entitled to be paid family tax benefit under the determination.

Revoking an election

             (4)  The individual may, in a manner or way approved by the Secretary, revoke an election. A revocation takes effect as soon as practicable after it is made.

Definition

             (5)  In this section:

"quarter" means a period of 3 months beginning on 1 July, 1 October, 1 January or 1 April.

Note:          This section applies in relation to the quarter beginning on 1 July 2013 and all later quarters: see item 34 of Schedule 2 to the Clean Energy (Household Assistance Amendments) Act 2011 .

15A  At the end of section 62

Add:

             (5)  For the purposes of working out an individual's rate of family tax benefit, if the individual is an absent overseas recipient on a day (disregarding section 63A), then the following provisions do not apply in relation to that day:

                     (a)  paragraph (cb) of step 1 of the method statement in clause 3 of Schedule 1;

                     (b)  paragraph (e) of step 1 of the method statement in clause 25 of Schedule 1;

                     (c)  paragraph 29(1)(c) of Schedule 1;

                     (d)  paragraph (c) of step 1 of the method statement in subclause 29(2) of Schedule 1;

                     (e)  paragraph 29A(2)(c) of Schedule 1.

15B  At the end of section 63

Add:

             (5)  For the purposes of working out an individual's rate of family tax benefit, if an FTB child of the individual is an absent overseas FTB child on a day (disregarding section 63A), then disregard that child in working out the amount applicable in relation to that day under the following provisions:

                     (a)  paragraph (cb) of step 1 of the method statement in clause 3 of Schedule 1;

                     (b)  paragraph (e) of step 1 of the method statement in clause 25 of Schedule 1;

                     (c)  paragraph 29(1)(c) of Schedule 1;

                     (d)  paragraph (c) of step 1 of the method statement in subclause 29(2) of Schedule 1;

                     (e)  paragraph 29A(2)(c) of Schedule 1.

16  Clause 3 of Schedule 1 (after paragraph (ca) of step 1 of the method statement)

Insert:

             (cb)     the individual's clean energy supplement (Part A) under Subdivision A of Division 2AA of Part 5 (clause 38AA);

17  At the end of Division 1 of Part 2 of Schedule 1

Add:

6   Components of Part A rates under this Part

                   The Minister may, by legislative instrument, determine a method for working out the extent to which Part A rates under this Part are attributable to the amounts referred to in step 1 of the method statement in clause 3.

18  Clause 25 of Schedule 1 (paragraph (d) of step 1 of the method statement)

Omit "(clause 38A).", substitute "(clause 38A);".

19  Clause 25 of Schedule 1 (after paragraph (d) of step 1 of the method statement)

Insert:

               (e)     the individual's clean energy supplement (Part A) under Subdivision B of Division 2AA of Part 5 (clause 38AF).

20  At the end of Division 1 of Part 3 of Schedule 1

Add:

25B   Components of Part A rates under this Part

                   The Minister may, by legislative instrument, determine a method for working out the extent to which Part A rates under this Part are attributable to the amounts referred to in step 1 of the method statement in clause 25.

21  At the end of subclause 29(1) of Schedule 1

Add:

                   ; (c)  the individual's clean energy supplement (Part B) under Division 2B (clause 31B).

22  Subclause 29(2) of Schedule 1 (paragraph (b) of step 1 of the method statement)

Omit "(clause 31A).", substitute "(clause 31A);".

23  Subclause 29(2) of Schedule 1 (after paragraph (b) of step 1 of the method statement)

Insert:

               (c)     the individual's clean energy supplement (Part B) under Division 2B (clause 31B).

24  Subclause 29(2) of Schedule 1 (method statement, step 3)

Omit "(taking away so much of the individual's standard rate, and then so much (if any) of the individual's FTB Part B supplement, as equals the reduction)".

25  After subclause 29(2) of Schedule 1

Insert:

          (2A)  The Minister may, by legislative instrument, determine a method for working out the extent to which Part B rates under subclause (2) are attributable to the amounts referred to in step 1 of the method statement in subclause (2).

26  At the end of subclause 29A(2) of Schedule 1

Add:

                   ; (c)  the individual's clean energy supplement (Part B) under Division 2B in respect of the day (clause 31B).

27  After Division 2A of Part 4 of Schedule 1

Insert:

Division 2B -- Clean energy supplement (Part B)

31B   Clean energy supplement (Part B)

             (1)  The amount of the clean energy supplement (Part B) to be added in working out an individual's Part B rate under clause 29 or 29A is worked out using the following table. Work out which family situation applies to the individual. Subject to clause 31C, the clean energy supplement (Part B) is the amount worked out under subclause (2).

 

Clean energy supplement (Part B)

Item

Family situation

1

Youngest FTB child is under 5 years of age

2

Youngest FTB child is 5 years of age or over

             (2)  For the purposes of subclause (1), the clean energy supplement (Part B) , in relation to an item in the table in subclause (1), is worked out as follows:

Method statement

Step 1.   Work out the amount applicable on 1 July 2013 under the corresponding item of the table in clause 30.

Step 2.   Work out the FTB (B) gross supplement amount on 1 July 2013 under subclause 31A(2).

Step 3.   Work out the sum of the amounts at steps 1 and 2.

Step 4.   Multiply the amount at step 3 by 0.017.

Step 5.   Round the amount at step 4 to the nearest multiple of $3.65 (rounding up if necessary): the result is the clean energy supplement (Part B) .

             (3)  This clause does not apply in relation to a day if an election made by the individual under subsection 58A(1) is in force on that day.

Note:          If that election is in force on one or more days in a quarter, then after the end of the quarter the Secretary must review the instalment determination taking into account this Division: see section 105B of the Family Assistance Administration Act.

31C   Sharing family tax benefit (shared care percentages)

             (1)  If:

                     (a)  an individual has a shared care percentage for an FTB child of the individual; and

                     (b)  the child is the individual's only FTB child;

the individual's clean energy supplement (Part B) is the individual's shared care percentage of the clean energy supplement (Part B) that would otherwise apply.

             (2)  If:

                     (a)  an individual has a shared care percentage for an FTB child of the individual; and

                     (b)  the child is not the individual's only FTB child;

the individual's clean energy supplement (Part B) is to be worked out as follows:

                     (c)  for each of the individual's FTB children for whom the individual does not have a shared care percentage, work out the amount that would be the individual's clean energy supplement (Part B) under clause 31B if that child were the individual's only FTB child;

                     (d)  for each of the individual's FTB children for whom the individual has a shared care percentage, work out the amount that would be the individual's clean energy supplement (Part B) under clause 31B if:

                              (i)  that child were the individual's only FTB child; and

                             (ii)  subclause (1) of this clause applied to the child;

                     (e)  the individual's clean energy supplement (Part B) is the highest of the amounts obtained under paragraphs (c) and (d).

28  After Division 2A of Part 5 of Schedule 1

Insert:

Division 2AA -- Clean energy supplement (Part A)

Subdivision A--Clean energy supplement (Part A --Method 1)

38AA   Clean energy supplement (Part A--Method 1)

             (1)  The amount of the clean energy supplement (Part A) to be added in working out an individual's maximum rate under clause 3 is worked out using the following table. Work out which category applies to each FTB child of the individual. Subject to clauses 38AB to 38AE, the FTB clean energy child amount is worked out under subclause (2). The clean energy supplement (Part A) is the sum of the FTB clean energy child amounts.

 

Clean energy supplement (Part A--Method 1)

Item

Category of FTB child

1

FTB child who is under 13 years of age

2

FTB child who has reached 13, but is under 16, years of age

3

FTB child who has reached 16 years of age and who is a senior secondary school child

4

FTB child who has reached 16, but is under 18, years of age and who is not a senior secondary school child

5

FTB child who has reached 18, but is under 22, years of age and who is not a senior secondary school child

             (2)  For the purposes of subclause (1), the FTB clean energy child amount , in relation to an item in the table in subclause (1), is worked out as follows:

Method statement

Step 1.   Work out the amount applicable on 1 July 2013 under the corresponding item of the table in clause 7.

Step 2.   Work out the FTB gross supplement amount on 1 July 2013 under subclause 38A(3).

Step 3.   Work out the sum of the amounts at steps 1 and 2.

Step 4.   Multiply the amount at step 3 by 0.017.

Step 5.   Round the amount at step 4 to the nearest multiple of $3.65 (rounding up if necessary): the result is the FTB clean energy child amount .

             (3)  This clause does not apply in relation to a day if an election made by the individual under subsection 58A(1) is in force on that day.

Note:          If that election is in force on one or more days in a quarter, then after the end of the quarter the Secretary must review the instalment determination taking into account this Subdivision: see section 105B of the Family Assistance Administration Act.

38AB   Base FTB clean energy child amount

                   For the purposes of this Division, the base FTB clean energy child amount for an FTB child of an individual is the amount that would be the FTB clean energy child amount under subclause 38AF(2) if the individual's clean energy supplement (Part A) were being worked out under Subdivision B and clause 38AG did not apply.

38AC   FTB clean energy child amount--recipient of other periodic payments

                   The FTB clean energy child amount for an FTB child of an individual is the base FTB clean energy child amount (see clause 38AB) if:

                     (a)  the individual or the individual's partner is receiving a periodic payment under a law of the Commonwealth and the law provides for an increase in the rate of payment by reference to an FTB child of the individual; or

                     (b)  the individual or the individual's partner is receiving a periodic payment under a scheme administered by the Commonwealth and the scheme provides for an increase in the rate of payment by reference to an FTB child of the individual.

38AD   Effect of maintenance rights

                   The FTB clean energy child amount for an FTB child of an individual is the base FTB clean energy child amount (see clause 38AB) if:

                     (a)  the individual or the individual's partner is entitled to claim or apply for maintenance for the child; and

                     (b)  the Secretary considers that it is reasonable for the individual or partner to take action to obtain maintenance; and

                     (c)  the individual or partner does not take action that the Secretary considers reasonable to obtain maintenance.

38AE   Sharing family tax benefit (shared care percentages)

                   If an individual has a shared care percentage for an FTB child of the individual, the FTB clean energy child amount for the child, in working out the individual's clean energy supplement (Part A), is the individual's shared care percentage of the FTB clean energy child amount that would otherwise apply to the child.

Subdivision B--Clean energy supplement (Part A --Method 2)

38AF   Clean energy supplement (Part A--Method 2)

             (1)  The amount of the clean energy supplement (Part A) to be added in working out an individual's Method 2 base rate under clause 25 is worked out using the following table. Work out which category applies to each FTB child of the individual. Subject to clause 38AG, the FTB clean energy child amount is the amount worked out under subclause (2). The clean energy supplement (Part A) is the sum of the FTB clean energy child amounts.

 

Clean energy supplement (Part A--Method 2)

Item

Category of FTB child

1

FTB child who has not turned 18, or who has turned 18 and who is a senior secondary school child

2

FTB child who has turned 18 and who is not a senior secondary school child

             (2)  For the purposes of subclause (1), the FTB clean energy child amount , in relation to an item in the table in subclause (1), is worked out as follows:

Method statement

Step 1.   Work out the amount applicable on 1 July 2013 under:

               (a)     for item 1 of that table--paragraph 26(2)(a); or

              (b)     for item 2 of that table--paragraph 26(2)(b).

Step 2.   Work out the FTB gross supplement amount on 1 July 2013 under subclause 38A(3).

Step 3.   Work out the sum of the amounts at steps 1 and 2.

Step 4.   Multiply the amount at step 3 by 0.017.

Step 5.   Round the amount at step 4 to the nearest multiple of $3.65 (rounding up if necessary): the result is the FTB clean energy child amount .

             (3)  This clause does not apply in relation to a day if an election made by the individual under subsection 58A(1) is in force on that day.

Note:          If that election is in force on one or more days in a quarter, then after the end of the quarter the Secretary must review the instalment determination taking into account this Subdivision: see section 105B of the Family Assistance Administration Act.

38AG   Sharing family tax benefit (shared care percentages)

                   If an individual has a shared care percentage for an FTB child of the individual, the FTB clean energy child amount for the child, in working out the individual's clean energy supplement (Part A), is the individual's shared care percentage of the FTB clean energy child amount that would otherwise apply to the child.

29  Clause 2 of Schedule 4 (after table item 8A)

Insert:

 

8B

FTB clean energy child amount for family tax benefit (Part A)

FTB clean energy child amount

[Schedule 1--subclause 38AA(2)--all FTB clean energy child amounts]

[Schedule 1--subclause 38AF(2)--all FTB clean energy child amounts]

30  Clause 2 of Schedule 4 (after table item 9A)

Insert:

 

9B

Clean energy supplement (Part B) for family tax benefit (Part B)

Clean energy supplement (Part B)

[Schedule 1--subclause 31B(2)--all clean energy supplement (Part B) amounts]

31  Subclause 3(1) of Schedule 4 (after table item 8A)

Insert:

 

8B

FTB clean energy child amount

1 July

December

highest December quarter before reference quarter (but not earlier than December quarter 2012)

$3.65

32  Subclause 3(1) of Schedule 4 (after table item 9A)

Insert:

 

9B

Clean energy supplement (Part B)

1 July

December

highest December quarter before reference quarter (but not earlier than December quarter 2012)

$3.65

A New Tax System (Family Assistance) (Administration) Act 1999

33  After section 105A

Insert:

105B   Review of instalment determination--taking account of clean energy supplements

             (1)  This section applies if:

                     (a)  a determination under section 16 is in force in a quarter under which an individual is entitled to be paid family tax benefit by instalment; and

                     (b)  disregarding subsection (2) of this section, an election made by the individual under subsection 58A(1) of the Family Assistance Act is in force on one or more days in that quarter.

             (2)  After the end of that quarter:

                     (a)  for the purposes of subsection 105(1), the Secretary is taken to be satisfied that there is sufficient reason to review the determination; and

                     (b)  the Secretary must exercise the power conferred by subsection 105(1) to review the determination; and

                     (c)  the review must be done by assuming that:

                              (i)  Division 2B of Part 4 of Schedule 1 to the Family Assistance Act and Division 2AA of Part 5 of that Schedule applied in relation to those days; and

                             (ii)  the election was not in force on those days.

Note:          Those Divisions deal with clean energy supplement (Part A) and clean energy supplement (Part B).

Definition

             (3)  In this section:

"quarter" means a period of 3 months beginning on 1 July, 1 October, 1 January or 1 April.

Note:          This section applies in relation to the quarter beginning on 1 July 2013 and all later quarters: see item 34 of Schedule 2 to the Clean Energy (Household Assistance Amendments) Act 2011 .

34  Application of amendments

(1)       The amendments made by items 15 and 33 apply in relation to the quarter beginning on 1 July 2013 and all later quarters.

(2)       The amendments made by items 15A to 28 apply in relation to the 2013-14 income year and later income years.

(3)       The amendments made by items 29 to 32 apply in relation to the indexation day that is 1 July 2014 and all later indexation days.

35  Saving

(1)       This item applies if:

                     (a)  under subitem 6(2) of Schedule 1 to the Family Assistance and Other Legislation Amendment Act 2011 , the amendments made by that Schedule do not affect the payability to an individual (the adult ) of family tax benefit for another individual (the child ) for a day in the period (the transitional period ) described in subitem 6(4) of that Schedule; and

                     (b)  immediately before 1 July 2013, that period had not ended.

(2)       For the purposes of working out if item 5 of the table in subclause 38AA(1) of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 applies in relation to the adult and the child on or after 1 July 2013 and before the end of the transitional period, the reference in that item to 22 is taken to be a reference to 25.


 

Part 3 -- Clean energy advances for approved care organisations

36  Administrative scheme for paying clean energy advances to approved care organisations

(1)       A Minister administering the A New Tax System (Family Assistance) Act 1999 may, by legislative instrument, determine a scheme under which payments of clean energy advances may be made to approved care organisations (within the meaning of that Act) in particular circumstances. The Minister may, by legislative instrument, vary or revoke the scheme.

(2)       The circumstances in which the scheme provides for payments must be circumstances occurring in relation to the period starting on 14 May 2012 and ending on 30 June 2013.

(3)       Without limiting subitem (1), the scheme may deal with the following:

                     (a)  the circumstances in which payments are to be made;

                     (b)  the amount of the payments;

                     (c)  what an approved care organisation has to do to get a payment;

                     (d)  debt recovery;

                     (e)  administrative matters, such as determination of entitlement and how and when payments will be made;

                      (f)  the review of decisions made under the scheme (including internal review, review by the Social Security Appeals Tribunal or review by the Administrative Appeals Tribunal).

(4)       For the purposes of subsection 12(1) of the Legislative Instruments Act 2003 , an instrument made under subitem (1) (except an instrument of revocation) does not take effect until the end of the period in which it could be disallowed in either House of the Parliament.

(5)       Payments under the scheme are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.


 

Part 4 -- Clean energy supplement for approved care organisations

A New Tax System (Family Assistance) Act 1999

37  Subsection 58(2)

Repeal the subsection, substitute:

Annual rate of family tax benefit to approved care organisation

             (2)  An approved care organisation's annual rate of family tax benefit for an individual is the sum of:

                     (a)  the organisation's standard rate under subsection (2A); and

                     (b)  the organisation's clean energy supplement under subsection (2B).

          (2A)  An approved care organisation's standard rate for an individual is $1,372.40.

          (2B)  An approved care organisation's clean energy supplement for an individual is worked out as follows:

Method statement

Step 1.   Work out the amount applicable under subsection (2A) on 1 July 2013.

Step 2.   Multiply the amount at step 1 by 0.017.

Step 3.   Round the amount at step 2 to the nearest multiple of $3.65 (rounding up if necessary): the result is the clean energy supplement .

38  Clause 2 of Schedule 4 (table item 10)

Repeal the item, substitute:

 

10

Standard rate of family tax benefit payable to an approved care organisation

FTB standard ACO rate

[subsection 58(2A)]

39  Clause 2 of Schedule 4 (before table item 11)

Insert:

 

10A

Clean energy supplement payable to an approved care organisation

ACO clean energy supplement

[subsection 58(2B)]

40  Subclause 3(1) of Schedule 4 (table item 10)

Omit "FTB ACO rate", substitute "FTB standard ACO rate".

41  Subclause 3(1) of Schedule 4 (before table item 11)

Insert:

 

10A

ACO clean energy supplement

1 July

December

highest December quarter before reference quarter (but not earlier than December quarter 2012)

$3.65

42  Application

(1)       Paragraph 58(2)(b) and subsection 58(2B) of the A New Tax System (Family Assistance) Act 1999 , as inserted by this Act, apply in relation to the 2013-14 income year and later income years.

(2)       The amendments made by items 39 and 41 apply in relation to the indexation day that is 1 July 2014 and all later indexation days.


 

Part 5 -- Other amendments

A New Tax System (Family Assistance) Act 1999

43  Paragraph 21(1)(c)

After "Schedule 1", insert "and disregarding section 58A and subclauses 31B(3), 38AA(3) and 38AF(3) of Schedule 1".

44  Subclause 5(1) of Schedule 4

After "subclauses (2) and (3)", insert "and clauses 10 and 11".

45  Part 4 of Schedule 4 (heading)

Repeal the heading, substitute:

Part 4 -- Transitional indexation provisions

46  At the end of Part 4 of Schedule 4

Add:

10   Adjustment of indexation factor for certain amounts on and after 1 July 2013

             (1)  This clause applies to the following amounts:

                     (a)  FTB child rate (A1);

                     (b)  FTB child rate (A2);

                     (c)  FTB standard rate (B);

                     (d)  FTB standard ACO rate.

             (2)  For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day that is on or after 1 July 2013, is to be reduced by the brought forward indexation amount, but not below 1.

             (3)  In this clause:

"brought forward indexation amount" , in relation to an indexation day, means 0.007 less any reduction made under this clause for a previous indexation day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example:    Assume that the indexation factor worked out under clause 5 on 1 July 2013 is 1.004. The brought forward indexation amount in relation to 1 July 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 1 July 2013.

                   Further assume that on 1 July 2014 the indexation factor is 1.010. The brought forward indexation amount in relation to 1 July 2014 is 0.003. That indexation factor is reduced to 1.007 on 1 July 2014.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

11   Adjustment of indexation factor for certain amounts on and after 1 July 2014

             (1)  This clause applies to the following amounts:

                     (a)  FTB gross supplement amount (A);

                     (b)  FTB gross supplement amount (B).

             (2)  For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day (a reduction day ) that is on or after 1 July 2014, is to be reduced by the brought forward indexation amount, but not below 1.

             (3)  In this clause:

"brought forward indexation amount" , in relation to a reduction day, means 0.007 less:

                     (a)  any reduction made under subclause 10(2) on 1 July 2013; and

                     (b)  any reduction made under this clause for a previous reduction day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example:    Assume that the indexation factor worked out under clause 5 on 1 July 2014 is 1.010 and that there was a reduction of 0.004 under subclause 10(2) on 1 July 2013.

                   The brought forward indexation amount in relation to 1 July 2014 is 0.003. The indexation factor worked out under clause 5 on 1 July 2014 is reduced to 1.007.

                   The brought forward indexation amount in relation to later reduction days is now zero so there is no further reduction of the indexation factor.

A New Tax System (Family Assistance) (Administration) Act 1999

47  At the end of section 32A

Add:

             (3)  Subsection (2) does not apply for the purposes of working out the following:

                     (a)  the amount of a clean energy advance;

                     (b)  the amount of the clean energy supplement (Part A) under Subdivision A or B of Division 2AA of Part 5 of Schedule 1 to the Family Assistance Act;

                     (c)  the amount of the clean energy supplement (Part B) under Division 2B of Part 4 of that Schedule.


 



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