Commonwealth Numbered Acts Commonwealth Numbered ActsA New Tax System (Family Assistance) Act 1999
1 Subsection 3(1) (definition of FTB advance rate )
Repeal the definition.
2 Subsection 3(1)
Insert:
"repayment period" , in relation to a family tax benefit advance that is paid to an individual, has the meaning given by subclause 40(3) of Schedule 1.
3 Subsection 3(1) (definition of standard advance period )
Repeal the definition.
4 Subsection 3(1)
Insert:
"standard reduction" , in relation to a family tax benefit advance, has the meaning given by clause 41 of Schedule 1.
5 Paragraph 21(1)(c)
After "Part 4", insert "but disregarding reductions (if any) under clause 5 or 25A of Schedule 1".
6 Clause 5 of Schedule 1
Repeal the clause, substitute:
5 Family tax benefit advance to individual
(1) If:
(a) an individual is entitled to be paid family tax benefit by instalment; and
(b) the individual is paid a family tax benefit advance; and
(c) the individual has not repaid the whole of the advance; and
(d) the amount of unrepaid family tax benefit advance is not an FTB advance debt;
then, subject to clauses 44 and 49, the individual's Part A rate (as reduced (if at all) under clauses 38J and 38K) is to be reduced in accordance with Division 4 of Part 5 (clauses 40 to 51).
(2) If an individual satisfies paragraphs (1)(a) to (d) for more than one family tax benefit advance, the individual's Part A rate is to be reduced under subclause (1) for each of those advances.
7 Clause 25A of Schedule 1
Repeal the clause, substitute:
25A Family tax benefit advance to individual
(1) If:
(a) an individual is entitled to be paid family tax benefit by instalment; and
(b) the individual is paid a family tax benefit advance; and
(c) the individual has not repaid the whole of the advance; and
(d) the amount of unrepaid family tax benefit advance is not an FTB advance debt;
then, subject to clauses 44 and 49, the individual's Part A rate is to be reduced in accordance with Division 4 of Part 5 (clauses 40 to 51).
(2) If an individual satisfies paragraphs (1)(a) to (d) for more than one family tax benefit advance, the individual's Part A rate is to be reduced under subclause (1) for each of those advances.
8 At the end of Part 5 of Schedule 1
Add:
Division 4 -- Reduction for family tax benefit advance
40 Reduction for family tax benefit advance
(1) Subject to subclause (2) and clauses 43 and 44, the amount by which an individual's Part A rate is to be reduced under clause 5 or 25A to repay a family tax benefit advance is worked out using the following formula:
Member of a couple in a blended family
(2) If a determination under section 28 that an individual is eligible for a percentage (the section 28 percentage ) of the family tax benefit for FTB children of the individual is in force, the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A to repay the family tax benefit advance is worked out using the following formula:
Meaning of repayment period
(3) The repayment period in relation to a family tax benefit advance that is paid to an individual:
(a) begins on:
(i) the first day of the instalment period after the individual is paid the family tax benefit advance; or
(ii) if it is not practicable for the reduction to start on the day referred to in subparagraph (i)--the first day on which it is practicable to reduce the individual's Part A rate; or
(iii) if the determination of the individual's entitlement to the family tax benefit advance is a determination referred to in subsection 35B(3) of the Family Assistance Administration Act (regular family tax benefit advances)--the day the determination is made; or
(iv) such other day determined by the Secretary under this Division; and
(b) is a period of 182 days or such other period determined by the Secretary under this Division.
(1) Subject to subclause (2), the standard reduction for a family tax benefit advance is the amount worked out using the following formula:
Member of a couple in a blended family
(2) If a determination under section 28 that an individual is eligible for a percentage (the section 28 percentage ) of the family tax benefit for FTB children of the individual is in force, the standard reduction for a family tax benefit advance paid to the individual is the amount worked out using the following formula:
Meaning of original repayment period
(3) The original repayment period for a family tax benefit advance is a period of 182 days, unless the Secretary has determined a different period for the advance under clause 42 or 51.
42 Secretary determines shorter repayment period
When determining an individual's entitlement to a family tax benefit advance under section 35A of the Family Assistance Administration Act, the Secretary may determine that the repayment period for the family tax benefit advance is a period of less than 182 days, if the Secretary is satisfied that it is appropriate to determine the shorter repayment period having regard to:
(a) circumstances affecting the individual's eligibility for family tax benefit; and
(b) circumstances affecting the rate of family tax benefit that the individual is entitled to be paid.
43 Part A rate insufficient to cover reduction--single family tax benefit advance
(1) This clause applies if:
(a) under clause 5 or 25A, the individual's Part A rate is to be reduced to repay a family tax benefit advance (the unrepaid advance ); and
(b) the individual's Part A rate is not to be reduced under clause 5 or 25A to repay any other family tax benefit advance; and
(c) the amount by which the individual's Part A rate would be reduced under clause 5 or 25A to repay the unrepaid advance would exceed the amount of the individual's Part A rate before reduction (the unreduced Part A rate ), if the amount were worked out under clause 40.
(2) Subject to clause 45, the Secretary must determine that the number of days in the repayment period for the unrepaid advance is to be increased so that the individual's Part A rate is reduced under clause 5 or 25A by an amount that is no more than the individual's unreduced Part A rate.
(3) If the individual's unreduced Part A rate later exceeds the amount by which the individual's Part A rate would be reduced under clause 40, the Secretary may determine that the number of days in the repayment period for the unrepaid advance is to be decreased.
(4) However, the amount by which the individual's Part A rate is to be reduced as a result of a determination under subclause (3) must be no more than the standard reduction.
Note: The individual may also request that the Secretary determine a shorter or longer repayment period under clause 46 or 47.
44 Part A rate insufficient to cover reduction--multiple family tax benefit advances
(1) This clause applies if:
(a) under clause 5 or 25A, the individual's Part A rate is to be reduced to repay more than one family tax benefit advance (the unrepaid advances ); and
(b) the sum of the amounts by which the individual's Part A rate would be reduced under clause 5 or 25A to repay the unrepaid advances would exceed the amount of the individual's Part A rate before reduction (the unreduced Part A rate ), if the amounts were worked out under clause 40.
(2) Subject to clause 45, the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A to repay the unrepaid advances is worked out using the following method statement:
Method statement
Step 1. Take each advance, in the order in which the advances were paid.
Step 2. If the unreduced Part A rate, less any amounts by which the individual's Part A rate has been reduced under a previous application of this step, equals or exceeds the standard reduction for the advance, the individual's Part A rate is to be reduced by an amount equal to the standard reduction.
Step 3. If the unreduced Part A rate, less any amounts by which the individual's Part A rate has been reduced under a previous application of step 2, does not equal or exceed the standard reduction for the advance (but is greater than nil), the Secretary must determine that the number of days in the repayment period for the advance is to be increased so that the individual's Part A rate is reduced by an amount that is no more than the remainder.
Step 4. If the unreduced Part A rate, less any amounts by which the individual's Part A rate has been reduced under a previous application of step 2 or step 3, is nil, the Secretary must determine that the repayment period for the advance is to be suspended while the determination is in force.
(3) The Secretary may vary a determination made under step 3 of the method statement in subclause (2).
(4) The Secretary may revoke a determination made under step 4 of the method statement in subclause (2).
(5) Subject to clause 45, if the Secretary revokes a determination made under step 4 of the method statement in subclause (2) in relation to a family tax benefit advance, the Secretary must determine the number of days remaining in the repayment period for the advance.
(6) The Secretary must not vary a determination under subclause (3), or make a determination under subclause (5), in relation to a family tax benefit advance so that the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A to repay the advance is more than the standard reduction.
45 Part A rate insufficient to cover reduction--discretion to create FTB advance debt
(1) The Secretary may, instead of making a determination under subclause 43(2), step 3 of the method statement in subclause 44(2) or under subclause 44(5), determine that the amount of unrepaid family tax benefit advance is to be a debt.
Note: See subsection 71A(7) of the Family Assistance Administration Act.
(2) However, the Secretary must not make a determination under subclause (1) unless the individual's Part A rate before reduction under clause 5 or 25A is less than the amount that would, under clause 26, be the FTB child rate for an FTB child who had not turned 18 if:
(a) the individual's Part A rate were required to be worked out using Part 3 of this Schedule; and
(b) clause 27 did not apply.
46 Changing the repayment period--individual requests shorter period
Request for shorter repayment period
(1) The Secretary may determine that the number of days in a repayment period for a family tax benefit advance paid to an individual is to be decreased if:
(a) the individual has made a request in accordance with subclause (2) for a shorter repayment period; and
(b) the Secretary is satisfied that the individual would not suffer severe financial hardship if the number of days in the repayment period were decreased as determined.
(2) The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.
Request for variation of the determination
(3) On the request of the individual, the Secretary may, in writing, vary the determination so as to increase the number of days in the repayment period.
(4) However, the Secretary must not vary the determination under subclause (3) if, as a result of the variation, the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A would be less than the standard reduction.
Note: If, after a variation under subclause (3), the reduction in the individual's Part A rate under clause 5 or 25A would cause the individual to suffer severe financial hardship, the individual may request a longer repayment period under clause 47.
47 Changing the repayment period--individual requests longer period
Request for longer repayment period
(1) The Secretary may determine that the number of days in a repayment period for a family tax benefit advance paid to an individual is to be increased if:
(a) the individual has made a request in accordance with subclause (2) for a longer repayment period; and
(b) the Secretary is satisfied that:
(i) special circumstances relevant to the repayment of the advance exist in relation to the individual that could not reasonably have been foreseen at the time of the individual's request for a family tax benefit advance; and
(ii) the individual would suffer severe financial hardship if the number of days in the repayment period were not increased as determined.
(2) The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.
Secretary may vary the determination
(3) The Secretary may, in writing, vary the determination so as to reduce the number of days in the repayment period but only if:
(a) the Secretary is satisfied that the individual would not suffer severe financial hardship because of the variation; and
(b) the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A, as a result of the variation, is not greater than the standard reduction.
48 Changing the repayment period--recalculation of amount of unrepaid family tax benefit advance
(1) This clause applies if, during the repayment period for a family tax benefit advance, the amount of the family tax benefit advance that is unrepaid is increased, due to a variation in a determination, or a variation or substitution of a decision on review (other than a variation under subsection 28(2) or (6) of the Family Assistance Administration Act), so that the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A is an amount that is more than the standard reduction.
(2) The Secretary must determine that the number of days in a repayment period is to be increased so that the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A is an amount that is no more than the standard reduction.
Note: The individual may also request that the Secretary determine a shorter or longer repayment period under clause 46 or 47.
49 Suspension of repayment period
Request for suspension of repayment period
(1) The Secretary may determine that the repayment period for a family tax benefit advance paid to an individual is to be suspended while the determination is in force.
(2) However, the Secretary may only make a determination under subclause (1) if:
(a) the individual has made a request in accordance with subclause (3) for the repayment period to be suspended; and
(b) the Secretary is satisfied that:
(i) special circumstances relevant to the repayment of the advance exist in relation to the individual that could not reasonably have been foreseen at the time of the individual's request for a family tax benefit advance; and
(ii) the individual would suffer severe financial hardship if the individual's Part A rate were to be reduced for that period.
(3) The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.
Secretary may revoke the suspension
(4) The Secretary may in writing, at any time, revoke the determination, but only if the Secretary is satisfied that the individual would not suffer severe financial hardship from the individual's Part A rate being reduced under clause 5 or 25A as a result of the revocation.
Determination of repayment period on revocation of suspension
(5) If the Secretary revokes the determination, the Secretary must determine the number of days remaining in the repayment period so that the amount by which the individual's Part A rate is to be reduced under clause 5 or 25A is an amount that is no more than the standard reduction.
Note: The individual may also request that the Secretary determine a shorter or longer repayment period under clause 46 or 47.
50 Repayment of family tax benefit advance by another method
(1) The Secretary may determine that an individual may repay all or part of an amount of unrepaid family tax benefit advance by a method other than by reduction under clause 5 or 25A if:
(a) the individual has made a request in accordance with subclause (2); and
(b) the method is acceptable to both the individual and the Secretary.
(2) The request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.
51 Recalculation of amount of unrepaid family tax benefit advance
(1) This clause applies if:
(a) an individual is paid a family tax benefit advance (the old advance ); and
(b) the individual's Part A rate has been reduced under clause 5 or 25A to repay the old advance; and
(c) the repayment period for the old advance has expired; and
(d) due to a variation in a determination, or a variation or substitution of a decision on review (other than a variation under subsection 28(2) or (6) of the Family Assistance Administration Act), the reduction in the individual's Part A rate under clause 5 or 25A has not been sufficient to repay the old advance; and
(e) at the time of the variation of the determination, or the variation or substitution of the decision on review:
(i) the individual is entitled to be paid family tax benefit by instalment; and
(ii) the individual's Part A rate is greater than nil (before reduction under clause 5 or 25A).
Note: If a variation or review occurs during the repayment period for a family tax benefit advance, the Secretary may be required to make a determination under clause 48.
(2) The Secretary must determine that the individual is to be taken to have been paid a family tax benefit advance (the new advance ) equal to the amount of the old advance left unrepaid on the day on which the Part A rate is recalculated.
(3) If an individual is taken to have been paid a new advance under subclause (2), the individual is taken to have repaid the old advance.
(4) The Secretary must determine the repayment period for the new advance and the day on which the repayment period is to begin.
(5) The Secretary must not make a determination under subclause (4) that would cause the individual to suffer severe financial hardship.
(6) The Secretary may vary or revoke a determination made under subclause (2) or (4), if a subsequent variation in the determination, or a variation or substitution of the decision on review, occurs.
A New Tax System (Family Assistance) (Administration) Act 1999
9 Subsection 3(1)
Insert:
"advance assessment day" , in relation to a family tax benefit advance, has the meaning given by subsection 35A(3) and paragraph 35B(3)(b).
10 Subsection 3(1)
Insert:
"FTB advance debt" has the meaning given by section 71A.
11 Subsection 3(1)
Insert:
"maximum amount" , in relation to a family tax benefit advance, has the meaning given by section 35D.
12 Subsection 3(1)
Insert:
"minimum amount" , in relation to a family tax benefit advance that is paid to an individual, means:
(a) 3.75% of the FTB child rate for one FTB child who is under 13 years of age worked out under clause 7 of Schedule 1 to the Family Assistance Act (disregarding clauses 8 to 11 of that Schedule); or
(b) if a determination under section 28 of that Act that the individual is eligible for a percentage (the section 28 percentage ) of the family tax benefit for FTB children of the individual is in force--the section 28 percentage of the paragraph (a) amount; or
(c) if the amount that would be the minimum amount under paragraph (a) or (b) is not a number of whole cents--the amount rounded down to the nearest cent.
13 Division 2 of Part 3
Repeal the Division, substitute:
Division 2 -- Payment of family tax benefit advances
Subdivision A -- Request for family tax benefit advance
(1) An individual may request a family tax benefit advance.
(2) If an individual makes a request for a family tax benefit advance (the first advance ) accompanied by a request under section 35B (regular family tax benefit advances), the individual may also request that entitlement to the first advance be determined on a specified future day.
(1) To be effective a request:
(a) must be made in a form and manner, contain any information, and be accompanied by any documents required by the Secretary; and
(b) must specify the amount of family tax benefit advance sought; and
(c) the amount of family tax benefit advance sought must be at least the minimum amount.
(2) If an effective request is made, the Secretary must determine the request in accordance with this Division. If a request is not effective, it is taken never to have been made.
35 Request may be withdrawn or varied
(1) An individual may withdraw or vary a request before the request is determined.
(2) The individual may only do so in a manner determined by the Secretary.
(3) If a request is withdrawn, it is taken never to have been made.
Subdivision B -- Entitlement to family tax benefit advance
35A Entitlement to family tax benefit advance
(1) The Secretary must determine that an individual is entitled to be paid a family tax benefit advance if:
(a) on the advance assessment day, the individual is entitled to be paid family tax benefit by instalment; and
(b) the individual has made an effective request under section 34 for a family tax benefit advance; and
(c) on the advance assessment day, the individual's Part A rate (disregarding clauses 5 and 25A of Schedule 1 to the Family Assistance Act) is equal to or exceeds the amount that would, under clause 26 of that Schedule, be the FTB child rate for an FTB child who had not turned 18 if:
(i) the individual's Part A rate were required to be worked out using Part 3 of that Schedule; and
(ii) clause 27 of that Schedule did not apply; and
(d) on the advance assessment day, the individual has at least one FTB child; and
(e) on the advance assessment day, the amount of advance that the individual would be entitled to is at least the minimum amount; and
(f) the Secretary considers, on the basis of information available to the Secretary on the advance assessment day, that the individual will not suffer financial hardship from the individual's Part A rate being reduced as a result of being paid the advance; and
(g) on the advance assessment day, the individual is not excluded from being paid a family tax benefit advance under subsection (2).
(2) An individual is excluded from being paid a family tax benefit advance if:
(a) an amount of family tax benefit advance paid to the individual more than 12 months before the advance assessment day has not been fully repaid; or
(b) an amount of family tax benefit advance paid to the individual more than 12 months before the advance assessment day is being repaid as a new advance due to a determination under clause 51 of Schedule 1 to the Family Assistance Act; or
(c) the individual owes a debt to the Commonwealth (whether arising under this Act or not) that is:
(i) recoverable under Part 4 by means of deductions from the individual's instalments of family tax benefit under section 84 (unless that debt has been written off because of subsection 95(4A) or (4B)); or
(ii) being recovered by deductions from the individual's instalments of family tax benefit under section 227; or
(d) on the advance assessment day, the Secretary is prohibited from making a payment of family tax benefit to the individual under section 32AA or 32AD (non-payment for non-lodgment of tax returns).
(3) An individual's advance assessment day is the day the Secretary determines the individual's entitlement to be paid a family tax benefit advance.
(4) If the individual is not entitled to be paid a family tax benefit advance under subsection (1), the Secretary must determine that the individual is not entitled to the family tax benefit advance.
Subdivision C -- Regular family tax benefit advances
35B Regular family tax benefit advances
(1) An individual who makes a request in accordance with section 34 for a family tax benefit advance of the minimum amount (the first advance ) may, when making the request, also request that a family tax benefit advance of the minimum amount be paid to the individual at regular intervals of 182 days.
(2) For the request for payment of a family tax benefit advance at regular intervals to be effective, the request must be made in a form and manner, contain any information, and be accompanied by any documents, required by the Secretary.
(3) If an individual makes an effective request under this section:
(a) the Secretary must make a determination under section 35A, in relation to the individual's eligibility for a family tax benefit advance of the minimum amount, at intervals that would best facilitate payment in accordance with the request; and
(b) the advance assessment day for a determination referred to in paragraph (a) is:
(i) if the individual has not previously been paid a family tax benefit advance requested under this section--the day that falls immediately after the end of an interval of 182 days that began on the day the first advance was paid; or
(ii) if the individual has previously been paid a family tax benefit advance requested under this section--the day that falls immediately after the end of the last of the intervals of 182 days, the first of which began on the day the first advance was paid.
(4) The Secretary must, in making a determination referred to in subsection (3), treat paragraph 35A(1)(b) (requirement to make an effective request) as having been satisfied if:
(a) the individual has made an effective request under this section; and
(b) the request has not been withdrawn under subsection (6) before the determination is made; and
(c) the individual has not failed to repay the last family tax benefit advance paid in response to the request under section 34 mentioned in subsection (1), or the request under this section, within 182 days.
(5) A request under subsection (1) ceases to be effective if:
(a) the Secretary, in making a determination referred to in subsection (3), determines that the individual is not entitled to a family tax benefit advance; or
(b) the individual withdraws the request under subsection (6).
(6) An individual may, in a manner determined by the Secretary, withdraw the request at any time.
Subdivision D -- Amount of family tax benefit advance
35C Amount of family tax benefit advance
(1) The amount of the family tax benefit advance is the smaller of the following amounts:
(a) the amount of advance sought;
(b) the maximum amount of advance payable to the individual on the advance assessment day worked out under section 35D less the original amount of each family tax benefit advance paid to the individual that is unrepaid on that day.
(2) When working out the original amount of each family tax benefit advance paid to the individual that is unrepaid for the purposes of paragraph (1)(b), disregard clause 51 of Schedule 1 to the Family Assistance Act.
(3) The Secretary may determine that the amount of the family tax benefit advance is a lower amount than the amount that applies under subsection (1) if the Secretary is satisfied that the individual would suffer financial hardship if the individual's Part A rate were reduced as a result of being paid that amount.
35D Maximum amount of family tax benefit advance payable
(1) Subject to subsection (2), the maximum amount of family tax benefit advance payable to the individual is set out in the following table:
|
Maximum amount of family tax benefit advance |
||
|
Item |
If 7.5% of the individual's adjusted Part A rate is: |
The individual's maximum amount of family tax benefit advance is: |
|
1 |
greater than or equal to 23.3% of the standard rate for a child under 13 |
23.3% of the standard rate for a child under 13 |
|
2 |
less than 23.3% and greater than 7.5% of the standard rate for a child under 13 |
7.5% of the individual's adjusted Part A rate |
|
3 |
less than or equal to 7.5% of the standard rate for a child under 13 |
7.5% of the standard rate for a child under 13 |
Member of a couple in a blended family
(2) If a determination under section 28 of the Family Assistance Act that the individual is eligible for a percentage (the section 28 percentage ) of the family tax benefit for FTB children of the individual is in force, the maximum amount of family tax benefit advance payable to the individual is the section 28 percentage of the amount worked out for the individual under subsection (1).
Rounding
(3) Amounts worked out under this section must be rounded to the nearest cent (rounding 0.5 cents upwards).
Definitions
(4) In this section:
"adjusted Part A rate" , in relation to an individual, means the individual's Part A rate disregarding:
(a) clause 38A of Schedule 1 to the Family Assistance Act; and
(b) any reduction under clause 5 or 25A of that Schedule.
"standard rate" for a child under 13 means the FTB child rate for one FTB child who is under 13 years of age worked out under clause 7 of Schedule 1 to the Family Assistance Act (disregarding clauses 8 to 11 of that Schedule).
Subdivision E -- Payment of family tax benefit advance
(1) If an individual is entitled to be paid a family tax benefit advance, the Secretary must, at such time and in such manner as the Secretary considers appropriate, pay the individual the advance.
(2) This section is subject to Part 4, Division 3 of Part 8B and sections 225 and 226.
14 Section 71A
Repeal the section, substitute:
71A Debts arising in respect of family tax benefit advances
No entitlement to advance
(1) If:
(a) a family tax benefit advance has been paid to an individual; and
(b) the individual was not entitled to the advance;
the amount so paid is a debt due to the Commonwealth by the individual.
Overpayment
(2) If:
(a) an amount (the received amount ) of family tax benefit advance has been paid to an individual; and
(b) the received amount is greater than the amount (the correct amount ) of family tax benefit advance that should have been paid to the individual under the family assistance law;
the difference between the received amount and the correct amount is a debt due to the Commonwealth by the individual.
Debt arising during the repayment period for a family tax benefit advance
(3) If:
(a) an individual is paid a family tax benefit advance; and
(b) the repayment period for the advance has not expired; and
(c) one of the following occurs:
(i) the individual ceases to be entitled to be paid family tax benefit by instalment;
(ii) the individual's Part A rate becomes nil (before reduction under clause 5 or 25A of Schedule 1 to the Family Assistance Act);
the amount of unrepaid family tax benefit advance becomes a debt due to the Commonwealth by the individual.
Debt arising due to variation or review after the repayment period for a family tax benefit advance has expired
(4) If:
(a) an individual is paid a family tax benefit advance; and
(b) the individual's Part A rate has been reduced under clause 5 or 25A of Schedule 1 to the Family Assistance Act to repay the advance; and
(c) the repayment period for the advance has expired; and
(d) due to a variation in a determination, or a variation or substitution of a decision on review (other than a variation under subsection 28(2) or (6)), the reduction in the individual's Part A rate under clause 5 or 25A of Schedule 1 to the Family Assistance Act has not been sufficient to repay the advance; and
(e) at the time of the variation of the determination, or the variation or substitution of the decision on review:
(i) the individual is not entitled to be paid family tax benefit by instalment; or
(ii) the individual's Part A rate is nil (before reduction under clause 5 or 25A of Schedule 1 to the Family Assistance Act);
the amount of the family tax benefit advance left unrepaid as a result of the variation of the determination, or the variation or substitution of the decision on review, becomes a debt due to the Commonwealth by the individual.
Note: If the individual is entitled to be paid family tax benefit by instalment and has a Part A rate greater than nil, the unrepaid amount of the advance is to be repaid by reductions in the individual's Part A rate (see clause 51 of Schedule 1 to the Family Assistance Act).
Debt arising due to variation under subsection 28(2) or (6)
(5) If:
(a) an individual is paid a family tax benefit advance; and
(b) the individual's Part A rate has been reduced under clause 5 or 25A of Schedule 1 to the Family Assistance Act to repay the advance; and
(c) due to a variation in a determination of the individual's entitlement to family tax benefit made under subsection 28(2) or (6), the reduction in the individual's Part A rate under clause 5 or 25A of Schedule 1 to the Family Assistance Act has not been sufficient to repay the advance;
the amount of the family tax benefit advance left unrepaid as a result of the variation of the determination becomes a debt due to the Commonwealth by the individual.
(6) If a debt is created under subsection (5) and the Secretary varies the determination of the individual's entitlement to family tax benefit under subsection 28(3) or (4), the debt is taken never to have been created.
Note: If, after the variation, the individual's Part A rate was not sufficient to repay the advance, the unrepaid amount of the advance is to be repaid either by reductions in the individual's Part A rate (see clauses 48 and 51 of Schedule 1 to the Family Assistance Act) or as a debt under subsection (3) or (4).
Debt arising due to determination under clause 45 of Schedule 1 to the Family Assistance Act
(7) If:
(a) an individual is paid a family tax benefit advance; and
(b) the Secretary determines under clause 45 of Schedule 1 to the Family Assistance Act that the amount of the advance that is unrepaid is to be a debt;
the amount of the family tax benefit advance becomes a debt due to the Commonwealth by the individual.
Meaning of FTB advance debt
(8) The debt due to the Commonwealth under subsection (1), (2), (3), (4), (5) or (7) is an FTB advance debt .
15 After subparagraph 111(2)(a)(i)
Insert:
(ia) subsection 34(1);
(ib) subsection 35B(2);
16 At the end of paragraph 111(2)(a)
Add:
(xviii) subclause 46(2), 47(2), 49(3) or 50(2) of Schedule 1 to the Family Assistance Act;
Part 2 -- Application and transitional
17 Application
The amendments made by Part 1 of this Schedule apply to family tax benefit advances requested on or after the commencement of Part 1.
18 Transitional--percentage of standard rate for a child under 13 for 2011-12
For the purpose of subsection 35D(1) of the Family Assistance Administration Act as inserted by this Schedule, 23.3% of the standard rate for a child under 13 is taken to be $1000 for the 2011-12 financial year.
19 Transitional--request for determination on a future day
A request under subsection 33(2) of the Family Assistance Administration Act (as inserted by this Schedule) for a family tax benefit advance to be determined on a specified future day may only be made on or after 1 January 2012.
Part 3 -- Transitional advance payment
20 Transitional advance payment
(1) This item applies if:
(a) an individual was paid a family tax benefit advance for the individual's family tax benefit advance period that ended on 30 June 2011; and
(b) under paragraph 33(3)(b) of the Family Assistance Administration Act as in effect immediately before the commencement of this Schedule, the request for the advance operated for a particular standard advance period and all subsequent standard advance periods; and
(c) the individual had not withdrawn the request before 30 June 2011; and
(d) under clause 5 or 25A of Schedule 1 to the Family Assistance Act as in effect immediately before the commencement of this Schedule, the individual's Part A rate was reduced for the period by the FTB advance rate.
(2) On 1 July 2011, the individual is taken to have made an effective request for a single family tax benefit advance under section 34 of the Family Assistance Administration Act as inserted by this Schedule.
(3) The individual's advance assessment day is taken to be 1 July 2011.
(4) The amount of the family tax benefit advance is the smallest of the following amounts:
(a) $333.06;
(b) the maximum amount of advance payable to the individual on the advance assessment day worked out under section 35D of the Family Assistance Administration Act as inserted by this Schedule;
(c) the amount determined by the Secretary under subsection 35C(3) of the Family Assistance Administration Act as inserted by this Schedule.
(5) Clauses 47 and 49 of
Schedule 1 to the Family Assistance Act as inserted by this Schedule do
not apply to the advance.
