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A New Tax System (Family Assistance) Act 1999
38JOffsetting for duplicate rent assistance under family assistance and social security law
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#### 38J Offsetting for duplicate rent assistance under family assistance and social security law
When this clause applies
(1) This clause applies if:
(a) a decision (the social security decision) was made that rent assistance was to be included when calculating an individual’s, or an individual’s eligible partner’s, rate of social security payment for a day; and
(b) when the social security decision was made, no decision (the family assistance decision) to make a determination that includes, or to vary a determination to include, rent assistance when calculating the individual’s Part A rate of family tax benefit for that day had been made; and
(c) after the social security decision was made, the family assistance decision was made; and
(d) the day mentioned in paragraphs (a) and (b) comes before the day on which the family assistance decision was made.
> Note: For the definition of eligible partner see subclause (5).
Part A rate to be reduced
(2) The individual’s Part A rate for that day (as calculated or recalculated because of the making of the family assistance decision) is to be reduced:
(a) first, by the individual’s annual social security RA amount for that day (see subclause (3)); and
(b) then, by the individual’s eligible partner’s annual social security RA amount for that day (see subclause (4)).
However, it is not to be reduced to less than:
(c) if it has been calculated for the first time under clause 3 or 28A because of the making of the family assistance decision—nil; and
(d) if it has been recalculated under clause 3 or 28A because of the making of the family assistance decision—the Part A rate as it was immediately before the recalculation.
(3) The individual’s annual social security RA amount for that day is the amount worked out as follows:
Method statement
Step 1. Work out the rate (if any) of social security payment (the actual payment) that was payable to the individual for that day.
Step 2. Work out the rate (if any) of social security payment (the notional payment) that would have been payable to the individual for that day if rent assistance were not included when calculating the rate of the individual’s social security payment for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the individual’s daily social security RA amount for that day.
Step 4. Multiply the individual’s daily social security RA amount for that day by 365. The result is the individual’s annual social security RA amount for that day.
(4) The individual’s eligible partner’s annual social security RA amount for that day is the amount worked out as follows:
Method statement
Step 1. Work out the rate (if any) of social security payment (the actual payment) that was payable to the individual’s eligible partner for that day.
Step 2. Work out the rate (if any) of social security payment (the notional payment) that would have been payable to the eligible partner for that day if rent assistance were not included when calculating the rate of the eligible partner’s social security payment for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the eligible partner’s daily social security RA amount for that day.
Step 4. Multiply the eligible partner’s daily social security RA amount for that day by 365. The result is the individual’s eligible partner’s annual social security RA amount for that day.
(5) For the purposes of this clause, an individual is the eligible partner of another individual if both individuals are members of a couple (other than an illness separated couple, a respite care couple or a temporarily separated couple).