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A New Tax System (Family Assistance) Act 1999
38KOffsetting for duplicate rent assistance under family assistance and veterans’ entitlements law
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#### 38K Offsetting for duplicate rent assistance under family assistance and veterans’ entitlements law
When this clause applies
(1) This clause applies if:
(a) a decision (the veterans’ entitlements decision) was made that rent assistance was to be included when calculating an individual’s, or an individual’s eligible partner’s, rate of service pension, income support supplement or veteran payment for a day; and
(b) when the veterans’ entitlements 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 veterans’ entitlements 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 and as reduced (if at all) under clause 38J) is to be reduced:
(a) first, by the individual’s annual veterans’ entitlements RA amount for that day (see subclause (3)); and
(b) then, by the individual’s eligible partner’s annual veterans’ entitlements 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 veterans’ entitlements RA amount for that day is the amount worked out as follows:
Method statement
Step 1. Work out the rate (if any) of service pension, income support supplement or veteran payment (the actual payment) that was payable to the individual for that day.
Step 2. Work out the rate (if any) of service pension, income support supplement or veteran 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 service pension, income support supplement or veteran payment for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the individual’s provisional veterans’ entitlements RA amount for that day.
Step 4. Divide the individual’s provisional veterans’ entitlements RA amount for that day by 364, then multiply it by 365. The result is the individual’s annual veterans’ entitlements RA amount for that day.
(4) The individual’s eligible partner’s annual veterans’ entitlements RA amount for that day is the amount worked out as follows:
Method statement
Step 1. Work out the rate (if any) of service pension, income support supplement or veteran 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 service pension, income support supplement or veteran 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 amount of the eligible partner’s service pension, income support supplement or veteran payment for that day.
Step 3. Subtract the notional payment from the actual payment. The difference is the eligible partner’s provisional veterans’ entitlements RA amount for that day.
Step 4. Divide the eligible partner’s provisional veterans’ entitlements RA amount for that day by 364, then multiply it by 365. The result is the individual’s eligible partner’s annual veterans’ entitlements 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 or a respite care couple).