60Parent may elect to estimate his or her adjusted taxable income for a year of income

60  Parent may elect to estimate his or her adjusted taxable income for a year of income

 (1) A parent may, before a year of income starts or during a year of income, elect that the parent’s adjusted taxable income for the year of income is to be the amount that applies under subsection (2) or (3) if:

 (a) the parent is to be assessed in respect of the costs of a child of the parent for a day in a child support period; and

 (b) the amount that would apply under that subsection is not more than 85% of:

 (i) the total of the parent’s adjusted taxable income determined in accordance with section 43 for the last relevant year of income for the child support period; or

 (ii) an amount that the parent declares is the total of the parent’s adjusted taxable income for the last relevant year of income for the child support period, and the Registrar is satisfied that the declared amount is correct.

Estimate for a whole year of income

 (2) If the parent makes the election under subsection (1) before the year of income starts or on the first day of the year of income, the amount is the total of the following amounts (the income component amounts) as estimated by the parent:

 (a) the parent’s taxable income for the year;

 (b) the parent’s reportable fringe benefits total for the year;

 (c) the parent’s target foreign income for the year;

 (d) the parent’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for the year;

 (e) the total of the tax free pensions or benefits received by the parent in the year;

 (f) the parent’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the year.

Estimate for a part of a year of income etc.

 (3) If the parent makes the election under subsection (1) during the year of income but not on the first day of the year of income:

 (a) the parent is to use the method in subsection (4) to work out the amount; and

 (b) the parent is to estimate each income component amount for the parent for the period that:

 (i) started on the first day of the year of income; and

 (ii) ended at the end of the day before the start day for the election.

 (4) For the purposes of paragraph (3)(a), the method is as follows:

Step 1. Estimate each income component amount for the parent for the period (the remaining period):

 (a) starting on the start day for the election; and

 (b) ending at the end of the last day of the year of income.

Step 2. Add up those amounts. The result is the partial year income amount.