64AReconciliation using a parent’s actual adjusted taxable income—more than one income election

64A  Reconciliation using a parent’s actual adjusted taxable income—more than one income election

 (1) This section applies for the purposes of assessing a parent in relation to the costs of a child of the parent for a day in a child support period if:

 (a) the day occurs in the application period for an income election relating to a year of income that was made by the parent; and

 (b) the parent made more than one income election relating to the year of income; and

 (c) the parent’s actual adjusted taxable income for the year of income has been ascertained by the Registrar; and

 (d) if the Registrar has made a determination under subsection 64AB(1) in relation to the parent—the parent’s actual adjusted taxable income for the year of income is more than the parent’s determined ATI for that year; and

 (e) if, under section 63A, 63B or 63C, the Registrar has amended an assessment of child support payable by or to the parent—the Registrar determines that this section should apply in relation to the parent.

Reconciliation

 (2) Subject to this section, if the difference (the actual ATI amount) between:

 (a) the parent’s actual adjusted taxable income for the year of income; and

 (b) the parent’s applicable year to date income amount (if any) for the year of income;

is more than the parent’s estimated ATI amount for the year of income, then the parent’s adjusted taxable income for a day that occurs in the application period of each income election made by the parent is taken to be, and to have always been, the amount worked out for that income election using the method in subsection (4).

Estimated ATI amount

 (3) The parent’s estimated ATI amount for the year of income is worked out using the following method:

Step 1. For each income election relating to the year of income that had an application period that ended before the last day of the year of income:

 (a) if subsection 60(2) applied to the income election—divide the amount that applied under that subsection by 365; or

 (b) otherwise—divide the partial year income amount worked out under subsection 60(4) or 62A(1) by the number of days in the remaining period to which the income election related.

Step 2. For each of those income elections, multiply the result of step 1 by the number of days in the application period for the income election.

Step 3. Add up each of the amounts worked out under step 2.

Step 4. Add the result of step 3 and the partial year income amount worked out under subsection 62A(1) for the last income election relating to the year of income that was made by the parent.

Amount for the purposes of subsection (2)

 (4) For the purposes of subsection (2), the amount for each income election is worked out using the following method:

Step 1. Subtract the parent’s estimated ATI amount from the parent’s actual ATI amount.

Step 2. Divide the result by the total number of days in the application periods for each income election relating to the year of income that was made by the parent. The result is the additional daily rate.

Step 3. For each of those income elections, multiply the additional daily rate by the number of days in the application period for the income election. The result is the underestimated amount for the income election.

Step 4. For each of those income elections, add the underestimated amount for the income election and:

 (a) if the income election had an application period that ended before the last day of the year of income—the amount worked out for the income election under step 2 of the method statement in subsection (3); or

 (b) otherwise—the partial year income amount worked out under subsection 62A(1) for the income election.

Step 5. For each of those income elections:

 (a) divide the result of step 4 by the number of days in the application period for the income election; and

 (b) multiply the quotient by 365.

 (5) This section does not apply if an income amount order applies in relation to the parent and any part of an application period for any of the income elections.

64AA  Action by Registrar following reconciliation

  The Registrar is to take such action as is necessary to give effect to section 64 or 64A in relation to a parent (whether by amending any administrative assessment that has been made in relation to the parent or otherwise).

Subdivision B—Reconciliation using a parent’s determined ATI

64AB  Registrar to determine a parent’s adjusted taxable income for the purposes of reconciliation

 (a) a parent made an income election relating to a year of income; and

 (b) at the end of the period ending 12 months after the end of the year of income, the Registrar has not ascertained the parent’s actual adjusted taxable income for that year;

the Registrar may determine that an amount that the Registrar considers appropriate is the parent’s adjusted taxable income for that year for the purposes of this Subdivision.

 (2) If the Registrar makes a determination under subsection (1) in relation to a parent:

 (a) the amount determined is the parent’s determined ATI for the year of income; and

 (b) the Registrar must give notice of the determination to the parent.

 (a) that the parent may, subject to the Registration and Collection Act, object to the particulars of the assessment to which the determination relates; and

 (b) that if the parent is aggrieved by the decision on the objection, he or she may, subject to that Act, apply to the SSAT for review of the decision.

 (4) A contravention of subsection (3) in relation to a determination does not affect the validity of the determination.

64AC  Reconciliation using a parent’s determined ATI—single income election

 (1) This section applies for the purposes of assessing a parent in relation to the costs of a child of the parent for a day in the child support period if:

 (a) the day occurs in the application period for an income election relating to a year of income that was made by the parent; and

 (b) the parent did not make more than one income election relating to the year of income; and

 (c) the Registrar makes a determination under subsection 64AB(1) in relation to the parent; and

 (d) if, under section 63A, 63B or 63C, the Registrar has amended an assessment of child support payable by or to the parent—the Registrar determines that this section should apply in relation to the parent.

Reconciliation—election for a whole year of income

 (2) Subject to this section, if:

 (a) subsection 60(2) applied to the income election; and

 (b) the parent’s determined ATI for the year of income is more than the amount that applied under that subsection;

the parent’s adjusted taxable income for that year is taken to be, and to have always been, the parent’s determined ATI for that year.

Reconciliation—election for a part of a year of income

 (3) Subject to this section, if:

 (a) subsection 60(3) applied to the income election; and

 (b) the difference between:

 (i) the parent’s determined ATI for the year of income; and

 (ii) the parent’s applicable year to date income amount for the year of income;

  is more than the partial year income amount worked out by the parent under subsection 60(4);

the parent’s adjusted taxable income for a day that occurs in the application period for the income election is taken to be, and to have always been, the amount worked out under subsection (4).

 (4) For the purposes of subsection (3), the amount is worked out by:

 (a) dividing the amount worked out under paragraph (3)(b) by the number of days in the remaining period to which the income election related; and

 (b) multiplying the quotient by 365.

 (5) This section does not apply if an income amount order applies in relation to the parent and any part of the application period for the income election.

64AD  Reconciliation using a parent’s determined ATI—more than one income election

 (1) This section applies for the purposes of assessing a parent in relation to the costs of a child of the parent for a day in a child support period if:

 (a) the day occurs in the application period for an income election relating to a year of income that was made by the parent; and

 (b) the parent made more than one income election relating to the year of income; and

 (c) the Registrar makes a determination under subsection 64AB(1) in relation to the parent; and

 (d) if, under section 63A, 63B or 63C, the Registrar has amended an assessment of child support payable by or to the parent—the Registrar determines that this section should apply in relation to the parent.

Reconciliation

 (2) Subject to this section, if the difference (the actual ATI amount) between:

 (a) the parent’s determined ATI for the year of income; and

 (b) the parent’s applicable year to date income amount (if any) for the year of income;

is more than the parent’s estimated ATI amount for the year of income, then the parent’s adjusted taxable income for a day that occurs in the application period of each income election made by the parent is taken to be, and to have always been, the amount worked out for that income election using the method in subsection (4).

Estimated ATI amount

 (3) The parent’s estimated ATI amount for the year of income is worked out using the following method:

Step 1. For each income election relating to the year of income that had an application period that ended before the last day of the year of income:

 (a) if subsection 60(2) applied to the income election—divide the amount that applied under that subsection by 365; or

 (b) otherwise—divide the partial year income amount worked out under subsection 60(4) or 62A(1) by the number of days in the remaining period to which the income election related.

Step 2. For each of those income elections, multiply the result of step 1 by the number of days in the application period for the income election.

Step 3. Add up each of the amounts worked out under step 2.

Step 4. Add the result of step 3 and the partial year income amount worked out under subsection 62A(1) for the last income election relating to the year of income that was made by the parent.

Amount for the purposes of subsection (2)

 (4) For the purposes of subsection (2), the amount for each income election is worked out using the following method:

Step 1. Subtract the parent’s estimated ATI amount from the parent’s determined ATI.

Step 2. Divide the result by the total number of days in the application periods for each income election relating to the year of income that was made by the parent. The result is the additional daily rate.

Step 3. For each of those income elections, multiply the additional daily rate by the number of days in the application period for the income election. The result is the underestimated amount for the income election.

Step 4. For each of those income elections, add the underestimated amount for the income election and:

 (a) if the income election had an application period that ended before the last day of the year of income—the amount worked out for the income election under step 2 of the method statement in subsection (3); or

 (b) otherwise—the partial year income amount worked out under subsection 62A(1) for the income election.

Step 5. For each of those income elections:

 (a) divide the result of step 4 by the number of days in the application period for the income election; and

 (b) multiply the quotient by 365.

 (5) This section does not apply if an income amount order applies in relation to the parent and any part of an application period for any of the income elections.

64AE  Action by Registrar following reconciliation

  The Registrar is to take such action as is necessary to give effect to sections 64AC and 64AD in relation to a parent (whether by amending any administrative assessment that has been made in relation to the parent or otherwise).

Subdivision C—Penalty

64AF  Penalty if a parent underestimates an income amount

 (1) A parent is liable to pay the Registrar a penalty if:

 (a) the parent made an income election relating to a year of income; and

 (b) the parent’s actual adjusted taxable income for the year of income has been ascertained by the Registrar; and

 (c) the parent has underestimated an income amount in making the income election.

 (2) If the parent did not make more than one income election relating to the year of income, the parent has underestimated an income amount in making the income election if:

 (a) in a case where subsection 60(2) applied to the income election—the parent’s actual adjusted taxable income for the year of income is at least 110% of the amount that applied under that subsection; or

 (b) in a case where subsection 60(3) applied to the income election—the amount worked out by subtracting:

 (i) the parent’s applicable year to date income amount for the year of income; from

 (ii) the parent’s actual adjusted taxable income for the year of income;

  is at least 110% of the partial year income amount worked out by the parent under subsection 60(4).

 (3) If the parent made more than one income election relating to the year of income, the parent has underestimated an income amount in making the income elections if the amount worked out by subtracting:

 (a) the parent’s applicable year to date income amount (if any) for the year of income; from

 (b) the parent’s actual adjusted taxable income for the year of income;

is at least 110% of the parent’s estimated ATI amount for the year of income worked out under subsection 64A(3).

64AG  Amount of penalty

 (1) If a parent is liable under subsection 64AF(1) to pay a penalty, the amount of the penalty for each income election made by the parent relating to the year of income is 10% of the difference between:

 (a) the administrative assessment of child support made under section 64AA in relation to the parent; and

 (b) the administrative assessment of child support that would have been made if it were based entirely on the amount that applied under subsection 60(2) or (3), or that was worked out under subsection 62A(1).

 (2) The penalty is a debt due to the Commonwealth by the parent and is due and payable on the issue of the administrative assessment of child support made under section 64AA in relation to the parent.

64AH  Remission of penalty

 (1) The Registrar may remit the whole or a part of a penalty that a parent who made an income election is liable to pay under subsection 64AF(1) if:

 (a) the parent underestimated an income amount in making the income election because of an amendment of an Income Tax Assessment Act, or because of a ruling or determination under that Act; or

 (b) the parent underestimated an income amount in making the income election for some other reason, and the Registrar is satisfied that it would be fair and reasonable in the circumstances to remit the whole or that part of the penalty.

 (2) If the Registrar makes a decision to remit only part of the penalty, or not to remit any part of the penalty, the Registrar must give written notice of the decision to the parent by whom the penalty is, or but for the remission would be, payable.

 (a) that the parent may, subject to the Registration and Collection Act, object to the decision (the original decision); and

 (b) that if the parent is aggrieved by a later decision on an objection to the original decision, he or she may, subject to that Act, apply to the SSAT for review of the later decision.

 (4) A contravention of subsection (3) in relation to a decision does not affect the validity of the decision.