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, disregarding any assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) that may be included in the parent’s assessable 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: Method statement 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. Step 3. Divide the partial year income amount by the number of days in the remaining period. Step 4. Multiply the quotient by 365. (5) The start day for the election must be: (a) the day on which the parent makes the election; or (b) the first day of a child support period, so long as that day is not before the day referred to in paragraph (a). No election if an income amount order is in force (6) Despite subsection (1), a parent may not make an election if an income amount order is in force in relation to: (a) the parent; and (b) if the parent were to make such an election—any part of the period that would be the application period for the election. How election is made (7) The parent makes the election under subsection (1) by giving notice of it to the Registrar in the manner specified by the Registrar. (8) The notice must specify: (a) the amount that applies under subsection (2) or (3); and (b) if subsection (2) applies—each of the income component amounts estimated by the parent under that subsection; or (c) if subsection (3) applies: (i) the day that is the start day for the election; and (ii) each of the income component amounts estimated by the parent under paragraph (3)(b) and under step 1 of the method statement in subsection (4).