57Taxable income for child support purposes where taxable income determined to be nil under Income Tax Assessment Act

57 Taxable income for child support purposes where taxable income determined to be nil under Income Tax Assessment Act

(1) This section does not apply to a parent for a year of income if the parent has a component of adjusted taxable income mentioned in paragraphs 43(1)(b) to (e) for the year of income. Determinations that taxable income nil or no tax payable (2) A parent’s taxable income for a year of income is nil if the parent’s taxable income for that year has been determined to be nil under an Income Tax Assessment Act. (3) A parent’s taxable income for a year of income is also nil if: (a) the Commissioner has determined under an Income Tax Assessment Act that no tax was payable (before the allowance of any rebate or credit) under that Act on the parent’s taxable income for the year of income; and (b) either of the following subparagraphs applies in relation to the person: (i) Part 1 of Schedule 7 to the Income Tax Rates Act 1986 (or any other law prescribed by the regulations for the purposes of this paragraph in relation to the year of income) applied in relation to the parent for the year of income; (ii) no tax would have been payable (before the allowance of any rebate or credit) under that Act by the person on his or her taxable income if Part 1 of Schedule 7 to the Income Tax Rates Act 1986 (or any other law prescribed by the regulations for the purposes of this paragraph in relation to the year of income) had applied in relation to the parent for the year of income. (4) Subsections (2) and (3) do not apply in relation to an administrative assessment made in relation to a parent if: (a) before the administrative assessment is made; but (b) after the most relevant notice mentioned in subsection (5) or (6) is made; an assessment is issued under the Income Tax Assessment Act 1936 of the person’s taxable income for the year of income under an Income Tax Assessment Act. Notices issued under the Income Tax Assessment Act 1936 (5) If a parent has been served a notice under the Income Tax Assessment Act 1936 to the effect that the taxable income of the parent under an Income Tax Assessment Act for a year of income is nil, then: (a) the parent’s taxable income for that year is taken to have been determined to be nil under an Income Tax Assessment Act; and (b) if the notice was dated—the determination is taken to have been made on the date of the notice. (6) If a parent has been served a notice under the Income Tax Assessment Act 1936 to the effect that no tax is payable (before the allowance of any rebate or credit) under an Income Tax Assessment Act on the taxable income of the parent for a year of income, then: (a) the Commissioner is taken to have determined under the Income Tax Assessment Act that no tax was payable (before the allowance of any rebate or credit) under that Act on the parent’s taxable income for the year of income; and (b) if the notice was dated—the determination is taken to have been made on the date of the notice. When amended tax assessment may be taken into account (7) If, after an administrative assessment of child support is made, the assessment (the tax assessment) of the parent’s taxable income is amended (whether or not because of an objection, appeal or review), the Registrar must not amend the administrative assessment to take account of the amendment to the tax assessment unless either of the following applies: (a) the subsequent assessment was made because the parent had not made to the Commissioner a full and true disclosure of all the material facts necessary for the Commissioner’s assessment, or in other circumstances prescribed for the purposes of this subsection; (b) the amendment is made solely for the purposes of working out the parent’s adjusted taxable income for the last relevant year of income for the purposes of subsection 60(3) (first estimate must be lower than adjusted taxable income). Date of assessment of a parent’s taxable income taken to be date of notice of the assessment (8) For the purposes of this section, if: (a) notice of an assessment (including an amended assessment) of a parent’s taxable income under an Income Tax Assessment Act has been served on the parent under the Income Tax Assessment Act 1936; and (b) the notice is dated; then the assessment is taken to have been made on the date of the notice. Section not to affect determinations, court orders or consent orders (9) This section does not prevent: (a) the Registrar from making any determination under Part 6A (departure determinations); or (b) a court from making any order under Division 4 of Part 7 (departure orders); or (c) the making, and acceptance by the Registrar, of a child support agreement that includes provisions that have effect for the purposes of this Part as if they were such an order made by consent.