24EDepletions from a maintenance income credit balance

24E  Depletions from a maintenance income credit balance

 (1) There is a depletion from the maintenance income credit balance for a registered entitlement of an individual, for an income year, of the amount worked out under subclause (2), if:

 (a) the income year has ended; and

 (b) the maintenance income that the individual received in the income year from the entitlement is more than the amount due in the income year from the entitlement.

 (2) The amount by which the maintenance income credit balance is depleted is the lower of:

 (a) the excess of the maintenance income that the individual received in the income year from the entitlement over the amount due in the income year from the entitlement; and

 (b) the amount of the maintenance income credit balance.

 (3) For the purposes of paragraphs (1)(b) and (2)(a), in working out the maintenance income received in an income year or the amount of maintenance income due in an income year:

 (a) disregard any maintenance income received or due for an FTB child for whom the FTB child rate under clause 7 does not exceed the base FTB child rate (see clause 8); and

 (b) disregard the operation of clause 11 (sharing of family tax benefit) in applying paragraph (a).

Part 2—Application and transitional provisions

9  Application

(1) Paragraph (c) of step 1 of the method statement in subclause 20(1) of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 applies to family tax benefit for the 2006‑2007 income year and later income years.

(2) Subdivision B of Division 5 of Part 2 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 applies to the 2000‑2001 income year and later income years.

10  Transitional

(1) In working out whether there is an accrual to a maintenance income credit balance for a day in the 2000‑2001, 2001‑2002 or 2002‑2003 income year, the condition in subclause 24B(3) of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 is taken to require that, in relation to the income year for which the accrual is being worked out, the eligible person under subclause 24B(2) of Schedule 1 to that Act does not have a non‑lodger debt.

(2) For the purposes of subitem (1), an eligible person has a non‑lodger debt in relation to an income year if:

 (a) the conditions in subsection 28(1) of the A New Tax System (Family Assistance) (Administration) Act 1999 are satisfied for a determination that relates to the eligible person; and

 (b) the Secretary has varied the determination under subsection 28(2) or (6) of that Act; and

 (c) because of that variation, the amount of family tax benefit paid in respect of the income year has become a debt under section 71 of that Act; and