159JARebates for dependants—reduction because of certain other benefits

159JA Rebates for dependants—reduction because of certain other benefits

Families without shared care percentages (1) A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under section 159J in respect of a dependant for a part of the year, if: (a) the dependant is included in class 1 or 2 in the table in subsection 159J(2); and (b) during that part of the year: (i) the taxpayer is a member of a family tax benefit (Part B) family without shared care; or (ii) parental leave pay is payable under the Paid Parental Leave Act 2010 to the taxpayer, or to the taxpayer’s spouse while being the taxpayer’s partner (within the meaning of that Act).

Note: That part of the year may be the whole year.

(2) Subject to subsection (3), the rebate allowable to the taxpayer under section 159J in respect of the dependant for the part (if any) of the year not covered by paragraph (1)(b) of this section is such part of the relevant rebate amount specified in column 3 of the table in subsection 159J(2) as, in the Commissioner’s opinion, is reasonable in the circumstances. Families with shared care percentages (3) The rebate allowable to a taxpayer under section 159J in respect of a dependant for a part (the shared care period) of a year of income is to be worked out using the formula in subsection (4) of this section, if: (a) disregarding this subsection, the taxpayer would be entitled, in his or her assessment in respect of the year, to a rebate under section 159J in respect of the dependant; and (b) the dependant is included in class 1 or 2 in the table in subsection 159J(2); and (c) during the shared care period: (i) the taxpayer, or the taxpayer’s spouse while being the taxpayer’s partner (within the meaning of the A New Tax System (Family Assistance) Act 1999), was eligible for family tax benefit at the Part B rate within the meaning of that Act; and (ii) clause 31 of Schedule 1 to that Act applied in respect of that Part B rate because the taxpayer, or the taxpayer’s spouse, had a shared care percentage for an FTB child (within the meaning of that Act).

Note: The shared care period may be the whole year.

(4) The formula is: Image unavailable in extracted text where:

applicable rebate amount is the amount of rebate that would have been allowable under section 159J in respect of the shared care period but for subsection (3) of this section.

non‑shared care rate is the rate that would be the standard rate in respect of the taxpayer or the taxpayer’s spouse under clause 30 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 if:

(a) clause 31 of that Schedule did not apply; and
(b) the FTB child in respect of whom the standard rate was determined under clause 31 was the only FTB child of the taxpayer or the taxpayer’s spouse, as the case requires.