Commonwealth Consolidated Acts

A NEW TAX SYSTEM (FAMILY ASSISTANCE) ACT 1999 - SCHEDULE 4

Note:       See section 85.

Part 1 -- Preliminary

1   Analysis of Schedule

                   This Schedule provides for:

                     (a)  the indexation, in line with CPI (Consumer Price Index) increases, of the amounts in column 1 of the table at the end of clause 3; and

                     (c)  the adjustment of other amounts in line with the increases in the amounts indexed under the Social Security Act 1991 .

2   Indexed and adjusted amounts

                   The following table sets out:

                     (a)  each monetary amount that is to be indexed or adjusted under this Schedule; and

                     (b)  the abbreviation used in this Schedule for referring to that amount; and

                     (c)  the provision or provisions in which that amount is to be found.

Part 2 -- Indexation

3   CPI Indexation Table

             (1)  An amount referred to in the following table is to be indexed under this Part on each indexation day for the amount, using the reference quarter and base quarter for the amount and indexation day and rounding off to the nearest multiple of the rounding amount:

Highest quarter

             (2)  A reference in the table in subclause (1) to the highest of a group of quarters is a reference to the quarter in that group that has the highest index number.

Indexation of FTB gross supplement amount (B) for 2006-2007 income year and later income years

             (3)  The first indexation under subclause (1) of the FTB gross supplement amount (B), after the indexation of that amount under clause 3A, is to take place on 1 July 2006.

Indexation of cut-out amount for 2006-2007 income year and later income years

             (4)  The first indexation under subclause (1) of the cut-out amount is to take place on 1 July 2006.

No indexation of CCB standard hourly rate and CCB minimum hourly rate on 1 July 2007

             (5)  The CCB standard hourly rate and the CCB minimum hourly rate are not to be indexed on 1 July 2007.

First indexation of CCB minimum hourly amount

          (5A)  The first indexation of the CCB minimum hourly amount is to take place on 1 July 2009.

First indexation of CCR limit

             (6)  The first indexation of the CCR limit is to take place on 1 July 2009.

No indexation of CCR limit on 1 July 2011, 1 July 2012 and 1 July 2013

          (6A)  The indexation of the CCR limit that occurred on 1 July 2011 has no effect.

          (6B)  The CCR limit is not to be indexed on 1 July 2012 and 1 July 2013.

Note:          Indexation of the CCR limit resumes on 1 July 2014.

No indexation of certain amounts on 1 July 2009, 1 July 2010, 1 July 2011, 1 July 2012 and 1 July 2013

             (7)  The FTB basic HIFA (A), the FTB additional HIFA (A), the FTB income limit (B) and the baby bonus income limit are not to be indexed on 1 July 2009, 1 July 2010, 1 July 2011, 1 July 2012 and 1 July 2013.

No indexation of FTB gross supplement amount (A) and (B) on 1 July 2011, 1 July 2012 and 1 July 2013

             (8)  The FTB gross supplement amount (A) and the FTB gross supplement amount (B) are not to be indexed on 1 July 2011, 1 July 2012 and 1 July 2013.

3A   One-off 6-month indexation of FTB gross supplement amount (B) for 2005-2006 income year

                   The FTB gross supplement amount (B) is to be indexed under this Part on the indexation day, using the reference quarter, base quarter and indexation day and rounding off to the nearest multiple of the rounding base, where:

"base quarter" means June quarter 2004.

"indexation day" means 1 July 2005.

"reference quarter" means December quarter 2004.

"rounding base" means $3.65.

4   Indexation of amounts

             (1)  If an amount is to be indexed under this Part on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.

             (2)  This is how to work out the indexed amount for an amount that is to be indexed under this Part on an indexation day:

5   Indexation factor

             (1)  Subject to subclauses (2) and (3) and clauses 10 and 11, the indexation factor for an amount that is to be indexed under this Part on an indexation day is:

worked out to 3 decimal places.

             (2)  If an indexation factor worked out under subclause (1) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.

             (3)  If an indexation factor worked out under subclauses (1) and (2) would be less than 1, the indexation factor is to be increased to 1.

             (4)  Subject to subclause (5), if at any time (whether before or after the commencement of this clause), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Australian Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this clause.

             (5)  If at any time (whether before or after the commencement of this clause) the Australian Statistician changes the reference base for the Consumer Price Index, regard is to be had, for the purposes of applying this clause after the change takes place, only to index numbers published in terms of the new reference base.

6   Rounding off indexed amounts

             (1)  If a provisional indexed amount is a multiple of the rounding base, the provisional indexed amount becomes the indexed amount.

             (2)  If a provisional indexed amount is not a multiple of the rounding base, the indexed amount is the provisional indexed amount rounded up or down to the nearest multiple of the rounding base.

             (3)  If a provisional indexed amount is not a multiple of the rounding base but is a multiple of half the rounding base, the indexed amount is the provisional indexed amount rounded up to the nearest multiple of the rounding base.

Part 4 -- Transitional indexation provisions

9   Adjustment of amounts following 10% increase to maximum rent assistance amounts

             (1)  This clause applies to modify the way an amount specified in column 3 of the table in clause 14 or 14A of Schedule 1 (the maximum rent assistance amount ) is indexed under Part 2 of this Schedule for a limited period after 19 March 2001.

Rounding of provisional overall adjustment amounts

             (2)  If a provisional overall adjustment amount is a multiple of the rounding base for the maximum rent assistance amount (see column 5 of item 4 of the CPI Indexation Table in subclause 3(1)), the provisional overall adjustment amount is the overall adjustment amount.

             (3)  If a provisional overall adjustment amount is not a multiple of the rounding base, the overall adjustment amount is the provisional overall adjustment amount rounded up or down to the nearest multiple of the rounding base.

             (4)  If a provisional overall adjustment amount is not a multiple of the rounding base, but is a multiple of half the rounding base, the overall adjustment amount is the provisional overall adjustment amount rounded up to the nearest multiple of the rounding base.

10   Adjustment of indexation factor for certain amounts on and after 1 July 2013

             (1)  This clause applies to the following amounts:

                     (a)  FTB child rate (A1);

                     (b)  FTB child rate (A2);

                     (c)  FTB standard rate (B);

                     (d)  FTB standard ACO rate.

             (2)  For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day that is on or after 1 July 2013, is to be reduced by the brought forward indexation amount, but not below 1.

             (3)  In this clause:

"brought forward indexation amount" , in relation to an indexation day, means 0.007 less any reduction made under this clause for a previous indexation day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example:    Assume that the indexation factor worked out under clause 5 on 1 July 2013 is 1.004. The brought forward indexation amount in relation to 1 July 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 1 July 2013.

                   Further assume that on 1 July 2014 the indexation factor is 1.010. The brought forward indexation amount in relation to 1 July 2014 is 0.003. That indexation factor is reduced to 1.007 on 1 July 2014.

                   The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.

11   Adjustment of indexation factor for certain amounts on and after 1 July 2014

             (1)  This clause applies to the following amounts:

                     (a)  FTB gross supplement amount (A);

                     (b)  FTB gross supplement amount (B).

             (2)  For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day (a reduction day ) that is on or after 1 July 2014, is to be reduced by the brought forward indexation amount, but not below 1.

             (3)  In this clause:

"brought forward indexation amount" , in relation to a reduction day, means 0.007 less:

                     (a)  any reduction made under subclause 10(2) on 1 July 2013; and

                     (b)  any reduction made under this clause for a previous reduction day.

Note:          Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example:    Assume that the indexation factor worked out under clause 5 on 1 July 2014 is 1.010 and that there was a reduction of 0.004 under subclause 10(2) on 1 July 2013.

                   The brought forward indexation amount in relation to 1 July 2014 is 0.003. The indexation factor worked out under clause 5 on 1 July 2014 is reduced to 1.007.

                   The brought forward indexation amount in relation to later reduction days is now zero so there is no further reduction of the indexation factor.