INDIVIDUALS
SEGMENT
PARENTS
AUDIENCE
NAT 4108A–6.2007
PRODUCT ID
Explanation of terms
Terms used in the instructions for the Family tax benefit (FTB) tax claim 2007 and the Family tax benefit (FTB) short tax claim 2007
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ABBREViATioNS
ATi fAo fTB adjusted taxable income family Assistance office family tax benefit lfS MBA large-family supplement multiple birth allowance
EXPLANATION OF TERMS
CoNTENTS
ADJUSTED fRiNGE BENEfiT ADJUSTED TAxABlE iNCoME ASSESSMENT PERioD ATi AUSTRAliAN RESiDENT foR fAMilY ASSiSTANCE PURPoSES BEREAVEMENT BlENDED fAMilY CAPiTAliSED MAiNTENANCE CARE CHilD iNCoME ClAiM PERioD CURRENT SPoUSE DATES of PERioDS YoU WERE oVERSEAS DATES of PERioDS YoUR CHilD WAS oVERSEAS DEDUCTiBlE CHilD MAiNTENANCE ExPENDiTURE DEPENDENT CHilD’S ADJUSTED TAxABlE iNCoME fAMilY ADJUSTED TAxABlE iNCoME fAMilY ATi fAMilY PRofilE fUll CARE iNCoME SUPPoRT PAYMENTS iNCoME YEAR lARGE-fAMilY SUPPlEMENT MAiNTENANCE ACTioN – ExEMPTioNS Violence or fear of violence Harmful or disruptive effect Trauma associated with proving paternity The father is unknown Unsuccessfully tried to prove paternity Conception through artificial insemination procedures Cultural considerations other exceptional circumstances Review of exemption MAiNTENANCE ACTioN – PRE-STAGE 1 MAiNTENANCE ACTioN – STAGE 1 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 5 5 4 5 5 5 5 5 5 5 5 5 5 MAiNTENANCE ACTioN – STAGE 2 MAiNTENANCE – CAPiTAliSED MAiNTENANCE – NoN-CASH MAiNTENANCE – RElEVANT PERioD Payer More than one payer Start of the relevant period End of the relevant period Gaps in the relevant period MAiNTENANCE iNCoME-fREE AREA MUlTiPlE BiRTH AlloWANCE NET RENTAl PRoPERTY loSSES oTHER EMPloYMENT-RElATED iNCoME PAYMENT UNDER A lABoUR MARKET PRoGRAM PERioDS PRioR To SEPARATioN PRESCRiBED EDUCATioNAl SCHEME PRESUMPTioN of PATERNiTY RECoNCiliATioN REDUCED WiTHHolDiNGS REPoRTABlE fRiNGE BENEfiT SHARED CARE Shared-care percentage SHoRT-TERM ABSENCE SPoUSE Current spouse SPoUSE’S TAx filE NUMBER ExEMPTioNS indefinite TfN exemption Temporary TfN exemption STUDYiNG fUll TiME Secondary students Tertiary students TARGET foREiGN iNCoME TAxABlE iNCoME TAx-fREE PENSioNS oR BENEfiTS WAiVER of fAMilY TAx BENEfiT EliGiBiliTY WiTHHolDiNGS – REDUCED 5 5 5 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9
fAMilY ASSiSTANCE offiCE – CoNTACT iNfoRMATioN 10
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ExPlANATioN of TERMS
ADjUSteD frINge beNefIt
An adjusted fringe benefit is a reportable fringe benefit amount ‘grossed down’. if you have any reportable fringe benefits they will appear on your payment summary. The family Assistance office will automatically reduce any amounts that appear on your payment summary to the adjusted amount. Write the reportable amount on your family tax benefit (fTB) tax claim or on your tax return. To get your adjusted fringe benefit amount use the following formula:
adjusted fringe benefits = reportable fringe benefits amount 53.5%
if you are unsure of your residency status, phone the fAo on 13 61 50 or visit their website at www.familyassist.gov.au in deciding whether you reside in Australia on a permanent basis, the fAo may need to look at: n the nature of your accommodation n the nature and extent of family relationships in Australia n the nature and extent of employment, business or financial ties with Australia n the frequency and duration of travel outside Australia, and n any other relevant matters. Having a tax file number does not necessarily mean you meet the residency requirement for family assistance.
EXPLANATION OF TERMS
ADjUSteD tAXAbLe INCOMe
A number of factors are included in calculating your adjusted taxable income (ATi). ATi is calculated as an annual amount. The components included in calculating your ATi are: n taxable income n adjusted fringe benefits n net rental property losses n tax-free pensions or benefits n target foreign income n deductible child maintenance expenditure. Each of these components is described in detail under separate headings.
NoTE
Your eligibility for fTB may be affected by a temporary absence from Australia. for more information, see Dates of periods you were overseas and Dates of periods your child was overseas.
bereAVeMeNt
if your dependent child died during the 2006–07 income year, you may be entitled to a bereavement payment. The bereavement payment is payable for 14 weeks from the date of death; other eligibility rules apply. for example, if your dependent child would have turned 21 years during the bereavement period and was not studying full time – or was studying full time and would have turned 25 years – you will be paid until the day before that birthday.
ASSeSSMeNt PerIOD
An assessment period is used to calculate your shared-care percentage. An assessment period begins on the latest of: n the day on which the care of the dependent child starts to be shared n the day on which care arrangements for the dependent child change or n 1 July in the income year of the claim. An assessment period ends on the earlier of: n 30 June of the income year in which the period began n the day before the day on which the care arrangements of the dependent child changed or n the day on which the care of the dependent child stopped. The assessment period is not affected if there are short-term absences (see page 8) or minor variations to your shared-care arrangements – for example, if a child who normally stays with your ex-spouse for a weekend does not do so because of illness.
bLeNDeD fAMILY
A blended family is a family where there are two or more dependent children, and n at least one of the children is a child of one member of the couple from a previous relationship, and n at least one of the other children is – a child of the other member of the couple from a previous relationship, or – a child of the couple.
CAPItALISeD MAINteNANCe
(See Maintenance – capitalised.)
CAre
Care means that you had responsibility for the day-to-day care, welfare and development of the child. Generally, day-to-day care includes physical care. You can still care for your dependent children if they are being educated away from your home – for example, at university. (See also Full care and Shared care.)
AtI
(See Adjusted taxable income.)
AUStrALIAN reSIDeNt fOr fAMILY ASSIStANCe PUrPOSeS
To be an Australian resident for family assistance purposes, you must: n reside in Australia on a permanent basis, and n satisfy one of the following: – you are an Australian citizen – you hold a permanent visa – you are a New Zealand citizen who entered Australia under a special category visa, or – you hold a certain class of temporary visa.
CHILD INCOMe
[See Dependent child adjusted taxable income (ATI).]
CLAIM PerIOD
A claim period is the time during this income year for which you are claiming family tax benefit (fTB) through the tax system. it does not include periods you are not claiming fTB or periods that you claimed fortnightly payments of fTB.
CUrreNt SPOUSe
(See Spouse.)
ExPlANATioN of TERMS
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DAteS Of PerIODS YOU Were OVerSeAS
if you leave Australia permanently you are not eligible for family tax benefit (fTB) from the day you leave Australia. You may claim fTB up to the date of your departure. if you leave Australia temporarily, you can continue to receive Part A and Part B benefits for the first 13 weeks of your overseas absence. However, if you stay away for longer than 13 weeks, Part B payments cease and, if your Part A payment was more than the base rate, it reduces to the base rate. if you are outside Australia for longer than three years, Part A payments will also cease. if you are outside Australia for more than 13 weeks but less than three years, return to Australia and leave again within 13 weeks – for instance, you take a two-week holiday overseas – your rate while you are overseas reverts to what you were being paid before you came back to Australia, that is, the Part A base rate. if you are outside Australia for more than three years, return to Australia and leave again within 13 weeks you are not eligible for fTB at any time during the later absence.
if you didn’t have a spouse for any part of the year, your ATi is your family ATi. The components of ATi are: n taxable income n adjusted fringe benefits n net rental property losses n tax-free pensions or benefits n target foreign income n deductible child maintenance expenditure. Each of these components is explained in detail under separate headings.
EXPLANATION OF TERMS
fAMILY AtI
(See Family adjusted taxable income.)
fAMILY PrOfILe
This is the make-up or composition of your family at a point in time during the family tax benefit (fTB) claim period. You may have more than one family profile during the fTB claim period. for example, your family profile would have changed if you began or ceased a relationship with a spouse during the year.
DAteS Of PerIODS YOUr CHILD WAS OVerSeAS
if your child leaves Australia permanently you are not eligible for family tax benefit (fTB) for this dependant from the day they leave Australia. You may claim fTB up to the date of their departure. if your child leaves Australia temporarily, you can continue to receive Part A and Part B benefits for the first 13 weeks of their overseas absence. However, if your child stays away for longer than 13 weeks, Part B payments cease and, if your Part A payment was more than the base rate, it reduces to the base rate. if your child is outside Australia for longer than three years, Part A payments will also cease. if your child is outside Australia for more than 13 weeks but less than three years, returns to Australia and leaves again within 13 weeks – for instance, they take a two-week holiday overseas – your rate while they are away reverts to what you were getting for that child before they came back, that is, the Part A base rate. if your child is outside Australia for more than three years, returns to Australia and leaves again within 13 weeks you are not eligible for fTB at any time during their later absence.
fULL CAre
You had full care of your children if you or your current spouse, or both of you cared for your children for the whole assessment period and you are claiming family tax benefit (fTB) on behalf of your family. (See also Care and Shared care.)
INCOMe SUPPOrt PAYMeNtS
The following payments are income support payments: n Newstart allowance n disability support pension n disability support pension (blind) n parenting payment n partner allowance n wife pension n widow allowance n youth allowance n age pension n austudy payment n widow B pension n sickness allowance n special benefit n mature age allowance n mature age partner allowance n carer payment n Department of Veterans’ Affairs service pension n Department of Veterans’ Affairs income support supplement n Department of Veterans’ Affairs invalidity pension n Department of Veterans’ Affairs language, literacy and numeracy supplement n bereavement allowance n Community Development Employment Project participant supplement n special needs pension.
DeDUCtIbLe CHILD MAINteNANCe eXPeNDItUre
Deductible child maintenance expenditure is the amount of child maintenance (also known as child support) you are required to pay to another person to maintain your natural or adopted child. To work out your adjusted taxable income (ATi), deduct this amount from the total of all the other ATi amounts.
DePeNDeNt CHILD’S ADjUSteD tAXAbLe INCOMe (AtI)
Your child’s adjusted taxable income (ATi) limits for the 2006–07 income year are listed in Family tax benefit (FTB) tax claim instructions 2007. if their ATi is equal to or more than the relevant limit stated, they are not considered a dependent child and you cannot claim fTB for them.
INCOMe YeAr
The claims in this package relate to the 1 July 2006 to 30 June 2007 income year.
fAMILY ADjUSteD tAXAbLe INCOMe
A family adjusted taxable income (ATi) is the combined amount of your ATi and your spouse’s ATi, if you had a spouse. family ATi is calculated from your whole year ATi and your spouse’s whole year ATi for the period or periods you were together.
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ExPlANATioN of TERMS
LArge-fAMILY SUPPLeMeNt
The large-family supplement (lfS) is an amount that is added to the Part A rate for families with three or more dependent children. The lfS rate is $255.50 for the third and each subsequent dependent child after the third.
Other exceptional circumstances
There may be other situations where it is inappropriate for you to take maintenance action. for further information, contact the family Assistance office (fAo) – see the contact details on page 10.
MAINteNANCe ACtION – eXeMPtIONS
You may be entitled to an exemption from taking maintenance action if any of the following circumstances apply to you.
review of exemption
The fAo may conduct a review of your exemption. The review may take the form of a phone call to confirm that your circumstances have not changed.
EXPLANATION OF TERMS
Violence or fear of violence
it may be inappropriate for you to take maintenance action where: n there is a history of violence towards you and/or your immediate family by the other parent, or n the other parent has stated that violence will occur if you take maintenance action.
MAINteNANCe ACtION – Pre-StAge 1
A pre-stage 1 child is a child who was born before 1 June 1988 and whose parents separated before 1 June 1988. These children are exempt from the maintenance action test.
Harmful or disruptive effect
You are exempt where it would be very emotionally traumatic for you to pursue child maintenance – for example, in cases of rape or incest.
MAINteNANCe ACtION – StAge 1
A stage 1 child is a child who was born before 1 october 1989 and whose: n parents separated before 1 october 1989 n parents never lived together, or n full brother or sister was born before 1 october 1989. Under stage 1 you must: n receive child maintenance under an informal agreement n apply to the Child Support Agency for collection of child maintenance under a court order or court registered agreement, or n privately collect 100% of your child maintenance under a court order or court registered agreement, or have court proceedings in progress.
trauma associated with proving paternity
You may be exempt if you consider that it would be emotionally traumatic for you to pursue proof of paternity in cases where the father has not: n put his name on the birth certificate, or n acknowledged that he is the father of the dependent child.
the father is unknown
You may be exempt if the father of the dependent child is unknown. if you know who the father is and the grounds for presumption of paternity (see page 7 for an explanation of this term) are not met, you must take legal action to seek proof.
MAINteNANCe ACtION – StAge
A stage 2 child is a child who was born on or after 1 october 1989, and whose: n parents separated on or after 1 october 1989 n parents never lived together, or n full brother or sister was born on or after 1 october 1989. Under stage 2 you must complete and lodge an assessment form with the Child Support Agency (CSA) and: n have your child maintenance collected by the CSA n privately collect 100% of the child maintenance under your child support assessment, or n lodge a child support agreement.
Unsuccessfully tried to prove paternity
You are exempt where: n a court has said the man is not the father n legal Aid will not fund the paternity case, or n the man’s whereabouts remain unknown and you have taken reasonable steps to locate him.
Conception through artificial insemination procedures
if a child was conceived through artificial insemination procedures, you may claim an exemption if, at the time of artificial insemination, the mother was: n not partnered n in a marriage-like relationship with a person of the same sex, or n married but underwent the procedure without the consent of her spouse.
MAINteNANCe – CAPItALISeD
Capitalised maintenance is a term used to refer to maintenance that is received in the form of a capital item worth more than $1,500 – for example, a car – and covers a specified period. Capitalised maintenance income is not: n a periodic amount, or n a benefit provided on a periodic basis.
Cultural considerations
You may be exempt if cultural considerations indicate that maintenance action would cause hardship to you and/or your community.
MAINteNANCe – NON-CASH
for the purposes of family tax benefit (fTB), non-cash maintenance includes payments or benefits to a person or their child, for the maintenance of either, and received from: n a parent of the child, or n the spouse or former spouse of a parent of the child.
ExPlANATioN of TERMS
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5
Non-cash maintenance includes non-cash support or payments made to a third party. Examples of non-cash maintenance are: n food n clothing n household items and repairs n mortgage payments, rent and free lodging n health insurance and medical expenses n loan, credit card and store account repayments n child care fees n general education expenses, including school and tuition fees n sporting club costs including fees, equipment, related travel and accommodation n travel or holiday expenses n utility bills, such as electricity, gas, phone and heating n rates, such as council, water and sewerage n motor vehicle expenses.
end of the relevant period
The relevant period ends on the earliest of: n the date a maintenance liability ceases n the date voluntary maintenance payments cease, or n the end of the income year.
gaps in the relevant period
The number of days in a relevant period is not reduced by a gap between a period of voluntary maintenance and a period where a maintenance liability exists.
EXPLANATION OF TERMS
MAINteNANCe INCOMe – free AreA
The maintenance income – free area is the amount of child support (maintenance) you can receive before your family tax benefit (fTB) Part A payment is reduced. Maintenance income above the free area reduces your fTB Part A payment by 50 cents in the dollar until the base rate of fTB Part A is reached. The maintenance income – free area is made up of a basic amount for the first child and a supplementary amount for each subsequent child. The maintenance income – free areas for 2006–07 are shown below. Individual’s situation Basic amount (one child) $1,215.45 $2,430.90 $1,215.45 For each additional child, add $405.15 $405.15 $405.15
MAINteNANCe – reLeVANt PerIOD
for the purposes of family tax benefit (fTB), the relevant period for the assessment of maintenance income is the period that a claimant is entitled to receive maintenance during an income year. Generally, the relevant period is the income year for which fTB is being paid. However, if you separated from or reconciled with your spouse, or gained care of a dependent child during the income year, the relevant period is the period during which you are entitled to maintenance for your dependent child.
Single A couple and both have maintenance income A couple but only one has maintenance income
eXAMPLe
Jane has two children from two previous relationships. Jane is claiming fTB from 1 July 2006. on 3 September 2006 Jane reconciled with Dave, the father of her younger child. Terry, the father of her older child, died in an accident on 1 May 2007. There are two relevant periods in the 2006–07 income year for Jane’s child maintenance entitlement: from 1 July to 2 September 2006 for Dave, and from 1 July 2006 to 30 April 2007 for Terry.
if you need the maintenance income – free areas for previous income years, contact the family Assistance office on 13 61 50 or visit their website at www.familyassist.gov.au
MULtIPLe bIrtH ALLOWANCe
The multiple birth allowance (MBA) is an additional amount that is added to the Part A rate for families who care for three or more children from the same multiple birth – that is, triplets or greater – up until their sixth birthday. The MBA rate per year is $3,076.95 for triplets and $4,102.60 for quadruplets or more.
ExCEPTioN
Capitalised maintenance income is assessed separately. The relevant capitalised maintenance period is used to calculate the amount of capitalised maintenance that must be included for this period.
Net reNtAL PrOPertY LOSSeS
if rental property expenses exceed gross rental property income the result is a net rental property loss. The net rental property loss is counted as income for adjusted taxable income (ATi) purposes. for example, your taxable income is $35,000 and this included a net rental property loss of $2,500 and you had no other components of ATi, your ATi is as follows: Taxable income Net rental property loss Adjusted taxable income $35,000 $2,500 $37,500
Payer
for fTB purposes, a payer is anyone who has paid maintenance.
More than one payer
The relevant period applies in relation to each maintenance liability. Therefore, if you have children from more than one previous relationship, there will be a separate relevant period for each payer.
Start of the relevant period
The relevant period begins on the latest of: n the date a maintenance liability begins n the date voluntary maintenance payments begin, or n the start of the income year.
if the rental property expenses are less than the gross income, do not include this amount as it is already included in your taxable income.
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ExPlANATioN of TERMS
OtHer eMPLOYMeNt-reLAteD INCOMe
other employment-related income includes: n income earned as a result of being on paid leave (such as paid maternity leave) n a payment of compensation or a payment of insurance in respect of an inability to earn, derive or receive income from paid work during the period, and n income that is derived from previous self-employment, such as from an interest or investment connected with your previous self-employment.
if you received fortnightly payments of fTB for a part of the income year you would have estimated your own ATi (and your spouse’s – if applicable). if you or your spouse, or both of you, are required to lodge a tax return, reconciliation will occur after you have lodged your tax returns. Details of taxable income, reportable fringe benefits and net rental property losses are taken from your tax return and sent to the fAo for reconciliation purposes. if you claim fTB for the whole year through the tax system and you have estimated your spouse’s income, reconciliation will occur when your spouse lodges their tax return, if they are required to lodge one. Where a spouse’s estimated ATi indicates that they would not be required to lodge a tax return under Tax office lodgment rules, reconciliation may be completed using the income information available to the fAo. You need to let the fAo know that your spouse is not required to lodge a tax return. The fAo compares the amount you have been paid, based on the estimates you provided, with the amount you should have received based on your actual income amounts. The reconciliation result may be a top-up, an overpayment to you or a nil adjustment. Your tax refund – or your spouse’s if they gave consent – can be used to recover any overpaid amounts directly. To avoid a debt for the full amount of fTB you have been paid for 2007, you and/or your spouse (if your spouse is required to lodge) must lodge a 2007 tax return by 30 June 2009. However, to avoid penalties for late lodgment of tax returns you must lodge by the due date – see Lodge your tax return by 31 October 2007 on page 10 in TaxPack 2007. if you (or your partner) lodge your 2007 tax return after 30 June 2009 you will not be entitled to a top-up.
EXPLANATION OF TERMS
PAYMeNt UNDer A LAbOUr MArKet PrOgrAM
for the purposes of family assistance, labour market programs are programs administered by the Department of Employment and Workplace Relations (DEWR) and the Department of Education, Science and Training (DEST) and designed to help meet the needs of job seekers while looking for and starting employment. Examples of these programs are the Community Development Employment Project (CDEP) and the New Enterprise incentive Scheme (NEiS). for further information, contact the family Assistance office (fAo) – see the contact details on page 10.
PerIODS PrIOr tO SePArAtION
if you separate from your spouse during the family tax benefit (fTB) claim period, you are both entitled to claim fTB for the period you were together during the claim period (the period prior to the separation). You and your now ex-spouse can, for instance, agree to split the fTB payment between you, or you can agree that only one of you will claim it.
PreSCrIbeD eDUCAtIONAL SCHeMe
A prescribed educational scheme is the: n ABSTUDY schooling scheme n ABSTUDY tertiary scheme n Student financial Supplement Scheme n Veterans’ Children Education Scheme n Post-graduate Awards Scheme.
reDUCeD WItHHOLDINgS
You can claim family tax benefit (fTB) by having a reduced amount of tax withheld by your employer throughout the year. To do this you must lodge a Withholding declaration (NAT 3093) available from the Tax office. There is an associated worksheet to help you complete the declaration – Withholding declaration family tax benefit (FTB) worksheet (NAT 7089). You will still need to lodge an fTB tax claim with your tax return or you may incur a tax debt.
PreSUMPtION Of PAterNItY
for the purposes of family tax benefit (fTB), presumption of paternity is based on the assumption that the person being asked to provide child support is a parent of the child. for example, where a person is applying for an assessment of an ex-nuptial child, the child support registrar must be satisfied that the person being asked to provide child support is a parent of the child.
rePOrtAbLe frINge beNefIt
A reportable fringe benefit is the fringe benefit amount that is shown on your payment summary. for more information, phone the Tax office on 13 28 61. (See also Adjusted fringe benefit.)
reCONCILIAtION
Reconciliation is a process that compares your family adjusted taxable income (ATi) estimates with the actual amounts received and is done at the end of the income year. Reconciliation ensures you receive your correct family tax benefit (fTB) entitlement, whether you’ve been paid fortnightly or as a lump sum by the family Assistance office (fAo), or you are claiming through the Tax office. if you have overestimated your own or your spouse’s ATi you may receive a top-up of fTB. if you have underestimated your own or your spouse’s ATi and are overpaid you will have to repay any amount you shouldn’t have been paid.
ExPlANATioN of TERMS
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SHAreD CAre
Shared care is where you or your spouse, or both of you, care for a child for some of the time during the assessment period and someone else – for example, your ex-spouse – cares for the child for the rest of the time, such as on weekends or during school holidays. (See also Care and Full care.)
SPOUSe
Your spouse is a person of the opposite sex, to whom you were legally married, or with whom you lived in a marriage-like relationship at any time during the claim period, provided you were not living separately and apart on a permanent or indefinite basis. You may have had more than one spouse during the claim period – for example, if you were married at the beginning of the claim period, then separated, then lived with a new spouse at the end of the claim period.
Shared-care percentage
EXPLANATION OF TERMS
Shared-care percentage is the amount of time during the assessment period that you care for a dependent child, expressed as a percentage of the assessment period. There are two ways to work out your care percentage: n if there is agreement on the actual care arrangements for the child these care arrangements can be used to determine your shared-care percentage. n Where there is no agreement on care arrangements for the child, use the number of nights you care for each individual child. if the number of nights does not accurately reflect the time a child is in your care, contact the family Assistance office (fAo) – see the contact details on page 10. Work out your care percentage as follows: no. of nights you or your spouse cared for the child in an assessment period no. of nights in the assessment period To be eligible for fTB your shared-care percentage must be at least 10%. Any percentage greater than 10% should be rounded to the nearest whole percentage. Shared-care percentage should not be confused with agreed percentage. The latter is only relevant in the case of a blended family or a claim for a period prior to separation. 100
Current spouse
Your spouse at 30 June 2007 is your current spouse.
SPOUSe’S tAX fILe NUMber eXeMPtIONS
if you are separated from your spouse and/or it is not possible to quote your spouse’s tax file number (TfN), you may be able to claim an exemption from providing your spouse’s TfN. You may be exempt from having to provide your ex-spouse’s TfN if you: n do not have access to their TfN, and n are unable to obtain their TfN. TfN exemptions are grouped into two types – indefinite and temporary.
Indefinite tfN exemption
An indefinite exemption from providing your spouse’s TfN may be granted where the reason you are unable to provide it is not likely to change in the foreseeable future. Possible reasons for an exemption include where your spouse is violent, imprisoned for life, seriously ill or disabled. To claim a spouse’s TfN exemption for violence you must have reason to believe that as a result of your request for the TfN, the spouse could become violent to you or a child, or there would be other concerns for your safety or a child’s safety or health.
SHOrt-terM AbSeNCe
Whether family tax benefit (fTB) continues to be paid to a parent following a short-term absence of the child will depend on whether the absence is due to formal or informal care arrangements. in formal care (for example, foster care) where the change of care is legally sanctioned through a court order or other legal agreement, and involves a change in legal responsibility, fTB will normally be payable to the new carer immediately. in informal care, which is a private arrangement and does not involve a change in legal responsibility, fTB will still be payable to a parent during a short-term and temporary absence of the child where the intention is for the child to return to the care of the parent, and in such cases, the absence will generally not exceed four weeks. if it is clear from the outset that a child will be in ongoing care, then the new carer is eligible for fTB from the date the child enters their care. if you are not sure, contact the family Assistance office (fAo) – see the contact details on page 10.
temporary tfN exemption
A temporary exemption from providing your spouse’s TfN may be granted where the reason you are unable to provide it is likely to change in the foreseeable future. Possible reasons for a temporary exemption include if your spouse is away from home for work or a holiday, or in prison with a known release date. for further information, contact the family Assistance office (fAo) – see the contact details on page 10.
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ExPlANATioN of TERMS
StUDYINg fULL tIMe
Secondary students
if the student is studying at a secondary school, they must be attending the school full time or be undertaking a concessional study load. if the student is studying at an institution other than a secondary school or by correspondence or distance education, they must be enrolled in and studying at least three-quarters of the normal full-time study load for their course or undertaking a concessional study load. full-time study is a set amount of work that is accepted by the school as being full time for any given period.
tAX-free PeNSIONS Or beNefItS
Tax-free pensions or benefits are the amounts of any of the following payments that you receive through:
Centrelink
n n n
disability support pension paid to a person who is not old enough to receive the age pension carer payment where both the carer and the person being cared for are not old enough to receive the age pension wife pension where both the recipient and spouse – if applicable – are not old enough to receive the age pension. invalidity service pension where the recipient is not old enough to receive the age pension disability pension, war widows and war widowers pension partner service pension where both partners are under age-pension age and the veteran receives an invalidity service pension, or the veteran has died and was receiving an invalidity service pension at the time of death income support supplement paid on the grounds of invalidity if the person has not reached age-pension age Defence force income Support Allowance (DfiSA), where DfiSA is exempt from income tax. special rate disability pension (SRDP) safety net payment compensation for permanent impairment additional compensation for impairment from another service injury or disease interim compensation while waiting for compensation payment for permanent impairment or additional compensation payment for impairment from another service injury or disease compensation for an eligible widow partner.
EXPLANATION OF TERMS
Department of Veterans’ Affairs (DVA)
n n n
tertiary students
for the purposes of fTB, a child is studying full time if they are undertaking at least three-quarters of the standard full-time load for tertiary students. for a Higher Education Contribution Scheme (HECS)–Higher Education loan Program (HElP) course, a full-time load is measured against the standard student study load for the course. A student is considered to be studying full time for the period that they had a HECS–HElP loading of 0.375 for a semester. formal, regular consultation with supervisors can be included in the calculation of study load if it is a normal requirement of the course. Non-class work is not included in measuring study load.
n n
Military Rehabilitation and Compensation Commission
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tArget fOreIgN INCOMe
Target foreign income is foreign income calculated in Australian dollars, from sources outside Australia. it does not include any amounts you have already included in your taxable income or any foreign income received in the form of a fringe benefit. if you received amounts of target foreign income throughout the income year, use the exchange rate applicable on 1 July 2006 to convert foreign amounts to Australian dollars. You will find the applicable exchange rates on the family Assistance office (fAo) website at www.familyassist.gov.au under ‘How to calculate income’ or you can contact the fAo – see the contact details on page 10.
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The Military Rehabilitation and Compensation Commission makes payment as fortnightly instalments or as a lump sum. lump sums are deemed to be income only in the income year they are received. Tax-free pensions or benefits do not include bereavement payment, pharmaceutical allowance, rent assistance or remote area allowance and language, literacy and numeracy supplement.
tAXAbLe INCOMe
Taxable income is assessable income less allowable deductions. it is the amount that you have written at TAXABLE INCOME OR LOSS on your Tax return for individuals 2007. A loss means your taxable income is zero for family assistance purposes. if you are completing your family tax benefit (fTB) tax claim separately from your tax return, taxable income is also shown on your income tax notice of assessment issued by the Tax office.
WAIVer Of fAMILY tAX beNefIt eLIgIbILItY
if you care for a dependent child for between 10% and 30% of the time, you are able to waive your right to your share of family tax benefit (fTB) in favour of the dependent child’s other parent. You can cancel this waiver at any time. if you wish to waive your eligibility for fTB for any of your dependent children you need to complete an Application to waive family tax benefit/cancel a current waiver (fAo13). for more information, contact the family Assistance office (fAo) – see the contact details on page 10.
WItHHOLDINgS – reDUCeD
(See Reduced withholdings.)
ExPlANATioN of TERMS
www.ato.gov.au
fAMilY ASSiSTANCE offiCE – CoNTACT iNfoRMATioN
To contact the family Assistance office (fAo):
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EXPLANATION OF TERMS
visit its website at www.familyassist.gov.au phone the fAo on 13 61 50 between 8.00am and 8.00pm (local time), Monday to friday, or visit your nearest fAo. offices are located in Medicare offices, Centrelink customer service centres and Tax office shopfronts.
if you do not speak English well and want to talk to a tax officer, phone the Translating and interpreting Service for help with your call on 13 14 50. if you are deaf or have hearing or speech impairment you can call the Tax office through the National Relay Service:
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TTY or modem users should phone 13 36 77 and ask for the number you want to call. for 1800 free call numbers phone 1800 555 677 and ask for the number you want to call. Voice-only (speak and listen) users should phone 1300 555 727 and ask for the number you want to call. for 1800 free call numbers, phone 1800 555 727 and ask for the number you want to call.
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www.ato.gov.au
ExPlANATioN of TERMS
Explanation of terms 2007