Social Security Act 1991

Subject to this section, the appropriate tax year for a day is the base tax year for that day.

For base tax year see subsection (6).

If:

carer payment would not be payable to a person because the care receiver or care receivers would not pass the income test under subsection 198A(1) apart from this subsection; and

the Secretary is given a written request to treat the care receiver or care receivers as if the tax year in which the request is given were the appropriate tax year; and

the request is given to the Secretary by the person, any care receiver who is 16 or over or a parent of any care receiver who is under 16; and

the taxable income of the care receiver, or the sum of the taxable incomes of the care receivers, for the tax year in which the request is made is likely to be less than the income ceiling;

For taxable income see section 198B.

For income ceiling see subsection 198A(1).

If:

an instalment of carer payment (the first payment) is paid to a person on a day in one calendar year; and

the next instalment of carer payment (the second payment) is paid to a person on a day in the next calendar year; and

the instalment period to which the second payment relates:

commences immediately after the end of the instalment period to which the first payment related; and

includes the first day of the calendar year referred to in paragraph (b); and

the person’s carer payment is payable in relation to the period referred to in subparagraph (c)(i) because, as a result of a request under paragraph (2)(b), the appropriate tax year is the tax year in which that period occurs (the current tax year); and

the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the current tax year is less than the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the base tax year;

For base tax year see subsection (6).

For income ceiling see subsection 198A(1).

For the purposes of section 198A, if:

a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the tax year in which the notifiable event occurs exceeds the income ceiling;

For notifiable event see subsection (6).

For taxable income see section 198B.

For income ceiling see subsection 198A(1).

The effect of subsection (4) is that the person caring for the care receiver or care receivers will cease to be qualified for carer payment because the care receiver or care receivers will not pass the income test under subsection 198A(1).

For the purposes of section 198A, if:

a notifiable event occurs in relation to a care receiver or any of 2 or more care receivers; and

the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the tax year in which the notifiable event occurs (the event tax year) does not exceed the income ceiling; and

the care receiver’s taxable income, or the sum of the taxable incomes of the care receivers, for the tax year that follows the event tax year is likely to exceed the income ceiling;

For notifiable event see subsection (6).

For taxable income see section 198B.

For the purposes of this section:

the base tax year for a day is the tax year that ended on 30 June in the calendar year immediately before the calendar year in which the day falls; and

a notifiable event is an event or change of circumstances that:

is specified in a notice under section 70 of the Administration Act; and

is described by the notice as a notifiable event.

Suppose 4 April 1996 is a carer payment payday. It falls in the calendar year 1 January to 31 December 1996, so the base tax year for that payday is the tax year that ended on 30 June 1995 (i.e. the year of income beginning on 1 July 1994).