The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.A.170 Appropriate tax year (YA)

Definition

For the purposes of parentally means tested YA, the appropriate tax year (1.1.T.10) is the financial year on which the rate of YA assessment is based.

Normally, YA would be based on the base tax year (1.1.B.10) income unless the recipient:

  • requests a change to the appropriate tax year due to a reduction in parental income, which is likely to continue for 2 years, or
  • has parental income for the tax year following the base tax year that exceeds 125% of base tax year parental income and of the claimant's parental income free area. In this case, from the first payment period ending after 30 September in a year, the appropriate tax year is the tax year immediately following the base tax year.

Act reference: SSAct section 1067G-F4 Appropriate tax year, section 1067G-F6 Change to appropriate tax year because of increase in combined parental income, section 1067G-F7 Change to appropriate tax year at person's request

Policy reference: SS Guide 4.2 Means tests & limits, 4.2.8.10 Dependent YA - parental income test

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