MD 10Calculation of in-work tax credit

1. A person who meets the requirements of section MD 4 is entitled to an in-work tax credit calculated using the formula in subsection (2).

2. The formula is—

   $(amount\; A\; +\; amount\; B\; \times \; (children\; -\; 3))\; \times \; weekly\; periods\; ÷\; 52.$

   Where:

3. In the formula,—

4. amount A is $3,770:
5. amount B is $780:
6. children is the greater of—
   1. 3; and
   2. the number of children for whom the person is allowed the in-work tax credit:
7. weekly periods—
   1. for 2 or more entitlement periods forming 1 continuous period, is the number of whole periods of 1 week in the continuous period for which the person or their spouse, civil union partner, or de facto partner has, from the work activity, income to which section MD 9(2) refers or is an earner described in section MD 9(1)(b), and includes whole periods of 1 week to which the alternative requirement in section MD 9(6) applies:
   2. for an entitlement period to which subparagraph (i) does not apply, is the number of whole periods of 1 week in the entitlement period for which the person or their spouse, civil union partner, or de facto partner has, from the work activity, income to which section MD 9(2) refers or is an earner described in section MD 9(1)(b), and includes whole periods of 1 week to which the alternative requirement in section MD 9(6) applies.

8. In subsection (3)(a) and (b), the amount referred to may be increased as prescribed by the Governor-General by Order in Council under section MF 7 (Orders in Council).