MF 4JCalculation of instalments: 1 April 2024 to 30 July 2024

1. This section applies for calculating the amount of an instalment by way of tax credit under section MD 1 (Abating WFF tax credit) or, as applicable, sections MD 1 and ME 1 (Minimum family tax credit) for the period starting on 1 April 2024 and finishing on 30 July 2024.

2. The instalments for the relevant tax credit are calculated using, for the calculation of the in-work tax credit, the formula—

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

   Where:

3. In the formula in subsection (2),—

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) (Fifth requirement: earner) 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. The instalments for the relevant tax credit are calculated using, for the calculation of the minimum family tax credit, the formula—

   $(prescribed\; amount\; -\; net\; family\; scheme\; income)\; \times \; weekly\; periods\; ÷\; 52.$

   Where:

9. In the formula in subsection (4),—

10. prescribed amount is $35,204:
11. net family scheme income is the net family scheme income, calculated using the formula in section ME 3 (Meaning of net family scheme income), for a relationship period containing the entitlement period, of—
    1. the person; or
    2. their spouse, civil union partner, or de facto partner; or
    3. the person and their spouse, civil union partner, or de facto partner:
12. weekly periods is the number of periods of 1 week in the entitlement period for which the person is a full-time earner.

Notes

• Section MF 4J: inserted (with effect on 1 April 2024), on 4 June 2024, by section 5 of the Taxation (Budget Measures) Act 2024 (2024 No 19).