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MH 3: FamilyBoost tax credit
or “Tax credit for people paying for early childhood services”
You could also call this:

“How your income is calculated to determine FamilyBoost tax credit eligibility”

Your tax credit income is the amount used to figure out if you can get a FamilyBoost tax credit. Here’s how it’s worked out:

If you earn reportable income in a three-month period, that’s your tax credit income for that time.

If you earn taxable income that’s not reportable, your tax credit income is worked out differently. It’s either a quarter of your taxable income for the year that includes those three months, or a quarter of your taxable income from your most recent tax return.

If you earn both types of income, your tax credit income is whichever is higher: your reportable income or the amount worked out for your other taxable income.

If you have a partner, your tax credit income includes both your income and your partner’s income added together. This applies unless you’ve separated from your partner and don’t have a new one by the end of the three-month period.

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Next up: MH 5: FamilyBoost tax credit abatement

or “How your FamilyBoost tax credit may be reduced based on your income”
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Part M Tax credits paid in cash
FamilyBoost tax credits

MH 4Meaning of tax credit income

  1. The tax credit income of a person entitled to a FamilyBoost tax credit for a quarter under section MH 3 is the amount determined under subsections (2) to (6).

  2. Subject to subsection (4), if the person derives reportable income in the quarter, the person’s tax credit income for the quarter is the amount of that reportable income.

  3. Subject to subsection (4), if the person derives taxable income other than reportable income in the quarter, the amount treated as the person’s tax credit income for the quarter is,—

  4. if a return of income has been filed by the person for the income year that includes the quarter, 25% of the amount of the person’s taxable income for that income year; or
    1. in any other case, 25% of the amount of the person’s taxable income for the income year for which the most recent return of income has been filed by the person before the commencement of the quarter.

      1. If the person derives both reportable income and taxable income other than reportable income in the quarter, the person’s tax credit income for the quarter is the greater of—

      2. the person’s reportable income in the quarter; and
        1. the amount treated as the person’s tax credit income for the quarter under subsection (3).

          1. If the person has a spouse, civil union partner, or de facto partner (partner) for the quarter, the person’s tax credit income for the quarter is the combined total of the person’s tax credit income and the tax credit income of their partner for the quarter. For these purposes, their partner’s tax credit income is determined under subsections (2) to (4) as if their partner were the person referred to in those subsections.

          2. Subsection (5) does not apply for a quarter if the person is separated from their partner and does not have a new partner at the end of that quarter.

          Notes
          • Section MH 4: inserted, on , by section 14 of the Taxation (Budget Measures) Act 2024 (2024 No 19).