Module H–Income test

 

	1067G-H1. Effect of ordinary income on maximum payment rate
	1067G-H2. Ordinary income of members of certain couples
	1067G-H3. Friendly society amounts
	1067G-H4. Lump sum payments arising from termination of employment
	1067G-H5. Ordinary income to include certain sick leave entitlements
	1067G-H6. Sick leave entitlements
	1067G-H7. Subsequent consecutive applications of point 1067G-H6
	1067G-H8. Sick leave payments already included in ordinary income
	1067G-H9. Granting of allowance after a cancellation
	1067G-H10 Directed termination payments excluded
	1067G-H11. Certain leave payments taken to be ordinary income-employment continuing
	1067G-H12. Certain termination payments taken to be ordinary income
	1067G-H13. More than one termination payment on a day
	1067G-H14. Start of income maintenance period-employment continuing
	1067G-H14A. Start of income maintenance period-employment terminated
	1067G-H14B. Commencement of income maintenance period where there is a second termination payment
	1067G-H14C. Start of income maintenance period where liquid assets test waiting period applies
	1067G-H15. Leave payments or termination payments in respect of periods longer than a fortnight
	1067G-H16. Secretary may determine in certain circumstances that the whole or a part of an income maintenance period does not apply
	1067G-H17. When a person receives a leave payment or a termination payment
	1067G-H18. Single payment in respect of different kinds of termination payments
	1067G-H19. Definitions
	1067G-H20. Meaning of leave payment
	1067G-H21. Ordinary income includes certain periodical payments from relatives
	1067G-H22. Board and lodging
	1067G-H23. Ordinary income generally taken into account when first earned, derived or received
	1067G-H23A. Claimant or recipient receives lump sum amount for remunerative work
	1067G-H23B. Partner of claimant or recipient receives lump sum amount for remunerative work
	1067G-H23C. Operation of points 1067G-H23A and 1067G-H23B
	1067G-H24. Ordinary income received at intervals longer than one fortnight
	1067G-H25. Payment of arrears of periodic compensation payments
	1067G-H26. Partner income free area
	1067G-H27. Partner income excess
	1067G-H28. Partner income reduction
	1067G-H29. Ordinary income free area
	1067G-H30. Ordinary income excess
	1067G-H31. Ordinary income reduction
	1067G-H32. Lower range reduction
	1067G-H33. Upper range reduction

1067G-H1.         Effect of ordinary income on maximum payment rate

 

1067G-H1.  This is how to work out the effect of a person's ordinary income, and the ordinary income of a partner of the person, on the person's maximum payment rate:

 

 

Note 1:     For ordinary income see subsection 8(1).

Note 2:     The application of the income test is affected by provisions concerning:

(a)   the general concept of ordinary income (sections 1072 and 1073);

(b)   business income (sections 1074 and 1075);

(c)   deemed income from financial assets (sections 1076 to 1084A);

(d)   income streams (sections 1095 to 1099DAA);

(e)   disposal of income (sections 1106 to 1112);

 

History

Point 1067G-H1 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H1 (Note 2) amended by Act No. 45, 1998, by s.3, Schedule 3, Part 3(24);

Point 1067G-H1 (Step 1, Note) repealed by Act No. 35, 2003, by s.3, Schedule 6, Part 2(21);

Point 1067G-H1 (paragraph (d) of Note 2) amended by Act No. 36, 2006, by s.3, Schedule 8, Part 2(36);

 

1067G-H2.         Ordinary income of members of certain couples

 

1067G-H2.  If a person is a member of a couple and the person's partner is receiving a social security pension, a service pension, income support supplement or a rehabilitation allowance, the person's ordinary income is taken to be one half of the sum of:

 

(a)

the amount that would be the person's ordinary income if he or she were not a member of a couple; and

(b)

the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple.

 

History

Point 1067G-H2 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H2 amended by Act No. 73 of 2002, by s.3, Schedule 1(85);

 

1067G-H3.         Friendly society amounts

 

1067G-H3.  The ordinary income of a person:

 

(a)

who has a temporary incapacity exemption under section 542A; or

(b)

who is a partner of a person who has a temporary incapacity exemption under that section;

 

is not to include any amount received from an approved friendly society in respect of the incapacity to which the temporary incapacity exemption relates.

 

History

Point 1067G-H3 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H4.         Lump sum payments arising from termination of employment

 

History

Heading replaced by Act No. 154, 2005, by s.3, Schedule 17, Part 6(32) (Note);

 

1067G-H4.  Subject to points 1067G‑H10 to 1067G‑H20 (inclusive), if:

 

(a)

a person's employment has been terminated; and

(b)

as a result the person is entitled to a lump sum payment from the person's former employer;

 

the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.

 

History

Point 1067G-H4 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H5.         Ordinary income to include certain sick leave entitlements

 

1067G-H5.  If a person is qualified for youth allowance and has a temporary incapacity exemption under section 542A, the person's ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1067G‑H6, 1067G‑H7 and 1067G‑H8.

 

History

Point 1067G-H5 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H6.         Sick leave entitlements

 

1067G-H6.  If:

 

(a)

a person has sick leave entitlements on a day that the person is incapacitated for work; and

(b)

the person has the right to claim payment from the person's employer by way of sick leave payment in respect of that day; and

(c)

the person's employer is able to pay the person the person's sick leave payment in respect of that day; and

(d)

the person is not receiving a leave payment (other than a sick leave payment) in respect of that day;

 

the person is, for the purposes of this point, taken to have received a sick leave payment equal to the person's sick leave entitlements in respect of that day, assuming that the person does not exercise any rights the person may have in relation to the amount to be paid in respect of that day.

 

History

Point 1067G-H6 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H7.         Subsequent consecutive applications of point 1067G‑H6

 

1067G-H7.  If point 1067G‑H6 has applied to a person in respect of a day, then, for the purposes of any subsequent consecutive applications of the point, the person's sick leave entitlements are to be taken to be reduced by a day.

 

History

Point 1067G-H7 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H8.         Sick leave payments already included in ordinary income

 

1067G-H8.  A person's ordinary income is not to include a payment received by the person in respect of sick leave to the extent that an amount equal to the payment has been included in the person's ordinary income under point 1067G‑H5.

 

History

Point 1067G-H8 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H9.         Granting of allowance after a cancellation

 

1067G-H9.  If:

 

(a)

point 1067G‑H5 has applied to a person while the person was qualified for youth allowance and had a temporary incapacity exemption under section 542A; and

(b)

that allowance has ceased to be payable under Subdivision B of Division 9 of Part 2.11, or has been cancelled under Subdivision E of that Division; and

(c)

at least 6 weeks after the day on which the youth allowance ceased to be payable or was cancelled, the person is granted youth allowance, and has a temporary incapacity exemption under section 542A, again;

 

point 1067G‑H5 applies to the person in respect of the person's sick leave entitlements.

 

History

Point 1067G-H9 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H10        Directed termination payments excluded

 

1067G‑H10.  If:

 

(a)

a person's employment has been terminated; and

(b)

as a result the person is entitled to a lump sum payment from the person's former employer; and

(c)

the payment, or part of the payment, is a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997;

 

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

 

History

Point 1067G-H10 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H10 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(16);

Point 1067G-H10 repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(305);

 

1067G-H11.       Certain leave payments taken to be ordinary income–employment continuing

 

1067G‑H11.  If:

 

(a)

a person is employed; and

(b)

the person is on leave for a period; and

(c)

the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

 

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

 

History

Point 1067G-H11 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H11 repealed and substituted by Act No. 45, 1998, by s.3, Schedule 2(48);

 

1067G-H12.       Certain termination payments taken to be ordinary income

 

History

Heading replaced by Act No. 154, 2005, by s.3, Schedule 17, Part 6(17) (Note);

 

1067G‑H12.  If:

 

(a)

a person's employment has been terminated; and

(b)

the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

 

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.

 

History

Point 1067G-H12 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H12 repealed and substituted by Act No. 45, 1998, by s.3, Schedule 2(48);

Point 1067G-H12(b) amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(17);

Point 1067G-H12 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(18);

 

1067G-H13.       More than one termination payment on a day

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(19) (Note);

 

1067G‑H13.  If:

 

(a)

the person is covered by point 1067G‑H12; and

(b)

the person receives more than one termination payment on a day;

 

the income maintenance period is worked out by adding the periods to which the payments relate.

 

History

Point 1067G-H13 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H13 repealed and substituted by Act No. 45, 1998, by s.3, Schedule 2(48);

Point 1067G-H13(b) amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(19);

Point 1067G-H13 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(20);

 

1067G-H14.       Start of income maintenance period–employment continuing

 

1067G‑H14.  If the person is covered by point 1067G‑H11, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

 

History

Point 1067G-H14 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H14 repealed and substituted by Act No. 45, 1998, by s.3, Schedule 2(48);

 

1067G-H14A.     Start of income maintenance period–employment terminated

 

1067G‑H14A.  Subject to point 1067G‑H14C, if the person is covered by point 1067G‑H12, the income maintenance period starts, subject to point 1067G‑H14B, on the day the person is paid the termination payment.

 

History

Point 1067G-H14A inserted by Act No. 45, 1998, by s.3, Schedule 2(48);

Point 1067G-H14A amended by Act No. 70, 2000, by s.3, Schedule 3(19);

Point 1067G-H14A amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(21);

 

1067G-H14B.     Commencement of income maintenance period where there is a second termination payment

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(22) (Note);

 

1067G‑H14B.  If a person who is covered by point 1067G‑H12 is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second termination payment), the income maintenance period for the second termination payment commences the day after the end of the first period.

 

History

Point 1067G-H14B inserted by Act No. 45, 1998, by s.3, Schedule 2(48);

Point 1067G-H14B amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(22);

 

1067G-H14C.     Start of income maintenance period where liquid assets test waiting period applies

 

1067G‑H14C.  If a person to whom point 1067G‑H14A applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.

 

History

Point 1067G-H14C inserted by Act No. 70, 2000, by s.3, Schedule 3(20);

 

1067G-H15.       Leave payments or termination payments in respect of periods longer than a fortnight

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(23) (Note);

 

1067G-H15.  Subject to points 1067G‑H5 to 1067G‑H9 (inclusive), if:

 

(a)

a person receives a leave payment or termination payment; and

(b)

the payment is in respect of a period greater than a fortnight;

 

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

 

(c)

dividing the amount received by the number of days in the period to which the payment relates (daily rate); and

(d)

multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

 

History

Point 1067G-H15 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H15(a) amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(23);

Point 1067G-H15(b), (c) and (d) amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(24);

 

1067G-H16.       Secretary may determine in certain circumstances that the whole or a part of an income maintenance period does not apply

 

1067G‑H16.  If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

 

Note 1:     For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2:     For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3:     If an income maintenance period applies to a person, then, during that period:

(a)   the allowance claimed may not be payable to the person; or

(b)   the amount of the allowance payable to the person may be reduced.

 

History

Point 1067G-H16 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H16 repealed and substituted (including Notes 1, 2 and 3) by Act No. 45, 1998, by s.3, Schedule 3, Part 4(29);

 

1067G-H17.       When a person receives a leave payment or a termination payment

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(23) (Note);

 

1067G-H17.  For the purposes of points 1067G‑H6 to 1067G‑H16 (inclusive), a person (first person) is taken to receive a leave payment or termination payment if the payment is made to another person:

 

(a)

at the direction of the first person or a court; or

(b)

on behalf of the first person; or

(c)

for the benefit of the first person; or

(d)

the first person waives or assigns the first person's right to receive the payment.

 

History

Point 1067G-H17 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H17 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(25);

 

1067G-H18.       Single payment in respect of different kinds of termination payments

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(26) (Note);

 

1067G‑H18.  If a person who is covered by point 1067G‑H12 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067G‑H11 to 1067G‑H17 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

 

History

Point 1067G-H18 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H18 repealed and substituted by Act No. 45, 1998, by s.3, Schedule 2(49);

Point 1067G-H18 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(26);

Point 1067G-H18 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(27);

Point 1067G-H18 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(28);

Point 1067G-H18 amended by Act No. 15, 2007, by s.3, Schedule 1, Part 2(306);

 

1067G-H19.       Definitions

 

1067G-H19.  In points 1067G‑H11 to 1067G‑H18 (inclusive):

 

payment fortnight means a fortnight in respect of which a youth allowance is paid, or would be paid apart from the application of an income maintenance period, to a person.

 

period to which the payment relates means:

 

(a)

if the payment is a leave payment–the leave period to which the payment relates; or

(b)

if the payment is a redundancy payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the redundancy) have received from the employment that was terminated–the period for which the person would have received that amount of ordinary income; or

(c)

if the payment is a redundancy payment and paragraph (b) does not apply–the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the redundancy payment if:

 

(i)

the person's employment had continued; and

(ii)

the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

 

redundancy payment does not include a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997.

 

termination payment means:

 

(a)

a leave payment relating to a person's employment that has been terminated; or

(b)

a redundancy payment.

 

History

Point 1067G-H19 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

period to which the payment relates inserted by Act No. 154, 2005, by s.3, Schedule 17, Part 6(29);

redundancy payment inserted by Act No. 154, 2005, by s.3, Schedule 17, Part 6(30);

redundancy payment repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(307);

roll-over amended by Act No. 154, 2005, by s.3, Schedule 17, Part 6(31);

roll-over repealed by Act No. 15, 2007, by s.3, Schedule 1, Part 2(308);

termination payment inserted by Act No. 154, 2005, by s.3, Schedule 17, Part 6(32);

Point 1067G-H19 amended by Act No. 15, 2007, by s.3, Schedule 1, Part 2(306);

 

1067G-H20.       Meaning of leave payment

 

1067G-H20.  In points 1067G‑H5 to 1067G‑H19 (inclusive):

 

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

 

History

Point 1067G-H20 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H21.       Ordinary income includes certain periodical payments from relatives

 

1067G-H21.  Subject to point 1067G‑H22 (and despite paragraph 8(8)(z)), a person's ordinary income for the purposes of this Module includes a periodical payment or benefit by way of gift or allowance from the father, mother, son, daughter, brother or sister of the person.

 

History

Point 1067G-H21 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H22.       Board and lodging

 

1067G-H22.  A person's ordinary income is not to include a payment to the person for board or lodging provided by the person to the person's father, mother, son, daughter, brother or sister.

 

History

Point 1067G-H22 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H23.       Ordinary income generally taken into account when first earned, derived or received

 

1067G-H23.  Subject to points 1067G‑H23A, 1067‑H23B, 1067G‑H24 and 1067G‑H25 and section 1073, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

 

History

Point 1067G-H23 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H23 amended by Act No. 45, 1998, by s.3, Schedule 2(50);

 

1067G-H23A.     Claimant or recipient receives lump sum amount for remunerative work

 

1067G‑H23A.  If a person whose claim for youth allowance has been granted receives, after the claim was made, a lump sum amount that:

 

(a)

is paid to him or her in relation to remunerative work; and

(b)

is not a payment to which point 1067G‑H24 applies; and

(c)

is not an exempt lump sum;

 

the person is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

 

History

Point 1067G-H23A inserted by Act No. 45, 1998, by s.3, Schedule 2(51);

 

1067G-H23B.     Partner of claimant or recipient receives lump sum amount for remunerative work

 

1067G‑H23B.  If:

 

(a)

a person whose claim for youth allowance has been granted is a member of a couple; and

(b)

after the person had made the claim, the person's partner receives a lump sum amount that:

 

(i)

is paid to him or her in relation to remunerative work; and

(ii)

is not a payment to which point 1067G‑H24 applies; and

(iii)

is not an exempt lump sum;

 

the partner is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.

 

History

Point 1067G-H23B inserted by Act No. 45, 1998, by s.3, Schedule 2(51);

 

1067G-H23C.     Operation of points 1067G‑H23A and 1067G‑H23B

 

1067G‑H23C.  Points 1067G‑H23A and 1067G‑H23B have effect even if the person who has made the claim:

 

(a)

is subject to a liquid assets test waiting period or an income maintenance period in respect of the allowance claimed; or

(b)

is subject to a seasonal work preclusion period;

 

during the period of 12 months referred to in those points.

 

History

Point 1067G-H23C inserted by Act No. 45, 1998, by s.3, Schedule 2(51);

 

1067G-H24.       Ordinary income received at intervals longer than one fortnight

 

1067G-H24.  Subject to points 1067G‑H10 to 1067G‑H20 (inclusive), if:

 

(a)

a person receives a number of ordinary income payments; and

(b)

each payment is in respect of a period (work period) that is greater than a fortnight; and

(c)

there is reasonable predictability or regularity as to the timing of the payments; and

(d)

there is reasonable predictability as to the quantum of the payments;

 

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

 

(e)

dividing the amount received by the number of days in the work period (daily rate); and

(f)

multiplying the daily rate by the number of days in the fortnight that are also within the work period.

 

History

Point 1067G-H24 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H25.       Payment of arrears of periodic compensation payments

 

1067G-H25.  If:

 

(a)

at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving youth allowance; and

(b)

in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

 

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

 

(c)

dividing the amount received by the number of days in the periodic payments period (daily rate); and

(d)

multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.

 

Note:        For periodic payments period see section 17.

 

History

Point 1067G-H25 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H26.       Partner income free area

 

1067G‑H26.  The partner income free area for a person is:

 

(a)

if the person's partner is not receiving a social security benefit and has not turned 21–the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full‑time study (see section 541B); or

(b)

if the person's partner is not receiving a social security benefit and has turned 21–the amount of income of the partner (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the partner if the partner were qualified for a newstart allowance; or

(c)

if the person's partner is receiving a social security benefit–the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

 

History

Point 1067G-H26 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H26 repealed and substituted by Act No. 45, 1998, by s.3, Schedule 2(52);

 

1067G-H27.       Partner income excess

 

1067G-H27.  If:

 

(a)

a person is a member of a couple; and

(b)

the person's partner is not receiving a social security pension, service pension, income support supplement or a rehabilitation allowance; and

(c)

the partner's ordinary income exceeds the partner income free area for the partner;

 

then:

 

(d)

the person has a partner income excess; and

(e)

the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area.

 

History

Point 1067G-H27 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H27(b) amended by Act No. 73 of 2002, by s.3, Schedule 1(86);

 

1067G-H28.       Partner income reduction

 

1067G-H28.  If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the person's partner income excess.

 

Example:

 

Facts:      Alice's partner Martin has an ordinary income of $800. Assume that the partner income free area under point 1067G‑H26 is $640.

 

Result:     Martin's ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067G‑H27 of:

 

 

Alice's partner income reduction under point 1067G‑H28 is therefore:

 

 

History

Point 1067G-H28 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H28 amended by Act No. 154, 2005, by s.3, Schedule 17, Part 1(1);

Point 1067G-H28 (Example) repealed and substituted by Act No. 154, 2005, by s.3, Schedule 17, Part 1(2);

 

1067G-H29.       Ordinary income free area

 

1067G-H29.  A person's ordinary income free area is:

 

(a)

if the person is undertaking full‑time study at any time in the fortnight in respect of which a youth allowance may be payable–$236; or

(aa)

if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable–$236; or

(b)

otherwise–$62.

 

History

Point 1067G-H29 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H29(a) amended by Act No. 68, 1999, by s.3, at Schedule 1, Part 1(90);

Point 1067G-H29(b) amended by Act No. 68, 1999, by s.3, at Schedule 1, Part 1(91);

Point 1067G-H29(aa) inserted by Act No. 66, 2005, by s.3, Schedule 1, Part 1(12);

 

1067G-H30.       Ordinary income excess

 

1067G-H30.  If a person's ordinary income exceeds the person's ordinary income free area:

 

(a)

the person has an ordinary income excess; and

(b)

the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area.

 

History

Point 1067G-H30 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H31.       Ordinary income reduction

 

1067G-H31.  If a person has an ordinary income excess, the person's ordinary income reduction is the sum of:

 

(a)

the person's lower range reduction (if any) (see point 1067G‑H32); and

(b)

the person's upper range reduction (if any) (see point 1067G‑H33).

 

History

Point 1067G-H31 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

 

1067G-H32.       Lower range reduction

 

1067G‑H32.  The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed:

 

(a)

if the person is undertaking full‑time study at any time in the fortnight in respect of which a youth allowance may be payable–$80; or

(b)

if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable–$80; or

(c)

otherwise–$188.

 

History

Point 1067G-H32 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H32 repealed and substituted by Act No. 154, 2005, by s.3, Schedule 17, Part 1(3);

 

1067G-H33.       Upper range reduction

 

1067G‑H33.  The person's upper range reduction is an amount equal to 60% of the part (if any) of the person's ordinary income excess that exceeds:

 

(a)

if the person is undertaking full‑time study at any time in the fortnight in respect of which a youth allowance may be payable–$80; or

(b)

if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable–$80; or

(c)

otherwise–$188.

 

History

Point 1067G-H33 inserted by Act No. 18, 1998, by s.4, Schedule 2(8);

Point 1067G-H33 (Example) repealed by Act No. 68, 1999, by s.3, at Schedule 1, Part 1(92);

Point 1067G-H33 repealed and substituted by Act No. 154, 2005, by s.3, Schedule 17, Part 1(3);