SOCIAL SECURITY ACT 1991 - SECT 1067G Rate of youth allowance

(1) The rate of youth allowance of a person referred to in section 556 is to be calculated in accordance with the Rate Calculator in this section.

(a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person; and

the rate of the person's youth allowance is not to be more than the rate at which the allowance would be payable to the person if the other person were the person's partner.

(3) The rate of a person's youth allowance is not to be more than the rate at which the allowance would be payable to the person if the person's rate were worked out using the Benefit Rate Calculator B at the end of section 1068.

1067G‑A1 The rate of allowance is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Method statement

Step 1. Work out the person's maximum basic rate using Module B below.

Step 2. Work out the amount a fortnight (if any) of pharmaceutical allowance using Module C below.

Step 2A. Work out the amount per fortnight (if any) for youth disability supplement using Module D below.

Step 3. Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

Step 4. Add up the amounts obtained in Steps 1 to 3: the result is the maximum payment rate .

Step 8. If the person is not independent and the parental income test applies to the person (see points 1067G‑F2 and 1067G‑F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment rate: the result is the parental income test reduced rate .

Step 9. If the parental income test reduced rate is nil, then youth allowance is not payable to the person and the following steps are to be disregarded.

Step 10. If the person is not independent and the family actual means test applies to the person (see Module G below), work out the person's reduction for actual means using that Module and take the reduction away from the maximum payment rate: the result is the actual means test reduced rate .

Step 11. If the actual means test reduced rate is nil, then youth allowance is not payable to the person and the following steps are to be disregarded.

Step 12. Apply the income test using Module H below to work out the person's income reduction.

Step 13. Take the person's income reduction away from:

(a) if the person is not independent and Steps 8 and 10 did not apply to the person--the maximum payment rate; or

(b) if the person is not independent and Step 8 applied to the person but Steps 9 and 10 did not--the parental income test reduced rate; or

(c) if the person is not independent and Step 10 applied to the person but Steps 8 and 11 did not--the actual means test reduced rate; or

(d) if the person is not independent and Steps 8 and 10 applied to the person but Steps 9 and 11 did not--the parental income test reduced rate, or (if the actual means test reduced rate is lower) the actual means test reduced rate; or

(e) if the person is independent--the maximum payment rate;

the result is the provisional fortnightly payment rate .

Note: If a person's rate is reduced under Step 8, 10 or 13, the order in which the reduction is to be made is laid down by section 1210 (maximum basic rate first, then rent assistance, then pharmaceutical allowance).

Step 14. The rate of allowance is the amount obtained by:

(a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

(b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

(c) except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of allowance is being worked out, adding any amount payable by way of remote area allowance (see Module K).

1067G‑B1 The maximum basic rate of a person other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is to be worked out as follows:

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Table BA--Maximum basic rates (people who are not independent)
1	Lives at home and not yet 18 years old	$145.40
2	Lives at home and at least 18 years old	$174.80
3	Required to live away from home	$265.50

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑ 1194).

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Table BB--Maximum basic rates (people who are independent)
1	Accommodated independent person and not yet 18 years old	$145.40
2	Accommodated independent person and at least 18 years old	$174.80
3	In supported State care and not yet 18 years old	$145.40
4	In supported State care and at least 18 years old	$174.80
5	In unsupported State care	$265.50
6	Not a member of a couple and has a dependent child	$347.80
7	Member of a couple and has a dependent child	$291.60
8	Not an accommodated independent person, not in supported State care, not in unsupported State care and does not have a dependent child	$265.50

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑ 1194).

1067G‑B3AA For the purposes of point 1067G‑B3, the maximum basic rate for a person receiving youth allowance is worked out as if the person had a dependent child if:

(a) the person is not undertaking full‑time study and is not a new apprentice; and

(i) the person is legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of a child under 16; or

(ii) if the Secretary, under point 1067G‑B3AB, determines another period for the person for the purposes of this subparagraph--that other period; and

(d) none of subsections 5(3), (6) and (7) prevents the child from being a dependent child of the person.

1067G‑B3AB The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1067G‑B3AA(c)(ii). In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1067G‑B3AD.

1067G‑B3AC A determination made under point 1067G‑B3AB is not a legislative instrument.

1067G‑B3AD The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1067G‑B3AB.

(c) has an exemption under section 542FA because of a determination in relation to the person under subsection 542FA(3) or (3A);

(a) the amount that would have been the person's maximum basic rate under Module B of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment; and

(b) the amount that would have been the person's pension supplement under Module BA of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment.

Note 1: A person's maximum basic rate under Module B of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with increases in Male Total Average Weekly Earnings (see section 1195).

Note 2: A person's pension supplement amount under Module BA of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Table BC --Maximum basic rates (long term income support students)
1	Not independent, lives at home and not a member of a couple	$227.20
2	Not independent, required to live away from home and not a member of a couple	$341.40
3	Accommodated independent person and not a member of a couple	$227.20
4	Independent, not an accommodated independent person and not a member of a couple	$341.40
5	Member of a couple	$308.70

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191‑ 1194).

1067G‑C3 The amount of pharmaceutical allowance is the amount a fortnight worked out using the following table:

Table C--Pharmaceutical allowance amounts
1	Not a member of a couple	$5.40
2	Partnered	$2.70
3	Member of an illness separated couple	$5.40
4	Member of a respite care couple	$5.40
5	Partnered (partner getting service pension)	$2.70
6	Partnered (partner in gaol)	$5.40

Note 2: The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 1191 to 1194 and 1206A).

an amount by way of youth disability supplement is to be added to a person's rate. The rate of youth disability supplement is $92.40 per fortnight.

Note 2: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Method statement

Step 1. Work out whether the parental income test applies to the person using Submodule 2.

Step 2. If the parental income test applies to the person, identify the appropriate tax year using Submodule 3.

Step 3. Work out the person's combined parental income for the appropriate tax year using Submodule 4.

Step 4. Work out the person's parental income free area using Submodule 5.

Step 5. If the person's combined parental income is equal to or less than the person's parental income free area, the parental income test does not affect the maximum payment rate of youth allowance and Step 6 is to be disregarded.

Step 6. If the person's combined parental income exceeds the person's parental income free area, use Submodule 6 to work out the person's reduction for parental income for the purposes of Step 8 of the Method statement in point 1067G‑A1.

1067G‑F2 Subject to point 1067G‑F3, the parental income test applies to the person if the person is not independent.

1067G‑F3 The parental income test does not apply to the person while a parent of the person:

(a) is receiving a payment of pension, benefit, allowance or compensation referred to in Module L; or

(d) is a person to whom section 1061ZK applies by virtue of subsection 1061ZK(5); or

(e) is a person to whom section 1061ZO applies by virtue of subsection 1061ZO(2), (3) or (4).

1067G‑F5 The base tax year for a youth allowance payment period is the tax year that ended on 30 June in the calendar year that came immediately before the calendar year in which the period ends.

Example: A youth allowance payment period ends on 25 January 1999--this day occurs in the calendar year 1 January 1999 to 31 December 1999--the calendar year that came immediately before this one is the calendar year 1 January 1998 to 31 December 1998--the base tax year is the tax year that ended on 30 June 1998 (i.e. the year of income that began on 1 July 1997).

1067G‑F6 If a person's combined parental income under Submodule 4 for the tax year following the base tax year exceeds:

(a) 125% of the person's combined parental income under that Submodule for the base tax year; and

the appropriate tax year, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends after 30 September in a year, is the tax year following the base tax year.

(aa) a person's combined parental income for the tax year following the base tax year is substantially less than it was in the base tax year and is likely to continue to be so for 2 years after the later of:

(a) the person requests the Secretary to make a determination under point 1067G‑F8; and

(b) as a result, the Secretary determines under that point that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after:

whichever day is later, the appropriate tax year is the tax year following the base tax year;

the appropriate tax year, for that purpose, is the tax year following the base tax year.

(i) is not payable to a person because the rate of youth allowance because of this Module is nil; or

(b) the person gives the Secretary an estimate of the person's combined parental income under Submodule 4 for the tax year following the base tax year; and

(d) the person agrees that the person's rate of youth allowance is to be recalculated if the person's actual combined parental income for that tax year exceeds the amount that the person estimated;

the Secretary must determine that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after:

whichever day is later, the appropriate tax year is the tax year following the base tax year.

1067G‑F9 A request under point 1067G‑F8 must be made in writing in accordance with a form approved by the Secretary.

1067G‑F10 For the purposes of this Module, a person's combined parental income for a particular tax year is the sum of the following amounts ( income components ) in respect of each of the person's parents:

Note 1: The combined parental income may be affected by amounts of maintenance paid or received (see points 1067G‑F20 and 1067G‑F21).

1067G‑F11(2) A parent's adjusted fringe benefits total for a tax year is the amount worked out using the formula:

1067G‑F11(3) A parent's target foreign income for a tax year is the accepted estimate of the amount of the parent's foreign income (as defined in section 10A) for the tax year that is not:

1067G‑F11(4) A person's net passive business loss for a tax year is the difference between:

(a) the total amount of the person's loss or outgoings for that year that are or will be deductible under the Income Tax Assessment Act because they were necessarily incurred in relation to a passive business; and

1067G‑F12 A parent's assessed taxable income for a tax year at a particular time is the most recent of:

(b) if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner--that taxable income according to the amendment made by the tribunal; or

(c) if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an amended assessment made by a tribunal--that taxable income according to the amendment made by the court.

1067G‑F13 An accepted estimate of an income component or an amount described in subpoint 1067G‑F11(3), in respect of a parent, for a tax year is that income component or amount according to the most recent notice given under point 1067G‑F14 and accepted by the Secretary for the purposes of this Module.

1067G‑F14 A notice setting out an estimate of an income component or an amount described in subpoint 1067G‑F11(3), for a tax year, of a parent of a person claiming or receiving youth allowance may be given to the Secretary by:

However, if the parent gives a notice, any notice given, in respect of the same income component or amount and the same tax year, by the person claiming or receiving youth allowance is taken not to be, or not to have been, given.

1067G‑F15 The Secretary is to accept a notice referred to in point 1067G‑F14 for the purposes of this Module only if the Secretary is satisfied that the estimate is reasonable.

"passive business" , in relation to a person, means a business in relation to which the person is usually engaged for less than 17.5 hours in a week.

but does not include employment (whether or not the employment is remunerated by wages or salary).

1067G‑F20 A parent's combined parental income for a tax year is reduced by an amount equal to any maintenance paid during the tax year by the parent:

1067G‑F21 A parent's combined parental income for a tax year is increased by an amount equal to any maintenance paid during the tax year to the parent:

1067G‑F22 For the purposes of this Module, a person's parental income free area is the sum of:

(b) any additional amounts, applying under this Submodule, for any children (other than the person) of a parent of the person.

1067G‑F23 Unless an additional amount applies under point 1067G‑F24, an additional amount applies for a child of a parent of the person who is wholly or substantially dependent on the parent, as follows:

(i) is at least 16 years of age but has not yet attained the maximum age for youth allowance under section 543B (disregarding subsection 543B(2)); and

(iii) is not receiving a pension, benefit, allowance or compensation referred to in Module L;

(b) $3,792 for a dependent child in respect of whom a boarding allowance or second home allowance is payable under the Assistance for Isolated Children Scheme;

1067G‑F24 An additional amount of $7,585 applies for a child ( student ) of a person's parent if:

(e) the parent has one or more other children in respect of whom paragraphs (a), (b), (c) and (d) apply.

1067G‑F26 A person's reduction for parental income is the amount obtained by dividing by 26 the person's annual parental income excess under point 1067G‑F27.

1067G‑F27 Subject to point 1067G‑F28, the person's annual parental income excess is the amount obtained by dividing by 4 the difference between:

(a) the person's combined parental income (see Submodule 4) for the appropriate tax year in question; and

(a) if the amount obtained under that point is an amount of dollars and cents--the amount of cents is to be disregarded; and

(b) if the amount so obtained is less than $1--the amount obtained is taken to be nil.

How to work out effect of actual means of a person's family on maximum payment rate

1067G‑G1 This is how to work out the effect (if any) of the actual means of a person's family on the person's maximum payment rate in respect of a particular youth allowance payment period.

1067G‑G2 Subject to point 1067G‑G3, the family actual means test applies to a person who:

(b) for so much of the calendar year in which the relief payment is received as follows the cessation of the relief payment.

(b) if a determination of a tax year is made by the Secretary under point 1067G‑G6 in relation to the person in respect of the period--the tax year specified in the determination.

1067G‑G5(1) This point applies to a person who claims or receives youth allowance if the following conditions are satisfied.

(a) would not be payable to the person because the rate of youth allowance is calculated to be nil; or

(a) evidence, or an estimate, that the amount of the actual means of the person's family for the tax year (the following tax year ) immediately after the base tax year is substantially less than it was in the base tax year:

(i) because of a circumstance or event that is beyond the control of the person and the person's family members; or

(ii) because the person or a family member of the person is undertaking full‑time study in the following tax year; or

(iii) because a designated parent of the person has ceased to be a parent of the kind referred to in paragraph 10B(3)(c), (d), (e), (f) or (g); and

(b) if subparagraph (a)(i) applies--evidence of the circumstance or event concerned;

and, if the person gives an estimate as referred to in paragraph (a), the person agrees, in writing, to the person's rate of youth allowance being recalculated if the actual means of the person's family for the following tax year exceed the amount of the estimate.

(4) For the purposes of subparagraph (3)(a)(i), an expected decrease in the profitability of a business is not ordinarily to be taken to be a circumstance or event that is beyond the control of the person and the person's family members.

(5) The third condition is that the person's family actual means are unlikely to increase beyond the amount evidenced, or estimated, under paragraph (3)(a) for the 2 years beginning on the later of the following days:

1067G‑G6(1) A person to whom point 1067G‑G5 applies may request the Secretary, in accordance with a form approved by the Secretary, to make a determination under this point in relation to a youth allowance payment period.

the Secretary must determine, subject to subpoint (3), that the appropriate tax year for the person in relation to the youth allowance payment period is the tax year immediately after the base tax year.

(3) If the request is based on an estimate, the Secretary may make a determination only if he or she is satisfied that the estimate is current and reasonable.

1067G‑G7(1) To work out the actual means of the family of a person (the claimant/recipient ) for the appropriate tax year, first calculate, in accordance with this Submodule, the actual means of the claimant/recipient and the actual means of each family member of the claimant/recipient and then apply the formula in subpoint 1067G‑G13(1) using the results of those calculations.

(2) A reference in any of the following provisions of this Submodule to a relevant person is a reference to the claimant/recipient or a family member of the claimant/recipient.

1067G‑G8(1) Subject to point 1067G‑G9, the actual means of a relevant person for the appropriate tax year is an amount equal to the total spending and savings of the person in that tax year.

(2) An amount of spending or savings is taken to have been spent or saved in the appropriate tax year if the Secretary considers that the amount should be so taken.

1067G‑G9(1) This point applies in working out the actual means, for the appropriate tax year, of a relevant person.

(2) The following amounts spent or saved in the appropriate tax year by the person are not included in the actual means of the person:

(a) spending or savings from any income assistance received by the person in that tax year;

(i) a child of the person if the person does not have legal responsibility for the day‑to‑day care, welfare and development of the child; or

(e) if the person has a disability--spending to acquire, or modify, property to assist the person to cope with the disability;

(f) spending or savings from any arm's length loan received by the person in that tax year;

(g) spending to repay a loan received by the person in that tax year that is not an arm's length loan, or to pay interest on the loan;

(h) spending or savings from the proceeds of any liquidation of assets of the person that were held at the beginning of that year;

(i) spending or savings from the amount of any windfall gain that is not a gift to the person;

(j) spending or savings, of not more than $6,000, from income that is exempt income under item 1.4 of the table in section 51‑5 of the Income Tax Assessment Act 1997 ;

(b) an amount equal to the amount of any reduction in liquid assets of the person held at the beginning of the appropriate tax year and not accounted for by spending of a kind referred to in subpoint (2);

(c) if the person spent an amount in the appropriate tax year in boarding away from home one or more family members who fulfilled either or both of the following conditions at any time during the year:

(i) the family member qualified for the boarding allowance under the AIC scheme;

(4) The reference in paragraph (3)(a) to the amount of the income or resources of a business of the person that is deductible does not include:

(a) the amount of any losses from the business that are carried forward from a tax year earlier than the appropriate tax year; or

(ii) for a person engaged otherwise than as an employee--the lesser of $3,000 and the total amount of the contributions for the person, and each family member of the person, for the appropriate tax year.

1067G‑G10 In working out the actual means, for the appropriate tax year, of a family member of the claimant/recipient, being a family member of a kind referred to in subparagraph 23(15)(b)(i), (ii) or (iii), spending or savings from any income of the family member from employment (except so much of such spending or savings as exceeds $6,000) is not included.

1067G‑G12(1) If the Secretary considers that an amount of spending that would otherwise be included in the actual means of a relevant person does not represent the fair market value of the matter or thing to which the spending related:

(a) the Secretary must determine the fair market value of the matter or thing; and

(b) an amount equal to the value so determined is taken to be the amount of the spending.

Table BA--Maximum basic rates (people who are not independent)
Column 1 Item	Column 2 Person's situation	Column 3 Rate
1	Lives at home and not yet 18 years old	$145.40
2	Lives at home and at least 18 years old	$174.80
3	Required to live away from home	$265.50

Table C--Pharmaceutical allowance amounts
Column 1 Item	Column 2 Person's family situation	Column 3 Amount a fortnight
1	Not a member of a couple	$5.40
2	Partnered	$2.70
3	Member of an illness separated couple	$5.40
4	Member of a respite care couple	$5.40
5	Partnered (partner getting service pension)	$2.70
6	Partnered (partner in gaol)	$5.40

Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1067G