Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1068

             (1)  The rate of:

                     (a)  newstart allowance; or

                     (b)  sickness allowance; or

                     (c)  partner allowance; or

                    (ca)  mature age allowance under Part 2.12B; or

                     (d)  widow allowance;

is to be calculated in accordance with the Rate Calculator at the end of this section.

Note:          Module A of the Rate Calculator establishes the overall rate calculation process and the remaining Modules provide for the calculation of the component amounts used in the overall rate calculation.

             (2)  If:

                     (a)  a person has a relationship with another person, whether of the same sex or a different sex ( other person ); and

                     (b)  the relationship between them is a de facto relationship in the Secretary's opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

                     (c)  the other person is under the age of consent applicable in the State or Territory in which the person is living;

the person's benefit rate is not to exceed the rate at which it would be payable to the person if the other person were the person's partner.

Note:          this provision has the effect of taking into account the ordinary income and assets of the partner in applying the ordinary income test and assets test respectively.

Rate of benefit limited for certain armed services widows

             (3)  If:

                     (a)  an armed services widow is receiving a pension under Part II or IV of the Veterans' Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

                     (b)  the widow has been receiving a payment referred to in paragraph (a) continuously since before 1 November 1986; and

                     (c)  before 1 November 1986 the widow was also receiving a social security benefit;

the rate of benefit payable to the widow is not to be increased:

                     (d)  if, immediately before 1 November 1986, the widow was receiving a social security benefit at a rate less than $124.90 per fortnight--to a rate greater than $124.90 per fortnight; or

                     (e)  if, immediately before 1 November 1986, the widow was receiving a social security benefit at a rate equal to or greater than $124.90 per fortnight--to a rate greater than the rate at which it was payable immediately before 1 November 1986.

Note 1:       a benefit is not payable to a widow who starts to get a payment referred to in subsection (3) after 1 November 1986--see sections 408CF, 532, 614, 660YCF, 675 and 771HI.

Note 2:       for armed services widow see subsection 4(1).

Benefit Rate Calculator B

Module A -- Overall rate calculation process [ see Note 5]

Method of calculating rate

    1068‑A1  The rate of benefit is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Note 1:       if a person's rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate first, then rent assistance).

Note 2:       in some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 3:       an amount of remote area allowance is to be added under paragraph (c) of step 7 only if the conditions in point 1068‑J1 are satisfied.

Module B -- Maximum basic rate
[ see Appendix for CPI adjusted figures]

Maximum basic rate

     1068‑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 worked out using Table B. Work out the person's family situation and whether the person has a dependent child or not. The maximum basic rate is the corresponding amount in the rate column. The maximum basic rate of 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 nil (see sections 408CG, 614A, 660YCH and 771HK).

Note 1:       For member of couple , partnered , illness separated couple and partnered (partner in gaol) see section 4.

Note 2:       for dependent child see section 5.

Note 5:       the rates in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 7:       some dependent children will not be taken into account in working out a person's maximum basic rate (see point 1068‑B2).

Note 8:       Some recipients of newstart allowance have a maximum basic rate based on the maximum basic rate under the Pension PP (Single) Rate Calculator (see point 1068‑B5).

Certain children who are not young persons are to be treated as dependent children

  1068‑B1A  If:

                     (a)  a person is not a member of a couple; and

                     (b)  the person has at least one natural child, adopted child or relationship child who has turned 16 but has not turned 18; and

                     (c)  either:

                              (i)  a social security benefit is payable to the child; or

                             (ii)  if the person is receiving newstart allowance--a disability support pension is payable to the child; and

                     (d)  the child is substantially dependent on the person;

the person's maximum basic rate is worked out as if the person had a dependent child.

Certain children treated as dependent children if in recipient's care for at least minimum period

  1068‑B1B  For the purposes of point 1068‑B1A, the maximum basic rate for a person receiving newstart allowance, mature age allowance under Part 2.12B or sickness allowance is worked out as if the person had a dependent child if:

                     (a)  either:

                              (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)  under a family law order, registered parenting plan or parenting plan that is in force, a child under 16 is supposed to live or spend time with the person; and

                     (b)  the child is in the person's care for at least 14% of:

                              (i)  the instalment period in relation to which the maximum basic rate is being worked out; or

                             (ii)  if the Secretary, under point 1068‑B1C, determines another period for the person for the purposes of this subparagraph--that other period; and

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

                     (d)  the person is not a member of a couple.

Note:          For family law order , registered parenting plan and parenting plan see subsection 23(1).

  1068‑B1C  The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1068‑B1B(b)(ii). In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1068‑B1E.

  1068‑B1D  A determination made under point 1068‑B1C is not a legislative instrument.

  1068‑B1E  The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1068‑B1C.

Certain dependent children to be disregarded

     1068‑B2  For the purposes of items 3, 4, 4A and 4B of Table B in point 1068‑B1, if:

                     (a)  a person has a dependent child; and

                     (b)  the child has turned 18; and

                     (c)  the child is a prescribed student child;

the child is to be disregarded in working out the person's maximum basic rate under that point.

Note:          For prescribed student child see section 5.

     1068‑B3  On 20 March 1994 the amounts specified in items 3, 4, 4A and 4B in column 3B of Table B in point 1068‑B1 are increased by $6.00. The increase is to be made after the indexation of the amounts on that day has occurred.

     1068‑B4  The amounts in items 3, 4, 4A and 4B in columns 3A and 3B of Table B in point 1068‑B1 are to be indexed on 20 September 1993 and 20 March 1994 under section 1192 as if Part 2 of the Social Security Amendment Act (No. 2) 1993 had commenced on 1 September 1993.

Maximum basic rate for certain newstart allowance recipients

     1068‑B5  Despite point 1068‑B1, if a person:

                     (a)  is not a member of a couple; and

                     (b)  receives newstart allowance; and

                     (c)  is not required to satisfy the activity test because of a determination in relation to the person under subsection 602C(3) or (3A);

the person's maximum basic rate is the amount worked out as follows:

where:

"pension PP (Single) maximum basic amount" is the sum of:

                     (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:          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).

Module BA -- Pension supplement

Pension supplement

  1068‑BA1  A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia, has reached pension age and:

                     (a)  is in Australia; or

                     (b)  is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.

  1068‑BA2  The person's pension supplement amount is:

                     (a)  if an election by the person under subsection 1061VA(1) is in force--the amount worked out under point 1068‑BA4; and

                     (b)  otherwise--the amount worked out under point 1068‑BA3.

Amount if no election in force

  1068‑BA3  The person's pension supplement amount is the amount worked out by:

                     (a)  applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

                     (b)  dividing the result by 26; and

                     (c)  if:

                              (i)  the person is not partnered; and

                             (ii)  the amount resulting from paragraph (b) is not a multiple of 10 cents;

                            rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).

Note:          For combined couple rate of pension supplement , see subsection 20A(1).

Amount if election in force

  1068‑BA4  The person's pension supplement amount is the amount worked out as follows:

                     (a)  work out the amount for the person under point 1068‑BA3 as if the election were not in force;

                     (b)  from that amount, subtract 1 / 26 of the person's minimum pension supplement amount.

Module D -- Pharmaceutical allowance
[see Appendix for CPI adjusted figures]

Qualification for pharmaceutical allowance

    1068‑D1  Subject to points 1068‑D3A, 1068‑D4, 1068‑D5, 1068‑D6 and 1068‑D8, an additional amount by way of pharmaceutical allowance is to be added to a person's maximum basic rate if:

                     (c)  one of the following subparagraphs applies:

                              (i)  the person is receiving sickness allowance;

                            (ia)  the person is receiving mature age allowance under Part 2.12B;

                             (ii)  the person is receiving widow allowance, newstart allowance or partner allowance and point 1068‑D2, 1068‑D2A, 1068‑D2B or 1068‑D3 applies to the person.

Incapacity for work--job search allowance and newstart allowance

    1068‑D2  This point applies to a person if:

                     (c)  if the person is receiving job search allowance--the person is, under Subdivision BAA of Division 1 of Part 2.11, exempt from the activity test; and

                     (d)  if the person is receiving newstart allowance--the person is, under Subdivision BA of Division 1 of Part 2.12, exempt from the activity test.

Incapacity for work--widow allowance and partner allowance recipients

  1068‑D2A  This point applies to a person who is receiving widow allowance or partner allowance if the person is incapacitated for work.

Newstart recipients who have a partial capacity to work or are principal carers

  1068‑D2B  This point applies to a person who is receiving newstart allowance if the person:

                     (a)  has a partial capacity to work; or

                     (b)  is the principal carer of at least one child and is not a member of a couple.

Note 1:       For partial capacity to work see section 16B.

Note 2:       For principal carer see subsections 5(15) to (24).

Long term recipients over 60

    1068‑D3  This point applies to a person if the person:

                     (a)  has turned 60; and

                     (b)  has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph).

Note 1:       For income support payment see subsection 23(1).

Note 2:       For the determination of the continuous period in respect of which a person received income support payments see section 38B.

No pharmaceutical allowance if person receiving pension supplement

  1068‑D3A  Pharmaceutical allowance is not to be added to a person's maximum basic rate if a pension supplement amount has been added to that rate.

No pharmaceutical allowance if person receiving veterans supplement or MRCA supplement

    1068‑D4  Pharmaceutical allowance is not to be added to a person's maximum basic rate if the person is receiving:

                     (a)  veterans supplement under section 118A of the Veterans' Entitlements Act; or

                     (b)  MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving veterans supplement or MRCA supplement and not a service pensioner

    1068‑D5  Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

                     (a)  the person is a member of a couple; and

                     (b)  the person's partner is receiving:

                              (i)  veterans supplement under section 118A of the Veterans' Entitlements Act; or

                             (ii)  MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; and

                     (c)  the person's partner is not receiving a service pension.

No pharmaceutical allowance before advance payment period ends

    1068‑D6  Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

                     (a)  the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and

                     (b)  the person's advance payment period has not ended.

Note:          for advance payment period see point 1068‑D7.

Advance payment period

    1068‑D7  A person's advance payment period:

                     (a)  starts on the day on which the advance pharmaceutical allowance is paid to the person; and

                     (b)  ends after the number of paydays worked out using the following formula have passed:

where:

"amount of advance" is the amount of the advance paid to the person;

"pharmaceutical allowance rate " is the fortnightly amount of pharmaceutical allowance which would be added to the person's maximum basic rate in working out the social security benefit instalment for the day on which the advance is paid if a social security benefit were payable to the person and pharmaceutical allowance were to be added to the person's maximum basic rate on that day.

Note:          the person may have come on social security benefit after having been a pension recipient and have received an advance while a pension recipient.

No pharmaceutical allowance if annual limit reached

    1068‑D8  Pharmaceutical allowance is not be added to a person's maximum basic rate if:

                     (a)  the person has received an advance pharmaceutical allowance during the current calendar year; and

                     (b)  the total amount paid to the person for that year by way of:

                              (i)  pharmaceutical allowance; and

                             (ii)  advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1:       for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2:       the annual limit is affected by:

*          how long during the calendar year the person was on pension or benefit;

*          the rate of pharmaceutical allowance the person attracts at various times depending on the person's family situation.

Amount of pharmaceutical allowance

   1068‑D10  The amount of pharmaceutical allowance is the amount per fortnight worked out using the following Table:

Note 1:       For member of couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

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

Module G -- Income test

Effect of ordinary income on maximum payment rate

     1068‑G1  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 section 8.

Note 2:       see point 1068‑A1 (Steps 6 to 9) for the significance of the person's income reduction.

Note 3:       the application of the ordinary income test is affected by provisions concerning:

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

*          business income (sections 1074 and 1075);

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

*          income from income streams (sections 1095 to 1099DAA);

*          disposal of income (sections 1106 to 1112).

Ordinary income of members of certain couples

     1068‑G2  Subject to point 1068‑G3, 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.

Friendly society amounts

     1068‑G4  The ordinary income of a person:

                     (a)  to whom, or to whose partner, sickness allowance is payable; or

                     (c)  to whom, or to whose partner, newstart allowance is payable and who, or whose partner, under Subdivision BA of Division 1 of Part 2.12, is not required to satisfy the activity test;

is not to include any amount received by the person or partner from an approved friendly society in respect of the incapacity because of which the person or partner is qualified for the sickness allowance or is not required to satisfy the activity test, as the case may be.

Ordinary income includes certain periodical payments from relatives

     1068‑G5  Subject to point 1068‑G6, in this Module, a person's ordinary income includes a periodical payment or benefit by way of gift or allowance from a parent, child, brother or sister of the person.

Note:          point 1068‑G5 reverses paragraph 8(8)(z) which excludes these amounts.

Board and lodging

     1068‑G6  A person's ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.

Lump sum payments arising from termination of employment

     1068‑G7  Subject to points 1068‑G7AF to 1068‑G7AR (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.

Ordinary income to include certain sick leave entitlements

1068‑G7AA If a person is a person who is qualified for sickness allowance, the person's ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1068‑G7AB, 1068‑G7AC and 1068‑G7AD.

1068‑G7AB 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;

                     (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.

1068‑G7AC If point 1068‑G7AB 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.

1068‑G7AD 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 1068‑G7AA.

1068‑G7AE  If:

                     (a)  point 1068‑G7AA has applied to a person while the person was qualified for sickness allowance; and

                     (b)  that allowance has been cancelled; and

                     (c)  at least 6 weeks after the day on which the sickness allowance was cancelled, the person is granted sickness allowance again;

point 1068‑G7AA applies to the person in respect of the person's sick leave entitlements.

Directed termination payments excluded

1068‑G7AF  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 Module G of section 1068.

Certain leave payments taken to be ordinary income--employment continuing

1068‑G7AG 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.

Certain termination payments taken to be ordinary income

1068‑G7AH 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.

More than one termination payment on a day

1068‑G7AJ  If:

                     (a)  the person is covered by point 1068‑G7AH; 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.

Start of income maintenance period--employment continuing

1068‑G7AK If the person is covered by point 1068‑G7AG, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period--employment terminated

1068‑G7AKA   Subject to point 1068‑G7AKC, if the person is covered by point 1068‑G7AH, the income maintenance period starts, subject to point 1068‑G7AKB, on the day the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1068‑G7AKB    If a person who is covered by point 1068‑G7AH is subject to an income maintenance period (the first period ) and the person is paid another termination payment during that period (the second leave payment ), the income maintenance period for the second termination payment commences the day after the end of the first period.

Start of income maintenance period where liquid assets test waiting period applies

1068‑G7AKC    If a person to whom point 1068‑G7AKA 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.

Leave payments or termination payments in respect of periods longer than a fortnight

1068‑G7AL  Subject to points 1068‑G7AA to 1068‑G7AE (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 (the daily rate ); and

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

1068‑G7AM 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 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.

When a person receives a leave payment or a termination payment

1068‑G7AN For the purposes of points 1068‑G7AB and 1068‑G7AD to 1068‑G7AM (inclusive), a person (the 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.

Single payment in respect of different kinds of termination payments

1068‑G7AP  If a person who is covered by point 1068‑G7AH receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068‑G7AG to 1068‑G7AN (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.

Definitions

1068‑G7AQ In points 1068‑G7AG to 1068‑G7AP (inclusive):

"payment fortnight" means a fortnight in respect of which a sickness allowance or a newstart allowance, as the case requires, 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.

1068‑G7AR In points 1068‑G7AA to 1068‑G7AQ (inclusive):

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

Ordinary income generally taken into account when first earned, derived or received

  1068‑G7A  Subject to points 1068‑G7B, 1068‑G7C, 1068‑G8 and 1068‑G8A and section 1073, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

Claimant or recipient receives lump sum amount for remunerative work

  1068‑G7B  If a person whose claim for an allowance has been granted receives a lump sum amount after the claim was made that:

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

                     (b)  is not a payment to which point 1068‑G8 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.

Partner of claimant or recipient receives lump sum amount for remunerative work

  1068‑G7C  If:

                     (a)  a person whose claim for an allowance has been granted is a member of a couple; and

                     (b)  after the person has 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 1068‑G8 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.

Reference to allowance

  1068‑G7D  A reference in point 1068‑G7B or 1068‑G7C to an allowance is a reference to an allowance the rate of which is calculated under this Rate Calculator.

Operation of points 1068‑G7B and 1068‑G7C

  1068‑G7E  Points 1068‑G7B and 1068‑G7C have effect even if the person who has made the claim:

                     (a)  has to serve an ordinary waiting period or a liquid assets test waiting period in respect of the allowance claimed; or

                     (b)  is subject to an income maintenance period in respect of the allowance claimed; or

                     (c)  is subject to a seasonal work preclusion period;

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

Ordinary income received at intervals longer than one fortnight

     1068‑G8  Subject to points 1068‑G7AF to 1068‑G7AR (inclusive), if:

                     (a)  a person receives a number of ordinary income payments; and

                     (b)  each payment is in respect of a period (in this point called the 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 (the result is called the daily rate ); and

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

EXAMPLE OF HOW ORDINARY INCOME RECEIVED AT INTERVALS LONGER THAN A FORTNIGHT IS ALLOCATED TO FORTNIGHTLY PERIODS       

Facts:           Fred receives $600 each 25 days from remunerative work. The social security benefit becomes payable to Fred such that the first 25 days of his earnings that are counted as ordinary income for the purposes of the ordinary income test are spread over 3 social security benefit payment fortnights as follows:

*          5 days of the first fortnight;

*          all of the second fortnight;

*          6 days of the third fortnight.

                     In this example, it is assumed that Fred remains qualified for the social security benefit during the three fortnights and that nothing prevents it from being payable to him. The problem is then to work out what proportion of Fred's earnings to allocate to each fortnight for ordinary income testing purposes.

Application:  To work out the amount that Fred is taken to receive in the first fortnight first divide the total amount received for the 25 day work period ($600) by the number of days in the work period (25). This gives a daily rate. The daily rate is:

                     Then multiply the daily rate ($24) by the number of days in the fortnight that are also within the work period. The result is:

                     For the second fortnight the calculation is:

                     For the third fortnight the calculation is:

                     plus

                     Note that the amount of $192 added for the third fortnight comes from the given fact that Fred receives $600 each 25 days. So, for as long as there is reasonable predictability as to the timing and quantum of Fred's ordinary income from remunerative work where receipt is at intervals longer than a fortnight, then this provision should be used to allocate that income to fortnightly periods for the purposes of the ordinary income test.

Payment of arrears of periodic compensation payments

  1068‑G8A  If:

                     (a)  at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving newstart allowance, sickness allowance, or mature age allowance under Part 2.12B; 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 (the result is called the 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.

Partner income free area

     1068‑G9  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.

Partner income excess

   1068‑G10  If:

                     (a)  a person is a member of a couple; and

                     (b)  the person's partner is not receiving a social security pension, a 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.

Partner income reduction

   1068‑G11  If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the part of the partner's ordinary income that exceeds the partner income free area.

Example:   

Facts:           Susan's partner Colin has an ordinary income of $800. Assume that the partner income free area under point 1068‑G9 is $640.

Application:  Colin's ordinary income exceeds the partner income free area. He therefore has a partner income excess under point 1068‑G10 of:

                     Susan's partner income reduction under point 1068‑G11 is therefore:

Ordinary income free area

   1068‑G12  A person's ordinary income free area is $62.

Note:          The income free area is used in the ordinary income test in relation to fortnightly income.

Ordinary income excess

   1068‑G13  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.

Ordinary income reduction

   1068‑G14  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 (see point 1068‑G15); and

                     (b)  the person's upper range reduction (if any) (see point 1068‑G16).

Lower range reduction

   1068‑G15  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 $188.

Upper range reduction

   1068‑G16  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 $188.

Module J -- Remote area allowance

Remote area allowance--person physically in remote area

      1068‑J1  An amount by way of remote area allowance is to be added to a person's rate if:

                    (aa)  any of the following subparagraphs applies:

                              (i)  apart from this point, the person's rate would be greater than nil;

                             (ii)  apart from this point, the person's rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act;

                            (iii)  apart from this point, the person's rate would be nil merely because an election by the person under subsection 1061VA(1) is in force;

                            (iv)  apart from this point, the person's rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and

                     (a)  the person's usual place of residence is situated in the remote area; and

                     (b)  the person is physically present in the remote area.

Note 1:       for remote area see subsection 14(1).

Note 2:       a person may be considered to be physically present in a remote area during temporary absences--see subsection 14(2).

Rate of remote area allowance

      1068‑J3  The rate of remote area allowance payable to a person is worked out using Table J. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each FTB child, and regular care child, of the person.

Meaning of remote area allowance

      1068‑J4  In Table J, remote area allowance means:

                     (a)  an amount added to a person's social security pension or benefit by way of remote area allowance; or

                     (b)  a remote area allowance payable under point SCH6‑G1 of the VEA.

In remote area

      1068‑J5  For the purposes of Table J in point 1068‑J3, a person is in the remote area if:

                     (a)  the person's usual place of residence is in the remote area; and

                     (b)  the person is physically present in the remote area.

Special rule where partner has an FTB or regular care child but is not receiving a pension

      1068‑J7  If:

                     (a)  a person who is a member of a couple is qualified for an amount by way of additional allowance; and

                     (b)  the person's partner is not receiving a pension or benefit; and

                     (c)  the person's partner has an FTB child or a regular care child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

      1068‑J8  If:

                     (a)  a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

                     (b)  the person's partner has an FTB child or a regular care child; and

                     (c)  the person's partner is not receiving additional allowance for the child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

      1068‑J9  If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note:          This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.