Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a person if:
(a) the person's rate of social security pension is calculated in accordance with Pension Rate Calculator A at the end of section 1064 or Pension Rate Calculator C at the end of section 1066; and
(b) the person has reached pension age.
Note: For pension age see subsections 23(5A), (5B), (5C) and (5D).
Employment income greater than or equal to income concession amount
(2) If the person's employment income for an instalment period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person's employment income for that period is reduced by an amount equal to the income concession amount.
Example 1: David earns $2,250 of employment income in an instalment period of 14 days. David's rate of social security pension for that period is greater than nil.
David's employment income for that period is reduced by $250, leaving David $2,000 of employment income for that period.
Example 2: Amy earns $1,000 of employment income in an instalment period of 14 days. Amy's rate of social security pension for that period is greater than nil.
Amy's employment income for that period is reduced by $250, leaving Amy $750 of employment income for that period.
(3) If the person's unused concession balance (see section 1073AB) is greater than or equal to the amount (the current amount ) of the person's employment income that remains after applying subsection (2) of this section in relation to an instalment period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is further reduced to nil; and
(b) if the person's rate of social security pension for that period is greater than nil--the person's unused concession balance is reduced by an amount equal to the current amount.
Example 1: To continue example 1 in subsection (2), assume David's unused concession balance is $2,000. The current amount is $2,000.
David's employment income for that period is further reduced to nil.
David's unused concession balance is now nil.
Example 2: To continue example 2 in subsection (2), assume Amy's unused concession balance is $1,600. The current amount is $750.
Amy's employment income for that period is further reduced to nil.
Amy's unused concession balance is now $850.
(4) If the person's unused concession balance (see section 1073AB) is greater than nil but less than the amount of the person's employment income that remains after applying subsection (2) of this section in relation to an instalment period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is further reduced by an amount equal to that unused concession balance; and
(b) if the person's rate of social security pension for that period is greater than nil--the person's unused concession balance is reduced to nil.
Example: Bill earns $1,250 of employment income in an instalment period of 14 days. Bill's rate of social security pension for that period is greater than nil.
Under subsection (2), Bill's employment income for that period is reduced by $250, leaving Bill $1,000 of employment income for that period.
Assume Bill's unused concession balance is $800.
Under subsection (4), Bill's employment income for that period is further reduced by $800 leaving Bill $200 of employment income for that period.
Bill's unused concession balance is now nil.
Employment income less than income concession amount
(4A) If the person has employment income for an instalment period but that income is less than the income concession amount for that period:
(a) for the purposes of Module E of that Rate Calculator, the person's employment income for that period is reduced to nil; and
(b) if the person's rate of social security pension for that period is greater than nil--the person's unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the difference between that income concession amount and that employment income (before it was reduced).
Example: Emma earns $100 of employment income in an instalment period of 14 days. Emma's rate of social security pension for that period is greater than nil.
Emma's employment income for that period is reduced to nil.
Emma's unused concession balance is increased by $150.
(4B) If:
(a) the person has no employment income for an instalment period; and
(b) the person's rate of social security pension for that period is greater than nil;
the person's unused concession balance (see section 1073AB) is increased, subject to subsection 1073AB(2), by an amount equal to the income concession amount for that period.
Definition
(4C) The income concession amount is:
(a) for an instalment period of 14 days--$250; and
(b) for an instalment period of less than 14 days--the amount worked out using the following formula:
Interpretation
(5) For the purposes of this section, a person's employment income for an instalment period includes an amount that is taken to have been earned, derived or received over that period because of subsection 1073A(1).
(6) If the person is a member of a couple, apply this section in relation to the person, and to the person's partner, before applying point 1064-E2 or point 1066-E2 (whichever is relevant).
(7) In working out a person's employment income for the purposes of this section, disregard subsection 8(1B).
(8) If:
(a) the person is a member of a couple; and
(b) the person's partner's employment income (within the meaning of section 46AB of the Veterans' Entitlements Act 1986 ) is reduced by one or more amounts (each of which is a reduction amount ) under section 46AA of that Act;
then, in applying point 1064-E2 or point 1066-E2 (whichever is relevant), the ordinary income of the person's partner is to be reduced by an amount equal to the total of the reduction amounts.
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