Commonwealth Numbered Acts

SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 1067

1067. (1) The rate of:

   (a)  job search allowance; and

   (b)  sickness benefit of a person who has not turned 18; 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)  person is living with another person as the spouse of that other
        person on a genuine domestic basis although not legally married to the
        other person; and

   (b)  the other person is of the opposite sex; and

   (c)  either or both of them are under the age of consent applicable in the
        State or Territory in which they are 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,
        maintenance income and assets of the partner in applying the ordinary
        income test, maintenance income test and assets test respectively.
BENEFIT RATE CALCULATOR A
MODULE A - OVERALL RATE CALCULATION PROCESS Method of calculating rate
  1067-A1. The rate of benefit is a fortnightly rate.                  Method
statement Step 1. Work out the person's maximum basic rate using MODULE B
below. Step 2. Work out any additional payment for a dependent partner using
MODULE C below. Step 3. Work out any supplementary amount in respect of the
person using MODULE D below. Step 4. Work out any applicable
additional amount for dependent children using MODULE E below. Step 5 If the
person has a dependent child or is applicable additional amount for rent using
MODULE F below. Step 6. Add up the amounts obtained in Steps 1 to 5: the
result is called the maximum payment rate. Step 7. If the parental means test
applies to the G7), work out the reduction for parental assets and income
using MODULE G below. Step 8. Take the reduction for parental assets and
income away from the maximum payment rate: the result is called the parental
means test reduced rate. Step 9. Apply the ordinary income test using MODULE H
below to work out the reduction for ordinary income. Step 10. Apply the
maintenance income test using MODULE J below to work out the reduction for
maintenance income. Step 11. Add up the reductions for ordinary income and
maintenance income: the result is called the total income reduction. Step 12.
The rate of benefit is worked out by taking the total income reduction away
from:

   (a)  if the parental means test does not apply to the person - the maximum
        payment

   (b)  if the parental means test applies to the person - the parental means
        test reduced rate; and adding any amount payable by way of remote area
        allowance (see Module K below). Note: if a person's rate is reduced
        under Step 8 or reduction is to be made against the components of the
        maximum payment rate is laid down by section 1207 (maximum basic rate
        and additional amount for partner first, then rent assistance and
        finally child amounts). Rate of benefit where benefit not payable to
        partner
1067-A2. If:

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

   (b)  an unemployment benefit or a job search

   (i)  not payable to the person's partner; or

   (ii) would not be payable to the person's partner if a claim were duly
        made; because of an industrial action preclusion provision or
        deferment provision; the person's maximum basic rate (Module B), C)
        and additional amounts for children (Module E) are to be calculated as
        if a person were not a member of a couple. Modules F, G, H and J are
        to be applied on the basis that the person is a member of a couple.
        Module D does not apply.
Note 1: for "deferment provision" see point 1067-A4. Note 2: a person covered
by point 1067-A3 will have a maximum payment rate (other than for rent
assistance) calculated as if the person were not a member of a couple but the
income of the person's partner will be taken into maximum payment rate.
Industrial action preclusion provision
1067-A3. For the purposes of point 1067-A2, sections 514 (unemployment
benefit) and 590 (job search allowance) are industrial action preclusion
provisions. Deferment provisions
1067-A4. For the purposes of point 1067-A2, the following are deferment
provisions:

   (a)  a JSA automatic or discretionary deferment provision;

   (b)  a UB automatic or discretionary deferment provision.
Note: for "JSA discretionary deferment provision", "UB automatic deferment
provision" and " UB discretionary deferment provision" see subsection 23 (1).
MODULE B - MAXIMUM BASIC RATE Maximum basic rate
1067-B1. A person's maximum basic rate is to be out the family situation and
whether the person has a dependent child. The maximum basic rate is the
corresponding amount in column 3.
TABLE B
MAXIMUM BASIC RATES column 1
column 2
column 3
rate
column 3A
person's family situation
person with dependent child
column 3B
person without dependent child 1. Not member of a couple and person is:

   (a)  not a homeless person; and

   (b)  not an independent young person
$291.70
$115.20 2. Not member of a couple and person is:

   (a)  a homeless person; or

   (b)  an independent young person
$291.70
$190.20 3. Partnered (partner getting neither pension nor benefit) 4.
Partnered (partner getting pension or benefit)
$243.20
$190.20 5. Member of illness separated couple $291.70
$291.70
$190.20
Note 1: for "member of a couple", "partnered (partner getting neither pension
nor benefit)", " partnered (partner getting pension or benefit)" and " illness
separated couple" see section 4.
Note 2: for "dependent child", 'Homeless person" and " independent young
person" see section 5. Note 3: a person to whose partner an unemployment
benefit or a job search allowance is not payable is in some circumstances
treated as not being a member of a couple - see point 1067-A2. Note 4: the
item 1 to 4 rates in column 3B are indexed annually in line with CPI increases
(see sections 1191 to 1194). Note 5: the other rates are indexed 6 monthly in
line with CPI increases (see sections 1191 to 1194). Note 6: if item 3 applies
to the person, see Module D: a supplementary amount might need to be added to
the person's maximum basic rate under that Module.
MODULE C - ADDITIONAL PAYMENT FOR PARTNER Amount for partner
1067-C1. Subject to point 1067-C2, an amount is to be added to a person's
maximum

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

   (b)  the person has a dependent child; and

   (c)  the person's partner is:

        (i)    an Australian resident; and

        (ii)   in Australia. Note: a person to whose partner an unemployment
               not payable is in some circumstances treated as not being a
               member of a couple - see point 1067-A2. No additional amount if
               partner getting pension or benefit
1067-C2. An additional amount is not to be added under point1067-C1 if:

   (a)  the person's partner is receiving a social security benefit; or

   (b)  a social security pension or benefit would be payable to the person's
        partner but for Part 3.14 (which deals with the effect of compensation
        payments); or

   (c)  the person's partner is receiving an AUSTUDY allowance. Rate of
        additional amount
1067-C3. Subject to point 1067-C4 the amount to be added under point 1067-C1
is:

   (a)  if the person is not a member of an illness separated couple -
        $243.20; or

   (b)  if the person is a member of an illness separated couple - $291.70.
        Amoutn for partner where person separated from partner and paying
        maintenance
1067-C4. If:

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

   (b)  the person is living apart from the person's partner; and

   (c)  the person is making a payment to the partner, the partner; and

   (d)  the fortnightly rate of the payment is less than the amount that
        would, apart from this point, be added to the person's maximum basic
        rate under this Module; the Secretary may determine that the amount to
        be basic rate under this Module is not to exceed the fortnightly rate
        of the payment that the person makes to the spouse. Presence of
        partner in Australia
1067-C5. If a person's partner is temporarily absent from Australia, the
partner is to the partner were in Australia:

   (a)  if the period of temporary absence is not longer than 3 months -
        throughout that period; and

   (b)  in any other case - throughout the first 3 months of that period.
        Factors to be considered in determining if absence is temporary
1067-C6. For the purposes of point 1067-C5, in determining if an absence is
temporary, regard must be had to the following factors:

   (a)  the purpose of any such absence;

   (b)  the intended duration of any such absence;

   (c)  the frequency of any such absences.
MODULE D-SUPPLEMENTARY AMOUNT FOR MEMBER OF COUPLE IN
SOME CIRCUMSTANCES Interim total of members of couples to whom item 3 of Table
B applies not to
fall below comparable "single" MBR
1067-D1. A supplementary amount is 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:

        (i)    is not receiving a social security pension; and

        (ii)   is not receiving a service pension; and

        (iii)  is not receiving a social security benefit; and

        (iv)   is not receiving an AUSTUDY allowance; and

   (c)  either:

        (i)    no amount is to be added to the person's

        (ii)   the amount to be added to the person's maximum basic rate under
               point 1067-C1 is reduced under point 1067-C4; and
(d) the person's interim total is less than the comparable "single" MBR for
the person. Note 1: for "interim total" see point 1067-D2 below.
Note 2: for "comparable `single' MBR" see point 1067-D3 below. Interim total
1067-D2. A person's interim total is the sum of the person's maximum basic
rate and the amount (if any) to be added underModule C.
Comparable "single" MBR
1067-D3. The comparable "single" MBR for a person is:

   (a)  if the person has a dependent child - the rate specified under column
        3A against item 1 in Table B in point 1067-B1; or

   (b)  if the person does not have a dependent child - the rate specified
        under column 3B against item 3 in Table B in point 1068-B1 of Benefit
        Rate Calculator B. Rate of supplementary amount
1067-D4. The supplementary amount is the difference between the person's
interim total and the comparable "single" MBR for the person.
MODULE E - ADDITIONAL AMOUNTS FOR CHILDREN Additional amounts for children
1067-E1. This is how to work out the amount per maximum basic rate for
children:
Method statement Step 1. Work out the amount of the dependent child add-on (if
any) for each dependent child of the person using points 1067-E2 to 1067-E4.
Step 2. Work out the amount per fortnight of the person's guardian allowance
(if any) using points 1067-E5 to 1067-E8. Step 3. Add up all of the amounts
obtained in Steps 1 and 2: the result is called the DC total and is the amount
to be added to the person's maximum basic rate under this Module. Note 1: a
dependent child add-on may not apply to a amount for that child is paid to
another person (see point 1067-E3) or is a prescribed student child (see point
1067-E4). Note 2: guardian allowance is a single amount per fortnight for
parents who are not members of a couple or who are members of
illness separated couples. Dependent child add-ons
1067-E2. If a person has a dependent child, there is, subject to points
1067-E3 and 1067-E4, a dependent child add-on for the child. The amount of the
add-on depends on the child's age and is worked out using Table E.
TABLE E
DEPENDENT CHILD ADD-ON
column 1                   column 2                      column 3

item                       child's age             amount per fortnight

1.                       under 13                         $48.30

2.                       13 or over but under 16          $70.50

3.                       16 or over                       $34.00
Note 1: the item 1 rate is adjusted annually so that the combined family
allowance and additional benefit amounts for children covered by this item do
not fall below 15% of the combined pensioner couple maximum basic rate (see
subsections 1201 (1) and (2)). Note 2: the item 2 rate is adjusted annually so
that the combined family allowance and additional benefit amounts for children
covered by this item do not fall below 20% of the combined pensioner couple
maximum basic rate (see subsections 1201 (3) and (4)). Note 3: the item 3 rate
is not indexed. Child add-on may be reduced or not paid in certain
circumstances
1067-E3. If, but for this point, an amount would be added to a person's
maximum basic rate under point 1067-E2 in respect of a child or children and:

   (a)  an amount would be added to another person's maximum basic rate in
        respect of

        (i)    point 1067-E2; or

        (ii)   point 1068-E2 of Benefit Rate Calculator B at the end of
               section 1068; or

   (b)  the child has been taken into account in fixing the rate of a person's
        social security or service pension; the Secretary may direct that:

   (c)  no amount be added to the person's maximum basic rate under point
        1067-E2; or

   (d)  the amount to be added to the person's maximum basic rate under point
        1067-E2 is to be limited to the amount determined by the Secretary. No
        add-on for prescribed student children
1067-E4. Once a dependent child of a person turns 16, there is no dependent
child if the child is a prescribed student child.
Note 1: for "prescribed student child" and "dependent child" see section 5.
Note 2: even though no child add-on applies to a particular dependent child,
the child may attract guardian allowance under points 1067-E5 to 1067-E8.
Guardian allowance for dependent children
1067-E5. A person is to have a single amount per year by way of guardian
allowance if:

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

   (b)  the person has at least one dependent child. Note: a person to whose
        partner an unemployment or a job search allowance is not payable is in
        some circumstances treated as not being a member of a couple - see
        point 1067-A2. Guardian allowance may be reduced or not paid in
        certain circumstances
1067-E6. If, but for this point, an amount would be basic rate under point
1067-E5 in respect of a child or children and:

   (a)  the child, or each of the children, is a person in respect of whom an
        amount would be added to another person's maximum basic rate under:

   (i)  point 1067-E5; or

   (ii) point 1068-E5 of Benefit Rate Calculator B at the end of section 1068;
        or

   (b)  the child, or each of the children, would be taken into account in
        fixing the rate of a social security or service pension; the Secretary
        may direct that:

   (c)  no amount is to be added to the person's maximum basic rate under
        point 1067-E5; or

   (d)  the amount to be added to the person's maximum basic rate under point
        1067-E5 is to be limited to the amount that the Secretary determines.
        No guardian allowance in respect of certain dependent children who
        have turned 18
1067-E7. Once a dependent child of a person turns 18, the child is not to be
taken into account for the purposes of point 1067-E5 unless:

   (a)  the child is a student child but not a prescribed student child; or

   (b)  the person receives child disability allowance in respect of the
        child. Rate of guardian allowance
1067-E8. The rate of guardian allowance is $25.80 a fortnight. Note: the rate
of guardian allowance is indexed annually in line with CPI increases (see
sections 1191 to 1194).
MODULE F - RENT ASSISTANCE Rent assistance
1067-F1. Subject to points 1067-F3 and 1067-F4, an amount to help cover the
cost of rent is to be added to the maximum basic rate of:

   (a)  a member of a couple; or

   (b)  a person who has a benefit increase child; for a period if:

   (c)  the person is not an ineligible homeowner; and

   (d)  the person pays, or is liable to pay, rent (other than
        Government rent) in respect of the period; and

   (e)  the rent is payable at a rate of more than $40 per fortnight; and

   (f)  the person is in Australia throughout the period; and

   (g)  the person does not have a partner with a rent increased pension.
Note 1: for "benefit increase child" see point 1067-F11 below.
Note 2: for "partner with a rent increased pension" see point 1067-F2 below.
Note 3: for "rent", "Government rent" and "ineligible homeowner" see section
13. Partner with rent increased pension
1067-F2. A person has a partner with a rent point 1067-F1, if:

   (a)  the partner is living with the person in their home; and

   (b)  the partner is receiving a social security or service pension; and

   (c)  the partner's pension rate is increased to take account of rent.
Note: "social security pension" includes a sheltered employment or
rehabilitation allowance. No rent assistance if partner getting
incentive allowance
1067-F3. If the person is a member of a couple and the person's partner is
living with the person in their home, an amount is not to be added to the
person's maximum basic rate under point 1067-F1 if the person's partner is
receiving incentive allowance.
Note: for "incentive allowance" see Module J of Pension Rate Calculator A and
Module F of Pension Rate Calculator B. Rent assistance waiting period
1067-F4. Subject to point 1067-F5, no amount is to be added to a person's
maximum basic rate under point 1067-F1 unless the person has a current
accumulated rent assistance waiting period credit of at least 26 weeks.
Note: for "current accumulated rent assistance waiting period credit" see
points 1067-F7-1067-F9 below. Some people do not have to serve rent assistance
waiting period
1067-F5. A person does not have to satisfy point 1067-F4 if:

   (a)  the person has a benefit increase child; or

   (b)  the person was, immediately before becoming qualified for the job
        search allowance or sickness benefit receiving:

   (i)  a social security or service pension or a social security benefit; and

   (ii) an amount by way of:

                (A)  rent assistance; or

                (B)  incentive allowance.
Note: for "benefit increase child" see point 1067-F11 below. Serving the rent
assistance waiting period
1067-F6. A person acquires an accumulated rent assistance waiting period
credit by accumulating 26 weeks of eligible rent assistance waiting periods.
Accumulated eligible rent assistance waiting periods
1067-F7. For the purposes of point 1067-F4, a person is to be taken to have
accumulated 26 weeks of eligible rent assistance waiting periods if:

   (a)  the person has an eligible waiting period that is a continuous period
        of 26 weeks;

   (b)  the person has eligible waiting periods that together form a
        continuous period of 26 weeks; or

   (c)  the person has eligible waiting periods that add up to 26 weeks and
        none of the eligible waiting periods start more than 4 weeks after the
        end of the immediately preceding waiting period. Eligible rent
        assistance waiting period
1067-F8. A period is an eligible waiting period for a person if during the
whole of the period the person:

   (a)  is receiving of a social security or service pension or a social
        security benefit; or

   (b)  would, but for the application of an ordinary income test or
        maintenance income test or assets test, be receiving a sickness
        benefit, special benefit or a job search allowance; or

   (c)  is receiving of payments as a trainee in full-time training under a
        program included in the programs known as Labour Force Programs; or

   (d)  is in continuous full-time training under a program included in the
        programs known as Labour Force Programs and is receiving payments by
        way of remuneration in respect of that training; or

   (e)  is receiving of payments under the Adult

   (f)  is in gaol.
Note: for "in gaol" see subsection 23 (5). Credit ceases to be current in some
circumstances
1067-F9. A person's accumulated rent assistance credit ceases to be current at
a particular time if the person's last eligible rent assistance waiting period
ended more than 4 weeks before that time. Factors affecting rate of rent
assistance
1067-F10. The rate of rent assistance depends on:

   (a)  the fortnightly rent paid or payable by the person; and

   (b)  the number of benefit increase children in relation to the person; and

   (c)  whether or not the person has a partner who has a rent increased
        benefit. Benefit increase child
1067-F11. A child is a benefit increase child in relation to a person for the
purposes of this Module if the child attracts a dependent child add-on under
Module E. Partner with rent increased benefit
1067-F12. A person's partner has a rent increased benefit for the purposes of
this Module if the partner:

   (a)  is living with the person in their home; and

   (b)  is receiving an unemployment benefit, job search allowance or sickness
        benefit the rate of which is increased to take account of rent. Note:
        for the treatment of rent paid by a member of a couple see point
        1067-F15. Rate of rent assistance
1067-F13. The rate of rent assistance per fortnight is worked out using Table
F. Work out the person's family situation and calculate Rate A for the person
using the corresponding formula in column 3. This will be the person's rate of
rent assistance but only up to the person's maximum rent assistance rate. The
person's maximum rent assistance rate is Rate B for the person worked out
using column 4 of the Table.
TABLE F
RATE OF RENT ASSISTANCE column 1
column 2
column 3
column 4
item      family situation

Rate A
Rate B
column 4A
No benefit increase children
column 4B
1 or 2
benefit increase children
column 4C
3 or more
benefit increase children 1. Not member of a couple
fortnightly rent - $40
2
Nil
$70
$80 2. Partnered - partner does not have rent increased benefit
$60
$70
$80
fortnightly rent - $40
2 3. Partnered - partner has rent increased benefit
fortnightly rent-$40
4
$30
$35
$40 4. Partnered - member of illness separated couple where person's
rate is increased for partner under Module C
fortnightly rent-$40
$120
$140
$160 5. Partnered - member of illness separated couple where person's for
partner under Module C and partner is getting neither pension nor benefit
fortnightly rent - $40
2
$60
$70
$80
Note 1: for "member of a couple", "illness separated couple" and "partnered"
see section 4.
Note 2: for partner with a "rent increased benefit" see point 1067-F12. Note
3: the Rate B amounts are indexed 6 monthly in line with CPI increases (see
sections 1191 to 1194). Fortnightly rent
1067-F14. Fortnightly rent is the fortnightly rent paid or payable by the
person whose rate of job search allowance is being calculated. Rent paid by a
member of a couple
1067-F15. If a person is a member of a couple and the person's partner is
living with the person in their home, any rent that the person's partner pays
or is liable to pay in respect of the home is to be treated as paid or payable
by the person.
Note: for "member of a couple" see section 4. Rent paid by a member of an
illness separated couple
1067-F16. If a person is a member of an illness separated couple, any rent
that the person's partner pays or is liable to pay in respect of the premises
or lodgings occupied by the person is to be treated as paid or payable by the
person.
Note: for "illness separated couple" see section 4.
MODULE G - PARENTAL MEANS TEST Effect of parental assets and income on maximum
1067-G1. This is how to work out the effect (if any) of the assets and income
of a person's parent or parents on the person's maximum payment rate:
Method statement Step 1. Work out whether the parental means test 1067-G2 to
1067-G7. Step 2. If the parental means test applies to the person, identify
the person's means test parent or parents using points 1067-G4 to 1067-G7.
Step 3. Work out the person's combined parental assets value using point
1067-G9. Step 4. Work out the person's parental assets value limit using point
1067-G10. Step 5. Work out the amount of the person's reduction for parental
assets using point 1067-G11. Step 6. Work out the amount of the person's
combined parental income using points 1067-G12 to 1067-G15. Step 7. Work out
the amount of the parental income free area limit using points 1067- G16 to
1067-G18. Step 8. Take the limit away from the combined parental income: the
result is called the annual parental income excess. Step 9. Convert the annual
parental income excess into a fortnightly parental income excess using point
1067-G20. Step 10. Work out the amount of the person's reduction for parental
income using points 1067-G21 and 1067-G22. Step 11. The person's reduction for
parental assets and income is:

   (a)  if the person's reduction for parental assets parental assets; or

   (b)  if the person's reduction for parental assets is nil - the person's
        reduction for parental income. Note: see point 1067-A1 (Steps 7, 8 and
        12) for the significance of the person's reduction for parental assets
        and income. Persons affected by the parental means test
1067-G2. The parental means test applies to a person unless the person:

   (a)  is a member of a couple; or

   (b)  has a dependent child; or

   (c)  is an independent young person; or

   (d)  is a homeless person; or

   (e)  has an income test parent to whom a social security benefit is
        payable; or

   (f)  lives at the home of foster parents, or a foster parent, of the
        person; or

   (g)  does not have a means test parent.
Note 1: for "member of a couple" see section 4.
Note 2: for "dependent child", "homeless person" and "independent young
person: see subsection 5 (1).
Note 3: for "means test parent" see points 1067-G4 to 1067-G6 below and for
"foster parent" see point 1067-G3. Foster parent
1067-G3. For the purposes of this Module, a foster parent is a person who has
been authorised to act as, or certified as, a foster parent by an authority of
the State or Territory in which the person is living. Means test parent
1067-G4. If the recipient lives with a parent, that parent is a means test
parent of the recipient.
1067-G5. If the recipient does not live with a parent, a parent with whom the
recipient last lived is a means test parent.
1067-G6. If 2 people are means test parents because of point 1067-G5 and those
people are not living together, the recipient may choose which of those
persons is to be a means test parent.
1067-G7. For the purposes of points 1067-G4 to 1067-G6:

   (a)  the recipient is the person whose rate of benefit or allowance is
        being calculated; and

   (b)  a reference to a parent of the recipient is a reference to:

   (i)  a natural parent; or

   (ii) an adoptive parent; or

   (iii) a step-parent; of that person; and

   (c)  if the recipient is temporarily living apart from a parent of the
        recipient, the recipient is to be taken to be living with the parent.
Note: "parent", when used in this Act, does not normally include a step-parent
(see the definition of "parent" in subsection 5 (1)).
Parental means test minimum rate
1067-G8. The parental means test minimum rate is $53.80. Combined parental
assets value
1067-G9. A person's combined parental assets value is the amount of:

   (a)  if the person has only one means test parent-the value of that
        parent's assets; or

   (b)  if the person has more than one means test parent - the sum of the
        value of the assets of each of those parents. Parental assets value
        limit
1067-G10. The parental assets value limit is $322,750. Reduction for parental
assets
1067-G11. A person's reduction for parental assets is:

   (a)  if the person's combined parental assets value does not exceed the
        parental assets value limit - nil; or

   (b)  if the person's combined parental assets value exceeds the parental
        assets value limit-the difference between the person's maximum payment
        rate and the parental means test minimum rate. Note 1: the
        parental means test minimum rate is indexed annually in line with
        average weekly earnings (see sections 1195 to 1198).
Note 2: for "parental means test minimum rate" point 1067-G8 above. Combined
parental income
1067-G12. If a person has only one means test parent and that parent does not
have a partner, the person's combined parental income is the sum of the
taxable income and the exempt income of the person's means test parent for the
appropriate tax year.
Note 1: for "means test parent" see points 1067-G4 to 1067-G7 above.
Note 2: for "taxable income" and "exempt income" see section 23.
Note 3: for "appropriate tax year" see point 1067-G15 below.
1067-G13. If a person has only one means test parent and that parent has a
partner, the person's combined parental income is the sum of the taxable
income and the exempt income of the person's means test parent and the means
test parent's partner for the appropriate tax year.
Note 1: for "means test parent" see points 1067-G4 to 1067-G7 above.
Note 2: for "taxable income" and "exempt income" see section 23.
Note 3: for "appropriate tax year" see point 1067- G15 below.
1067-G14. If a person has two means test parents, the person's combined
parental income is the sum of the taxable income and the exempt income of both
of the person's means test parents for the appropriate year.
Note 1: for "means test parent" see points 1067-G4 to 1067-G7 above.
Note 2: for "taxable income" and "exempt income" see section 23.
Note 3: for "appropriate tax year" see point 1067-G15 below.
Appropriate tax year
1067-G15. For the purposes of this Module, the appropriate tax year is:

   (a)  if there is no determination under section 632 - in relation to a
        person in relation to a particular time, the tax year of the person
        that ended on the last 30 June that preceded that time; or

   (b)  if there is a determination under section 632 - the tax year in which
        the person requested the determination. Note 1: the parental income
        test is usually based on income from the last tax year. If the income
        of the means test parent or parents has dropped by more than 25% since
        the end of the last tax year, section 632 allows the recipient to
        request that income for the current tax year be considered instead.
Note 2: for "tax year" see section 23. Parental income free area limit
1067-G16. The amount of the parental income free area limit in relation to a
person depends on the number of dependent children depends on the number of
dependent children there are in relation to the person's means test parent or
parents.
1067-G17. The parental income free area limit is worked out using Table G. The
parental income free area limit is the amount in column 1 plus:

   (a)  an additional amount in column 2 for the first dependent child of the
        means test parent or parents; and

   (b)  an additional amount in column 3 for each dependent child of the means
        test parent or parents after the first.
TABLE G
PARENTAL INCOME FREE AREA LIMIT
column 1               column 2                 column 3

basic free area        additional free area     additional free area

                       for first dependent      for each dependent

                       child                    child after the first

   $18,150< $1,200                       $2,500
Note 1: the person whose rate of benefit or allowance is being calculated is
not a dependent child - see section 5 for the definition of "dependent child".
Note 2: the basic free area limit is indexed annually in line with average
weekly earnings (see sections 1195 to 1198). Dependent child
1067-G18. For the purposes of applying point 1067- G17 in working out a
person's Social Security benefit rate, a young person is to be treated as a
dependent child of an income test parent if:

   (a)  the young person is not the person whose social security benefit rate
        is being worked out; and

   (b)  the young person would, but for subsection 5 (6), be a dependent child
        of the income test parent; and

   (c)  the young person is a person to whom the parental means test applies.
        Annual parental income excess
1067-G19. The annual parental income excess is the combined parental income
less the parental income free area limit. Fortnightly parental income excess
1067-G20. The fortnightly parental income excess is the annual parental income
excess divided by 26. Reduction for parental income
1067-G21. Subject to point 1067-G22, the reduction for parental income is:
fortnightly parental income excess
4 Limit on amount of reduction for parental income
1067-G22. A person's reduction for parental income between the person's
maximum payment rate and the parental means test minimum rate. Note 1: the
parental means test minimum rate is indexed annually in line with
average weekly earnings (see sections 1195 to 1198).
Note 2: for "parental means test minimum rate" see point 1067-G8 above.
MODULE H - ORDINARY INCOME TEST Effect of ordinary income on maximum payment
rate
1067-H1. This is how to work out the effect of a person's ordinary income on
the person's maximum payment rate:
Method statement Step 1. Work out the amount of the person's ordinary income
on a fortnightly basis. Note 1: for the treatment of the ordinary income of
members of couples see points 1067-H2 and 1067-H3. Note 2: for the treatment
of amounts received from friendly societies see point 1067-H4. Step 2. Work
out the person's ordinary free area limit using points 1067-H9 and 1067-H10.
Note: a person's ordinary income free area is the maximum amount of ordinary
income the person can have without affecting the person's benefit rate. Step
3. Work out whether the person's ordinary income exceeds the person's
ordinary income free area. Step 4. If the person's ordinary income does not
exceed the person's ordinary income free area, the person's
ordinary income excess is nil. Step 5. If the person's ordinary income exceeds
the person's ordinary income free area, the person's ordinary income excess
less the person's ordinary income free area. Step 6. Use the person's
ordinary income excess to work out the person's reduction for ordinary income
using points 1067-H11 and 1067-H12 below.
Note 1: for "ordinary income" see section 8. Note 2. see point 1067-A1 (Steps
9 to 12) for the significance of the person's reduction for ordinary income.
Note 3: the application of the ordinary income test is affected by provisions
concerning:
. investment income (sections 1073 to 1099);
. disposal of income (sections 1106 to 1112). Ordinary income of members of
couples
1067-H2. For the purposes of this Module, the ordinary income of a person who
is a member of a couple is to be taken to include the ordinary income (other
than any AUSTUDY allowance received by the person's partner) of the person's
partner. Income disregarded under earnings credit provisions
1067-H3. If, in applying the ordinary income test to a person's partner, the
whole or a part of a payment to which the partner has become entitled is to be
disregarded under section 1113 (earnings credit), the whole of that amount, or
that part of that amount, is also to be disregarded in in working out the
ordinary income of the person for the purposes of point 1067-H2.
Friendly society amounts
1067-H4. The ordinary income of a person:

   (a)  to whom a sickness benefit is payable; or

   (b)  to whom a job search allowance is payable because of subsection 589(2)
        (person previously receiving job search allowance who become
        incapacitated for work); or

   (c)  who is the partner of a person to whom paragraph (a) or (b) applies;
        is not to include any amount received from an
        approved friendly society in respect of the incapacity because of
        which the person is qualified for the sickness benefit or job search
        allowance.
Note: for "approved friendly society" see sections 23 and 29. Termination
payments
1067-H5. 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 includes certain periodical payments from
        relatives
1067-H6. Subject to point 1067-H7, in this Module, a person's ordinary income
includes a periodical payment or benefit by way of gift or allowance from the
father, mother, son, daughter, brother or sister of the person. Note: point
1067-H6 reverses paragraph 8 (9) (z) which excludes these amounts.
Board and lodging
1067-H7. 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. Ordinary income received at intervals longer
than one fortnight
1067-H8. If:
(a) a person earns, derives or receives income for "work period"); and

   (b)  the person earns, derives or receives the income at intervals longer
        than 1 fortnight; the person is to be taken to earn, derive or receive
        (as the case may be) in a fortnight falling within the work period an
        amount calculated by:

   (c)  dividing the amount earned, derived or received by the number of days
in the work period (the result is to be called the "daily rate"); and

   (d)  multiplying the daily rate by the number of days in the fortnight that
        are also within the work period.
EXAMPLE OF ORDINARY INCOME RECEIVED AT INTERVAL LONGER
THAN ONE FORTNIGHT Facts: Fred earns $600 for the period 1 to 24 July
inclusive i.e. for 25 days. The 25 days are spread over 3 fortnights as
follows:
. Fred worked 5 days of the first fortnight;
. he worked each working day of the second fortnight;
. he worked 6 days of the third fortnight. Application: To work out the amount
that Fred is taken to earn in the first fortnight divide the amount he earned
($600) by the number of days in the work period (25). This gives a daily rate.
The daily rate is:
$600=$24
25 Then multiply the daily rate ($24) by the number of days in the fortnigh
that are also within the work period. The result is:
$24 X 5=$120 For the second fornight the calculation is:
$24 X 14=$336 For the third fortnight the calculation is:
$24 X 6=$144
. $120 in the first fortnight; and
. $336 in the second fortnight; and
. $144 in the third fortnight. Ordinary free area limit
1067-H9. A person's ordinary free area limit is, subject to point 1067-H10,
$60.
1067-H10. If:

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

   (b)  the person's ordinary income exceeds $60; and

   (c)  the person's ordinary income includes income person or the person's
        partner; the person's ordinary free area limit is worked out using
        Table H-1. Take the amount in column 1 and add:

   (d)  if the person has income from personal exertion - whichever is the
lesser of Rate A and Rate B in column 2.   (e)  if the person's partner has
income from personal exertion - whichever is the lesser of Rate A and Rate B
in column 3.
TABLE H-1
FREE AREA FOR MEMBERS OF COUPLE WITH INCOME FROM
PERSONAL EXERTION column 1
column 2
column 3
basic free area              person's income from    partner's income

                             personal exertion       from personal exertion

                           column 2A    column 2B     column 3A    column 3B

                             Rate A<    Rate B        Rate A        Rate B

$60
rate of income from personal exertion
$30
rate of income from personal exertion
$30
Note: for "income from personal exertion" see subsection 8 (1). Reduction for
ordinary income in excess of the ordinary free area limit
1067-H11. A person's reduction for ordinary income is worked out using Table
H-2. Work out which family situation applies to the person. The reduction for
ordinary income is the amount worked out using the corresponding calculation
in the "lower range excess reduction" column plus the amount (if any) worked
out using the corresponding calculation in the "upper range excess reduction"
column.
TABLE H-2
REDUCTION FOR ORDINARY INCOME column 1
column 2
column 3
item                   person's family situation

lower range excess reduction
column 4
upper range excess reduction
1. Not member of a couple   lower range excess

2
upper range excess 2. Partnered (partner getting neither pension nor benefit)
partner not getting AUSTUDY allowance
lower range excess
2
upper range excess 3. Partnered (partner getting neither pension nor benefit)
- partner not getting AUSTUDY
lower range excess
2
upper range excess
2 4. Partnered (partner getting pension or benefit)
lower range excess
4
upper range excess
2
Note: for "member of a couple", "partnered (partner getting neither pension
nor benefit)" and "partnered (partner getting pension or benefit)" see section
4. Lower range excess/upper range excess
1067-H12. If a person has an ordinary income excess:

   (a)  the part of the excess that does not exceed $80 is the person's lower
        range excess; and

   (b)  the part (if any) of the excess that exceeds $80 is the person's upper
        range excess. Ordinary income excess
1067-H13. A person's ordinary income excess is the person's ordinary income
less the person's ordinary free area limit.         MODULE J - MAINTENANCE
INCOME TEST Effect of maintenance income on maximum payment rate
1067-J1. This is how to work out the effect of a person's maintenance income
on the person's maximum payment rate:
Method statement Step 1. Work out the amount of the person's
maintenance income on a fortnightly basis. Note 1: for the treatment of the
maintenance income of members of a couple see points 1067-J3 to 1067-J5. Note
2: for maintenance income received at intervals longer than a fortnight see
point 1067-J6.
Note 3: "special maintenance income" (see subsection 10 (1)) can in some
circumstances be disregarded under points 1067-J7 and 1067-J8. Step 2. Work
out the person's maintenance free area limit using points 1067-J11 and
1067-J12 below. Note: a person's maintenance income free area is the maximum
amount of maintenance income the person can have without affecting the
person's benefit rate. Step 3. Work out whether the person's
maintenance income exceeds the person's maintenance income free area. Step 4.
If the person's maintenance income does not exceed the person's
maintenance income free area, the person's maintenance income excess is nil.
Step 5. If the person's maintenance income does not exceed the person's
maintenance income free area, the person's maintenance income excess is the
person's maintenance income less the person's maintenance income free area.
Step 6. Use the person's maintenance income excess to work out the person's
reduction for maintenance income using points 1067- J13 and 1067-J14 below.
Note: see point 1067-A1 (Steps 10 to 12) for the significance of the person's
reduction for maintenance income. Dependent child
1067-J2. In working out whether a young person is a dependent child for the
purposes of this Module, disregard subsection 5 (3). Maintenance income of
members of couples
1067-J3. For the purposes of this Module, if:

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

   (b)  the person's rate is increased under Module C (additional payment for
        dependent partner); the person's maintenance income is the sum of the
        maintenance income of the person and the person's partner.
1067-J4. For the purposes of this Module, if:

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

   (b)  the person's partner is receiving:

        (i)    a social security or service pension; or

        (ii)   a social security benefit;
1067-J5. For the purposes of this Module, if:

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

   (b)  the person's partner is not receiving:

        (i)    a social security or service pension; or

        (ii)   a social security benefit; and

   (c)  the person's rate of benefit or allowance is not increased under
        Module C (additional payment for dependent partner);

   (d)  if the partner is receiving maintenance income - the sum of the
        maintenance income of the person and the person's partner by 2; and

   (e)  if the partner is not receiving maintenance income - the amount of
        maintenance income which the person receives. Maintenance income
        received at intervals longer than a fortnight
1067-J6. If:

   (a)  a person receives maintenance income for a period (in this point
        called
the "maintenance period"); and

   (b)  the person receives the maintenance income at intervals longer than 1
        fortnight; the person is to be taken to receive in a fortnight falling
        within the maintenance period an amount calculated by:

   (c)  dividing the amount received by the number of days in the maintenance
        period (the result is the daily rate); and

   (d)  multiplying the daily rate by the number of within the maintenance
        period.
EXAMPLE OF MAINTENANCE INCOME RECEIVED AT INTERVAL LONGER
THAN ONE FORTNIGHT Facts: Mary has 3 children. She receives $600 for the
period 1 to 24 July inclusive i.e. for 25 days. The 25 days are spread over 3
fortnights as follows:
. Mary receives maintenance for 5 days of the first fortnight;
. each day of the second fortnight;
. 6 days of the third fortnight. Application: To work out the amount that Mary
is taken to receive in the first fortnight first divide the amount she
received ($600) by the number of days in the maintenance period (25). This
gives a daily rate. The daily rate is:
$600 = $24
25 Then multiply the daily rate ($24) by the number of days in the fortnight
that are also within the maintenance period. The result is:
$24 X 5 = $120 For the second fortnight the calculation is:
$24 X 14 = $336 For the third fortnight the calculation is:
$24 X 6 = $144
. $120 in the first fortnight; and
. $336 in the second fortnight; and
. $144 in the third fortnight. Special maintenance income
1067-J7. Subject to points 1067-J9 and 1067-J10, if a person has special
maintenance income in excess of the ceiling applicable to the person, the
excess is disregarded for the purposes of this Module.
Note: for "special maintenance income" see subsection 10 (1).
1067-J8. The ceiling applicable to a person is the amount equal to the
person's maintenance income free area limit plus:
person's maximum payment rate
2 Special maintenance income not disregarded where child support available
1067-J9. No amount is to be disregarded under point 1067-J7 if:

   (a)  child support is not payable under the Child Support (Assessment) Act
        1989 to the person for a child; and

   (b)  the person is entitled to make an application for assessment of child
        support under Part V of that Act for the child payable by another
        person; and

   (c)  the person has:

   (i)  neither:

                (A)  properly made such an application; nor

                (B)  properly made an application under Part VI of that Act
                     for acceptance of an agreement in relation to the child;
                     or

   (ii) the person has properly made an application of either kind, but:

                (A)  the person has subsequently withdrawn the application; or

                (B)  after child support has become payable by the other
                     person under that Act for the child, the person has ended
                     the entitlement to child support.
1067-J10. No amount is to be disregarded under point 1067-J7 if:

   (a)  child support is payable under the Child Support (Assessment) Act 1989
        to the person for a child; and

   (b)  the person is entitled to make an application under section 128 of
        that Act; and

   (c)  an application by the person under that section is not in force. How
        to calculate a person's maintenance income free area limit
1067-J11. A person's maintenance income free area limit is worked out using
Table J. Work out which family situation applies to the person. The
maintenance limit is the corresponding amount in column 3 plus an additional
corresponding amount in column 4 for each dependent child after the first.
TABLE J
MAINTENANCE INCOME FREE AREA LIMIT column 1
column 2
column 3
column 4 item
person's family situation
basic free area per fortnight
additional free area per fortnight
 1. Not member of a couple    $30

$10
2. Partnered (partner getting neither pension nor benefit) - person gets no
increase for partner under Module C                      $30

$10
3. Partnered - person gets increase for partner under Module C and both the
person or and the partner are receiving maintenance
                              $60                 $10

4. Partnered - person gets increase for partner under Module C and either the
person and the partner are receiving maintenance                   $30

$10
5. Partnered (partner getting pension or or benefit)- both the person and the
partner are receiving maintenance income            $30

$10
6. Partnered (partner getting pension or benefit) - either the person (but
not both) are receiving maintenance income  $15                 $5

Note 1: for "member of a couple", "partnered (partner getting neither pension
nor benefit)" and "partnered (partner getting pension or benefit) see section
4.
Note 2: for "dependent child" see section 5. Note 3: items 2, 3, 4, 5 and 6 of
Table H apply to members of illness separated couples.   1067-J12. In
determining whether or not item 3, 4, 5 or 6 of Table J applies to a person,
points 1067-J3 to 1067-J5 are to be disregarded. This has the effect of taking
into account only maintenance income that the person income that the person is
to be taken to receive because of maintenance income received by the person's
partner. Benefit reduction for maintenance income in excess of maintenance
free area limit
1067-J13. A person's reduction for maintenance income is:
maintenance income excess
2
Note: for "maintenance income excess" see point 1067-J14 below.
Maintenance income excess
1067-J14. A person's maintenance income excess is the person's maintenance
income less the person's maintenance free area limit.
MODULE K - REMOTE AREA ALLOWANCE Remote area allowance - person physically in
remote area
1067-K1. An amount by way of remote area allowance is to be added to a
person's rate if:

   (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). Remote area allowance - partner physically present in
remote area
1067-K2. An amount by way of remote area allowance is to be added to a
person's rate if:

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

   (b)  the person is absent from the remote area for a period exceeding 8
        weeks (disregarding the operation of subsection 14 (2)); and

   (c)  the person has a partner:

   (i)  in respect of whom the person's benefit rate is increased under Module
        C; and

   (ii) whose usual place of residence is in the remote area; and

   (iii) who is physically present in the remote area. Rate of remote area
        allowance
1067-K3. The rate of remote area allowance payable to a person is worked out
using Table K. 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 pension
or benefit increase child of the person.
TABLE K
REMOTE AREA ALLOWANCE column 1
column 2
column 3
column 4 item
family situation
basic allowance
additional allowance for each
pension or benefit increase
child
 1. Not member of couple    $14.00

$7.00
2. Partnered - remote area allowance payable to partner
$12.00
$7.00
3. Illness separated couple-partner not benefit increase partner
$14.00
$7.00
4. Partnered - remote area allowance not payable to partner and
partner not benefit increase partner
$14.00
$7.00
5. Partnered - partner is a benefit increase partner and both person
and partner are in the remote area
$24.00
$7.00
6. Partnered - partner is a and both person and partner are in the remote area
$14.00
$7.00
Note 1: for "benefit increase partner" see subsection 4 (10). Note 2: item 5
includes illness separated couples. Meaning of remote area allowance
1067-K4. In Table K, remote area allowance means:

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

   (b)  a remote area allowance payable under section 57 of the VEA. In
        remote area
1067-K5. For the purposes of Table K in point 1067- K3, 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.
        Dependent children must be physically present in Australia
1067-K6. Additional allowance is not payable for a dependent child is
physically present in Australia. Additional allowance for dependent children
only payable to one parent
1067-K7. If additional allowance would otherwise be payable in respect of a
pension or benefit increase child to 2 persons, the additional allowance is
payable only:

   (a)  if a dependent child add-on is payable to only one of those persons-to
        that person; or

   (b)  in any other case - to the person to whom the Secretary directs that
        the additional allowance should be paid. Notice of decision
1067-K8. If the Secretary gives a direction under paragraph 1067-K7 (b), the
Secretary must give each of the persons affected by the direction notice in
writing of the giving of the direction.