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SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 1068
Rate of unemployment and sickness benefit (18 or over)
1068. (1) The rate of:
(a) unemployment benefit; and
(b) sickness benefit for a person who has 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) Where:
(a) a person is living with another person as the spouse of the other
person on a genuine domestic basis although not legally married to the
other person; and
(b) the other person is of the opposite sex; and
(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,
maintenance income and assets of the partner in applying the ordinary
income test, maintenance income test and assets test respectively.
Rate of benefit limited for certain armed services widows
(3) Where a person:
(a) an armed services widow is receiving:
(i) 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; or
(ii) a pension under the Seamen's War Pensions and Allowances Act 1940 at a
rate determined under subsection 18 (2) of that Act; and
(b) the widow has been receiving a payment referred to in subparagraph (a)
(i) or (a) (ii) 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 $120.10 per fortnight - to
a rate greater than $120.10 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 $120.10 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 533 and 675.
Note 2: for "armed services widow" see subsection 4 (1).
MODULE A - OVERALL RATE CALCULATION PROCESS Method of calculating rate
1068-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
below. Step 5. Work out any applicable additional amount for rent using MODULE
F below. Step 6. Add up the amounts obtained in Steps 1 to 4: the result is
called the maximum payment rate. Step 7. Apply the ordinary income test using
MODULE G below to work out the reduction for ordinary income. Step 8. Apply
the maintenance income test using MODULE H below to work out the reduction for
maintenance income. Step 9. Add up the reductions for ordinary income and
maintenance income: the result is called the total income reduction. Step 10.
The rate of benefit is the difference between:
(a) the maximum payment rate; and
(b) the total income reduction; plus any amount payable by way of
remote area allowance (see MODULE J below). Note: if a person's rate
is reduced under Step 10, the order in which the 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
1068-A2. If:
(a) a person is a member of a couple; and
(b) an unemployment benefit or a job search allowance is:
(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),
additional payment for partner (Module 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 1068-A4. Note 2: a person covered
by point 1068-A2 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 account to reduce the
person's maximum payment rate. Industrial action preclusion provision
1068-A3. For the purposes of point 1068-A2, sections 514 (unemployment
benefit) and 590 (job search allowance) are industrial action preclusion
provisions. Deferment provisions
1068-A4. For the purposes of point 1068-A2, the following are deferment
provisions:
(a) a UB automatic or discretionary deferment provision;
(b) a JSA automatic or discretionary deferment provision.
Note: for "UB automatic deferment provision", "UB discretionary deferment
provision", " JSA automatic deferment provision" and " JSA discretionary
deferment provision" see subsection 23 (1).
MODULE B - MAXIMUM BASIC RATE Maximum basic rate
1068-B1. A person's maximum basic rate 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.
TABLE B
MAXIMUM BASIC RATES
column 1 column 2 column 3
column 3A column 3B
person with person with
a dependent a dependent
child child
item person's family situation
1. Not member of a couple and person: $291.70 $210.30
child
(a) has turned 18 but not 21; and
(b) is not living at the home of parent or parents
2. Not member of a couple and person: $291.70 $138.40
(a) has turned 18 but not 21; and
(b) is not living at the home of parent or parents
3. Not member of a couple and person< $291.70 $268.60
has turned 21 but has not turned 60
4. Not member of a couple and person: $291.70 $268.40
(a) has turned 60; and
(b) has not been receiving social security benefit
continuously for at least 6 months
5. Not member of a couple and person: $291.70< $291.70
(a) has turned 60; and
(b) has been receiving social security benefit
continuously for at least 6 months
6. Partnered (partner getting neither $243.20 $210.30
pension nor benefit) and person has turned 18 but not 21
7. Partnered (partner getting neither $243.20 $243.20
pension nor benefit) and person has turned 21
8. Partnered (partner getting pension $243.20 $210.30
or benefit and person has turned 18 but not 21
9. Partnered (partner getting pension $243.20 $243.20
or benefit) and person has turned 21
10. Member of illness separated couple $291.70 $291.70
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" 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 1068-A2.
Note 4: the item 1, 2, 6 and 8 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 6 or 7 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
1068-C1. Subject to points 1068-C2 and 1068-C3, an 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 is:
(i) an Australian resident; and
(ii) in Australia. Note: 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 1068-A2.
Recipient under 21-no additional amount unless recipient has
dependent child
1068-C2. If the person has not turned 21, an additional amount is not to be
added under point 1068-C1 unless the person has a dependent child. No
additional amount if partner getting pension or benefit
1068-C3. An additional amount is not to be added under point 1068-C1 if:
(a) the person's partner is receiving a social security or service pension
or 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
1068-C4. Subject to point 1068-C5, the amount to be added under point 1068-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.
Note: for "illness separated couple" see subsection 4 (7). Amount for partner
where person separated from partner and paying maintenance
1068-C5. 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, for or towards the
maintenance of 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 added to the person's maximum 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
1068-C6. If a person's partner is temporarily absent from Australia, the
partner is to be taken for the purposes of point 1068-C1, as if 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
1068-C7. For the purposes of point 1068-C6, 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 items 6 and
and 7 of Table B in
point 1068- B1 applies not to fall below comparable "single" MBR
1068-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 maximum basic rate under
point 1068- C1; or
(ii) the amount to be added to the person's maximum basic rate under point
1068-C1 is reduced under point 1068-C5; and
(d) the person's interim total is less than the comparable "single" MBR for
the person.
Note 1: for "interim total" see point 1068-D2 below.
Note 2: for "comparable `single' MBR" see point 1068-D3 below.
1068-D2. A person's interim total is the sum of the person's maximum basic
rate and the amount (if any) to be added under Module C.
Comparable "single" MBR
1068-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 of Benefit Rate
Calculator A; 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 this
Benefit Rate Calculator. Rate of supplementary amount
1068-D4. The supplementary amount is the difference between the person's
interim total and the comparable "single" MBR for the person.
MODULE E - ADDITIONAL AMOUNT FOR CHILDREN Additional amounts for children
1068-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 1068-E2 and 1068-E4.
Step 2. Work out the amount per year of the person's guardian allowance (if
any) using points 1068-E5 to 1068-E9. 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 dependent child if the full amount
for that child is paid to another person (see point 1068-E3) or if the child
is a prescribed student child (see point 1068-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. Note 3: a young person does
not need to be a dependent child to attract guardian allowance: see point
1068-E6 below. Dependent child add-ons
1068-E2. If a person has a dependent child, there is, subject to points
1068-E3 and 1068-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 sections 1201 (3) and (4)). Note 3: the item 3 rate is
not indexed. Amount of child add-on may be reduced or not paid in certain
circumstances
1068-E3. If, but for this point, an amount would be added to a person's
maximum basic rate under point 1068-E2 and:
(a) an amount would be added to the maximum basic rate of another person
under:
(i) point 1068-E2; or
(ii) point 1067-E2 of Benefit Rate Calculator A at the end of section 1067;
or
(b) the child has been taken into account in fixing a person's social
security or service pension rate; the Secretary may direct that:
(c) no amount be added to the person's maximum basic rate under point
1068-E2; or
(d) the amount to be added to the person's maximum basic rate under point
1068-E2 is to be limited to the amount determined by the Secretary. No
add-on for prescribed student children
1068-E4. Once a dependent child of a person turns 16, there is no dependent
child add-on for the 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 1068-E5 to 1068-E9.
Guardian allowance for dependent children
1068-E5. A person is to have a single amount per fortnight 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 benefit or a job search allowance is
not payable is in some circumstances treated as not being a
member of a couple - see point 1068-A2. Guardian allowance for some
benefit recipients in respect of children who are not
dependent children
1068-E6. A person is to have a single amount per fortnight by way of
guardian allowance if:
(a) the person is not a member of a couple; and
(b) the person has at least one natural or adopted child who has turned 16
but has not turned 18; and
(c) the child is not a dependent child of the person; and
(d) a social security benefit:
(i) is payable to the child; or
(ii) would be payable to the child if the child were not required to serve
a waiting period.
Note: for "waiting period" see subsection 23 (1). Amount of guardian allowance
may be reduced or not paid in certain circumstances
1068-E7. If, but for this point, an amount would be added to a person's
maximum basic rate under point 1068-E5 or 1068-E6 for 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 1068-E5 or 1068-E6; or
(ii) point 1067-E5 of Benefit Rate Calculator A at the end of section 1067;
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 1068- E5 or 1068-E6; or
(d) the amount is to be added to the person's maximum basic rate under
point 1068-E5 or 1068-E6 is to be limited to the amount that the
Secretary determines. No guardian allowance in respect of certain
dependent children who have turned 18
1068-E8. Once a dependent child of a person turns 18, the child is not to be
taken into account for the purposes of point 1068-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
1068-E9. 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
1068-F1. Subject to points 1068-F3, 1068-F4 and 1068-F6, an amount to help
cover the cost of rent is to be added to a person's maximum basic rate for a
period if:
(a) the person is not an ineligible homeowner; and
(b) the person pays, or is liable to pay, rent (other than
Government rent) in respect of the period; and
(c) the rent is payable at a rate of more than $40 per fortnight; and
(d) the person is in Australia throughout the period; and
(e) the person does not have a partner with a rent increased pension.
Note: for "rent", "Government rent" and "ineligible homeowner" see section 13.
Partner with rent increased pension
1068-F2. A person has a partner with a rent increased pension, for the
purposes of point 1068-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 rate of pension 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
1068-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 1068-F1 if the person's partner is
receiving incentive allowance. Age test applies to some people
1068-F4. If a person:
(a) does not have a benefit increase child; and
(b) is not a member of a couple; and
(c) is not living permanently or indefinitely away from the principal home
of a parent of the person; an amount is not to be added to the
person's maximum basic rate under point 1068-F1 unless the person has
turned 25.
Note: for "benefit increase child" see point 1068- F13 below. Parent
1068-F5. For the purposes of point 1068-F4 a or guardian is to be taken to be
a parent.
Note: "parent", when used in this Act, does not normally include a step-parent
or guardian (see subsection 5 (1)). Rent assistance waiting period
1068-F6. Subject to point 1068-F7, no amount is to be added to a person's
maximum basic rate under point 1068-F1 unless the person has a current
accumulated rent assistance waiting period credit of at least 26 weeks. Some
people do not have to serve rent assistance waiting period
1068-F7. A person does not have to satisfy point 1068-F6 if:
(a) the person has a benefit increase child; or
(b) the person has turned 60; or
(c) the person was, immediately before becoming qualified for the
unemployment benefit 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; or
(d) the person was previously receiving a social security benefit whose
rate included an amount by way of rent assistance and:
(i) the person ceased to receive that other social security benefit; and
(ii) the person ceased to receive that other social security benefit
otherwise than because of the operation of an ordinary income,
maintenance income or assets test; and
(iii) the person ceased to receive that other social security benefit not
more than 4 weeks before commencing to receive the
social security benefit whose rate is being worked out. Serving the
rent assistance waiting period
1068-F8. 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
1068-F9. For the purposes of point 1068-F6, 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; or
(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
1068-F10. A period is an eligible waiting period for a person if during the
whole of the period the person:
(a) is receiving a social security or service pension or a social security
benefit; or
(b) would, but for the application of an ordinary income, maintenance
income, or assets test, be receiving a social security benefit; or
(c) is receiving 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 payments under the Adult Migrant Education Program; or
(f) is in gaol. Credit ceases to be current in come circumstances
1068-F11. 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
1068-F12. 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
1068-F13. 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
1068-F14. 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 a social security 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 1068-F17. Rate of rent assistance
1068-F15. 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 column 4B column 4C
No 1 or 2 3 or
benefit benefit more benefit
increase increase increase
1. Not member of a couple fortnightly rent-$40 $60 $70 $80
2
2. Partnered-partner does fortnightly rent-$40 $60 $70 $80
not have rent increased 2
benefit
3. Partnered-partner has fortnightly rent-$40 $30 $35 $40
rent increased benefit 4
4. Partnered-member of fortnightly rent-$40 $120 $140 $160
illness separated couple where person's rate is increased for partner under
Module C 5. Partnered-member of fortnightly rent-$40 $60 $70
$80
illness separated couple 2
where person's rate is not increased for partner under Module C and partner is
getting neither pension nor benefit.
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 1068-F14. Note
3: the Rate B amounts are indexed 6 monthly in line with CPI increases (see
sections 1191 to 1194). Fortnightly rent
1068-F16. Fortnightly rent is the fortnightly rent paid or payable by the
person whose unemployment benefit rate is being calculated. Rent paid by a
member of a couple
1068-F17. 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
1068-F18. 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-ORDINARY 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 on
the eprson'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 1068-G2 and 1068-G3. Note 2: for the treatment
of amounts received from friendly societies see point 1068-G4. Step 2. Work
out the person's ordinary free area limit using points 1068-G9 and 1068-G10.
Note: a person's ordinary income free area is the maximum amount of ordinary
income the eprson 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 eprson'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 is
the person's ordinary income 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 1068-G11 and 1068-G12 below.
Note 1: for "ordinary income" see section 8. Note 2: see point 1068-A1 (Steps
7 to 10) 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
1068-G2. 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). Income
disregarded under earnings credit provisions
1068-G3. 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 working out the
ordinary income of the person for the purposes of point 1068-G2.
Friendly society amounts
1068-G4. The ordinary income fo a person:
(a) to whom a sickness benefit is payable; or
(b) who is the partner of a person to whom paragraph (a) applies; is not
to include any amount received by the person from an approved friendly
society in respect of the incapacity because of which the person is
qualified for the sickness benefit.
Note: for "approved friendly society" see section 23. 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 the
father, mother, son, daughter, brother or sister of the person. Note: point
1068-G5 reverses paragraph 8(9)(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 the person's father, mother,
son, daughter, brother or sister. Termination payments
1068-G7. 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 received at intervals longer than one
fortnight
1068-G8. If:
(a) a person earns, derives or receives income for a period (in this point
called the "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 first 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
25 = $24 Then multiply the daily rate ($24) by the number of days in the
fortnight that are also within the work 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 Fred is taken to earn:
. $120 in the first fortnight; and
. $336 in the second fortnight; and
. $144 in the third fortnight. Ordinary free area limit
1068-G9. A person's ordinary free area limit is, subject to point 1068-G10,
$60.
1068-G10. 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 from personal exertion by
the person or the person's partner; the person's ordinary free area
limit is worked out using Table G-1. Take the amount in column 1 and
add:
(d) if the eprson has income from personal exertion-whichever is the less
of Rate A and Rate B in column 2; and
(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 G-1
FREE AREA FOR MEMBERS OF COUPLE WITH INCOME FROM PERSONAL EXERTION
column 1 column 2 column 3
person's income from personal partner's income from
exertion personal exertion
column 2A column 2B column 3A column 3B
basic free area Rate A Rate B Rate A Rate B
$60 rate of income $30 rate of income $30
from personal from personal
exertion exertion
Note: for "income from personal exertion" see subsection 8(1). Benefit
reduction for ordinary income in excess of the ordinary free area limit
1068-G11. A person's reduction for ordinary income is worked out using Table
G-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 column 3 plus the amount (if any) worked out using the corresponding
calculation in column 4.
TABLE G-2
REDUCTION FOR ORDINARY INCOME column 1
column 2
column 3
column 4
item person's family situation
lower range excess
reduction
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 getting
AUSTUDY allowance lower range excess
4
upper range excess
2 4. Partnered (partner getting pension or benefit)
lower range excess
4
upper range excess
2 Note: for "partnered (partner getting neither pension nor benefit)" and
"partnered (partner getting pension or benefit)" see section 4. Lower range
excess/uppper range excess
1068-G12. 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
1068-G13. A person's ordinary income excess is the person's ordinary income
less the person's ordinary free area limit.
MODULE H - MAINTENANCE INCOME TEST Effect of maintenance income on maximum
payment rate
1068-H1. 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 1068-H2 to 1068-H4.
Note 2: for the treatment of maintenance income received at intervals longer
than 2 weeks see point 1068-H5.
Note 3: "special maintenance income" (see subsection 10(1)) can in
some circumstances be disregarded under points 1068-H6 and 1068-H7. Step 2.
Work out the person's maintenance free area limit using points 1068-H10 and
1068-H11 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 exceeds 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 H12 and 1068-H13 below.
Note: see point 1068-A1 (Steps 8 to 10) for the significance of the person's
reduction for ordinary income. Dependent child
1068-H1A. 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
1068-H2. 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 the person's maintenance income is the sum of the
maintenance income of the person and the person's partner.
1068-H3. 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; the person's maintenance income is the sum
of the maintenance income of the person and the person's partner
divided by 2.
1068-H4. 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 is not increased under Module C
(additional payment for dependent partner); the person's
maintenance income is:
(d) if the partner is receiving maintenance income - the sum of the
maintenance income of the person and the person's partner divided 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
1068-H5. 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 days in the fortnight that
are also 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
. 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 Mary is taken to receive:
. $120 in the first fortnight; and
. $336 in the second fortnight; and
. $144 in the third fortnight. Special maintenance income
1068-H6. Subject to points 1068-H8 and 1068-H9, if a person has special
maintenance income in excess of the ceiling applicable to the person, the
excess is disregarded for the purposes of point 1068-H12.
Note: for "special maintenance income" see subsection 10(1).
Special maintenance income ceiling
1068-H7. 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
1068-H8. No amount is to be disregarded under point 1068-H6 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.
1068-H9. No amount is to be disregarded under point 1068-H6 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
1068-H10. A person's maintenance income free area limit is worked out using
Table H. Work out which family situation in Table H applies to the person. The
maintenance income free area limit is the corresponding amount in column 3
plus an additional corresponding amount in column 4 for each dependent child
after the first.
TABLE H
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 and the partner are receiving maintenance
$60
$10 4. Partnered - person gets increase for partner under Module C and either
the person or the partner (but not both) is receiving maintenance income
$30
$10 5. Partnered (partner getting pension or benefit) - both the person and
the partner are receiving maintenance income
$30
$5 6. Partnered (partner getting pension or benefit) - either the person or
the partner (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 to 6 of Table G
apply to members of illness separated couples.
1068-H11. In determining whether or not item 3, 4, 5 or 6 of Table H applies
to a person, points 1068-H2 to 1068-H4 are to be disregarded. This has the
effect of taking into account only maintenance income that the person actually
receives rather than any 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
1068-H12. A person's reduction for maintenance income is:
maintenance income excess
2
Note: for "maintenance income excess" see point 1068-H13 below.
Maintenance income excess
1068-H13. A person's maintenance income excess is the person's maintenance
income less the person's maintenance free area limit.
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:
(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
1068-J2. 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
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 pension
or benefit increase child of the person.
TABLE J
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 benefit increase partner and either the
person or the partner in the remote area (but not both)
$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
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 section 57 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.
Dependent children must be physically present in Australia
1068-J6. Additional allowance is not payable for a dependent child unless the
dependent child is physically present in Australia. Additional allowance for
dependent children only payable to one parent
1068-J7. If additional allowance would otherwise be 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 allowance should be paid. Notice of decision
1068-J8. If the Secretary gives a direction under paragraph 1068-J7 (b), the
Secretary must give each of the persons affected by the direction notice in
writing of the giving of the direction.
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