Commonwealth Numbered Acts

SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 1070

1070. The rate of a person's family allowance supplement is to be calculated
in accordance with the Rate Calculator at the end of this section.
FAMILY ALLOWANCE SUPPLEMENT RATE CALCULATOR
MODULE A - OVERALL RATE CALCULATION PROCESS Method of calculating rate
1070-A1. The rate of family allowance supplement is a fortnightly rate
calculated as follows:
Method statement Step 1. Work out the person's maximum basic rate using MODULE
B below. Step 2. Work out any applicable additional amount for for rent
assistance using MODULE C below. Step 3. Add up the amounts obtained in Steps
1 and 2: the result is the maximum payment rate. Step 4. If the taxable income
test applies to the person (see point 1070-D1), work out the person's
reduction for taxable income. Step 5. Take the person's reduction for
taxable income away from the person's maximum basic rate: the result is the
person's rate of family allowance supplement.
MODULE B - MAXIMUM BASIC RATE Maximum basic rate
1070-B1. A person's maximum basic rate is worked out using Table B. Work out
which category applies to each FAS child of the person. The FAS child rate is
the corresponding amount in column 3. The maximum basic rate is the sum of the
FAS child rates.
TABLE B
MAXIMUM BASIC RATE column 1
column 2
column 3
item                category of FAS child

rate per fortnight
1.          child who has not turned 13            $48.30

2.          child who has turned 13 but has not turned 16

$70.50
3.          child who has turned 16                $34.00
Note 1: for FAS child see sections 891 to 894. Note 2: the item 1 rate is
adjusted annually so that the combined family allowance and family allowance
supplement for children covered by this item do not fall below 15% of the
combined pensioner couple maximum basic rate (see subsections 1199 (1) and
(2)). Note 3: the item 2 rate is adjusted annually so that the combined family
allowance and family allowance supplement for children covered by this item do
not fall below 20% of the combined pensioner couple maximum basic rate (see
subsections 1199 (3) and (4)). 2 people sharing family allowance supplement
for the same child (declaration under subsection 927 (1))
1070-B2. If:

   (a)  2 people are each qualified for family allowance supplement for the
        same child; and

   (b)  the Secretary has made a declaration under subsection 927 (1) in
        respect of family allowance supplement for the child; and

   (c)  the declaration specifies the percentage of the family allowance
        supplement that one of the people is to receive; the FAS child rate
        for the child, in working out that person's family allowance
        supplement rate, is to be the specified percentage of the amount that
        would otherwise have been the FAS child rate for the child. 2 people
        qualified for family allowance supplement under subsection 927 (1)
        directs the whole of family allowance supplement to one of those
        people) those people)
1070-B3. If:

   (a)  2 people are each qualified for family allowance supplement for the
        same child; and

   (b)  the Secretary has made a declaration under subsection 927 (1) in
        respect of family allowance supplement for the child; and

   (c)  the declaration includes a determination that the family allowance
        supplement is payable to only one of those people; the other person's
        family allowance supplement rate is not to include any FAS child rate
        for the child. 2 people qualified for family allowance supplement
        under subsection 927 (1))
1070-B4. If:

   (a)  2 people are each qualified for family allowance supplement for the
        same child; and

   (b)  the Secretary has not made a declaration under subsection 927 (1) in
        respect of family allowance supplement for the child; and

   (c)  the family allowance supplement rate of one of the people includes an
        FAS child rate for the child; the family allowance supplement rate of
        the other person is not to include any FAS child rate for the child.
MODULE C - RENT ASSISTANCE Rent assistance
1070-C1. A person is entitled to an additional amount to help cover the cost
of rent if:

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

   (b)  the person pays, or is liable to pay, rent (other than Government
        rent); and

   (c)  the rent is payable at a rate of more than $40 per fortnight.
Note: for "rent", "Government rent" and "ineligible homeowner" see section 13.
Rate of rent assistance
1070-C2. The rate of rent assistance per fortnight is worked out using Table
C. Work out the number of FAS children the person has 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 C
RATE OF RENT ASSISTANCE column 1
column 2
column 3
column 4
item       number of FAS children

Rate A
Rate B
1.         1 or 2            fortnightly rent X $40

2 $70
2.         3 or more         fortnightly rent - $40        $80

2
Note 1: for "FAS child" see section 6. Note 2: the Rate B amounts are indexed
6 monthly in line with CPI increases (see sections 1191 to 1194). Fortnightly
rent
1070-C3. Fortnightly rent in Table C is the fortnightly rent paid or payable
by the person whose allowance is being calculated. Persons affected by the
taxable income test
1070-C4. If a person is a member of a couple and is living with his or her
partner in their home, any rent paid or payable by the partner is to be
treated as paid or payable by the person.
MODULE D - TAXABLE INCOME TEST Persons affected by the taxable income test
1070-D1. The taxable income test applies to a payments under:

   (a)  the AUSTUDY scheme; or

   (b)  the ABSTUDY scheme; or

   (c)  the Post-Graduate Awards Scheme. Effect of taxable income on maximum
        payment rate
1070-D2. This is how to work out the effect of a person's taxable income on
the person's maximum payment rate for a FAS allowance period:
Method statement Step 1. Work out which tax year is the appropriate one for
that payday using points 1070-D3 to 1070-D8 below. Step 2. Work out the
person's taxable income for that year using points 1070-D9 to 1070-D13 below.
Step 3. Work out the person's taxable income free area limit using point
1070-D14 below. Step 4. Take the person's taxable income free area limit away
from the person's taxable income for that tax year: the result is the person's
taxable income excess. Step 5. Use the person's taxable income excess to work
out the person's reduction for taxable income under points 1070-D15 and
1070-D16. Appropriate tax year
1070-D3. Subject to points 1070-D5 to 1070-D8, the appropriate tax year for a
FAS period is the base tax year for that period. Base tax year
1070-D4. The base tax year for a FAS period is the tax year that ended on 30
June in the calendar year that came immediately before the calendar year in
which the FAS period occurs. Current tax year to be retained for consecutive
calendar years in certain circumstances
1070-D5. If:

   (a)  a family allowance supplement is payable to a person:

        (i)    on the last family payment payday in one calendar year; and

        (ii)   on the first family payment payday in the next calendar year;
               and

   (b)  the person's family allowance supplement rate on the last family
        payment payday in the earlier of the 2 calendar years is worked out on
        the basis that the person's appropriate tax year is the tax year in
        which that
payday occurs (in this point called the "current tax year"); and

   (c)  the person's family allowance supplement rate on that payday was
        worked out on that basis because the person had made a request under
        section 918; and

   (d)  the person's taxable income for the current tax year is less than the
        person's taxable income for the base tax year; the person's
        appropriate tax year, as from the beginning of the later calendar
        year, is the current tax year and not the base tax year. Change to
        appropriate tax year because of assumed notifiable event
1070-D6. If:

   (a)  an assumed notifiable event occurs in relation to a person after the
        end of the base tax year and before the beginning of the FAS period;
        and

   (b)  the person's taxable income for the tax year in which the assumed
        notifiable event occurs:

        (i)    exceeds 125% of the person's taxable income for the base
               tax year; and

        (ii)   exceeds the person's taxable income free area limit; and

   (c)  the Secretary is satisfied that more than 25% of the difference
        between the person's taxable incomes for those 2 tax years is directly
        attributable to the assumed notifiable event; the
        appropriate tax year, for the purposes of applying this Module to the
        person from the beginning of the FAS period, is the tax year in which
        the assumed notifiable event occurs.
Note: for "assumed notifiable event" see section 916. Change to
appropriate tax year because of notifiable event
1070-D7. If:

   (a)  a notifiable event occurs in relation to a person; and

   (b)  the person's taxable income for the tax year in which the notifiable
        event occurs:

        (i)    exceeds 125% of the person's taxable income for the base
               tax year; and

        (ii)   exceeds the person's taxable income free area limit; and

   (c)  the Secretary is satisfied that more than 25% of the difference
        between the person's taxable incomes for those 2 tax years is directly
        attributable to the notifiable event; the appropriate tax year, for
        the purposes of applying this Module to the person for the remainder
        of the FAS period, is the tax year in which the notional
        notifiable event occurs.
Note: for "notifiable event" see section 917. Change to appropriate tax year
at recipient's request
1070-D8. If:

   (a)  a person requests the Secretary to make a determination under section
        918; and

   (b)  as a result the Secretary determines under that section that the
        appropriate tax year, for the purposes of applying this Module to the
        person for a family allowance payday after the day on which the
        request is made, is the tax year in which the person makes the
        request; the appropriate tax year, for those purposes, is the tax year
        in which the person makes the request. Person's taxable income for
        tax year - member of a couple
1070-D9. If the person is a member of a couple, the person's taxable income
for a tax year is to be taken to include the taxable income of the person's
partner for that year. Person's taxable income for tax year - ascertainment
1070-D10. If the person does not have a taxable income for a tax year in
accordance with point 1070-D11, the person is to be taken to have an unknown
taxable income for that year. Note: a person is not qualified for FAS if the
person's taxable income for the tax year is unknown. Taxable income for
tax year
1070-D11. The person's taxable income for a tax year is:

   (a)  the person's assessed taxable income for that year; or

   (b)  if the person does not have an assessed taxable income for that year -
        the person's accepted estimated taxable income for that year. Assessed
        taxable income
1070-D12. For the purposes of this Module, a person's assessed taxable income
for a tax year at a particular time is the most recent of:

   (a)  if, at that time, the Commissioner of Taxation has an assessment or an
        amended income according to the assessment or amended assessment; or

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

   (c)  if, at that time, a court has amended an assessment or amended
        assessment made by the Commissioner or an amended assessment made by
        the tribunal - that taxable income according to the amendment made by
        the court. Accepted estimated taxable income
1070-D13. For the purposes of this Module, a person's accepted estimated
taxable income for a tax year is that taxable income according to the most
recent notice given by the person under section 912 and accepted by the
Secretary for the purposes of this Module. Taxable income free area limit
1070-D14. A person's taxable income free area limit for a FAS period is worked
out using Table D. The taxable income free area limit is the amount in column
1 plus an additional amount in column 2 for each FAS child of the person
(after the first).
TABLE D
TAXABLE INCOME FREE AREA LIMITS
column 1                                 column 2

basic free area                          additional free area

$16,750                                         $624
Note: the basic free area is indexed annually in line with CPI increases (see
sections 1191 to 1194). Reduction for taxable income
1070-D15. A person's taxable income reduction for a FAS period is:
taxable income excess
52
Note 1: for "taxable income excess" see point 1070- D16 below. Note 2:
explanation of derivation of taxable income reduction formula - start with the
person's taxable income excess- divide by 26 to convert from a yearly to a
fortnightly basis - divide by 2 to give a 50% taper. Taxable income excess
1070-D16. A person's taxable income excess for a FAS period is the person's
taxable income for the appropriate tax year for the FAS income free area limit
for the FAS period. Note: if the person's taxable income for the
appropriate tax year does not exceed the person's taxable income free area
limit, the person's taxable income excess and reduction for taxable income are
both nil.