Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT (YOUTH ALLOWANCE) ACT 1998 - SCHEDULE 2--Youth

Social Security Act 1991

1 Section 3 (index)

Insert the following entries in their appropriate alphabetical position, determined on a letter-by-letter basis:

accommodated independent person	1067B
independent	5(1), 1067A
in State care	1067A(8)
in supported State care	1067
in unsupported State care	1067
living at home	1067E
long term income support student	1067F
member of a YA couple	1067C
partner of a non-independent YA recipient	23(1)
premises or lodgings	1067
required to live away from home	1067D
youth allowance payment period	23(1)

2 Subsection 4(1) (definition of member of a couple )

Omit "and (6)", substitute ", (6) and (6A)".

3 After subsection 4(6)

Insert:

Member of a couple--exclusion of non-independent youth allowance recipient and partner

(6A) A person is not a member of a couple for the provisions of this Act referred to in the following table if the person:

(a) has claimed youth allowance and is not independent within the meaning of Part 3.5; or

(b) is receiving a youth allowance and is not independent within the meaning of Part 3.5; or

(c) is a member of a couple of which a person referred to in paragraph (b) is the other member.

Affected provisions
Item	Provisions of this Act	Subject matter
1.	Sections 611 and 612	Newstart allowance assets test
2.	Sections 660YCJ and 660YCK	Mature age allowance assets test
3.	Sections 680 and 681	Sickness allowance assets test
4.	Section 771HF	Partner allowance assets test
5.	Module E of Pension Rate Calculator A	Ordinary income test
6.	Module G of Pension Rate Calculator A	Assets test
7.	Module F of Pension Rate Calculator D	Ordinary income test
8.	Module H of Pension Rate Calculator D	Assets test
9.	Module E of the Youth Allowance Rate Calculator	Assets test
10.	Module H of the Youth Allowance Rate Calculator	Income test
11.	Module G of Benefit Rate Calculator B	Income test

4 Subsection 5(1)

Insert:

independent , in Parts 2.11 and 3.5, has the meaning given in section 1067A.

5 Subsection 5(1) (definition of parent )

Repeal the definition, substitute:

parent means:

(a) (except in Part 2.11 and in the Youth Allowance Rate Calculator in section 1067G):

(i) in relation to a young person, other than an adopted child--a natural parent of the young person; or

(ii) in relation to an adopted child--an adoptive parent of the young person; or

(b) in Part 2.11 and in the Youth Allowance Rate Calculator in section 1067G, in relation to a person ( relevant person ):

(i) a natural or adoptive parent of the relevant person with whom the relevant person normally lives; or

(ii) if a parent referred to in paragraph (a) is a member of a couple and normally lives with the other member of the couple--the other member of the couple; or

(iii) any other person (other than the relevant person's partner) on whom the relevant person is wholly or substantially dependent; or

(iv) if none of the preceding paragraphs applies--the natural or adoptive parent of the relevant person with whom the relevant person last lived.

Insert:

partner of a non-independent YA recipient means a person who is a member of a couple the other member of which is receiving a youth allowance and is not independent within the meaning of Part 3.5.

7 Subsection 23(1)

Insert:

youth allowance payment period means a period under section 559A for which youth allowance is or may be payable.

8 Parts 3.5 and 3.5A

Repeal the Parts, substitute:

SOCIAL SECURITY LEGISLATION AMENDMENT (YOUTH ALLOWANCE) ACT 1998 No. 18, 1998 - < SECT 1067 Definitions General definitions

(1) In this Part:

accommodated independent person has the meaning given by section 1067B.

independent has the meaning given by section 1067A.

Note: This definition also applies in Part 2.11.

in supported State care , in relation to a person, means being a person in State care in respect of whom both of the following apply:

(a) the person qualifies for payments under a law of, or a non-statutory scheme administered by, a State or Territory for the making of any payments by, or by the authority of, the State or Territory to or in respect of the person for his or her upkeep;

(b) such payments are being made.

(a) the person does not qualify for payments under a law of, or a non-statutory scheme administered by, a State or Territory for the making of any payments by, or by the authority of, the State or Territory to or in respect of the person for his or her upkeep;

(b) the person qualifies, but such payments are not being made.

long term income support student has the meaning given by section 1067F.

member of a YA couple , in sections 1067A and 1067B, has the meaning given by section 1067C.

premises or lodgings means accommodation of any kind for which rent (within the meaning of subsection 13(2)) is payable.

required to live away from home has the meaning given by section 1067D.

SOCIAL SECURITY LEGISLATION AMENDMENT (YOUTH ALLOWANCE) ACT 1998 No. 18, 1998 - < SECT 1067A When a person is regarded as independent Application

(1) This section applies to determine whether a person is to be regarded as independent for the purposes of this Part and Part 2.11. A person is not to be regarded as independent except as provided by this section.

Member of a YA couple

(2) A person is independent if the person is, or has been, a member of a YA couple (see section 1067C).

Person with a dependent child

(3) A person is independent if:

(a) the person has a natural or adoptive child who is wholly or substantially dependent on the person or his or her partner; or

(b) the person previously had a natural or adoptive child who was wholly or substantially dependent on the person or on a person who, at the time, was the person's partner.

(4) A person is independent if the person is at least 25 years old. This age will be progressively reduced over time.

Orphan

(5) A person is independent if both of the person's parents are dead, whether or not the person is dependent, or was last dependent, on someone other than his or her parents.

If parents cannot exercise responsibilities

(6) A person is independent if both of the person's parents are (or, if the person has only one parent, that parent is):

(a) serving a prison sentence; or

(b) mentally incapacitated and likely to remain so incapacitated for an indefinite period; or

(c) living in a nursing home and likely to remain there for an indefinite period; or

(d) missing;

Refugee

(7) A person is independent if the person:

(a) is the holder, within the meaning of the Migration (1993) Regulations, of a Group 1.3 entry permit (permanent resident) (refugee and humanitarian); or

(b) while the holder of such a permit, was granted Australian citizenship.

Person in State care

(8) A person is independent if the person is not living with a parent, and:

(a) the person is in the guardianship, care or custody of a court, a Minister, or a Department, of the Commonwealth, a State or a Territory; or

(b) there is a current direction from such a court, Minister or Department placing the person in the guardianship, care or custody of someone who is not the person's parent; or

(c) the person stopped being in a situation described in paragraph (a) or (b) only because of his or her age.

Unreasonable to live at home

(9) A person is independent if:

(a) the person cannot live at the home of either or both of his or her parents:

(i) because of extreme family breakdown or other similar exceptional circumstances; or

(ii) because it would be unreasonable to expect the person to do so as there would be a serious risk to his or her physical or mental well-being due to violence, sexual abuse or other similar unreasonable circumstances; or

(iii) are unable to provide the person with a suitable home because they lack stable accommodation; and

(b) the person is not receiving continuous support, whether directly or indirectly and whether financial or otherwise, from a parent of the person or from another person who is acting as the person's guardian on a long-term basis; and

(c) the person is not receiving, on a continuous basis, any payments in the nature of income support (other than a social security benefit) from the Commonwealth, a State or a Territory.

(10) A person is independent if the person has supported himself or herself through paid work consisting of:

(a) full-time employment of at least 30 hours per week for at least 18 months during the preceding 2 years; or

(b) part-time employment of at least 15 hours per week for at least 2 years since the person last left secondary school; or

(c) employment, for at least 18 months since the person last left secondary school, earning the person at least the equivalent of 75% of the maximum Commonwealth training award payments for the calendar year in which the 18 months started.

People who are disadvantaged

(11) A person is independent if the person:

(a) is at least 18 years old; and

(b) has had full-time employment of at least 30 hours per week for a period of at least 12 months, or for periods that total at least 12 months; and

(c) does not live at the home of either or both of his or her parents; and

(d) in the Secretary's opinion, is specially disadvantaged with respect to education or employment; and

(e) is not receiving financial support , whether directly or indirectly, from a parent of the person or from another person who is acting as the person's guardian on a long-term basis.

Note: For parent see section 5 (paragraph (a) of that definition).

(a) is independent; and

(b) lives at the home of either or both of his or her parents; and

(c) is not, and has never been, a member of a YA couple (see section 1067C); and

(d) does not have a natural or adoptive child who is wholly or substantially dependent on the person or his or her partner; and

(e) has never had a natural or adoptive child who was wholly or substantially dependent on the person or on a person who, at the time, was the person's partner.

Note: For parent see section 5 (paragraph (a) of that definition).

(1) Subject to this section, a person is a member of a YA couple for the purposes of sections 1067A and 1067B if:

(a) the person is legally married to another person and is not, in the Secretary's opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or

(b) all of the following conditions are met:

(i) the person has a relationship with a person of the opposite sex ( partner );

(ii) the person is not legally married to the partner;

(iii) the relationship has existed for a continuous period of at least 12 months;

(iv) in the Secretary's opinion (formed as mentioned in subsections (3) and (4)), the relationship is, and has for a continuous period of at least 12 months been, a marriage-like relationship;

(v) if, at the time the relationship became a marriage-like relationship, the person and the partner were living in Australia--both the person and the partner were over the age of consent applicable in the State or Territory in which they lived at that time;

(vi) if, at the time the relationship became a marriage-like relationship, the person and the partner were living outside Australia--both the person and the partner were over the age of consent applicable in the State or Territory in which they first lived after that time;

(vii) the person and the partner are not within a prohibited relationship for the purposes of section 23B of the Marriage Act 1961 .

(2) Subject to this section, a person has been a member of a YA couple for the purposes of sections 1067A and 1067B if:

(a) the person has been legally married to another person (whether or not they are still legally married) and was not, in the Secretary's opinion (formed as mentioned in subsection (3)), living separately and apart from the other person, on a permanent or indefinite basis, at all times while so married; or

(b) all of the following conditions are met:

(i) the person had a relationship with a person of the opposite sex ( partner );

(ii) the person was not legally married to the partner;

(iii) the relationship existed for a continuous period of at least 12 months;

(iv) in the Secretary's opinion (formed as mentioned in subsections (3) and (4)), the relationship between the person and the partner was, and had for a continuous period of at least 12 months or, in special circumstances determined by the Secretary, at least 6 months been, a marriage-like relationship;

(v) if, at the time the relationship became a marriage-like relationship, the person and the partner were living in Australia--both the person and the partner were over the age of consent applicable in the State or Territory in which they lived at that time;

(vi) if, at the time the relationship became a marriage-like relationship, the person and the partner were living outside Australia--both the person and the partner were over the age of consent applicable in the State or Territory in which they first lived after that time;

(vii) the person and the partner were not within a prohibited relationship for the purposes of section 23B of the Marriage Act 1961 .

(3) In forming an opinion about the relationship between 2 people for the purposes of paragraph (1)(a), subparagraph (1)(b)(iv), paragraph (2)(a) or subparagraph (2)(b)(iv), the Secretary is to have regard to all the circumstances of the relationship including, in particular, the matters referred to in subsection 4(3).

People living separately and apart

(4) The Secretary must not form the opinion that the relationship between a person and his or her partner is, or was, a marriage-like relationship if the person is, or was at the time in question, living separately and apart from the partner on a permanent or indefinite basis.

Moving to a State or Territory with a higher age of consent

(5) For the purposes of calculating the period of 2 years referred to in subparagraphs (1)(b)(iii) and (iv) and (2)(b)(iii) and (iv), any period during which the couple in question lived in a State or Territory in which one or both of them was under the age of consent is to be disregarded.

Note: A prohibited relationship for the purposes of section 23B of the Marriage Act 1961 is a relationship between a person and:

(a) an ancestor of the person; or

(b) a descendant of the person; or

(c) a brother or sister of the person (whether of the whole blood or the part-blood).

(1) A person is taken to be required to live away from home for the purposes of this Part if, and only if:

(a) the person is not independent; and

(b) the person does not live at the home of either or both his or her parents; and

(c) the Secretary determines that:

(i) the person needs to live away from home for the purpose of education, training, searching for employment or doing anything else in preparation for getting employment; or

(ii) the likelihood of the person's getting employment will be significantly increased if the person lives away from home.

Note: For parent see section 5 (paragraph (a) of that definition).

(2) In making a determination under paragraph (1)(c), the Secretary may have regard to any advice given by a case manager to whom the person has been referred under Part 4.3 of the Employment Services Act 1994 .

Matters to which Secretary is to have regard

(3) In making a determination under subparagraph (1)(c)(ii), the Secretary is to have regard to:

(a) the overall employment prospects for young people in the areas where the home is situated and in the area where the person is living; and

(b) matters relating to the person that would affect the likelihood of the person's getting employment in those areas.

(a) is not independent; and

(b) is not taken by section 1067D to be required to live away from home;

SOCIAL SECURITY LEGISLATION AMENDMENT (YOUTH ALLOWANCE) ACT 1998 No. 18, 1998 - < SECT 1067F Long term income support student (1) A person is a long term income support student if the person:

(a) is at least 21 years old; and

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

(c) is undertaking full-time study in respect of a course of education that the person had commenced after turning 21; and

(d) has, for at least 26 out of the preceding 39 weeks, been receiving one or more of the following:

(i) newstart allowance;

(ii) sickness allowance;

(iii) youth allowance (disregarding youth allowance received while the person was undertaking full-time study);

(iv) special benefit;

(v) disability support pension;

(vi) wife pension;

(vii) carer payment;

(viii) bereavement allowance;

(ix) disability wage supplement;

(x) pension PP (single);

(xi) sole parent pension.

(a) is at least 21 years old; and

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

(c) does not have English as a first language; and

(d) is undertaking a course in English, being a course that the Secretary has approved.

(1) The rate of youth allowance of a person referred to in subsection 556(1) is to be calculated in accordance with the Rate Calculator in this section.

Limit on rate of allowance

(2) If:

(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) either or both of them are under the age of consent that applies in the State or Territory in which they are living;

Method of calculating rate

1067G-A1 The rate of allowance is a fortnightly rate.

Method statement

Step 1. Work out the person's maximum basic rate using Module B below.

Step 2. Work out the amount a fortnight (if any) of pharmaceutical allowance using Module C below.

Step 3. Work out the applicable amount (if any) for rent assistance using Module D below.

Step 4. Add up the amounts obtained in Steps 1 to 3: the result is the maximum payment rate .

Step 5. Work out, using Module E below, whether the assets test applies to the person and, if it does, whether or not the value of the person's assets is more than the person's assets value limit.

Step 6. If the value of the person's assets is not more than the person's assets value limit, the assets test does not affect the maximum payment rate.

Step 7. If the value of the person's assets is more than the person's assets value limit, then the person's rate of youth allowance is nil, and the following steps are to be disregarded.

Step 8. If the person is not independent and the parental income test applies to the person (see points 1067G-F2 and 1067G-F3 in Module F below), work out the reduction for parental income using that Module and take the reduction away from the maximum payment rate: the result is the parental income test reduced rate .

Step 9. If the parental income test reduced rate is nil, then youth allowance is not payable to the person and the following steps are to be disregarded.

Step 10. If the person is not independent and the family actual means test applies to the person (see Module G below), work out the person's reduction for actual means using that Module and take the reduction away from the maximum payment rate: the result is the actual means test reduced rate .

Step 11. If the actual means test reduced rate is nil, then youth allowance is not payable to the person and the following steps are to be disregarded.

Step 12. Apply the income test using Module H below to work out the person's income reduction.

Step 13. Take the person's income reduction away from:

(a) if the person is not independent and Steps 8 and 10 did not apply to the person--the maximum payment rate; or

(b) if the person is not independent and Step 8 applied to the person but Steps 9 and 10 did not--the parental income test reduced rate; or

(c) if the person is not independent and Step 10 applied to the person but Steps 8 and 11 did not--the actual means test reduced rate; or

(d) if the person is not independent and Steps 8 and 10 applied to the person but Steps 9 and 11 did not--the parental income test reduced rate, or (if the actual means test reduced rate is lower) the actual means test reduced rate; or

(e) if the person is independent--the maximum payment rate;

the result is the provisional payment rate .

Note: If a person's rate is reduced under Step 8, 10 or 13, the order in which the reduction is to be made is laid down by section 1207 (maximum basic rate first, then rent assistance, then pharmaceutical allowance).

Step 14. The rate of allowance is the difference between:

(a) the provisional payment rate; and

(b) any advance payment deduction (see Part 3.16A);

plus any applicable amount of remote area allowance (see Module K below).

Maximum basic rate

1067G-B1 A person's maximum basic rate is to be worked out as follows:

(a) if the person is not independent (see section 1067A) and is not a long term income support student (see section 1067F)--use Table BA;

(b) if the person is independent and is not a long term income support student--use Table BB;

(c) if the person is a long term income support student--use Table BC.

1067G-B2 If the person is not independent (see section 1067A) and is not a long term income support student (see section 1067F), work out whether the person:

(a) lives at home (see section 1067E); or

(b) is required to live away from home (see section 1067D).

Table BA--Maximum basic rates (people who are not independent)
Column 1 Item	Column 2 Person's situation	Column 3 Rate
1	Lives at home and not yet 18 years old	$145.40
2	Lives at home and at least 18 years old	$174.80
3	Required to live away from home	$265.50

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191-1194).

1067G-B3 If the person is independent (see section 1067A) and is not a long term income support student (see section 1067F), work out:

(a) whether the person is an accommodated independent person (see section 1067B); and

(b) if the person is not an accommodated independent person, whether the person:

(i) is in supported State care (see section 1067); or

(ii) is in unsupported State care (see section 1067); or

(iii) is a member of a couple (see section 4); or

(iv) has a dependent child (see subsections 5(2) to (9)).

Table BB--Maximum basic rates (people who are independent)
Column 1 Item	Column 2 Person's situation	Column 3 Rate
1	Accommodated independent person and not yet 18 years old	$145.40
2	Accommodated independent person and at least 18 years old	$174.80
3	In supported State care and not yet 18 years old	$145.40
4	In supported State care and at least 18 years old	$174.80
5	In unsupported State care	$265.50
6	Not a member of a couple and has a dependent child	$347.80
7	Member of a couple and has a dependent child	$291.60
8	Not an accommodated independent person, not in supported State care, not in unsupported State care and does not have a dependent child	$265.50

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191-1194).

1067G-B4 If the person is a long term income support student (see section 1067F), work out:

(a) whether the person is independent (see section 1067A); and

(b) if the person is not independent, whether the person:

(i) lives at home (see section 1067E); or

(ii) is required to live away from home (see section 1067D); and

(c) if the person is independent, whether the person is an accommodated independent person (see section 1067B).

Table BC--Maximum basic rates (long term income support students)
Column 1 Item	Column 2 Person's situation	Column 3 Rate
1	Not independent and lives at home	$214.60
2	Not independent and required to live away from home	$322.40
3	Accommodated independent person	$214.60
4	Independent and not an accommodated independent person	$322.40

Note: The rates in column 3 are indexed annually in line with CPI increases (see sections 1191-1194).

1067G-C1 Subject to point 1067G-C2, an amount by way of pharmaceutical allowance is to be added to a person's maximum basic rate if:

(a) the person is in Australia; and

(b) the person has a temporary incapacity exemption under section 542A.

1067G-C2 Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

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

(b) the person's partner is receiving pharmaceutical allowance under the Veterans' Entitlements Act; and

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

Note: If paragraphs (a), (b) and (c) apply to the person's partner, the partner is receiving pharmaceutical allowance under the Veterans' Entitlements Act at the higher rate (rather than the person and the person's partner each receiving pharmaceutical allowance at the lower rate).

1067G-C3 The amount of pharmaceutical allowance is the amount a fortnight worked out using the following table:

Table C--Pharmaceutical allowance amounts
Column 1 Item	Column 2 Person's family situation	Column 3 Amount a fortnight
1	Not a member of a couple	$5.40
2	Partnered	$2.70
3	Member of an illness separated couple	$5.40
4	Member of a respite care couple	$5.40
5	Partnered (partner getting service pension)	$2.70
6	Partnered (partner in gaol)	$5.40

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

Note 2: The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1 January (see sections 1191 to 1194 and 1206A).

1067G-D1 Subject to point 1067G-D3, an amount to help cover the cost of rent is to be added to the maximum basic rate of a person for a period if:

(a) the person:

(i) is independent (see section 1067A), but is not an accommodated independent person (see section 1067B); or

(ii) is not an independent person and is required to live away from home (see section 1067D); and

(b) the person is not an aged care resident; and

(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 the rent threshold rate under point 1067G-D2; and

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

(g) the person does not have a partner with a rent increased pension (see point 1067G-D3); and

(h) where the person or the person's partner is receiving family payment in respect of a dependent child who is an FP child--the standard family payment rate of the person or partner does not exceed the minimum family payment rate of the person or partner, as the case may be.

Note: For aged care resident , ineligible homeowner , rent and Government rent see section 13.

1067G-D2 A person's rent threshold rate depends on the person's family situation. Work out which family situation in Table DA applies to the person. The rent threshold rate is the corresponding amount in column 3.

Table DA--Rent threshold rates
Column 1 Item	Column 2 Person's family situation	Column 3 Amount a fortnight
1	Not a member of a couple	$71.60
2	Partnered--partner does not have rent increased benefit (see point 1067G-D5)	$116.60
3	Partnered--partner has rent increased benefit	$116.60
4	Partnered--member of an illness separated couple	$71.60
5	Partnered--member of a respite care couple	$71.60
6	Partnered--member of a temporarily separated couple	$71.60
7	Partnered (partner in gaol)	$71.60

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

Note 2: The column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191-1194).

1067G-D3 A person has a partner with a rent increased pension, for the purposes of point 1067G-D1, if:

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

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

(c) the partner's pension rate is increased to take account of rent.

1067G-D4 The rate of rent assistance depends on:

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

(b) whether or not the person has a partner who has a rent increased benefit.

1067G-D5 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) either:

(i) is receiving a social security benefit the rate of which is increased to take account of rent; or

(ii) would be receiving such a benefit but for the amount of the person's ordinary income reduction under point 1067G-H31.

Note: For the treatment of rent paid by a member of a couple see points 1067G-D8 and 1067G-D9.

1067G-D6 The rate of rent assistance a fortnight is worked out using Table DB. 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:

(a) if the person is not a single person sharing accommodation--Rate B for the person worked out using column 4; or

(b) if the person is a single person sharing accommodation--two-thirds of the amount that would otherwise have been Rate B for the person.

Table DB--Rate of rent assistance
Column 1 Item	Column 2 Person's family situation	Column 3 Rate A	Column 4 Rate B
1	Not a member of a couple		$74.80
2	Partnered--partner does not have rent increased benefit (see point 1067G-D5)		$70.60
3	Partnered--partner has rent increased benefit		$35.30
4	Partnered--member of an illness separated couple		$74.80
5	Partnered--member of a respite care couple		$74.80
6	Partnered--member of a temporarily separated couple		$70.60
7	Partnered (partner in gaol)		$74.80

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

Note 2: The rent threshold amounts in column 3, and the Rate B amounts, are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 3: For single person sharing accommodation see section 5A.

1067G-D7 Fortnightly rent is the fortnightly rent paid or payable by the person whose rate of youth allowance is being calculated.

Rent paid by a member of a couple

1067G-D8 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.

Rent paid by a member of an illness separated couple

1067G-D9 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.

Method statement

Step 1. Work out whether the assets test applies to the person using points 1067G-E2 to 1067G-E4.

Step 2. If the assets test applies to the person, work out the person's assets value limit using point 1067G-E5.

Step 3. Work out the value of the person's assets using points 1067G-E6 to 1067G-E20.

Step 4. Work out whether the value of the person's assets is more than the person's assets value limit.

People affected

1067G-E2 The assets test applies to a person unless the person is excluded from the assets test under point 1067G-E3 or 1067G-E4.

Exclusion of person if partner receiving certain kinds of income support

1067G-E3 A person is excluded from the application of the assets test if the person is independent but the person's partner is receiving:

(a) a payment of pension, benefit or allowance referred to in Module L; or

(b) a payment under Part 5 or 6 of the Farm Household Support Act 1992 ; or

(c) a full-time educational or vocational training allowance from the Commonwealth (including under the AUSTUDY or ABSTUDY scheme).

1067G-E4 A person is excluded from the application of the assets test if:

(a) the person is not independent; but

(b) in working out the rate of youth allowance payable to the person, the parental income test is not applied because of point 1067G-F3 (other than paragraph (d)).

1067G-E5 A person's assets value limit is:

(a) $407,250 if the person is not independent (see section 1067A); or

(b) $125,750 if the person:

(i) is independent; and

(ii) is not a member of a couple (see section 4); and

(iii) is a homeowner; or

(c) $215,750 if the person:

(i) is independent; and

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

(iii) is not a homeowner; or

(d) $178,500 if the person:

(i) is independent; and

(ii) is a member of a couple; and

(iii) is a homeowner; or

(e) $268,500 if the person:

(i) is independent; and

(ii) is a member of a couple; and

(iii) is not a homeowner.

Note: For homeowner see subsection 11(4).

1067G-E6 The value of the assets of a person ( relevant person ) is the sum of the following values:

(a) the value of the assets of the relevant person (disregarding paragraphs (b) and (c));

(b) if the relevant person is independent (see section 1067A) and is a member of a couple (see section 4)--the value of the assets of a person who is the partner of the relevant person;

(c) if the relevant person is not independent--the value of the assets of each person who is a family member of the relevant person.

Note: For family member see subsection 23(1).

1067G-E7 Assets are any kind of property, whether in Australia or elsewhere, unless they are excluded by point 1067G-E12, 1067G-E14, 1067G-E15 or 1067G-E16.

Disposals for low or nil value

1067G-E8 If a person disposed of an asset in the last 5 years for unreasonably low or no value:

(a) it is included in the person's assets; and

(b) its value is taken to be its value when the person disposed of it less what he or she got for it.

1067G-E9 If a person reduces the value of an asset directly or indirectly, the value of the asset is taken to be its value before the person acted to reduce it (except if the person reduces the value of a business by reducing the extent to which he or she works in the business).

Debts to person are included

1067G-E10 A person's assets include any money owed to the person, but do not include any interest on the money that is not yet due.

Assets of trust in which person benefits

1067G-E11 A person's assets include:

(a) any benefit to which the person is entitled directly or indirectly out of the assets of a trust; and

(b) any asset of a trust that the person can deal with directly or indirectly to his or her advantage; and

(c) any interest in the assets of a trust which has been assigned to someone else but which the person can directly or indirectly control.

1067G-E12 Any right or interest in a person's principal home is not included in the person's assets and no account is taken of an amount received from the sale of a person's principal home that he or she is likely to use within 12 months of the sale to buy another principal home.

Note: For principal home see subsections 11(5), (6) and (7).

1067G-E13 If:

(a) a drought relief exceptional circumstance certificate referred to in section 8A of the Farm Household Support Act 1992 was issued in respect of a person, or in respect of a family member of a person; and

(b) the certificate has effect;

Note: For family member see subsection 23(1).

1067G-E14 A person's assets do not include:

(a) any personal property (such as a wheelchair) designed for use by a disabled person; or

(b) any modification to personal property (such as a motor vehicle) to enable it to be used by a disabled person.

1067G-E15 If a person incurred a debt in order to obtain an asset or to make improvements to it, the value of the asset is reduced by the outstanding amount of the debt.

Exclusion of assets outside person's control

1067G-E16 Any asset to which a person is entitled but which the person cannot obtain through circumstances beyond the person's control is not included in the person's assets.

How business assets are treated

1067G-E17 If (and only if) paragraph 1067G-E6(c) applies in working out the value of the assets of a person, assets of a business are treated in accordance with points 1067G-E18 and 1067G-E19. For this purpose, a business includes:

(a) the carrying on of primary production; and

(b) the provision of professional services.

1067G-E18 Subject to point 1067G-E19, 50% of the value of a person's interest in the assets of a business is disregarded if the person, or his or her partner, is wholly or mainly engaged in the business and the business:

(a) is owned by the person; or

(b) is carried on by a partnership of which the person is a member; or

(c) is carried on by a company of which the person is a member; or

(d) is carried on by the trustee of a trust in which the person is a beneficiary.

1067G-E19 Point 1067G-E18 does not apply to assets of a business that are of any of the following kinds:

(a) cash on hand, bank deposits, bank bonds, or similar readily realisable assets;

(b) shares in companies, or rights in relation to shares;

(c) rights to deal in real or personal property;

(d) assets leased out by the business, unless leasing is a major activity of the business;

(e) assets used for private or domestic purposes by the owners of the business.

1067G-E20 A written statement of the value of an asset, signed by an officer of the Australian Valuation Office, is prima facie evidence of its value. For this purpose, a document purporting to be such a statement is taken to be such a statement, and to have been signed by such an officer, unless the contrary is proved.

General

1067G-F1 This is how to work out the effect (if any) of the income of a person's parent or parents on the person's maximum payment rate in respect of a particular youth allowance payment period.

Method statement

Step 1. Work out whether the parental income test applies to the person using Submodule 2.

Step 2. If the parental income test applies to the person, identify the appropriate tax year using Submodule 3.

Step 3. Work out the person's combined parental income for the appropriate tax year using Submodule 4.

Step 4. Work out the person's parental income free area using Submodule 5.

Step 5. If the person's combined parental income is equal to or less than the person's parental income free area, the parental income test does not affect the maximum payment rate of youth allowance and Step 6 is to be disregarded.

Step 6. If the person's combined parental income exceeds the person's parental income free area, use Submodule 6 to work out the person's reduction for parental income for the purposes of Step 8 of the Method statement in point 1067G-A1.

Persons affected by the parental income test

1067G-F2 Subject to point 1067G-F3, the parental income test applies to the person if the person is not independent.

Parent receiving Commonwealth benefit

1067G-F3 The parental income test does not apply to the person while a parent of the person:

(a) gets a payment of pension, benefit or allowance referred to in Module L; or

(b) gets a payment under Part 5 or 6 of the Farm Household Support Act 1992 ; or

(c) gets AUSTUDY or ABSTUDY and:

(i) also gets dependent spouse allowance under AUSTUDY or ABSTUDY; or

(ii) has a partner who gets AUSTUDY or ABSTUDY; or

(iii) is a single parent; or

(d) is a disadvantaged person for the purposes of sections 5B and 5D of the Health Insurance Act 1973 .

1067G-F4 Subject to this Submodule, the appropriate tax year for a youth allowance payment period is the base tax year for that period.

Base tax year

1067G-F5 The base tax year for a youth allowance payment period is the tax year that ended on 30 June in the calendar year that came immediately before the calendar year in which the period ends.

Example: A youth allowance payment period ends on 25 January 1999--this day occurs in the calendar year 1 January 1999 to 31 December 1999--the calendar year that came immediately before this one is the calendar year 1 January 1998 to 31 December 1998--the base tax year is the tax year that ended on 30 June 1998 (i.e. the year of income that began on 1 July 1997).

1067G-F6 If a person's combined parental income under Submodule 4 for the tax year following the base tax year exceeds:

(a) 125% of the person's combined parental income under that Submodule for the base tax year; and

(b) 125% of the person's parental income free area under Submodule 5;

Change to appropriate tax year at person's request

1067G-F7 If:

(a) a person requests the Secretary to make a determination under point 1067G-F8; and

(b) as a result, the Secretary determines under that point that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after:

(i) the day on which the request is made; or

(ii) 1 January in a year;

whichever day is later, the appropriate tax year is the tax year following the base tax year;

Person may ask Secretary to change appropriate tax year

1067G-F8 If:

(a) youth allowance:

(i) is not payable to a person because the rate of youth allowance because of this Module is nil; or

(ii) is payable at a reduced rate because of this Module; and

(b) the person gives the Secretary an estimate of the person's combined parental income under Submodule 4 for the tax year following the base tax year; and

(c) the person requests the Secretary to make a determination under this point; and

(d) the person agrees that the person's rate of youth allowance for that tax year is to be recalculated if the person's actual combined parental income for that tax year exceeds the amount that the person estimated;

(e) the day on which the request is made; or

(f) 1 January in a year;

Form of request

1067G-F9 A request under point 1067G-F8 must be made in writing in accordance with a form approved by the Secretary.

Combined parental income

1067G-F10 For the purposes of this Module, a person's combined parental income for a particular tax year is the sum of the following amounts ( income components ) in respect of each of the person's parents:

(a) the parent's taxable income for that year;

(b) the parent's adjusted fringe benefits value for that year;

(c) the parent's target foreign income for that year;

(d) the parent's net rental property loss for that year.

Note 1: The combined parental income may be affected by amounts of maintenance paid or received (see points 1067G-F20 and 1067G-F21).

Note 2: For taxable income see subsection 23(1).

Note 3: For adjusted fringe benefits value see points 1067G-F16 and 1067G-F17.

Note 4: For target foreign income see subsection 10A(2).

Note 5: For net rental property loss see subsection 10A(15).

1067G-F11(1) A parent's taxable income for a tax year is:

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

(b) if the parent does not have an assessed taxable income for that year--the accepted estimate, in respect of the parent, of taxable income for that year.

(a) the amount of that value as determined by the Secretary; or

(b) if a determination of that amount for that year has not been made by the Secretary--the accepted estimate, in respect of the parent, of that amount for that year.

Note: For adjusted fringe benefits value see points 1067G-F16 and 1067G-F17.

1067G-F11(4) A parent's net rental property loss for a tax year is the accepted estimate, in respect of the parent, of the amount of that loss for that year.

Assessed taxable income

1067G-F12 A parent'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 made an assessment or an amended assessment of that taxable income--that taxable income according to the assessment or amended assessment; or

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

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

1067G-F13 An accepted estimate of an income component, in respect of a parent, for a tax year is that income component according to the most recent notice given under point 1067G-F14 and accepted by the Secretary for the purposes of this Module.

Notice estimating income component

1067G-F14 A notice setting out an estimate of an income component, for a tax year, of a parent of a person claiming or receiving youth allowance may be given to the Secretary by:

(a) the parent; or

(b) the person claiming or receiving youth allowance.

Acceptance of notice

1067G-F15 The Secretary is to accept a notice referred to in point 1067G-F14 for the purposes of this Module only if the Secretary is satisfied that the estimate is reasonable.

Parent's adjusted fringe benefits value

1067G-F16 If a parent's fringe benefits value exceeds the fringe benefits value free area, the parent's adjusted fringe benefits value is the parent's fringe benefits value less the fringe benefits value free area.

Nil adjusted fringe benefits value

1067G-F17 If the parent's fringe benefits value does not exceed the fringe benefits value free area, the parent's adjusted fringe benefits value is nil.

Fringe benefits value

1067G-F18 For the purposes of this Module, a parent's fringe benefits value for a tax year is the sum of the values of all the assessable fringe benefits received by the parent in that tax year.

Note: Only assessable fringe benefits are used to work out the parent's fringe benefits value. An assessable fringe benefit is a benefit that is a car benefit, school fees benefit, health insurance benefit, loan benefit, housing benefit, expense benefit or financial investment benefit. For assessable fringe benefit see section 10A.

1067G-F19 The fringe benefits value free area is $1,000.

Note: If a parent is a member of a couple, the fringe benefits value free area is still $1,000.

1067G-F20 A parent's combined parental income for a tax year is reduced by an amount equal to any maintenance paid during the tax year by the parent:

(a) for the upkeep of a child of the parent if the parent does not have care of the child; or

(b) to a former partner of the parent.

1067G-F21 A parent's combined parental income for a tax year is increased by an amount equal to any maintenance paid during the tax year to the parent:

(a) for the upkeep of a child of the parent if the parent has care of the child; or

(b) by a former partner of the parent.

1067G-F22 For the purposes of this Module, a person's parental income free area is the sum of:

(a) $23,400; and

(b) any additional amounts, applying under this Submodule, for any children (other than the person) of a parent of the person.

1067G-F23 Unless an additional amount applies under point 1067G-F24, an additional amount applies for a child of a parent of the person who is wholly or substantially dependent on the parent, as follows:

(a) $3,700 for a child who:

(i) is at least 16 years of age but has not yet attained the maximum age for youth allowance under section 543B (disregarding subsection 543B(2)); and

(ii) is not independent (see section 1067A); and

(iii) is not receiving a pension, benefit or allowance referred to in Module L;

(b) $3,700 for a dependent child in respect of whom a boarding allowance or second home allowance is payable under the Assistance for Isolated Children Scheme;

(c) $1,200 for a dependent child who:

(i) is under 16 years of age; and

(ii) is not a child referred to in paragraph (b);

(d) $2,500 for a dependent child who:

(i) is under 16 years of age; and

(ii) is additional to the child referred to in paragraph (c); and

(iii) is not a child referred to in paragraph (b).

1067G-F24 An additional amount of $7,400 applies for a child ( student ) of a person's parent if:

(a) the student is at least 16 years of age but is not yet 25 years of age; and

(b) the student is undertaking full-time study (see section 541B) at a higher education institution within the meaning of subsection 3(1) of the Student and Youth Assistance Act 1973 ; and

(c) the student is not independent (see section 1067A); and

(d) the student required to live away from home (see section 1067D); and

(e) the parent has one or more other children in respect of whom paragraphs (a), (b), (c) and (d) apply.

1067G-F25 For the purposes of this Submodule, a child is not a dependent child of a person's parent if the parent pays maintenance for the child.

Reduction for parental income

1067G-F26 A person's reduction for parental income is the amount obtained by dividing by 26 the person's annual parental income excess under point 1067G-F27.

Annual parental income excess

1067G-F27 Subject to point 1067G-F28, the person's annual parental income excess is the amount obtained by dividing by 4 the difference between:

(a) the person's combined parental income (see Submodule 4) for the appropriate tax year in question; and

(b) the person's parental income free area (see Submodule 5).

1067G-F28 For the purposes of point 1067G-F27:

(a) if the amount obtained under that point is an amount of dollars and cents--the amount of cents is to be disregarded; and

(b) if the amount so obtained is less than $1--the amount obtained is taken to be nil.

"Method statement"

Step 1. Work out whether the family actual means test applies to the person using point 1067G-G2.

Step 2. If the family actual means test applies to the person, work out the actual means of the person's family using point 1067G-G3.

Step 3. Work out the person's reduction for actual means using point 1067G-G4.

"People affected"

1067G-G2 The family actual means test applies to a person of the kind specified in the regulations.

"Actual means of person's family"

1067G-G3 The actual means of a person's family are to be worked out in the way specified in the regulations. Without limiting the matters with which the regulations may deal, the regulations may specify:

(a) amounts that are to be included in a family's actual means; and

(b) amounts that are not to be included in a family's actual means.

1067G-G4 A person's reduction for actual means is to be worked out in the way specified in the regulations.

Effect of ordinary income on maximum payment rate

1067G-H1 This is how to work out the effect of a person's ordinary income, and the ordinary income of a partner of the person, on the person's maximum payment rate:

Method statement

Step 1. Work out the amount of the person's ordinary income on a fortnightly basis (where appropriate, taking into account the matters provided for in points 1067G-H2 to 1067G-H25).

Note: The person's ordinary income may be reduced under Module J below (student income bank).

Step 2. If the person is a member of a couple, work out the partner income free area using point 1067G-H26.

Note: The partner income free area is the maximum amount of ordinary income the person's partner can have without affecting the person's benefit.

Step 3. Use point 1067G-H27 to work out the person's partner income excess. (If there is no partner income excess under that point, the person's partner income excess is taken to be nil.)

Step 4. Use the person's partner income excess to work out the person's partner income reduction using point 1067G-H28.

Step 5. Use point 1067G-H30 to work out the person's ordinary income excess. (If there is no ordinary income excess under that point, the person's ordinary income excess is taken to be nil.)

Step 6. Use the person's ordinary income excess to work out the person's ordinary income reduction using points 1067G-H31, 1067G-H32 and 1067G-H33.

Step 7. Add the person's partner income reduction and ordinary income reduction: the result is the person's income reduction referred to in Step 12 of the Method statement in point 1067G-A1.

Note 1: For ordinary income see subsection 8(1).

Note 2: The application of the income test is affected by provisions concerning:

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

(b) business income (sections 1074 and 1075);

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

(d) income from retirement funds and annuities (sections 1096 to 1099);

(e) disposal of income (sections 1106 to 1112);

1067G-H2 If a person is a member of a couple and the person's partner is receiving a social security pension, a service pension or a rehabilitation allowance, the person's ordinary income is taken to be one half of the sum of:

(a) the amount that would be the person's ordinary income if he or she were not a member of a couple; and

(b) the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple.

1067G-H3 The ordinary income of a person:

(a) who has a temporary incapacity exemption under section 542A; or

(b) who is a partner of a person who has a temporary incapacity exemption under that section;

Termination payments

1067G-H4 Subject to points 1067G-H10 to 1067G-H20 (inclusive), if:

(a) a person's employment has been terminated; and

(b) as a result the person is entitled to a lump sum payment from the person's former employer;

Ordinary income to include certain sick leave entitlements

1067G-H5 If a person is qualified for youth allowance and has a temporary incapacity exemption under section 542A, the person's ordinary income is taken to include an amount equal to the amount in respect of sick leave worked out under points 1067G-H6, 1067G-H7 and 1067G-H8.

Sick leave entitlements

1067G-H6 If:

(a) a person has sick leave entitlements on a day that the person is incapacitated for work; and

(b) the person has the right to claim payment from the person's employer by way of sick leave payment in respect of that day; and

(c) the person's employer is able to pay the person the person's sick leave payment in respect of that day; and

(d) the person is not receiving a leave payment (other than a sick leave payment) in respect of that day;

Subsequent consecutive applications of point 1067G-H6

1067G-H7 If point 1067G-H6 has applied to a person in respect of a day, then, for the purposes of any subsequent consecutive applications of the point, the person's sick leave entitlements are to be taken to be reduced by a day.

Sick leave payments already included in ordinary income

1067G-H8 A person's ordinary income is not to include a payment received by the person in respect of sick leave to the extent that an amount equal to the payment has been included in the person's ordinary income under point 1067G-H5.

Granting of allowance after a cancellation

1067G-H9 If:

(a) point 1067G-H5 has applied to a person while the person was qualified for youth allowance and had a temporary incapacity exemption under section 542A; and

(b) that allowance has ceased to be payable under Subdivision B of Division 9 of Part 2.11, or has been cancelled under Subdivision E of that Division; and

(c) at least 6 weeks after the day on which the youth allowance ceased to be payable or was cancelled, the person is granted youth allowance, and has a temporary incapacity exemption under section 542A, again;

Rolling over lump sum leave payments

1067G-H10 If:

(a) a person's employment has been terminated; and

(b) as a result the person is entitled to a lump sum leave payment from the person's former employer; and

(c) the person rolls over the lump sum leave payment into an approved deposit fund, a superannuation fund or a deferred annuity;

Certain leave payments taken to be ordinary income

1067G-H11 Subject to points 1067G-H5 to 1067G-H9 (inclusive), if a person receives a leave payment (whether as a lump sum payment, as a payment that is a part of a series of regular payments or otherwise), the person is taken to have received ordinary income for a period ( income maintenance period ) equal to the period of leave to which the payment relates.

More than one leave payment on a day

1067G-H12 Subject to points 1067G-H5 to 1067G-H9 (inclusive), if a person receives more than one leave payment on a day, the income maintenance period is worked out by adding the periods of leave to which the payments relate.

Start of income maintenance period

1067G-H13 Subject to point 1067G-H14, the income maintenance period starts on the day the person is paid the leave payment.

Start of income maintenance period where there is a second leave payment

1067G-H14 If a person is subject to an income maintenance period ( first period ) and the person is paid another leave payment during that period ( second leave payment ), the income maintenance period for the second leave payment starts the day after the end of the first period.

Leave payments in respect of periods longer than a fortnight

1067G-H15 Subject to points 1067G-H5 to 1067G-H9 (inclusive), if:

(a) a person receives a leave payment; and

(b) the payment is in respect of a period of leave greater than a fortnight;

(c) dividing the amount received by the number of days in the period of leave to which the payment relates ( daily rate ); and

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

1067G-H16 The Secretary may determine that the whole or any part of an income maintenance period that would, apart from this point, apply to the person, does not apply to the person if the Secretary is satisfied that:

(a) the application of the income maintenance period to the person would cause the person severe financial hardship; and

(b) the circumstances that would cause the severe financial hardship were not reasonably foreseeable by the person.

1067G-H17 For the purposes of points 1067G-H6 to 1067G-H16 (inclusive), a person ( first person ) is taken to receive a leave payment if the payment is made to another person:

(a) at the direction of the first person or a court; or

(b) on behalf of the first person; or

(c) for the benefit of the first person; or

(d) the first person waives or assigns the first person's right to receive the payment.

1067G-H18 If a person receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067G-H10 to 1067G-H17 (inclusive), each payment in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the payment is worked out by adding the periods of leave to which the payments relate.

Definitions

1067G-H19 In points 1067G-H10 to 1067G-H18 (inclusive):

payment fortnight means a fortnight in respect of which a youth allowance is paid, or would be paid apart from the application of an income maintenance period, to a person.

roll - over , in relation to a lump sum leave payment, has the same meaning as roll-over in section 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

Meaning of leave payment

1067G-H20 In points 1067G-H5 to 1067G-H19 (inclusive):

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

"Ordinary income includes certain periodical payments from relatives"

1067G-H21 Subject to point 1067G-H22 (and despite paragraph 8(8)(z)), a person's ordinary income for the purposes of this Module includes a periodical payment or benefit by way of gift or allowance from the father, mother, son, daughter, brother or sister of the person.

Board and lodging

1067G-H22 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 generally taken into account when first earned, derived or received

1067G-H23 Subject to points 1067G-H24 and 1067G-H25, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

Ordinary income received at intervals longer than one fortnight

1067G-H24 Subject to points 1067G-H10 to 1067G-H20 (inclusive), if:

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

(b) each payment is in respect of a period ( work period ) that is greater than a fortnight; and

(c) there is reasonable predictability or regularity as to the timing of the payments; and

(d) there is reasonable predictability as to the quantum of the payments;

(e) dividing the amount received by the number of days in the work period ( daily rate ); and

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

1067G-H25 If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving youth allowance; and

(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

(c) dividing the amount received by the number of days in the periodic payments period ( daily rate ); and

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

Note: For periodic payments period see section 17.

1067G-H26 The partner income free area for a person is:

(a) if the person is not receiving a social security benefit--the amount of income of the person (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the person if the person were qualified for a newstart allowance; or

(b) if the person is receiving a social security benefit--the amount of income of the person (rounded up to the nearest dollar) beyond which that benefit would not be payable to the person.

1067G-H27 If:

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

(b) the person's partner is not receiving a social security pension, service pension or a rehabilitation allowance; and

(c) the partner's ordinary income exceeds the partner income free area for the partner;

(d) the person has a partner income excess; and

(e) the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area.

1067G-H28 If a person has a partner income excess, the person's partner income reduction is an amount equal to 70% of the person's partner income excess.

Example:

Facts: Alice's partner Martin has an ordinary income of $612. Assume that the partner income free area under point 1067G-H26 is $462.

Result: Martin's ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067G-H27 of:

Alice's partner income reduction under point 1067G-H28 is therefore:

Ordinary income free area

1067G-H29 A person's ordinary income free area is:

(a) if the person is undertaking full-time study at any time in the fortnight in respect of which a youth allowance may be payable--$230; or

(b) otherwise--$60.

1067G-H30 If a person's ordinary income exceeds the person's ordinary income free area:

(a) the person has an ordinary income excess; and

(b) the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area.

1067G-H31 If a person has an ordinary income excess, the person's ordinary income reduction is the sum of:

(a) the person's lower range reduction (if any)(see point 1067G-H32); and

(b) the person's upper range reduction (if any) (see point 1067G-H33).

1067G-H32 The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $80.

Upper range reduction

1067G-H33 The person's upper range reduction is an amount equal to 70% of the part (if any) of the person's ordinary income excess that exceeds $80.

Example:

Facts: Further to the example at the end of point 1067G-H28, Alice is receiving youth allowance and is not undertaking full-time study. Her ordinary income is $95.

Result: Alice's ordinary income free area under point 1067G-H29 is $60.

Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess under point 1067G-H30 of:

Because her ordinary income excess does not exceed $80:

(a) her lower range reduction under point 1067G-H32 is:

(b) there is no upper range reduction under point 1067G-H33.

Her ordinary income reduction under point 1067G-H31 is therefore $17.50.

Alice's income reduction referred to in Step 12 of point 1067G-A1 is:

Student income bank

1067G-J1 A person's ordinary income under Module H may be reduced under this Module. This diagram sets out how to work out:

(a) whether the person's ordinary income for a particular fortnight, in respect of which youth allowance may be payable to the person, is to be reduced; and

(b) if it is to be reduced, the amount of the reduction.

Application of this Module

1067G-J2 This Module applies to a person during a particular fortnight, in respect of which youth allowance may be payable to the person, if the person is undertaking full-time study (see section 541B) at any time during the fortnight.

Income bank credit

1067G-J3 A person's income bank credit for a particular income bank fortnight of the person is to be worked out as follows:

Method statement

Step 1. Assume that the person's income bank credit, at the time this Module starts applying to the person, is an opening balance of zero.

Step 2. If, for the person's first income bank fortnight, the person has an income credit under point 1067G-J4, add it to the opening balance.

Step 3. For each subsequent income bank fortnight of the person, up to but not including the fortnight in question, either:

(a) if the person has an income credit for that fortnight under point 1067G-J4--add it to the balance of the person's income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $6,000; or

(b) if the person has, in respect of that fortnight, drawn from the person's income bank credit under point 1067G-J5--deduct from that balance the amount drawn, but not so as to reduce the balance below zero.

The result is the person's income bank credit for the fortnight in question.

Income credit

1067G-J4 For the purposes of point 1067G-J3, if the amount that would, apart from this Module, be the person's ordinary income for an income bank fortnight of the person is less than $230:

(a) the person has an income credit for that fortnight; and

(b) the income credit is an amount equal to the difference between $230 and the first-mentioned amount.

1067G-J5 For the purposes of point 1067G-J3, if the amount that would, apart from this Module, be the person's ordinary income for an income bank fortnight of the person is greater than $230:

(a) the person is taken to have drawn from the person's income bank credit in respect of that fortnight; and

(b) the amount drawn is taken to be an amount equal to the difference between the first-mentioned amount and $230.

1067G-J6 For the purposes of this Module, an income bank fortnight of a person is any fortnight, in respect of which youth allowance may be payable to the person, during the whole or a part of which this Module applies to the person.

Remote area allowance--person physically in remote area

1067G-K1 An amount by way of remote area allowance is to be added to a person's rate of youth allowance if:

(a) the person's rate of youth allowance apart from this point is greater than nil; and

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

(c) 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)).

1067G-K2 A person's rate of remote area allowance 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 child of the person, being a child to whom point 1067G-K8 applies.

Table K--Remote area allowance
Column 1 Item	Column 2 Person's family situation	Column 3 Basic allowance	Column 4 Additional allowance for each child
1	Not a member of a couple	$17.50	$7.00
2	Partnered	$15.00	$7.00
3	Member of an illness separated couple	$17.50	$7.00
4	Partnered (partner in gaol)	$17.50	$7.00

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

1067G-K3 In Table K, remote area allowance means an amount added to a person's youth allowance by way of remote area allowance.

In remote area

1067G-K4 For the purposes of Table K, 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.

1067G-K5 A person's remote area allowance is not to include additional allowance for a child unless the child is physically present in Australia.

Special rule if partner has a child but is not receiving a pension

1067G-K6 If:

(a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

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

(c) the person's partner has a child to whom point 1067G-K8 applies;

Special rule if partner has a child but is not receiving additional allowance for the child

1067G-K7 If:

(a) an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

(b) the person's partner has a child to whom point 1067G-K8 applies; and

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

Child to whom this point applies

1067G-K8 This point applies to a dependent child in respect of whom family payment is payable at a rate exceeding the minimum family payment rate.

Note 1: For dependent child see subsections 5(2) to (9).

Note 2: For minimum family payment rate see subsection 6(1).

Table of pensions, benefits and allowances
Item	Type of pension, benefit and allowance
1	Age pension	(Part 2.2)
2	Service pension (age)	(Section 36 of the Veterans' Entitlements Act)
3	Defence widow's pension--if the widow has no dependent children	(Section 70 of the Veterans' Entitlements Act)
4	War widow's pension--if the widow has no dependent children	(Section 13 of the Veterans' Entitlements Act)
5	Bereavement allowance	(Part 2.7)
6	Wife pension--if husband gets age pension	(Part 2.4)
7	Service pension (partner)--if husband gets service pension (age)	(Section 38 of the Veterans' Entitlements Act)
8	Mature age allowance	(Part 2.12A or 2.12B)
9	Mature age partner allowance	(Part 2.12A or 2.12B)
10	Rehabilitation allowance	(Clause 35 of Schedule 1A)
11	Commonwealth allowance	(New Enterprise Incentive Scheme (NEIS))
12	Carer payment	(Part 2.5)
13	Service pension (carer)	(Section 39 of the Veterans' Entitlements Act)
14	Defence widow's pension--if the widow has a dependent child	(Section 70 of the Veterans' Entitlements Act)
15	Disability support pension	(Part 2.3)
16	Service pension (invalidity)	(Section 37 of the Veterans' Entitlements Act)
17	Pension PP (single)	(Part 2.10)
18	Widow B pension	(Part 2.8)
19	Tuberculosis allowance	(Section 9 of the Tuberculosis Act 1984 )
20	War widow's pension--if the widow has a dependent child	(Section 13 of the Veterans' Entitlements Act)
21	Wife pension--if husband gets a disability support pension	(Part 2.4 as in force on 11 November 1991)
22	Wife's service pension--if husband gets an invalidity service pension	(Section 40 of the Veterans' Entitlements Act)
23	Newstart allowance	(Part 2.12)
24	Sickness allowance	(Part 2.14)
25	Special benefit	(Part 2.15)
26	Benefit PP (partnered)	(Part 2.10)
27	Commonwealth allowance for full-time vocational training, except: (a) AUSTUDY; (b) an allowance under the Veterans' Children Education Scheme; (c) an allowance under: (i) the Assistance for Isolated Children Scheme; or (ii) the ABSTUDY Scheme; or (iii) the Aboriginal Overseas Study Assistance Scheme.	( Student and Youth Assistance Act 1973 ) (Part 7 of the Veterans' Entitlements Act)

9 Point 1068B-A1

Repeal the point, substitute:

Method of calculating rate--general

1068B-A1 The rate of PP (partnered) is a fortnightly rate. There are 3 ways of working out a person's rate:

(a) one for non-benefit PP (partnered) (see point 1068B-A2); and

(b) one for benefit PP (partnered) if the person is not a partner of a non-independent YA recipient (see point 1068B-A3); and

(c) one for benefit PP (partnered) if the person is a partner of a non-independent YA recipient (see point 1068B-A3A).

Note: For partner of a non-independent YA recipient see subsection 23(1).

After "benefit PP (partnered)", insert "and the person is not a partner of a non-independent YA recipient".

11 At the end of point 1068B-A3

Add:

Note: For partner of a non-independent YA recipient see subsection 23(1).

Insert:

Method of calculating rate--benefit PP (partnered) for partner of a non-independent YA recipient

1068B-A3A If parenting payment is a benefit PP (partnered) and the person is a partner of a non-independent YA recipient, the rate of parenting payment is worked out as follows:

Method statement

Step 1. Work out the person's maximum basic rate using Module C below.

Step 2. Apply the income test using Module E of the rate calculator in section 1068A to work out the person's income reduction as if the person was not a member of a couple.

Step 3. Take the income reduction away from the person's maximum basic rate: the result is the income reduced rate .

Note: The result may be a negative amount.

Step 4. Work out the amount per fortnight (if any) of rent assistance (see Module F below).

Step 5. Work out the amount per fortnight (if any) of pharmaceutical allowance (see Module E below).

Step 6. Add up the amounts obtained in Steps 3, 4 and 5: the result is the provisional payment rate . If the result is a negative amount the provisional payment rate is taken to be nil.

Step 7. The rate of benefit PP (partnered) is the difference between:

(a) the provisional payment rate; and

(b) any advance payment deduction (see Part 3.16A);

plus any amount payable by way of remote area allowance (see Module G).

Note: For partner of a non-independent YA recipient see subsection 23(1).

Omit "The question", substitute "Subject to point 1068B-B8, the question".

14 Point 1068B-B1 (note)

Renumber as Note 1.

15 At the end of point 1068B-B1

Add:

Note 2: If the person is a partner of a non-independent YA recipient, use point 1068B-B8 to work out whether parenting payment payable to the person is a non-benefit PP (partnered) or a benefit PP (partnered).

Omit "If the person", substitute "For the purposes of point 1068B-B1, if the person".

17 Point 1068B-B5

Omit "If the person", substitute "For the purposes of point 1068B-B1, if the person".

18 After point 1068B-B7

Insert:

Partner of a non-independent YA recipient

1068B-B8 If the person is a partner of a non-independent YA recipient:

(a) parenting payment is a non-benefit PP (partnered) if the value of the person's assets exceeds what would be the person's assets value limit under subsection 500Q(2) if the person were not a member of a couple; or

(b) parenting payment is a benefit PP (partnered) if the value of the person's assets does not exceed what would be the person's assets value limit under that subsection if the person were not a member of a couple.

Note: For partner of a non-independent YA recipient see subsection 23(1).

made in House of Representatives on 2 October 1997

tabled in Senate on 3 December 1997 ]