Social Security Act 1991

Act No. 46 of 1991 as amended

VOLUME 7 includes: sections 1061ZA ‑ 1067L‑F9

 

 

 

 

 

Contents

Chapter 2A—Benefits and concessions other than payments

Part 2A.1—Concession cards

Division 1—Qualification for, and issue of, pensioner concession card

1061ZA General qualification rules.........................

1061ZB Extended qualification rule: former recipient of mature age allowance etc.             

1061ZC Extended qualification rule: long‑term recipient of social security benefits             

1061ZD Extended qualification rule: former recipient of disability support pension             

1061ZE Extended qualification rule: former recipient of wife pension.....

1061ZF Issue of pensioner concession card....................

Division 2—Qualification for seniors health card

1061ZG Qualification rules..............................

1061ZH Newly arrived resident’s waiting period

1061ZI Duration of newly arrived resident’s waiting period

1061ZJ Giving of copy of assessment of taxable income to Secretary.....

Division 3—Qualification for health care card

Subdivision A—Qualification for automatic issue health care card

1061ZK Qualification: general rules.........................

1061ZL Qualification: certain disabled young persons..............

1061ZM Qualification for health care card: employment‑affected person             

1061ZN Residence requirement...........................

Subdivision B—Qualification for health care cards for which claim required

1061ZO Qualification.................................

1061ZP Person subject to newly arrived resident’s waiting period.......

1061ZQ Newly arrived resident’s waiting period.................

1061ZR Duration of newly arrived resident’s waiting period..........

Subdivision C—Miscellaneous provisions relating to health care cards

1061ZS Issue of health care cards..........................

1061ZT Certain dependants not qualified for health care card..........

Chapter 2B—Student Financial Supplement Scheme

Part 2B.1—Establishment of scheme

Division 1—Preliminary

1061ZW Object of this Chapter............................

1061ZX Outline of the scheme............................

Division 2—Eligibility to obtain financial supplement

1061ZY Eligibility to obtain financial supplement................

1061ZZ Category 1 student..............................

1061ZZA.............................Category 2 student [see Note 11]             

1061ZZAAFailure by person to comply with request to provide person’s tax file number             

1061ZZABFailure by person to comply with request to provide the tax file number of a parent of the person             

Division 3—Decision and notice about eligibility to obtain financial supplement

1061ZZAC............................Secretary’s decision             

1061ZZAD...........Revocation or variation of decision after review             

1061ZZAE.................................Transitional             

Division 4—Agreements between Commonwealth and financial corporations

1061ZZAF.................Applications for financial supplement             

1061ZZAG................................Agreements             

Division 5—Application for financial supplement

1061ZZAH...............................When to apply             

1061ZZAI................................How to apply             

1061ZZAJ.........................Changing an application             

Division 6—Amount of financial supplement

Subdivision A—Category 1 students

1061ZZAK..............Maximum amount of financial supplement             

Subdivision B—Category 2 students

1061ZZAL.......................Change in eligibility period             

1061ZZAM....................Eligibility period (short course)             

1061ZZAN...................Eligibility period (no short course)             

1061ZZAO.............Maximum amount of financial supplement [see Note 15]             

Subdivision C—Provisions applying to both category 1 students and category 2 students

1061ZZAP...............Minimum amount of financial supplement             

1061ZZAQ...................Person doing more than one course             

Division 7—Trading in youth allowance, austudy payment or pensioner education supplement for financial supplement

1061ZZAR............................Purpose of Division             

1061ZZASReduction of youth allowance, austudy payment or pensioner education supplement for financial supplement             

Division 8—Obtaining or increasing financial supplement by trading back youth allowance, austudy payment or pensioner education supplement

Subdivision A—Purpose of Division

1061ZZAT............................Purpose of Division             

Subdivision B—When a person may repay youth allowance, austudy payment or pensioner education supplement to obtain or increase financial supplement

1061ZZAUElection to repay youth allowance, austudy payment or pensioner education supplement             

1061ZZAV...........................Timing of repayment             

Subdivision C—Repayment

1061ZZAW...........................Effect of repayment             

Division 9—Financial supplement contracts

Subdivision A—Making a contract for payment of financial supplement

1061ZZAX.Making a contract between person and participating corporation             

1061ZZAY.............................Existing contracts             

1061ZZAZ..Liability for money paid under a financial supplement contract             

1061ZZBA...............Validity of financial supplement contract             

Subdivision B—When a financial supplement contract can be cancelled

1061ZZBB......Person has right to cancel financial supplement contract             

1061ZZBC.............How to cancel financial supplement contract             

1061ZZBD............When to cancel financial supplement contract             

1061ZZBE...............Payments made during cooling off period             

1061ZZBF...............Person may waive right to cancel contract             

1061ZZBG.................How to waive right to cancel contract             

1061ZZBH.................When to waive right to cancel contract             

Subdivision C—Financial supplement contract exempt from certain laws and taxes

1061ZZBI.Financial supplement contract exempt from certain laws and taxes             

Division 10—Payment of financial supplement

1061ZZBJ..........................Payment by instalments             

1061ZZBK................................Rounding off             

1061ZZBL...................To whom instalments must be paid             

1061ZZBM.......................Payment into bank account             

Division 11—Protection of financial supplement

1061ZZBN..........Financial supplement to be absolutely inalienable             

1061ZZBO................Effect of garnishee or attachment order             

Division 12—Obligations of category 2 students

Subdivision A—Statements about tax file numbers

1061ZZBPSecretary may request person obtaining financial supplement to give statement of person’s tax file number             

1061ZZBQSecretary may request person obtaining financial supplement to give statement of parent’s tax file number             

Subdivision B—Notice of events or changes in circumstances

1061ZZBR...........Secretary may give notice requiring information             

1061ZZBS..................Event or change relevant to payment             

1061ZZBT.......................Formalities related to notice             

1061ZZBU.............................Validity of notice             

1061ZZBV.............Period within which information to be given             

1061ZZBW...............Refusal or failure to comply with notice             

1061ZZBX...........................Application overseas             

Subdivision C—Notice about a matter relevant to payment of financial supplement

1061ZZBY......Secretary may give notice requiring statement on matter             

1061ZZBZ.......................Formalities related to notice             

1061ZZCA.............................Validity of notice             

1061ZZCB...............Period within which statement to be given             

1061ZZCC..................Statement must be in approved form             

1061ZZCD................Refusal or failure to comply with notice             

1061ZZCE...........................Application overseas             

Division 13—Early repayments of financial supplement

Subdivision A—Calculation and notification of amount outstanding under financial supplement contract

1061ZZCF........................Application of Subdivision             

1061ZZCGCalculation of amount outstanding under financial supplement contract before 1 June in the year after the year in which the contract was made             

1061ZZCHCalculation of amount outstanding under financial supplement contract at a later time             

1061ZZCI...................Notification of amount outstanding             

Subdivision B—Person’s rights to make repayments during contract period

1061ZZCJPerson not required to, but may, make repayments during contract period             

1061ZZCK.........What happens if person makes an excess repayment             

1061ZZCL............Amount repaid not to include certain amounts             

1061ZZCM........................How to work out discount             

1061ZZCN........Effect of making a repayment during contract period             

1061ZZCORights and liabilities of participating corporation if repayment made             

Subdivision C—What happens at the end of the contract period

1061ZZCP.............Corporation’s rights at end of contract period             

1061ZZCQ............................Termination notice             

1061ZZCRSecretary may give notice correcting information in previous notice             

1061ZZCS...............Person may request notice to be corrected             

1061ZZCT......................Effect of notices and requests             

Part 2B.2—Payments of financial supplement under scheme to stop in certain circumstances

Division 1—Payments to stop at request of recipient

1061ZZCU..................Person may ask for payment to stop             

1061ZZCV..............................Effect of notice             

Division 2—Payments to stop if the maximum amount of financial supplement is reduced to the amount already paid or a lesser amount

Subdivision A—Notice that payments are to stop

1061ZZCW........Secretary must give notice to person and corporation             

1061ZZCX..............................Effect of notice             

1061ZZCY This Subdivision is subject to sections 1061ZZFS and 1061ZZFT             

Subdivision B—Original amount paid because person failed to notify change of circumstances

1061ZZCZ.........Secretary may give notice to person and corporation             

1061ZZDA..............................Effect of notice             

1061ZZDB.........Transfer of corporation’s rights to Commonwealth             

1061ZZDC................Apportionment of financial supplement             

1061ZZDD..............Liability of Commonwealth to corporation             

1061ZZDE.................Liability of person to Commonwealth             

1061ZZDF.............This Subdivision not to affect Subdivision A             

Subdivision C—Original amount paid because of false or misleading information

1061ZZDG........Secretary may give notice to person and corporation             

1061ZZDH..............................Effect of notice             

1061ZZDI..........Transfer of corporation’s rights to Commonwealth             

1061ZZDJ................Apportionment of financial supplement             

1061ZZDK..............Liability of Commonwealth to corporation             

1061ZZDL.................Liability of person to Commonwealth             

1061ZZDM.............This Subdivision not to affect Subdivision A             

Division 3—Payments to stop if person ceases to be eligible to obtain financial supplement

Subdivision A—Notice that payments are to stop

1061ZZDN........Secretary must give notice to person and corporation             

1061ZZDO..............................Effect of notice             

1061ZZDP.This Subdivision is subject to sections 1061ZZFS and 1061ZZFT             

Subdivision B—Financial supplement paid because person failed to notify change of circumstances

1061ZZDQ........Secretary may give notice to person and corporation             

1061ZZDR..............................Effect of notice             

1061ZZDS..........Transfer of corporation’s rights to Commonwealth             

1061ZZDT................Apportionment of financial supplement             

1061ZZDU..............Liability of Commonwealth to corporation             

1061ZZDV.................Liability of person to Commonwealth             

1061ZZDW.............This Subdivision not to affect Subdivision A             

Division 4—Payments to stop if person is found never to have been eligible to obtain financial supplement

Subdivision A—Notice that payments are to stop

1061ZZDX........Secretary must give notice to person and corporation             

1061ZZDY..............................Effect of notice             

1061ZZDZ.This Subdivision is subject to sections 1061ZZFS and 1061ZZFT             

Subdivision B—Financial supplement paid because of false or misleading information

1061ZZEA.........Secretary may give notice to person and corporation             

1061ZZEB...............................Effect of notice             

1061ZZEC..........Transfer of corporation’s rights to Commonwealth             

1061ZZED..............Liability of Commonwealth to corporation             

1061ZZEE.............................Liability of person             

1061ZZEF.................................Definitions             

1061ZZEG.............This Subdivision not to affect Subdivision A             

Division 5—Payments to stop if person dies

1061ZZEHSecretary may give notice to corporation if other party to contract dies             

1061ZZEI...............................Effect of notice             

1061ZZEJ...................Discharge of corporation’s liability             

1061ZZEK..........Transfer of corporation’s rights to Commonwealth             

1061ZZEL..............Liability of Commonwealth to corporation             

1061ZZEM.....................Discharge of person’s liability             

Part 2B.3—Repayment of financial supplement through taxation system after termination date

Division 1—Purpose and application of Part

1061ZZEN.....................Purpose and application of Part             

Division 2—FS debt and accumulated FS debt

1061ZZEO.........................FS debt owed by person             

1061ZZEP.........................How to work out FS debt             

1061ZZEQ...............Accumulated FS debt incurred by person             

1061ZZER.................How to work out accumulated FS debt             

1061ZZES......................Adjusted accumulated FS debt             

1061ZZET..............................Indexation factor             

1061ZZEU............Accumulated FS debt discharges earlier debts             

Division 3—Information to be given to Commissioner of Taxation

1061ZZEV........Secretary to give notice to Commissioner of Taxation             

1061ZZEW...Secretary to give further notice to Commissioner of Taxation             

1061ZZEX.....Secretary to give certificate to Commissioner of Taxation             

Division 4—Voluntary repayments of FS debts

1061ZZEY...................Voluntary repayments of FS debts             

Division 5—Compulsory repayments of accumulated FS debt

1061ZZEZ..............................Person’s liability             

1061ZZFA............................Amount of liability             

1061ZZFB.................................Meaning of relevant debt

1061ZZFC.................................Meaning of minimum prescribed amount

1061ZZFD.................................Meaning of intermediate prescribed amount

1061ZZFE.................................Meaning of maximum prescribed amount

1061ZZFF.................................Meaning of AWE

Division 6—Application of tax legislation

1061ZZFG......................Application of tax legislation             

Division 7—Assessments

1061ZZFH..........Commissioner of Taxation may make assessment             

1061ZZFI...................Notice of assessment may be served             

Division 8—Commissioner of Taxation may delay assessment

1061ZZFJ...........Commissioner of Taxation may delay assessment             

1061ZZFK..........Commissioner of Taxation may amend assessment             

1061ZZFLWhen Commissioner of Taxation must make decision to delay or amend assessment             

Division 9—Review of Commissioner of Taxation’s decision

1061ZZFM...........Application to Administrative Appeals Tribunal             

Division 10—Treatment of payments under financial supplement scheme

1061ZZFN....................Payments not subject to taxation             

1061ZZFO.........................Application of payments             

1061ZZFP.........................Debt discharged by death             

Part 2B.4—Miscellaneous

Division 1—Application of the Bankruptcy Act 1966

1061ZZFQ..........................Application of Division             

1061ZZFR.............................Treatment of debt             

Division 2—Review of decisions

1061ZZFS.......What happens if a decision of the Secretary is set aside             

1061ZZFT.........What happens if a decision of the Secretary is varied             

Division 3—Transfer of rights under this Chapter

1061ZZFU.............................Notices of transfer             

1061ZZFV............Transfers not subject to State or Territory taxes             

Chapter 3—General provisions relating to payability and rates

Part 3.1—Rate Calculators (General)

1062 Steps in rate calculation...........................

1063 Standard categories of family situations.................

Part 3.2—Pension Rate Calculator A

1064 Rate of age, disability support, wife pensions and carer payment and of disability wage supplement (people who are not blind)             

Pension Rate Calculator A

Module A—Overall rate calculation process

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module BA—Pension supplement

Module C—Pharmaceutical allowance  [see Appendix for CPI adjusted figures]

Module D—Rent assistance [see Appendix for CPI adjusted figures]

Module E—Ordinary income test [see Appendix for CPI adjusted figures]

Module G—Assets test [see Appendix for CPI adjusted figures]

Module H—Remote area allowance

Part 3.3—Pension Rate Calculator B

1065 Rate of age and disability support pension and of disability wage supplement (blind people)             

Pension Rate Calculator B

Module A—Overall rate calculation process

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module BA—Pension supplement

Module C—Pharmaceutical allowance  [see Appendix for CPI adjusted figures]

Module E—Remote area allowance

Part 3.4—Pension Rate Calculator C

1066 Rate of sole parent pension, bereavement allowance and widow B pension             

Pension Rate Calculator C

Module A—Overall rate calculation process

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module BA—Pension supplement

Module C—Pharmaceutical allowance  [see Appendix for CPI adjusted figures]

Module D—Rent assistance [see Appendix for CPI adjusted figures]

Module E—Ordinary income test [see Appendix for CPI adjusted figures]

Module G—Assets test [see Appendix for CPI adjusted figures]

Module H—Remote Area Allowance

Part 3.4A—Pension Rate Calculator D

1066A Rate of disability support pension (people under 21 who are not blind)             

Pension Rate Calculator D

Module A—Overall rate calculation process

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module C—Youth disability supplement  [see Appendix for CPI adjusted figures]

Module D—Pharmaceutical allowance  [see Appendix for CPI adjusted figures]

Module EA—Rent assistance (under 18)  [see Appendix for CPI adjusted figures]

Module EB—Rent assistance (18 and over)  [see Appendix for CPI adjusted figures]

Module F—Ordinary income test  [see Appendix for CPI adjusted figures]

Module H—Assets test [see Appendix for CPI adjusted figures]

Module I—Remote area allowance

Part 3.4B—Pension Rate Calculator E

1066B Rate of disability support pension and of disability wage supplement (people under 21 who are blind)             

Pension Rate Calculator E

Module A—Overall rate calculation process

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module C—Youth disability supplement  [see Appendix for CPI adjusted figures]

Module D—Pharmaceutical allowance  [see Appendix for CPI adjusted figures]

Module F—Remote area allowance

Part 3.5—Youth Allowance Rate Calculator

1067 Definitions..................................

1067A When a person is regarded as independent................

1067B Accommodated independent person...................

1067C Member of a YA couple..........................

1067D Person required to live away from home.................

1067E Person living at home............................

1067F Long term income support student....................

1067G Rate of youth allowance..........................

Youth Allowance Rate Calculator

Module A—Overall rate calculation process [see Note 12]

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module C—Pharmaceutical allowance [see Appendix for CPI adjusted figures]

Module D—Rent assistance [see Appendix for CPI adjusted figures]

Module F—Parental income test

Submodule 1—Effect of parental income on maximum payment rate

Submodule 2—Application of parental income test

Submodule 3—Appropriate tax year

Submodule 4—Combined parental income

Submodule 5—Parental income free area  [see Appendix for CPI adjusted figures]

Submodule 6—Reduction for parental income

Module G—Family actual means test [see Notes 10 and 11]

Submodule 1—Preliminary

Submodule 2—Persons to whom family actual means test applies

Submodule 3—Identification of appropriate tax year

Submodule 4—Actual means of person’s family

Submodule 5—Family actual means free area

Submodule 6—Reduction for family actual means

Module H—Income test

Module J—Student income bank

Module K—Remote area allowance

Module L—Table of pensions, benefits and allowances

Part 3.5A—Austudy Payment Rate Calculator

1067H Definitions..................................

1067J Person living at home............................

1067K Long term income support student....................

1067L Rate of austudy payment..........................

Austudy Payment Rate Calculator

Module A—Overall rate calculation process

Module B—Maximum basic rate [see Appendix for CPI adjusted figures]

Module C—Pharmaceutical allowance  [see Appendix for CPI adjusted figures]

Module D—Income test

Module E—Student income bank

Module F—Remote area allowance

Chapter 2A—Benefits and concessions other than payments

 1061ZA(1) Subject to subsection (3), a person is qualified for a pensioner concession card on a day if:

 (a) a social security pension; or

 (b) a mature age allowance under Part 2.12B;

is payable to the person for that day.

 1061ZA(2) Subject to subsection (3), a person is qualified for a pensioner concession card on a day (the qualification day) if, on that day:

 (a) the person has attained 60 years of age; and

 (b) the person is receiving:

 (i) newstart allowance; or

 (ii) partner allowance; or

 (iii) widow allowance; or

 (iv) benefit PP (partnered); or

 (v) sickness allowance; or

 (vi) special benefit; and

 (c) the person has been receiving, for a continuous period of not less than 39 weeks ending immediately before the qualification day:

 (i) one or more of the social security benefits referred to in paragraph (b); or

 (ii) a social security pension.

 1061ZA(3) Subject to subsection (4), subsections (1) and (2) only apply to a person in relation to a day on which the person is in Australia and is an Australian resident.

 1061ZA(4) In spite of subsection (3), subsections (1) and (2) apply to a person in relation to a day on which the person:

 (a) is in Australia; and

 (b) is receiving a social security pension or benefit solely because of the operation of the scheduled international agreement between Australia and New Zealand.

 1061ZB(1) Subject to subsection (2), if:

 (a) a person is receiving:

 (i) a mature age allowance under Part 2.12A; or

 (ii) a mature age partner allowance under Part 2.12A; or

 (iii) a mature age allowance under Part 2.12B; and

 (b) either:

 (i) the person or the person’s partner commences employment; or

 (ii) there is an increase in the ordinary income of the person or the person’s partner from employment; and

 (c) but for the commencement of employment or increase in ordinary income, as the case may be, the person would have been, or would have continued to be, qualified for a pensioner concession card under subsection 1061ZA(1);

the person is qualified for a pensioner concession card for the period of 26 weeks after the commencement or increase, as the case may be.

 1061ZB(2) Subsection (1) only applies to a person while the person is in Australia and is an Australian resident.

 1061ZB(3) If, during the period of 26 weeks referred to in subsection (1), a person receives an instalment of a social security pension or a mature age allowance under Part 2.12B that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

 1061ZC(1) Subject to subsection (2), if:

 (a) a person has been receiving a social security benefit referred to in paragraph 1061ZA(2)(b) for a continuous period of not less than 39 weeks; and

 (b) either:

 (i) the person or the person’s partner commences employment; or

 (ii) there is an increase in the ordinary income of the person or the person’s partner from employment; and

 (c) but for the commencement of employment or increase in ordinary income, as the case may be, the person would have been, or would have continued to be, qualified for a pensioner concession card under subsection 1061ZA(2);

the person is qualified for a pensioner concession card for the period of 26 weeks after the commencement or increase, as the case may be.

 1061ZC(2) Subject to subsection (4), subsection (1) only applies to a person while the person is in Australia and is an Australian resident.

 1061ZC(3) If, during the period of 26 weeks referred to in subsection (1), a person receives an instalment of a social security pension or a mature age allowance under Part 2.12B that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

 1061ZC(4) In spite of subsection (2), subsection (1) applies to a person when:

 (a) the person is in Australia; and

 (b) the social security benefit that the person had been receiving was received solely because of the operation of the scheduled international agreement between Australia and New Zealand.

 1061ZD(1) Subject to subsection (5), a person is qualified for a pensioner concession card for the period of 52 weeks starting on the day on which this section begins to apply to the person.

 1061ZD(2) Subject to subsection (4), this section applies to a person if:

 (a) the person has been receiving a disability support pension; and

 (b) the person commences employment that requires him or her to work for at least 30 hours per week; and

 (c) because of the commencement of that employment, the person ceases to be qualified for the disability support pension.

 1061ZD(3) Subject to subsection (4), this section applies to a person if:

 (a) the person has been receiving a disability support pension; and

 (b) the disability support pension ceases to be payable to the person because of an increase in the person’s ordinary income from employment.

 1061ZD(4) Subject to subsection (6), this section only applies to a person while the person is in Australia and is an Australian resident.

 1061ZD(5) If, during the period of 52 weeks referred to in subsection (1), a person receives an instalment of a social security pension or a mature age allowance under Part 2.12B that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

 1061ZD(6) In spite of subsection (4), this section applies to a person in relation to a day if:

 (a) the person is in Australia on that day; and

 (b) the disability support pension that the person had been receiving was received solely because of the operation of the scheduled international agreement between Australia and New Zealand.

 1061ZE(1) Subject to subsection (5), a person is qualified for a pensioner concession card for the period of 52 weeks starting on the day on which this section begins to apply to the person.

 1061ZE(2) Subject to subsection (4), this section applies to a person if:

 (a) the person has been receiving a wife pension; and

 (b) the person’s partner has been receiving disability support pension; and

 (c) the person’s partner commences employment that requires him to work for at least 30 hours per week; and

 (d) because of the commencement of that employment, the person ceases to be qualified for the wife pension.

 1061ZE(3) Subject to subsection (4), this section applies to a person if:

 (a) the person has been receiving a wife pension; and

 (b) the person’s partner has been receiving disability support pension; and

 (c) the wife pension ceases to be payable to the person because of an increase in the income of the person’s partner from employment.

 1061ZE(4) Subject to subsection (6), this section only applies to a person while the person is in Australia and is an Australian resident.

 1061ZE(5) If, during the period of 52 weeks referred to in subsection (1), a person receives an instalment of a social security pension or a mature age allowance under Part 2.12B that relates to one or more days within that period, the person is not qualified under this section for a pensioner concession card on the day or days in relation to which the person receives the instalment.

 1061ZE(6) In spite of subsection (4), this section applies to a person in relation to a day if:

 (a) the person is in Australia on that day; and

 (b) the wife pension that the person had been receiving was received solely because of the operation of the scheduled international agreement between Australia and New Zealand.

  The Secretary must issue a pensioner concession card to a person who is qualified for such a card.


 1061ZG(1) Subject to subsection (2), a person is qualified for a seniors health card on a day if, on that day, the person:

 (a) has reached pension age; and

 (b) is an Australian resident or a special category visa holder residing in Australia; and

 (c) is in Australia; and

 (d) satisfies the seniors health card taxable income test; and

 (e) is not receiving a social security pension or benefit; and

 (f) is not receiving a service pension; and

 (g) is not subject to a newly arrived resident’s waiting period.

 1061ZG(2) A person is not qualified for a seniors health card on a day if:

 (a) the person has failed to comply with section 1061ZJ in respect of the reference tax year; or

 (b) where the person made an estimate of taxable income for the reference tax year and the estimate was accepted—the person did not give the Secretary a copy of a notice of assessment of the person’s taxable income for that tax year within 52 weeks after the end of that tax year.

 1061ZG(3) In subsection (2):

reference tax year has the same meaning as in the Seniors Health Card Taxable Income Test Calculator.

 1061ZH(1) Subject to subsections (2), (3) and (4), for the purposes of this Division, a person who:

 (a) has entered Australia on or after 1 February 2000; and

 (b) has not been both:

 (i) an Australian resident or a special category visa holder residing in Australia; and

 (ii) in Australia;

  for a period of, or for periods totalling, 104 weeks;

 1061ZH(2) Subsection (1) does not apply to a person who has a qualifying residence exemption for a seniors health card.

 1061ZH(3) Subsection (1) does not apply to a person who has already served a newly arrived resident's waiting period.

 1061ZH(4) Subsection (1) does not apply to a person if:

 (a) the person is a New Zealand citizen; and

 (b) the person was an Australian resident on 1 February 2000.

 1061ZH(5) If, before 1 February 2000, a person had begun to serve a waiting period under subsection 1061ZA(2) of this Act as then in force but had not served the whole of the waiting period:

 (a) the person is subject to a waiting period under this section; and

 (b) this Division applies in relation to the person as if:

 (i) this Division had been in force when the person began to serve the waiting period; and

 (ii) the part of the waiting period served before 1 February 2000 had been served under this section.

  If a person is subject to a newly arrived resident’s waiting period, the period:

 (a) starts on the day on which the person first became an Australian resident or a special category visa holder residing in Australia; and

 (b) ends when the person has been both:

 (i) an Australian resident or a special category visa holder residing in Australia; and

 (ii) in Australia;

  for a period of, or for periods totalling, 104 weeks.

  If a person who is the holder of a seniors health card receives a notice of assessment or amended assessment of his or her taxable income for a particular tax year, the person must, if requested by the Secretary to do so, give a copy of the notice to the Secretary within 13 weeks after the day on which the notice was received.


 1061ZK(1) A person is qualified for a health care card on a day if this section applies to the person on that day.

 1061ZK(2) This section applies to a child on a day if a person is qualified under Part 2.19 for carer allowance for the child on that day.

 1061ZK(3) This section applies to a disabled child on a day if all of the following paragraphs are satisfied on that day:

 (a) the child is or would, but for subsection 5(3), be a dependent child of another person (the carer);

 (b) because of his or her disability, the child needs, on a daily basis, a level of care and attention that is substantially more than that needed by a person of the same age who does not have a physical, intellectual or psychiatric disability;

 (c) the child receives care and attention on a daily basis from:

 (i) if the carer is a member of a couple—the carer, the carer’s partner or the carer together with another person (whether or not the carer’s partner); or

 (ii) if the carer is not a member of a couple—the carer or the carer together with another person;

 (d) that care and attention is received in a private home that is the residence of the child and the carer.

 1061ZK(4) This section applies to a person on a day if, on that day:

 (a) the person is entitled, under the Family Assistance Administration Act, to be paid family tax benefit by instalment; and

 (b) the person’s daily rate of family tax benefit consists of, or includes, a Part A rate calculated under Part 2 of Schedule 1 to the Family Assistance Act; and

 (c) the person’s income excess for the purposes of Division 4 of Part 2 of Schedule 1 to the Family Assistance Act is nil.

 1061ZK(5) This section applies to a person on a day if:

 (a) the person is receiving a youth allowance on that day and, at the time when a determination was made to grant the person the youth allowance, the person was not undertaking full‑time study; or

 (b) the person is receiving, on that day:

 (i) a newstart allowance; or

 (ii) a partner allowance; or

 (iii) a widow allowance; or

 (iv) benefit PP (partnered); or

 (v) sickness allowance; or

 (vi) special benefit.

 1061ZK(6) This section applies to a person on a day if, on that day, the person is receiving exceptional circumstances relief payment or farm help income support under the Farm Household Support Act 1992.

 1061ZK(7) This section applies to a person on a day if, on that day:

 (a) the person is receiving mobility allowance; or

 (b) the person is qualified for such an allowance but the allowance is not payable because of paragraph 1037(b).

 1061ZK(8) In this section:

disabled child means a person aged under 16 who:

 (a) has a physical, intellectual or psychiatric disability; and

 (b) is likely to suffer from that disability permanently or for an extended period.

 1061ZK(9) This section has effect subject to section 1061ZN.

 1061ZL(1) A person to whom this section applies is qualified for a health care card.

 1061ZL(2) This section applies to a person if:

 (a) clause 108 of Schedule 1A applied to the person immediately before the end of 30 June 1999; and

 (b) the person is a disabled adult within the meaning of Part 2.19 as that Part applies to the person in accordance with clause 108A of Schedule 1A.

 1061ZL(3) This section has effect subject to section 1061ZN.

1061ZM(1) Subject to subsection (2), if:

 (a) either:

 (i) a person who is an employment‑affected person or the partner of such a person commences employment; or

 (ii) there is an increase in the ordinary income from employment of a person who is an employment‑affected person or the partner of such a person; and

 (b) the person has been a qualified recipient for a continuous period of 52 weeks immediately before the commencement of the employment or the increase, as the case may be; and

 (c) because of the commencement of employment or the increase in ordinary income, as the case may be, the person ceases to be an employment‑affected person;

the person is qualified for a health care card for the period of 26 weeks starting on the day on which the person ceases to be an employment‑affected person.

1061ZM(2) If, during the period of 26 weeks referred to in subsection (1), a person receives a payment of a social security pension or benefit specified in the definition of employment‑affected person in subsection (3) that relates to one or more days within that period, the person ceases to be qualified under this section for a health care card on the day on which the person receives the payment.

1061ZM(3) In this section:

employment‑affected person means:

 (a) a person who is receiving any of the following:

 (i) pension PP (single);

 (ii) newstart allowance;

 (iii) sickness allowance;

 (iv) special benefit;

 (v) widow allowance;

 (vi) partner allowance; or

 (b) a person who is receiving a youth allowance but who is not undertaking full‑time study.

qualified recipient means:

 (a) a person who is receiving:

 (i) a social security pension, other than a pension under Part 2.16; or

 (ii) a social security benefit, other than a youth allowance or austudy payment; or

 (b) a person who is receiving a youth allowance but is not undertaking full‑time study.

1061ZM(4) This section has effect subject to section 1061ZN.

 1061ZN(1) Sections 1061ZK, 1061ZL and 1061ZM only have effect in relation to a person on a day on which:

 (a) the person is in Australia and is:

 (i) an Australian resident or a special category visa holder residing in Australia; or

 (ii) the holder of a visa included in a class of visas determined by the Minister for the purposes of this paragraph; or

 (iii) a person declared by the Minister to be a person to whom this subparagraph applies; or

 (b) the person:

 (i) is in Australia; and

 (ii) is receiving a social security pension or benefit solely because of the operation of the scheduled international agreement between Australia and New Zealand.

 1061ZN(2) The Minister may declare that a person who:

 (a) is included in a specified class of persons; and

 (b) is, or has been, in Australia in specified circumstances;

is a person to whom subparagraph (1)(a)(iii) applies.

 1061ZN(3) The circumstances that may be specified in a declaration under subsection (2) include circumstances that existed or exist at any time before or after the making of the declaration.

 1061ZN(4) A declaration under subsection (2):

 (a) must be in writing; and

 (b) is a disallowable instrument.

 1061ZO(1) A person is qualified for a health care card on a day if this section applies to the person on that day.

 1061ZO(2) This section applies to a person on a day if, on that day:

 (a) in the case of a child—the person is:

 (i) an Australian resident or a special category visa holder residing in Australia; or

 (ii) living in Australia with an Australian resident or with a special category visa holder residing in Australia; and

 (b) in the case of a person other than a child—the person is:

 (i) an Australian resident or a special category visa holder residing in Australia; and

 (ii) in Australia; and

 (c) the person is not an FTB child aged over 16 years; and

 (d) the person satisfies the health care card income test.

 1061ZO(3) This section applies to a person on a day if, on that day, the person:

 (a) is an Australian resident or a special category visa holder residing in Australia; and

 (b) is in Australia; and

 (c) is an FTB child who is 16 or more, but not yet 19, years of age; and

 (d) is not undertaking secondary studies; and

 (e) satisfies the health care card income test.

 1061ZO(4) This section applies to a person on a day if, on that day, the person:

 (a) is an Australian resident or a special category visa holder residing in Australia; and

 (b) is in Australia; and

 (c) is an FTB child who is 19 or more years of age; and

 (d) satisfies the health care card income test.

 1061ZO(5) This section applies to a child on a day if:

 (a) on that day, the child is in foster care; and

 (b) the child is living in Australia with an Australian resident or with a special category visa holder residing in Australia.

 1061ZO(6) If, during a continuous period of foster care, a child has been in the care of 2 or more foster carers, the reference in subparagraph (5)(c)(i) to the commencement of the period of foster care is a reference to the time at which the child began to be cared for by the first of those carers.

 1061ZO(7) The Minister may declare that a person who:

 (a) is included in a specified class of persons; and

 (b) is, or has been, in Australia in specified circumstances;

is a person to whom this section applies.

 1061ZO(8) The circumstances that may be specified in a declaration under subsection (7) include circumstances that existed or exist at any time before or after the making of the declaration.

 1061ZO(9) A declaration under subsection (7):

 (a) must be in writing; and

 (b) is a disallowable instrument.

  This Subdivision does not apply to a person while the person is subject to a newly arrived resident’s waiting period.

 1061ZQ(1) Subject to subsection (2), for the purposes of this Division, a person who has entered Australia on or after 1 February 2000 is subject to a newly arrived resident’s waiting period.

 1061ZQ(2) Subsection (1) does not apply to a person who:

 (a) has a qualifying residence exemption for a health care card; or

 (b) has already served a newly arrived resident’s waiting period; or

 (c) has been an Australian resident, or a special category visa holder residing in Australia, and in Australia for a period of, or for periods totalling, 104 weeks; or

 (d) holds, or formerly held, a visa included in a class of visas determined by the Minister for the purposes of subsection 739A(6); or

 (e) is not subject to a newly arrived resident’s waiting period under subsection 739A(1) or (2) because of the operation of subsection 739A(7).

  If a person is subject to a newly arrived resident’s waiting period, the period:

 (a) starts on the day on which the person first became an Australian resident or a special category visa holder residing in Australia; and

 (b) ends when the person has been both:

 (i) an Australian resident or a special category visa holder residing in Australia; and

 (ii) in Australia;

  for a period of, or for periods totalling, 104 weeks.

  The Secretary must issue an automatic issue health care card to a person who is qualified for such a card.

 1061ZT(1) Subject to subsection (2), a person is not qualified for a health care card in respect of any day on which the person:

 (a) is a dependant of any person; or

 (b) is wholly or substantially dependent on:

 (i) a resident of; or

 (ii) a corporation carrying on business in; or

 (iii) the government of;

  a country other than Australia.

 1061ZT(2) Subsection (1) does not apply to:

 (a) a person who is the partner of another person; or

 (b) a person who is qualified for a health care card under subsection 1061ZK(2) or (3) or subsection 1061ZO(3), (4) or (5).


Chapter 2B—Student Financial Supplement Scheme

  The object of this Chapter is to establish a Student Financial Supplement Scheme enabling certain tertiary students to obtain a repayable financial supplement by entering into a contract for that purpose with a financial corporation that participates in the scheme.

 1061ZX(1) The scheme provides for the reduction of the rate of youth allowance, austudy payment or pensioner education supplement payable to a person who obtains financial supplement.

 1061ZX(2) The scheme contains provisions under which the amount of supplement that the person is eligible to obtain depends on the total rate of youth allowance, austudy payment or pensioner education supplement that the person chooses to receive. Those provisions allow the person to choose to repay some or all of the youth allowance, austudy payment or pensioner education supplement, or to receive a lower rate of payment of such an allowance, payment or supplement, in order to receive a higher amount of financial supplement.

 1061ZX(3) The scheme provides that the person is not liable to pay interest to the financial corporation in respect of financial supplement received by the person, but provides for payment by the Commonwealth, without cost to the person, to the financial corporation of a subsidy that includes an amount in lieu of interest.

 1061ZX(4) The scheme provides for the amount of the financial supplement that has to be repaid under a contract to be indexed on 1 June in the year next following the year in which the contract is entered into, and on 1 June in each later year. The amount by which the supplement is increased by indexation is owed by the person to the Commonwealth and not to the financial corporation.

 1061ZX(5) Under the scheme, the person is entitled, but not required, to make early repayments in respect of the supplement during the period of the contract. The scheme provides for a discount for any repayments made before the end of that period.

 1061ZX(6) The scheme provides that, if financial supplement paid to a person is not repaid in full before the end of the period of the contract, the obligation to repay the outstanding amount of the supplement is transferred to the Commonwealth, and the indexed amount is repayable by the person to the Commonwealth through the taxation system when the person’s income reaches a specified level.


  A person is eligible to obtain financial supplement for a period (an eligibility period) that is a year or a part of a year if:

 (a) the person is undertaking, or intending to undertake, a tertiary course at an educational institution throughout the period; and

 (b) the person does not undertake a course of primary or secondary education at any time during the period; and

 (c) the person is a category 1 student or a category 2 student in respect of the period; and

 (d) the amount of financial supplement that the person is eligible to obtain under Division 6 for the year is not less than the minimum amount of financial supplement.

 1061ZZ(1) A person is a category 1 student in respect of a period if, throughout the period, one or more of the payments referred to in this section are payable to the person.

 1061ZZ(2) The payment may be youth allowance if:

 (a) the person’s youth allowance general rate is more than zero; and

 (b) the youth allowance is payable because the person is undertaking full‑time study.

 1061ZZ(3) The payment may be austudy payment if the person’s austudy payment general rate is more than zero.

 1061ZZ(4) The payment may be pensioner education supplement.

1061ZZA(1) A person is a category 2 student in respect of a period if:

 (a) the person is not a category 1 student in respect of the period; and

 (b) throughout the period the person is undertaking full‑time study; and

 (c) throughout the period youth allowance at the youth allowance general rate is not payable to the person, and is not so payable only because of the operation of:

 (i) Module F (the parental income test) of the Youth Allowance Rate Calculator in section 1067G; or

 (ii) Module G (the family actual means test) of that Calculator; and

 (d) where throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of Module F of that Calculator—the person’s combined parental income for the appropriate tax year under Submodule 4 of that Module is throughout the period less than the person’s modified parental income free area; and

 (e) where throughout the period youth allowance at the youth allowance general rate is not payable to the person only because of the operation of Module G of that Calculator—the actual means of the person’s family under that Module is throughout the period less than the person’s modified parental income free area; and

 (f) neither section 1061ZZAA nor 1061ZZAB applies to the person.

1061ZZA(2) For the purposes of paragraphs (1)(d) and (e), the person’s modified parental income free area is the indexed amount that would be the person’s parental income free area under point 1067G‑F22 if the amount of $23,400 that was specified in paragraph 1067G‑F22(a) when that paragraph was enacted had been $54,949.

1061ZZAA(1) This section applies to a person if:

 (a) the Secretary has requested the person under section 1061ZZBP to:

 (i) give the Secretary a written statement of the person’s tax file number; or

 (ii) apply to the Commissioner of Taxation for a tax file number and give the Secretary a written statement of the person’s tax file number after it has been issued; and

 (b) at the end of 28 days after the request is made, the person has neither:

 (i) given the Secretary a written statement of the person’s tax file number; nor

 (ii) given the Secretary an employment declaration and satisfied either subsection (2) or (3).

1061ZZAA(2) The person satisfies this subsection if:

 (a) the employment declaration states that the person:

 (i) has a tax file number but does not know what it is; and

 (ii) has asked the Commissioner of Taxation to inform him or her of the number; and

 (b) the person has given the Secretary a document authorising the Commissioner to tell the Secretary:

 (i) whether the person has a tax file number; and

 (ii) if the person has a tax file number—the tax file number; and

 (c) the Commissioner has not told the Secretary that the person has no tax file number.

1061ZZAA(3) The person satisfies this subsection if:

 (a) the employment declaration states that the person has applied for a tax file number; and

 (b) the person has given the Secretary a document authorising the Commissioner of Taxation to tell the Secretary:

 (i) if a tax file number is issued to the person—the tax file number; or

 (ii) if the application is refused—that the application has been refused; or

 (iii) if the application is withdrawn—that the application has been withdrawn; and

 (c) the Commissioner has not told the Secretary that the person has not applied for a tax file number; and

 (d) the Commissioner has not told the Secretary that an application by the person for a tax file number has been refused; and

 (e) the application for a tax file number has not been withdrawn.

1061ZZAB(1) Subject to subsection (4), this section applies to a person if:

 (a) the person is requested under section 1061ZZBQ to give the Secretary a written statement of the tax file number of a parent of the person; and

 (b) at the end of 28 days after the request is made the person has neither:

 (i) given the Secretary a written statement of the parent’s tax file number; nor

 (ii) given the Secretary a declaration by the parent in a form approved by the Secretary and satisfied either subsection (2) or (3).

1061ZZAB(2) The person satisfies this subsection if:

 (a) the parent’s declaration states that the parent:

 (i) has a tax file number but does not know what it is; and

 (ii) has asked the Commissioner of Taxation to inform him or her of his or her tax file number; and

 (b) the person has given the Secretary a document signed by the parent that authorises the Commissioner to tell the Secretary:

 (i) whether the parent has a tax file number; and

 (ii) if the parent has a tax file number—the tax file number; and

 (c) the Commissioner has not told the Secretary that the parent has no tax file number.

1061ZZAB(3) The person satisfies this subsection if:

 (a) the parent’s declaration states that he or she has applied for a tax file number; and

 (b) the person has given the Secretary a document signed by the parent that authorises the Commissioner of Taxation to tell the Secretary:

 (i) if a tax file number is issued to the parent—the tax file number; or

 (ii) if the application is refused—that the application has been refused; or

 (iii) if the application is withdrawn—that the application has been withdrawn; and

 (c) the Commissioner has not told the Secretary that an application by the parent for a tax file number has been refused; and

 (d) the application for a tax file number has not been withdrawn.

1061ZZAB(4) The Secretary may waive the request for a statement of the parent’s tax file number if the Secretary is satisfied that:

 (a) the person does not know the parent’s tax file number; and

 (b) the person can obtain none of the following from the parent:

 (i) the parent’s tax file number;

 (ii) a statement of the parent’s tax file number;

 (iii) a declaration by the parent under subparagraph (1)(b)(ii).


1061ZZAC(1) If a person claims youth allowance, austudy payment or pensioner education supplement, the Secretary must decide whether the person is eligible to obtain financial supplement for a period that is the whole or a part of a year.

1061ZZAC(2) Also, if:

 (a) the Secretary has made a decision in a year that a person is eligible to obtain financial supplement for a period that is the whole or a part of that year; and

 (b) the person is likely to:

 (i) continue to undertake the person’s tertiary course in the next year; or

 (ii) undertake a new tertiary course in the next year when enrolments in the course are next accepted;

the Secretary must make a new decision, as early as practicable in the next year, about whether the person is eligible to obtain financial supplement for a period that is the whole or a part of that next year.

1061ZZAC(3) If the Secretary decides that the person is eligible to obtain financial supplement for a period, the Secretary must give the person a notice (a supplement entitlement notice):

 (a) stating that the person is eligible to obtain financial supplement for that period; and

 (b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.

1061ZZAD(1) This section applies if:

 (a) the Secretary has made a decision under section 1061ZZAC in relation to a person; and

 (b) the Secretary has given the person a supplement entitlement notice under subsection 1061ZZAC(3) as a result of the decision; and

 (c) after the notice was given the decision is reviewed under Chapter 6; and

 (d) as a result of the review, the decision is revoked or varied.

1061ZZAD(2) The revocation or variation revokes the supplement entitlement notice and the notice ceases to be valid for the purpose of applying for financial supplement.

1061ZZAD(3) The Secretary must give the person a statement telling the person:

 (a) that the decision has been revoked, or has been varied in a manner set out in the statement, as the case may be; and

 (b) that the supplement entitlement notice has been revoked and ceases to be valid for the purpose of applying for financial supplement.

1061ZZAD(4) If the decision is varied and, after the variation, the person is or becomes eligible to obtain financial supplement for a period, the Secretary must give the person a notice (also a supplement entitlement notice):

 (a) stating that the person is eligible to obtain financial supplement for that period; and

 (b) specifying the minimum and maximum amounts of financial supplement that the person can obtain.

1061ZZAE(1) This section applies if, immediately before the commencement of this Chapter, a person held a notice given under Part 3 of the Social Security Student Financial Supplement Scheme 1998.

1061ZZAE(2) If the person had not used the notice before that commencement in an application for financial supplement under that Scheme, the person is eligible to obtain financial supplement under this Chapter for the period to which the notice related.

1061ZZAE(3) The notice is taken to be a supplement entitlement notice given under this Division.


  A person may apply for financial supplement only to a participating corporation.

1061ZZAG(1) The Minister may enter into an agreement, on behalf of the Commonwealth, with a financial corporation for the payment by the corporation after the commencement of this Chapter, in the year in which this Chapter commences or a later year, of financial supplement.

1061ZZAG(2) An agreement referred to in subsection (1) does not have any effect unless it:

 (a) is expressed to have effect subject to this Chapter; and

 (b) provides for the payment by the Commonwealth to the financial corporation, in respect of each amount of financial supplement paid by the corporation to a person that has not been repaid, or in respect of which the rights of the corporation have been transferred to the Commonwealth, of a subsidy of such amount or amounts, or at such rate or rates, and in respect of such period or periods, as are stated in the agreement.

1061ZZAG(3) If such an agreement is entered into, the corporation is a participating corporation for the purposes of this Chapter in respect of the year, or each year, concerned.

1061ZZAG(4) The parties to an agreement referred to in subsection (2) (including such an agreement as previously amended under this subsection) may enter into an agreement amending or terminating it.

1061ZZAG(5) The amendment or termination of an agreement does not affect any financial supplement contract that was in force immediately before the amendment or termination took effect.

1061ZZAG(6) If an agreement was in force, immediately before the commencement of this Chapter, between the Commonwealth and a financial corporation under section 1.7 of the Social Security Student Financial Supplement Scheme 1998, the amendment or termination of the agreement, and the commencement of an agreement under this section, do not affect any financial supplement contract made under that Scheme.

1061ZZAG(7) An agreement between the Commonwealth and a financial corporation is not subject to any stamp duty or other tax under a law of a State or Territory.

1061ZZAG(8) An officer may disclose to a participating corporation any information about a person that is relevant to the exercise or performance by the corporation of any of its rights or obligations in respect of the person under this Chapter.

1061ZZAG(9) A participating corporation may disclose to an officer any information about a person that is relevant to the exercise or performance of any rights, powers or obligations conferred or imposed on an officer or on the Commonwealth in respect of the person under this Chapter.


  A person who is eligible to obtain financial supplement for an eligibility period may apply to a participating corporation, during that period, for financial supplement.

  A person may only apply for financial supplement by:

 (a) completing an application form approved by the Secretary; and

 (b) lodging it, with the person’s supplement entitlement notice, at an office of a participating corporation.

  A person who has applied for financial supplement for the eligibility period may, at any time, lodge another application form approved by the Secretary at an office of the participating corporation, telling the corporation that the person requires for that period:

 (a) a specified lesser amount of financial supplement, which must be:

 (i) not less than the total amount of financial supplement already paid to the person for the period; and

 (ii) not less than the minimum amount of financial supplement in respect of the person for the year that constitutes, or includes, the eligibility period; or

 (b) a specified greater amount of financial supplement, which must be not more than the maximum amount of financial supplement in respect of the person for the period.


1061ZZAK(1) If the relevant eligibility period of a person who is a category 1 student is a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of:

 (a) $7,000; and

 (b) the amount worked out using the following Method statement.

Method statement

Step 1. Work out the total amount of youth allowance general rate, austudy payment general rate or pensioner education supplement that would be payable to the person for the eligibility period if the person did not apply for financial supplement.

Step 2. Work out the total amount of advance payment deductions (if any) to be made from the person’s rate of youth allowance or austudy payment, under Part 3.16A, in the eligibility period.

 Subtract that total amount from the total amount worked out under Step 1.

Step 3. Work out the total amount of overpayments (if any) for the eligibility period.

 Subtract that total amount from the total amount worked out under Step 2.

Step 4. Work out the total amount of deductions (if any) that are to be paid to the Commissioner of Taxation, under section 1359, for the eligibility period.

 Note: Section 1359 provides for the deduction and payment to the Commissioner of Taxation of amounts of tax that a person is required to pay.

 Subtract that total amount from the total amount worked out under Step 3.

Step 5. Work out the total amount (if any) of youth allowance general rate, austudy payment general rate or pensioner education supplement that has already been paid for the eligibility period.

 Ignore any amount that has already been dealt with under Step 2.

 Ignore any amount that is taken never to have been paid because of section 1061ZZAW.

 Subtract the total amount from the amount worked out under Step 4.

Step 6. Multiply the amount left by 2.

Step 7. If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

1061ZZAK(2) If the relevant eligibility period of a person who is a category 1 student is less than a year, the maximum amount of financial supplement for the period in respect of the person is the lesser of:

 (a) the amount worked out using the Method statement in subsection (1); and

 (b) the amount worked out using the following Method statement.

Method statement

Step 1. Multiply $7,000 by the number of days in the eligibility period.

Step 2. Divide the result by the number of days in the year in which the eligibility period is included.

 If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

1061ZZAK(3) This section has effect subject to Subdivision C.

1061ZZAL(1) The maximum amount of financial supplement in respect of a person who is a category 2 student depends on the person’s eligibility period.

1061ZZAL(2) If the person is undertaking, or intends to undertake, a short course, it is necessary to work out whether the person’s eligibility period is to be changed under section 1061ZZAM.

1061ZZAL(3) If the person is neither undertaking, nor intending to undertake, a short course, it is necessary to work out whether the person’s eligibility period is to be changed under section 1061ZZAN.

1061ZZAM(1) This section explains whether, and how, to change the eligibility period for a person who is undertaking, or intending to undertake, a short course.

1061ZZAM(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied for financial supplement more than 4 weeks after being given a supplement entitlement notice.

1061ZZAM(3) The Secretary may decide that the eligibility period otherwise applicable is not to be changed if the Secretary is satisfied that:

 (a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and

 (b) circumstances beyond the person’s control prevented the person from applying within the 4 weeks; and

 (c) the person applied as soon as practicable after the circumstances stopped.

1061ZZAM(4) If the eligibility period otherwise applicable is to be changed, the person’s new eligibility period is the period:

 (a) starting on the later of:

 (i) the day when the person applied; and

 (ii) the start of the eligibility period otherwise applicable; and

 (b) ending when the eligibility period otherwise applicable would have ended.

1061ZZAN(1) This section explains whether, and how, to change the eligibility period for a person who is neither undertaking, nor intending to undertake, a short course.

1061ZZAN(2) Subject to subsection (3), the eligibility period that would have applied to the person apart from this subsection (the eligibility period otherwise applicable) must be changed if the person applied for financial supplement after 31 May in the year in which the period is included.

1061ZZAN(3) The Secretary may decide that the period is not to be changed if the Secretary is satisfied that:

 (a) the person took reasonable steps to apply within 4 weeks after being given a supplement entitlement notice; and

 (b) circumstances beyond the person’s control prevented the person from applying within the 4 weeks; and

 (c) the person applied as soon as practicable after the circumstances stopped.

1061ZZAN(4) If the eligibility period otherwise applicable is to be changed and the person applied before 1 October in the year, the person’s new eligibility period is the period:

 (a) starting on the later of 1 July and the start of the eligibility period otherwise applicable; and

 (b) ending when the eligibility period otherwise applicable would have ended.

1061ZZAN(5) If the eligibility period otherwise applicable is to be changed and the person applied on or after 1 October in the year, the person’s new eligibility period is the period:

 (a) starting on the later of:

 (i) the day when the person applied; and

 (ii) the start of the eligibility period otherwise applicable; and

 (b) ending when the eligibility period otherwise applicable would have ended.

1061ZZAO(1) If:

 (a) the person is undertaking, or intending to undertake, a short course; or

 (b) the person is neither undertaking, nor intending to undertake, a short course and the person’s eligibility period is less than a year;

the maximum amount of financial supplement for the eligibility period in respect of the person is worked out using the following Method statement.

Method statement

Step 1. Multiply $2,000 by the number of weekdays in the eligibility period.

Step 2. Divide the result by the number of weekdays in the year that includes the eligibility period.

 If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

1061ZZAO(2) If the person is neither undertaking, nor intending to undertake, a short course, and the person’s eligibility period is a year, the maximum amount of financial supplement for the eligibility period in respect of the person is $2,000.

1061ZZAO(3) This section has effect subject to Subdivision C.

  The minimum amount of financial supplement in respect of a person is $500.

1061ZZAQ(1) This section applies if a person undertakes, or intends to undertake, more than one tertiary course in the same period in a year.

1061ZZAQ(2) The maximum amount of financial supplement for the period in respect of the person is the maximum amount worked out under this Division for the period in respect of the person for one of the courses.


1061ZZAR(1) Financial supplement will be paid to a person who is eligible to obtain financial supplement at a rate determined by the person’s financial supplement contract.

1061ZZAR(2) If youth allowance, austudy payment or pensioner education supplement is payable to the person, the payment of financial supplement will reduce the rate at which the youth allowance, austudy payment or pensioner education supplement is payable.

1061ZZAR(3) The reduction of the rate of payment is a trade in.

1061ZZAR(4) The Division explains how trade in works.

1061ZZAS(1) The period for which a payment of financial supplement will be made is an instalment period.

1061ZZAS(2) Subject to subsection (3), the rate of youth allowance, austudy payment or pensioner education supplement that would have been payable to the person in an instalment period is reduced by an amount equal to one‑half of the amount of financial supplement to be paid during the instalment period under the financial supplement contract.

1061ZZAS(3) If, apart from this subsection, the amount by which the rate would be reduced is an amount including one‑half of a cent, the amount is to be increased by one‑half of a cent.

1061ZZAS(4) This section has effect despite any other provision of this Act.


1061ZZAT(1) If a person who is eligible to obtain financial supplement wishes to obtain financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.

1061ZZAT(2) If a person who is obtaining financial supplement wishes to increase the amount of financial supplement, the person may repay an amount of youth allowance, austudy payment or pensioner education supplement.

1061ZZAT(3) The repayment of the youth allowance, austudy payment or pensioner education supplement is a trade back.

1061ZZAT(4) This Division explains how trade back works.

1061ZZAT(5) This Division also sets out the effect of trade back.

1061ZZAT(6) This Division does not affect the operation of Chapter 5.

1061ZZAU(1) A person to whom youth allowance, austudy payment or pensioner education supplement was payable during a payment period may elect to repay to the Commonwealth some or all of the youth allowance, austudy payment or pensioner education supplement.

1061ZZAU(2) The person must make the election using the form approved under paragraph 1061ZZAI(a).

1061ZZAU(3) A payment period is:

 (a) the part of a year starting on 1 January and ending on 31 May; or

 (b) the part of a year starting on 1 July and ending on 30 September.

1061ZZAV(1) A person who is not obtaining financial supplement may, in order to obtain financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:

 (a) while the person is eligible to obtain financial supplement; and

 (b) during the payment period.

1061ZZAV(2) However, if the person does not repay youth allowance, austudy payment or pensioner education supplement during the payment period, the person may, in order to obtain financial supplement, repay youth allowance, austudy payment or pensioner education supplement after that period if the Secretary is satisfied that:

 (a) the person took reasonable steps to repay it during the payment period; and

 (b) circumstances beyond the person’s control prevented the person from repaying it during the period; and

 (c) the person repays it as soon as practicable after the end of the payment period and during the year that includes the payment period.

1061ZZAV(3) A person who is obtaining financial supplement may, in order to increase the amount of financial supplement, repay to the Commonwealth youth allowance, austudy payment or pensioner education supplement:

 (a) while the person is eligible to obtain financial supplement; and

 (b) during the year in which the youth allowance, austudy payment or pensioner education supplement was paid.

  If an amount is repaid by a person under this Division, the amount is taken never to have been paid to the person.


1061ZZAX(1) If a person applies to a participating corporation under Division 5 for the payment of financial supplement for an eligibility period, the corporation must, as soon as practicable, accept the application by written notice to the person.

1061ZZAX(2) A contract is made when the corporation accepts the application by giving the notice referred to in subsection (1). The contract is a financial supplement contract.

1061ZZAX(3) A financial supplement contract is a contract for the making of a loan by the corporation to the person under this Division without any requirement on the person to pay interest.

1061ZZAX(4) The contract must be for the amount of financial supplement for which the person from time to time asks, but the amount must not be less than the minimum amount, or more than the maximum amount, of financial supplement that the person is, from time to time, eligible to obtain under Division 6.

1061ZZAX(5) The contract must also allow, but not compel, the person to make repayments during the contract period under Division 13 of the amount outstanding at any time under the contract.

1061ZZAX(6) The contract must set out the termination date for the contract. The date to be set out is the last day of the contract period.

1061ZZAX(7) The contract period is the period beginning on the day when the contract is made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ends.

1061ZZAY(1) A contract is also a financial supplement contract if it is a contract referred to in section 8.2 of the Social Security Student Financial Supplement Scheme 1998.

1061ZZAY(2) The termination date for the contract is the date set out in the contract.

1061ZZAY(3) The contract period is the period beginning on the day when the contract was made and ending on 31 May in the year in which the last of the periods referred to in paragraph 1061ZZCH(1)(b) ended or ends.

1061ZZAZ(1) A participating corporation may rely on advice given by the Commonwealth to decide:

 (a) whether it must pay financial supplement to a person; and

 (b) the amount of financial supplement.

1061ZZAZ(2) An amount paid to a person by a corporation, relying on advice given by the Commonwealth, is taken to be financial supplement paid under the contract even though the person may not have been eligible to obtain the amount.

1061ZZAZ(3) Subsection (2) does not affect the operation of Part 2B.2.

1061ZZBA(1) The validity of a financial supplement contract with a person is not affected merely because the person was not eligible to obtain financial supplement when the contract was made, or ceases at a later time to be eligible.

1061ZZBA(2) The contract is not invalid, and is not voidable, under any other law (whether written or unwritten) in force in a State or Territory.

1061ZZBA(3) The contract is not invalid merely because the person is an undischarged bankrupt when the contract is made.

1061ZZBA(4) Bankruptcy does not release a person from his or her obligations under the contract.

1061ZZBB(1) A person who makes a financial supplement contract has a right to cancel the contract.

1061ZZBB(2) Subsection (1) does not affect the operation of section 1061ZZCU.

1061ZZBB(3) If, under section 1061ZZBF, the person waives his or her right to cancel the contract, sections 1061ZZBC to 1061ZZBE do not apply to the contract.

1061ZZBC(1) To exercise the right to cancel the contract, the person must give to the participating corporation written notice that the person is withdrawing his or her application for financial supplement

1061ZZBC(2) The notice must be lodged at an office of the corporation.

  The person’s right may be exercised within 14 days (the cooling off period) after the day when the contract is made under section 1061ZZAX.

1061ZZBE(1) In the cooling off period, the participating corporation must not make a payment to the person under the contract.

1061ZZBE(2) If the corporation makes a payment to the person under the contract within the cooling off period, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.

1061ZZBE(3) If the corporation makes a payment to the person under the contract after the cooling off period and the person has exercised the right to cancel the contract, the payment is taken not to be a payment of financial supplement if the person repays to the corporation an amount equal to the payment within 7 days after the date of the payment.

  The person may waive the right to cancel the contract.

  To waive the right to cancel the contract, the person must give to the participating corporation written notice that he or she is waiving the right to cancel the contract.

  To exercise the right of waiver, the person must give the participating corporation the notice referred to in section 1061ZZBG immediately after the contract is made under section 1061ZZAX.

1061ZZBI(1) A law of a State or Territory about giving credit or other financial assistance does not apply to a financial supplement contract.

1061ZZBI(2) An application for the payment of financial supplement, a financial supplement contract, or an act or thing done or transaction entered into under such a contract, is not taxable under any law of a State or Territory.


1061ZZBJ(1) Financial supplement is to be paid by instalments for periods determined by the Secretary.

1061ZZBJ(2) Instalments of financial supplement are to be paid at times determined by the Secretary.

  If the amount of an instalment includes a fraction of a cent, the amount is to be rounded to the nearest whole cent (0.5 cent being rounded upwards).

1061ZZBL(1) If a person who is a category 1 student is trading in, or trading back, youth allowance, financial supplement must be paid to the person to whom instalments of youth allowance are or were being paid under section 559D or 559E.

1061ZZBL(2) If a person who is a category 1 student is trading in, or trading back, austudy payment, financial supplement must be paid to the person to whom instalments of austudy payment are or were being paid under section 584D.

1061ZZBL(3) If a person who is a category 1 student is trading in, or trading back, pensioner education supplement, financial supplement must be paid to the person to whom instalments of pensioner education supplement are or were being paid under section 1061PZK.

1061ZZBL(4) If a person who is a category 2 student obtains financial supplement, it must be paid to the person to whom instalments of youth allowance would be paid under section 559D or 559E if youth allowance were payable to the student.

1061ZZBL(5) This section does not affect the liability of a person to make repayments under Part 2B.3.

1061ZZBM(1) If an amount of financial supplement is paid to a person, it must be paid to the credit of a bank account nominated and maintained by the person.

1061ZZBM(2) The bank account may be maintained by the person alone or jointly or in common with someone else.


  Financial supplement is absolutely inalienable, whether by way of, or in consequence of, sale, assignment, charge, execution, bankruptcy or otherwise.

1061ZZBO(1) This section applies if:

 (a) a person has an account with a financial institution (whether the account is maintained by the person alone, or jointly or in common with someone else); and

 (b) a court order in the nature of a garnishee order comes into force in respect of the account; and

 (c) an amount of financial supplement has been paid (whether on the person’s own behalf or not) to the credit of the account in the 4 weeks immediately before the court order came into force.

1061ZZBO(2) The court order does not apply to the saved amount (if any) in the account.

1061ZZBO(3) The saved amount is the amount worked out using the following Method statement.

Method statement

Step 1. Work out the amount of financial supplement paid to the credit of the account in the 4 weeks.

Step 2. Subtract from that amount the total amount withdrawn from the account in the 4 weeks.

 The amount left is the saved amount.


Request for tax file number

1061ZZBP(1) The Secretary may request, but not compel, a person who is a category 2 student and is obtaining financial supplement:

 (a) if the person has a tax file number—to give the Secretary a written statement of the person’s tax file number; or

 (b) if the person does not have a tax file number:

 (i) to apply to the Commissioner of Taxation for a tax file number; and

 (ii) to give the Secretary a written statement of the person’s tax file number after the Commissioner has issued it.

Failure to satisfy request

1061ZZBP(2) A person is not eligible to obtain financial supplement if, at the end of 28 days after a request is made:

 (a) the person has failed to satisfy the request; and

 (b) the Secretary has not exempted the person from having to satisfy the request.

Request for parent’s tax file number

1061ZZBQ(1) If:

 (a) a person (the recipient) who is a category 2 student is obtaining financial supplement; and

 (b) the income of a parent of the recipient is required to be taken into account for the purpose of working out the recipient’s eligibility for financial supplement; and

 (c) the parent is in Australia;

the Secretary may request, but not compel, the recipient to give the Secretary a written statement of the parent’s tax file number.

Failure to satisfy request

1061ZZBQ(2) A recipient is not eligible to obtain financial supplement if, at the end of 28 days after the request is made:

 (a) the recipient has failed to satisfy the request; and

 (b) the Secretary has not exempted the recipient from having to satisfy the request.

1061ZZBQ(3) In this section:

parent has the same meaning as in paragraph (b) of the definition of parent in subsection 5(1).

Note 1: In some cases the request can be satisfied in relation to a parent by giving the Secretary a declaration by the parent about the parent’s tax file number and an authority by the parent to the Commissioner of Taxation to give the Secretary certain information relevant to the parent’s tax file number (see subsections 1061ZZAB(2) and (3).

Note 2: The Secretary may waive the requirement in some cases (see subsection 1061ZZAB(4)).

1061ZZBR(1) The Secretary may give a notice under this section to a person who is a category 2 student if:

 (a) financial supplement is paid to the person on the person’s own behalf; or

 (b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.

1061ZZBR(2) The notice must require the person to tell the Department if:

 (a) a stated event or change of circumstances happens; or

 (b) the person becomes aware that a stated event or change of circumstances is likely to happen.

  An event or change of circumstances is not to be stated in a notice given under section 1061ZZBR unless the event or change of circumstances might affect the payment of financial supplement.

  Subject to section 1061ZZBU, a notice under section 1061ZZBR:

 (a) must be in writing; and

 (b) may be given personally or by post; and

 (c) must state how the person is to give the information to the Department; and

 (d) must state the period in which the person is to give the information to the Department; and

 (e) must state that the notice is a recipient notification notice given under this Act.

  A notice under section 1061ZZBR is not invalid merely because it does not comply with paragraph 1061ZZBT(c) or (e).

1061ZZBV(1) Subject to this section, the period stated under paragraph 1061ZZBT(d) must be the period of 14 days after:

 (a) the day on which the event or change of circumstances happens; or

 (b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.

1061ZZBV(2) If the Secretary is satisfied that there are special circumstances related to the person to whom the notice under section 1061ZZBR is to be given, the period to be stated under paragraph 1061ZZBT(d) is such period as the Secretary directs in writing, being a period that ends not less than 15 days, and not more than 28 days, after:

 (a) the day on which the event or change of circumstances happens; or

 (b) the day on which the person becomes aware that the event or change of circumstances is likely to happen.

1061ZZBV(3) If the notice specifies an event consisting of the death of a person, the period to be stated under paragraph 1061ZZBT(d) is a period of 28 days after the day on which the event happens.

1061ZZBV(4) If the notice requires the person to tell the Department of a proposal by the person to leave Australia, subsection (1) does not apply to that requirement.

1061ZZBV(5) If the notice requires information about receipt of a compensation payment, the period stated under paragraph 1061ZZBT(d) in relation to the information must end at least 7 days after the day when the person becomes aware that he or she has received, or is to receive, a compensation payment.

1061ZZBW(1) A person is guilty of an offence if:

 (a) the person is required to comply with a notice; and

 (b) the notice is a notice under section 1061ZZBR; and

 (c) the person refuses or fails to comply with the notice; and

 (d) the person is reckless as to the requirement.

Penalty: Imprisonment for 6 months.

1061ZZBW(2) Subsection (1) applies only to the extent to which the person is capable of complying with the notice.

1061ZZBW(3) Subsection (1) does not apply if the person has a reasonable excuse.

1061ZZBW(4) Strict liability applies to paragraph (1)(b).

  This Subdivision extends to:

 (a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and

 (b) all people irrespective of their nationality or citizenship.

1061ZZBY(1) The Secretary may give a notice under this section to a person who is a category 2 student if:

 (a) financial supplement is paid to the person on the person’s own behalf; or

 (b) financial supplement is paid to someone else, on the person’s behalf, under section 1061ZZBL.

1061ZZBY(2) The notice must require the person to give the Department a statement about a matter that might affect the payment of financial supplement.

  Subject to section 1061ZZCA, a notice under section 1061ZZBY:

 (a) must be in writing; and

 (b) may be given personally or by post; and

 (c) must state how the statement is to be given to the Department; and

 (d) must state the period within which the person is to give the statement to the Department; and

 (e) must state that the notice is a recipient statement notice given under this Act.

  A notice under section 1061ZZBY is not invalid merely because it does not comply with paragraph 1061ZZBZ(c) or (e).

  The period stated under paragraph 1061ZZBZ(d) must be at least 14 days after the day on which the notice is given.

  A statement given in response to a notice under section 1061ZZBY must be in writing and in accordance with a form approved by the Secretary.

 1061ZZCD(1) A person is guilty of an offence if:

 (a) the person is required to comply with a notice; and

 (b) the notice is a notice under section 1061ZZBY; and

 (c) the person refuses or fails to comply with the notice; and

 (d) the person is reckless as to the requirement.

Penalty: Imprisonment for 6 months.

 1061ZZCD(2) Subsection (1) applies only to the extent to which the person is capable of complying with the notice.

 1061ZZCD(3) Subsection (1) does not apply if the person has a reasonable excuse.

 1061ZZCD(4) Strict liability applies to paragraph (1)(b).

  This Subdivision extends to:

 (a) acts, omissions, matters and things outside Australia whether or not in a foreign country; and

 (b) all people irrespective of their nationality or citizenship.


  This Subdivision has effect subject to section 1061ZZEE.

1061ZZCG(1) The amount outstanding under a financial supplement contract at a time (the test time) before 1 June in the year immediately after the year in which the contract was made is the amount worked out using the formula:

1061ZZCG(2) For the purpose of applying the formula in subsection (1) at the test time:

amounts repaid means the total of the amounts repaid under the contract before the test time.

discounts means the total of the discounts to which the person became entitled before the test time.

principal sum means the principal sum at the test time.

1061ZZCH(1) Subject to subsections 1061ZZCN(6) and (7), the amount outstanding under a financial supplement contract at a time (the test time) during a period of 12 months (the test period) referred to in either of the following paragraphs:

 (a) the period of 12 months beginning on 1 June in the year immediately after the year in which the contract was made; or

 (b) any of the following 3 periods of 12 months;

is the amount worked out using the formula:

1061ZZCH(2) For the purpose of applying the formula in subsection (1) at the test time:

amounts repaid means the total of the amounts repaid under the contract during the test period but before the test time.

discounts means the total of the discounts to which the person became entitled during the test period but before the test time.

indexation factor means the number worked out using the method statement in subsection (3).

previous amount outstanding means the amount outstanding under the contract immediately before the beginning of the test period.

1061ZZCH(3) The Method statement for the purposes of the definition of indexation factor in subsection (2) is as follows:

Method statement

Step 1. Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.

Step 2. Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.

Step 3. Divide the total worked out under Step 1 by the total worked out under Step 2.

Step 4. Round the result to 3 decimal places.

1061ZZCH(4) In subsection (3):

earlier reference period means the period of 12 months immediately before the later reference period.

later reference period means the period of 12 months immediately before the test period.

1061ZZCH(5) If an indexation factor worked out under subsection (3) would end with a number greater than 4, were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.

1061ZZCH(6) If, apart from this subsection, an amount worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.

1061ZZCI(1) The Secretary must give to a person who is a party to a financial supplement contract with a participating corporation a notice of an amount outstanding under the contract that exists on:

 (a) 1 June in the year following the year in which the contract was made; or

 (b) 1 June in any of the following 3 years.

1061ZZCI(2) The notice must state the amount outstanding under the contract at that date.

1061ZZCJ(1) Subject to sections 1061ZZDE, 1061ZZDL, 1061ZZDV and 1061ZZEE, a person who is a party to a financial supplement contract with a participating corporation is not required during the contract period to make a repayment of the amount outstanding under the contract.

1061ZZCJ(2) Non‑payment by the person during the contract period of the amount outstanding is not a default under the contract for the purposes of any law of the Commonwealth, of a State or of a Territory.

1061ZZCJ(3) However, the person may, at any time during the contract period, make a repayment (an amount repaid) to the corporation of the whole or a part of the amount outstanding at that time.

1061ZZCJ(4) Subsection (3) has effect subject to section 1061ZZCL.

  If a person purports to make a repayment to a participating corporation under a financial supplement contract by paying an amount under subsection 1061ZZCJ(3) that exceeds the amount that, having regard to the discount to which the person is entitled, would be needed to pay in full the amount outstanding, the excess:

 (a) is taken not to be a repayment; and

 (b) must be repaid by the corporation to the person.

  If the person makes a repayment under subsection 1061ZZCJ(3), the amount repaid is to be disregarded for the purposes of this Division:

 (a) to the extent to which it relates to wrongly paid supplement; or

 (b) if it is repaid after the giving of a notice under section 1061ZZCZ, 1061ZZDG, 1061ZZDQ or 1061ZZEA.

1061ZZCM(1) If, during the contract period, a person makes a repayment of an amount that is less than the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:

1061ZZCM(2) If, during the contract period, a person makes a repayment of an amount that is equal to the amount outstanding, the person is entitled, in respect of the repayment, to a discount of an amount worked out using the formula:

1061ZZCM(3) If, apart from this subsection, an amount worked out under subsection (1) or (2) would be an amount of dollars and cents, the amount is to be rounded to the nearest number of whole dollars (rounding 50 cents upwards).

Application

1061ZZCN(1) This section applies if a person, at a time (the repayment time) during the contract period of a financial supplement contract made by the person with a participating corporation, makes a repayment (the relevant repayment) in respect of the amount outstanding under the contract. For the purposes of this section, it is first necessary to work out whether an indexation amount is taken to have existed in respect of the contract immediately before the repayment time.

When an indexation amount is taken to have existed

1061ZZCN(2) For the purposes of this section, an indexation amount is taken to have existed in respect of the contract immediately before the repayment time if:

 (a) an amount outstanding under the contract existed immediately before the repayment time under section 1061ZZCH; and

 (b) that amount outstanding exceeds the amount worked out using the formula:

Meaning of expressions used in formula

1061ZZCN(3) For the purpose of applying the formula in subsection (2) immediately before the repayment time:

amounts repaid means the total of the amounts repaid under the contract before the repayment time.

amounts previously notionally repaid means the total of the amounts notionally repaid under the contract before the repayment time because of the application of this section in respect of previous repayments.

principal sum means the principal sum immediately before the repayment time.

What constitutes indexation amount

1061ZZCN(4) The indexation amount referred to in subsection (2) is the amount of the excess referred to in paragraph (2)(b).

If no indexation amount

1061ZZCN(5) If no indexation amount existed in respect of the contract immediately before the repayment time, the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the discount to which the person is entitled in respect of the relevant repayment.

If discount does not exceed indexation amount

1061ZZCN(6) If:

 (a) an indexation amount existed in respect of the contract immediately before the repayment time; and

 (b) the discount to which the person is entitled in respect of the relevant repayment is equal to or less than the indexation amount;

the amount outstanding under the contract is taken to be reduced by the discount.

If discount exceeds indexation amount

1061ZZCN(7) If:

 (a) an indexation amount existed in respect of the contract immediately before the repayment time; and

 (b) the discount to which the person is entitled in respect of the relevant repayment exceeds the indexation amount;

the following paragraphs have effect:

 (c) the amount outstanding under the contract is taken to be reduced by the indexation amount;

 (d) the person is taken to have repaid to the corporation at the repayment time an amount (an amount notionally repaid) equal to the excess.

Commonwealth to pay corporation amounts notionally repaid

1061ZZCN(8) The Commonwealth must pay to the corporation an amount equal to any amount notionally repaid.

1061ZZCO(1) This section applies if, immediately after a repayment is made under a financial supplement contract made by a participating corporation, the total of the amounts repaid and the amounts notionally repaid is equal to or exceeds the principal sum.

1061ZZCO(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth immediately after the repayment is made.

1061ZZCO(3) If the total of the amounts repaid and the amounts notionally repaid exceeds the principal sum, the corporation must pay the excess to the Commonwealth.

1061ZZCP(1) This section applies if, at the end of the contract period of a financial supplement contract made by a participating corporation, the corporation’s rights under the contract have not previously been transferred to the Commonwealth.

1061ZZCP(2) The corporation’s rights under the contract are, by this subsection, transferred to the Commonwealth at the end of the contract period.

1061ZZCP(3) If the principal sum exceeds the total of the amounts repaid and the amounts notionally repaid, the Commonwealth must pay the excess to the corporation.

1061ZZCQ(1) As soon as practicable after the termination date of a financial supplement contract made by a person with a participating corporation, the Secretary must arrange for written notice (the termination notice) to be given to the person if such a notice has not already been given under the Social Security Student Financial Supplement Scheme 1998 or the Student Assistance Act 1973 as in force at a time before 1 July 1998.

1061ZZCQ(2) The termination notice must:

 (a) state that, at the end of the contract period, the person no longer owes a debt to the corporation under the contract and will not receive a discount for repayments made after that time; and

 (b) state that, on a date referred to in the notice, being 1 June immediately following the termination date, the person incurred or will incur an FS debt or FS debts to the Commonwealth; and

 (c) specify the amount of that debt or the amounts of those debts; and

 (d) state that the person is entitled at any time to make repayments in respect of that debt or those debts and that so much of that debt or those debts as is not voluntarily repaid by the person will be recovered through the taxation system.

  If, after a notice has been given to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998 (including a notice previously given under this section or under a provision of that Scheme or Act corresponding to this section), the Secretary is satisfied that significant information in the notice was not, or is no longer, correct, the Secretary must arrange for a further written notice to be given to the person setting out the correct information.

1061ZZCS(1) If a person considers that a notice given to the person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, was not, or is no longer, correct in a significant respect, the person may, by writing, request the Secretary to correct the notice.

1061ZZCS(2) The person must make the request within 14 days after the date when the notice was received by the person or within such further period as the Secretary allows.

1061ZZCS(3) A request must set out the information that is considered to be incorrect and the grounds on which the person considers the information to be incorrect.

1061ZZCS(4) If a request is received by the Secretary, the Secretary must arrange, as soon as practicable, for it to be considered and for written notice of the decision on the request to be given to the person.

1061ZZCT(1) A notice to a person under this Division or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, is intended only to give information to the person and an FS debt of the person is not affected by a failure to give a notice or by any incorrect statement or information in a notice given under this Division or that corresponding provision.

1061ZZCT(2) The making by a person of a request for a notice to be corrected does not affect an FS debt of the person.


  A person who is a party to a financial supplement contract with a participating corporation may, by written notice to the corporation lodged at an office of the corporation, tell the corporation that he or she does not want further payments under the contract to be made after a day stated in the notice.

1061ZZCV(1) If a person gives a notice referred to in section 1061ZZCU, the corporation is discharged from liability to make further payments to the person under the contract from the end of the day stated in the notice.

1061ZZCV(2) However, if the corporation continues to make payments to the person after that day, any amounts paid after that day or the end of 4 weeks after the day on which the notice was given to the corporation, whichever is the later:

 (a) are taken not to be payments of financial supplement made under the contract; and

 (b) are repayable by the person to the corporation; and

 (c) may be recovered by the corporation as a debt due to it by the person.


1061ZZCW(1) This section applies if:

 (a) a person is a party to a financial supplement contract with a participating corporation; and

 (b) the decision (the original decision) made in respect of the person under section 1061ZZAC, or under Part 3 of the Social Security Student Financial Supplement Scheme 1998, is reviewed under Chapter 6; and

 (c) the person remains eligible to obtain financial supplement for the year or part of the year to which the contract relates; and

 (d) because of the review, the original decision is varied so that the maximum amount (the original amount) of financial supplement that the person is eligible to obtain under the contract is reduced to another amount (the revised amount); and

 (e) the revised amount is equal to or less than the amount of financial supplement that the person has already been paid under the contract.

1061ZZCW(2) The Secretary must give written notice to the person and to the corporation:

 (a) stating:

 (i) that this section applies to the contract; and

 (ii) that the corporation must stop paying financial supplement to the person; and

 (b) specifying:

 (i) the revised amount that the person is eligible to obtain; and

 (ii) the amount (if any) of financial supplement paid in excess of the revised amount.

1061ZZCX(1) If the Secretary gives a notice under section 1061ZZCW to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

1061ZZCX(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.

1061ZZCX(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

 (a) are taken not to be payments of financial supplement made under the contract; and

 (b) are repayable by the person to the corporation; and

 (c) may be recovered by the corporation as a debt due to it by the person.

  This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.

1061ZZCZ(1) If the Secretary is satisfied that:

 (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and

 (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and

 (c) the person was paid the original amount after the end of that period; and

 (d) the payment of the original amount after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

1061ZZCZ(2) If the Secretary is satisfied that:

 (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and

 (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and

 (c) the person was paid the original amount after the commencement of this Chapter; and

 (d) the payment of the original amount after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

  If the Secretary gives a notice under section 1061ZZCZ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZDB(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

1061ZZDB(2) If the notice was given under subsection 1061ZZCZ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the end of the period referred to in paragraph 1061ZZCZ(1)(b); and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

1061ZZDB(3) If the notice was given under subsection 1061ZZCZ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the commencement of this Chapter; and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

1061ZZDB(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

  Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZCZ(1) or (2) are taken to have been made:

 (a) first, in or towards the repayment of the wrongly paid supplement; and

 (b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.

  The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.

1061ZZDE(1) If the notice was given to the person under subsection 1061ZZCZ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:

 (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and

 (b) the interest subsidy for the period referred to in subsection 1061ZZDB(2).

1061ZZDE(2) If the notice was given to the person under subsection 1061ZZCZ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:

 (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDD; and

 (b) the interest subsidy for the period referred to in subsection 1061ZZDB(3).

  This Subdivision does not affect the operation of Subdivision A.

1061ZZDG(1) If the Secretary is satisfied that:

 (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZCW; and

 (b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and

 (c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

1061ZZDG(2) If the Secretary is satisfied that:

 (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.5 of the Social Security Student Financial Supplement Scheme 1998; and

 (b) false or misleading information was given to the Commonwealth in relation to the calculation of the original amount; and

 (c) the payment of financial supplement in excess of the revised amount resulted from the false or misleading information;

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

  If the Secretary gives a notice under section 1061ZZDG to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZDI(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

1061ZZDI(2) If the notice was given under subsection 1061ZZDG(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the time when the person had been paid an amount equal to the revised amount; and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

1061ZZDI(3) If the notice was given under subsection 1061ZZDG(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the commencement of this Chapter; and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZCX(3).

1061ZZDI(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

  Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDG(1) or (2) are taken to have been made:

 (a) first, in or towards the repayment of the wrongly paid supplement; and

 (b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.

  The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.

1061ZZDL(1) If the notice was given to the person under subsection 1061ZZDG(1), the person is liable to pay to the Commonwealth an amount equal to the total of:

 (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and

 (b) the interest subsidy for the period referred to in subsection 1061ZZDI(2).

1061ZZDL(2) If the notice was given to the person under subsection 1061ZZDG(2), the person is liable to pay to the Commonwealth an amount equal to the total of:

 (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDK; and

 (b) the interest subsidy for the period referred to in subsection 1061ZZDI(3).

  This Subdivision does not affect the operation of Subdivision A.


1061ZZDN(1) This section applies if:

 (a) a person is a party to a financial supplement contract with a participating corporation; and

 (b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and

 (c) because of the review, the original decision is varied so that the person ceases to be eligible to obtain financial supplement.

1061ZZDN(2) The Secretary must give written notice to the person and the corporation:

 (a) stating that the person ceased to be eligible; and

 (b) specifying the date when the person ceased to be eligible.

1061ZZDO(1) If the Secretary gives a notice under section 1061ZZDN to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

1061ZZDO(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.

1061ZZDO(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

 (a) are taken not to be payments of financial supplement made under the contract; and

 (b) are repayable by the person to the corporation; and

 (c) may be recovered by the corporation as a debt payable to it by the person.

  This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.

1061ZZDQ(1) If the Secretary is satisfied that:

 (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 1061ZZDN; and

 (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B, 1061PZQ or 1061ZZBR, about the happening of, or about becoming aware of the likely happening of, a stated event or change in circumstances, within the period prescribed for complying with the notice; and

 (c) the person ceased to be eligible to obtain financial supplement because of the event or change in circumstances; and

 (d) the person was paid financial supplement after the end of the period referred to in paragraph (b); and

 (e) the payment of financial supplement after the end of that period resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

1061ZZDQ(2) If the Secretary is satisfied that:

 (a) a person who is a party to a financial supplement contract with a participating corporation was given a notice under section 14.24 of the Social Security Student Financial Supplement Scheme 1998; and

 (b) the person failed to tell the Secretary, in response to a notice under section 561B, 586B or 1061PZQ, or a notice under section 12.2 of that Scheme, about the happening of, or about becoming aware of the likely happening of, a stated event or change of circumstances within the period prescribed for complying with the notice; and

 (c) the person was paid financial supplement after the commencement of this Chapter; and

 (d) the payment of financial supplement after the commencement of this Chapter resulted from the person’s failure to comply with the notice referred to in paragraph (b);

the Secretary may give to the person and the corporation a notice stating that he or she is so satisfied and telling them that this Subdivision applies in relation to them.

  If the Secretary gives a notice under section 1061ZZDQ to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZDS(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

1061ZZDS(2) If the notice was given under subsection 1061ZZDQ(1), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the end of the period referred to in paragraph 1061ZZDQ(1)(b); and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).

1061ZZDS(3) If the notice was given under subsection 1061ZZDQ(2), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the commencement of this Chapter; and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDO(3).

1061ZZDS(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

  Repayments of financial supplement made by the person before the notice was given to the person under subsection 1061ZZDQ(1) or (2) are taken to have been made:

 (a) first, in or towards the repayment of the wrongly paid supplement; and

 (b) then, if those repayments exceed the amount of the wrongly paid supplement, in or towards the repayment of the rest of the financial supplement paid to the person under the contract.

  The Commonwealth is liable to pay to the corporation the amount of any wrongly paid supplement that has not been repaid.

1061ZZDV(1) If the notice was given to the person under subsection 1061ZZDQ(1), the person is liable to pay to the Commonwealth an amount equal to the total of:

 (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and

 (b) the interest subsidy for the period referred to in subsection 1061ZZDS(2).

1061ZZDV(2) If the notice was given to the person under subsection 1061ZZDQ(2), the person is liable to pay to the Commonwealth an amount equal to the total of:

 (a) the amount that the Commonwealth is liable to pay to the corporation under section 1061ZZDU; and

 (b) the interest subsidy for the period referred to in subsection 1061ZZDS(3).

  This Subdivision does not affect the operation of Subdivision A.


1061ZZDX(1) This section applies if:

 (a) a person is a party to a financial supplement contract with a participating corporation; and

 (b) the decision (the original decision) made in respect of the person under section 1061ZZAC or under Part 3 of the Social Security Student Financial Supplement Scheme 1998 is reviewed under Chapter 6; and

 (c) because of the review the original decision is varied so that the statement in the supplement entitlement notice given to the person that the person was eligible to obtain financial supplement during an eligibility period was incorrect.

1061ZZDX(2) The Secretary must give written notice to the person and the corporation stating that the person had never been eligible to obtain financial supplement.

1061ZZDY(1) If the Secretary gives a notice under section 1061ZZDX to the person and the corporation, then, unless the decision on the review is set aside or varied after a further review under Chapter 6, the following provisions have effect.

1061ZZDY(2) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments to the person under the contract.

1061ZZDY(3) However, if the corporation continues to make payments to the person after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

 (a) are taken not to be payments of financial supplement made under the contract; and

 (b) are repayable by the person to the corporation; and

 (c) may be recovered by the corporation as a debt payable to it by the person.

  This Subdivision has effect subject to sections 1061ZZFS and 1061ZZFT.

  If the Secretary is satisfied that the incorrectness of a statement referred to in section 1061ZZDX that was given to a person who is a party to a financial supplement contract with a participating corporation resulted from false or misleading information given to the Commonwealth about the person, the Secretary may give notice to the person and the corporation stating that he or she is so satisfied and that this Subdivision applies in relation to them.

  If the Secretary gives a notice under section 1061ZZEA to the person and the corporation, then, unless the decision to give the notice is set aside or varied after a review under Chapter 6, the following provisions have effect.

1061ZZEC(1) On the giving of the notice to the corporation, the corporation’s rights referred to in subsection (2) or (3), as the case may be, are transferred to the Commonwealth by this subsection.

1061ZZEC(2) If the statement was in a supplement entitlement notice given under subsection 1061ZZAC(3) or 1061ZZAD(4), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the start of the contract period; and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).

1061ZZEC(3) If the statement was in a supplement entitlement notice referred to in subsection 1061ZZAE(3), the rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the commencement of this Chapter; and

 (b) ending at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3).

1061ZZEC(4) Financial supplement paid during the period referred to in subsection (2) or (3), as the case requires, is wrongly paid supplement.

  The Commonwealth is liable to pay to the corporation an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:

1061ZZEE(1) No amount is taken to be outstanding under the contract after the notice is given.

1061ZZEE(2) However, the person is liable to pay to the Commonwealth an amount worked out, as at the end of the period of 4 weeks referred to in subsection 1061ZZDY(3), using the formula:

  In sections 1061ZZED and 1061ZZEE:

amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.

amounts repaid means the total of the amounts repaid under the contract before the notice was given.

interest subsidy means the interest subsidy in relation to financial supplement paid under the contract.

principal sum means the principal sum at the time when the notice was given.

  This Subdivision does not affect the operation of Subdivision A.


  If the Secretary becomes aware that a person who is a party to a financial supplement contract with a participating corporation has died, the Secretary may give written notice to the corporation stating that this Division applies in respect of the contract.

  If the Secretary gives a notice under section 1061ZZEH to the corporation, the following provisions have effect.

1061ZZEJ(1) From the time when the notice is given to the corporation, the corporation is discharged from liability to make further payments under the contract.

1061ZZEJ(2) However, if the corporation continues to make payments under the contract after that time, any amounts paid after the end of 4 weeks after the day on which the notice is given to the corporation:

 (a) are taken not to be payments of financial supplement made under the contract; and

 (b) are repayable from the person’s estate to the corporation; and

 (c) may be recovered by the corporation as a debt payable to it from the person’s estate.

1061ZZEK(1) The corporation’s rights referred to in subsection (2) are transferred to the Commonwealth, by this subsection, at the earlier of:

 (a) the time when the corporation stopped making payments under the contract; or

 (b) the end of 4 weeks after the time when the notice was given.

1061ZZEK(2) The rights transferred are the corporation’s rights under the contract that relate to payment of financial supplement during the period:

 (a) beginning at the start of the contract period; and

 (b) ending at the end of the period of 4 weeks referred to in paragraph (1)(b).

1061ZZEL(1) The Commonwealth is liable to pay to the corporation an amount worked out, as at the earlier of:

 (a) the time when the corporation stopped making payments under the contract; or

 (b) the end of the period of 4 weeks referred to in paragraph 1061ZZEK(1)(b);

using the formula:

1061ZZEL(2) In this section:

amounts notionally repaid means the total of the amounts notionally repaid before the notice was given.

amounts repaid means the total of the amounts repaid under the contract before the notice was given.

principal sum means the principal sum at the time when the notice was given.

  The person’s liability to the Commonwealth under the contract as a result of the transfer referred to in section 1061ZZEK is discharged by this section.


  This Part provides for the recovery through the taxation system of a person’s debt in respect of financial supplement at the end of 4 years beginning on 1 June in the year immediately after the year in which the relevant financial supplement contract was made.


1061ZZEO(1) If, at the termination date of a financial supplement contract made by a person with a participating corporation, there was or is an amount outstanding under the contract, the person owes an FS debt to the Commonwealth.

1061ZZEO(2) The FS debt is taken to have been incurred, or is incurred, as the case may be, on 1 June immediately after the termination date.

1061ZZEP(1) The FS debt is worked out using the formula:

1061ZZEP(2) In subsection (1):

amount outstanding means the amount outstanding under the contract at the termination date.

indexation factor means the factor worked out under section 1061ZZET.

1061ZZEQ(1) If:

 (a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and

 (b) the debt was not or is not, or the debts did not or do not include, an FS debt that existed on the previous 1 June;

the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.

1061ZZEQ(2) If:

 (a) a person had or has an FS debt or FS debts on 1 June in a year (the later date); and

 (b) the debt was or is, or the debts included or include, an FS debt that existed on the previous 1 June (the earlier date);

the person is taken to have incurred, or incurs, as the case may be, an accumulated FS debt to the Commonwealth on the later date.

1061ZZER(1) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(1) is an amount equal to the FS debt or the total of the FS debts referred to in that subsection.

1061ZZER(2) A person’s accumulated FS debt referred to in subsection 1061ZZEQ(2) is an amount worked out using the formula:

1061ZZER(3) In subsection (2):

adjusted accumulated FS debt means the person’s adjusted accumulated FS debt on the earlier date.

indexation factor means the factor worked out under section 1061ZZET.

later FS debts means any FS debt, or the total of any FS debts, of the person that did not exist on the earlier date.

1061ZZES(1) A person’s adjusted accumulated FS debt on the earlier date is the amount worked out using the formula:

1061ZZES(2) In this section:

accumulated FS debt means the person’s accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.

FSA debts means the total of:

 (a) any FS assessment debt or FS assessment debts of the person, assessed on or after the earlier date and before the later date, excluding any FS assessment debt assessed because of a return lodged before the earlier date; and

 (b) any FS assessment debt or FS assessment debts of the person, assessed on or after the later date because of a return lodged before the later date.

increases in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is increased by an amendment of the relevant assessment (whether because of an increase in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.

reductions in FSA debts means any amount, or the total of any amounts, by which any FS assessment debt is reduced by an amendment of the relevant assessment (whether as a result of a reduction in the person’s taxable income or otherwise) where the amendment was made on or after the earlier date and before the later date.

repayments means any amount, or the total of any amounts, repaid, except in discharge of an FS assessment debt, on or after the earlier date and before the later date in reduction of the accumulated FS debt on the earlier date as worked out under this Division as it previously applied in respect of that date.

1061ZZES(3) For the purposes of subsection (2), an assessment or an amendment of an assessment is taken to have been made on the date stated in the notice of assessment or notice of amended assessment, as the case may be, to be the date of that notice.

1061ZZET(1) The indexation factor for the purpose of calculating a person’s FS debt or accumulated FS debt at 1 June in a year (the relevant year), is worked out using the following Method statement.

Method statement

Step 1. Work out the total of the index number for the March quarter in the relevant year and the index numbers for the 3 immediately preceding quarters.

Step 2. Work out the total of the index number for the March quarter immediately before the relevant year and the index numbers for the 3 immediately preceding quarters.

Step 3. Divide the total worked out using Step 1 by the total worked out using Step 2.

Step 4. Round the result to 3 decimal places.

1061ZZET(2) If an indexation factor worked out using the Method statement would end with a number greater than 4 were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001.

1061ZZET(3) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.

1061ZZEU(1) An accumulated FS debt that a person is taken to have incurred or incurs on 1 June in a year (the relevant date) discharges, or discharges the unpaid part of:

 (a) an accumulated FS debt that the person incurred on the previous 1 June; and

 (b) an FS debt that the person incurred on the relevant date.

1061ZZEU(2) The accumulated FS debt also discharges the person’s liability to pay the amount outstanding immediately before the relevant date.

1061ZZEU(3) However, in applying sections 1061ZZEP to 1061ZZET, subsection (1) of this section is disregarded.


  If a person who has made a financial supplement contract with a participating corporation has an FS debt immediately after the termination date of the contract, the Secretary must, if such a notice has not already been given under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, give to the Commissioner of Taxation, as soon as practicable after that date, a notice stating as many of the following matters as the Secretary knows:

 (a) the person’s name;

 (b) the person’s identifying number;

 (c) the person’s last‑known address;

 (d) the person’s tax file number;

 (e) the amount of the FS debt or the amounts of the FS debts that the person incurred on 1 June immediately following the termination date;

 (f) any other information about the person that is reasonably required by the Commissioner to administer this Part.

  If the Secretary or an officer of the Department is convinced that significant information in a notice referred to in section 1061ZZEV was not, or is no longer, correct, the Secretary must give to the Commissioner of Taxation a further notice setting out the correct information.

  The Secretary must, if asked by the Commissioner of Taxation to do so, give a written certificate to the Commissioner setting out a matter mentioned by the Commissioner that was, or was required to be, set out in a notice under section 1061ZZEV or 1061ZZEW.


1061ZZEY(1) If a person has a debt to the Commonwealth under this Part, he or she may at any time make a payment to reduce the debt.

1061ZZEY(2) A payment under subsection (1) must be made to the Commissioner of Taxation.


1061ZZEZ(1) Subject to subsection (2), a person is liable, in respect of each year of income, to make payments, in accordance with this Part, to reduce the person’s relevant debt until that debt is repaid.

1061ZZEZ(2) The person is liable to make a payment in respect of a year of income only if:

 (a) the person’s taxable income for the year of income is greater than the minimum prescribed amount for the year of income; and

 (b) the person had an accumulated FS debt on 1 June immediately before an assessment of the person’s income is made for the year of income.

  The person is liable to pay, in respect of a year of income, an amount equal to so much of the relevant debt as does not exceed:

 (a) if the person’s taxable income for the year of income is not greater than the intermediate prescribed amount for the year of income—2% of the taxable income; or

 (b) if the person’s taxable income for the year of income is greater than the intermediate prescribed amount for the year of income but is not greater than the maximum prescribed amount for the year of income—3% of the taxable income; or

 (c) if the person’s taxable income for the year of income is greater than the maximum prescribed amount for the year of income—4% of the taxable income.

1061ZZFB(1) The person’s relevant debt is:

 (a) if an amount or amounts have been paid to reduce the person’s accumulated FS debt referred to in paragraph 1061ZZEZ(2)(b) or an amount or amounts have been assessed under Division 7 or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, to be payable to reduce it—the amount remaining after deducting from that accumulated FS debt the amount or the sum of the amounts so paid or assessed to be payable; or

 (b) otherwise—the person’s accumulated FS debt referred to in that paragraph.

1061ZZFB(2) An amount assessed under Division 7, or under the corresponding provision of the Social Security Student Financial Supplement Scheme 1998 or of the Student Assistance Act 1973 as in force at a time before 1 July 1998, to be payable to reduce a person’s accumulated FS debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, taken to be the increased or reduced amount.

1061ZZFC(1) For the year of income that ended on 30 June 1998, the minimum prescribed amount is $29,307.

1061ZZFC(2) For a later year of income, the minimum prescribed amount is the number of whole dollars in the amount worked out using the formula:

1061ZZFD(1) For the year of income that ended on 30 June 1998, the intermediate prescribed amount is $33,305.

1061ZZFD(2) For a later year of income, the intermediate prescribed amount is the number of whole dollars in the amount worked out using the formula:

1061ZZFE(1) For the year of income that ended on 30 June 1998, the maximum prescribed amount is $46,629.

1061ZZFE(2) For a later year of income, the maximum prescribed amount is the number of whole dollars in the amount worked out using the formula:

1061ZZFF(1) In sections 1061ZZFC, 1061ZZFD and 1061ZZFE:

AWE means:

 (a) the average weekly earnings for all employees for the reference period in the December quarter immediately before the year of income, as published by the Australian Statistician; and

 (b) the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician.

1061ZZFF(2) The reference period in a particular quarter in a year is the period described by the Australian Statistician as the pay period ending on or before the third Friday of the middle month of that quarter.


1061ZZFG(1) Part IV, and Division 1 of Part VI, of the Income Tax Assessment Act 1936, and Part IVC of, and Part 4‑15 in Schedule 1 to, the Taxation Administration Act 1953, apply, so far as they can be applied and subject to this Part, to a person’s FS assessment debt as if it were income tax assessed to be payable by a taxpayer by an assessment made under Part IV of the Income Tax Assessment Act 1936.

Note 1: Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953 deals with collection and recovery of amounts on and after 1 July 2000, replacing some provisions in Division 1 of Part VI of the Income Tax Assessment Act 1936.

Note 2: FS assessment debts are also collected through the Pay As You Go (PAYG) system of collecting income tax: see Parts 2‑1, 2‑5 and 2‑10 in Schedule 1 to the Taxation Administration Act 1953.

1061ZZFG(2) Sections 222A to 222F, 222 and 226G to 226ZB of the Income Tax Assessment Act 1936 apply as if a person’s FS assessment debt were income tax payable by the person for the year of income for which the assessment of that debt was made.


1061ZZFH(1) The Commissioner of Taxation may make an assessment of:

 (a) the amount of a person’s accumulated FS debt at 1 June immediately before the assessment is made; and

 (b) the amount required to be paid to reduce that debt under Division 5.

1061ZZFH(2) To make an assessment, the Commissioner may use any information in his or her possession, whether or not it came from a return.

  If:

 (a) the Commissioner of Taxation is required to serve on a person a notice of assessment in respect of the person’s income of a year of income under section 174 of the Income Tax Assessment Act 1936; and

 (b) an assessment (the relevant assessment) has been made in respect of the person of the amounts referred to in section 1061ZZFH but notice of the relevant assessment has not been served on the person;

notice of the relevant assessment may be served by setting out the amounts concerned in the notice referred to in paragraph (a).


1061ZZFJ(1) The Commissioner of Taxation may, on written application by a person who has an accumulated FS debt, delay the making of an assessment under section 1061ZZFH.

1061ZZFJ(2) An assessment may be delayed if the Commissioner considers that:

 (a) were the assessment to be made, payment of the assessed amount would cause serious hardship to the person; or

 (b) there are other special reasons that make it fair and reasonable to delay the assessment.

1061ZZFJ(3) The Commissioner may delay the assessment for a period that he or she considers appropriate.

1061ZZFK(1) The Commissioner of Taxation may, on written application by a person who has an accumulated FS debt, amend an assessment made under section 1061ZZFH so that no amount is payable under the assessment.

1061ZZFK(2) The Commissioner may amend the assessment if he or she considers that:

 (a) payment of the assessed amount has caused or would cause serious hardship to the person; or

 (b) there are other special reasons that make it fair and reasonable to make the amendment.

1061ZZFL(1) If an application referred to in section 1061ZZFJ or 1061ZZFK is made, the Commissioner of Taxation must, as soon as practicable:

 (a) consider it; and

 (b) give to the applicant written notice of his or her decision on the application.

1061ZZFL(2) A notice of the decision must:

 (a) include a statement that, if the applicant is dissatisfied with the decision of the Commissioner on the application, an application may, subject to the Administrative Appeals Tribunal Act 1975, be made to the Administrative Appeals Tribunal for review of the decision; and

 (b) except if subsection 28(4) of that Act applies, also include a statement to the effect that the applicant may ask for a statement under section 28 of that Act.

1061ZZFL(3) A failure to comply with subsection (2) does not affect the validity of the notice or of the decision to which the notice relates.


  An applicant under section 1061ZZFJ or 1061ZZFK may apply to the Administrative Appeals Tribunal for review of:

 (a) a decision of the Commissioner of Taxation on the application referred to in section 1061ZZFJ; or

 (b) a decision by the Commissioner refusing to amend an assessment after receiving the application referred to in section 1061ZZFK.


1061ZZFN(1) An amount paid, or other benefit given, to a person under this Chapter is not subject to taxation under a law of the Commonwealth unless a provision of such a law expressly provides to the contrary.

1061ZZFN(2) However, subsection (1) does not affect the liability to taxation of a participating corporation for a subsidy or other amount paid to the corporation under this Chapter.

  An amount paid by a person to reduce the person’s debt to the Commonwealth under this Part must be applied in accordance with the person’s direction or, if there is no direction or the direction does not adequately deal with the matter:

 (a) first, to discharge or reduce the person’s FS assessment debts; and

 (b) then, to discharge or reduce the person’s accumulated FS debt.

  If a person dies owing a debt owing to the Commonwealth under this Part, other than an FS assessment debt, the debt is discharged by force of this section.


  This Division applies if, after a person makes a financial supplement contract with a participating corporation, whether before or after the termination date:

 (a) the person becomes bankrupt; or

 (b) the person enters into a deed of assignment, a deed of arrangement or a composition under Part X of the Bankruptcy Act 1966.

1061ZZFR(1) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the deed of assignment, deed of arrangement or composition.

1061ZZFR(2) A right of the Commonwealth or of the corporation to bring an action or other proceeding against the person in respect of the debt is not affected by the bankruptcy, deed of assignment, deed of arrangement or composition.

1061ZZFR(3) The trustee of the estate of the bankrupt person or the trustee of the deed of assignment, deed of arrangement or composition is not entitled to recover under the Bankruptcy Act 1966 a payment made by the person to the Commonwealth or to the corporation in respect of the debt.

1061ZZFR(4) In this section:

debt arising under or out of the contract:

 (a) includes, but is not limited to:

 (i) an amount outstanding under the contract; and

 (ii) an amount that the person is liable to pay under section 1061ZZDE, 1061ZZDL, 1061ZZDV or 1061ZZEE; and

 (iii) an accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt; but

 (b) does not include:

 (i) a debt constituted by an obligation to repay the amount of a payment that, because of paragraph 1061ZZCV(2)(a), 1061ZZCX(3)(a), 1061ZZDO(3)(a) or 1061ZZDY(3)(a), is not a payment of financial supplement; or

 (ii) an FS assessment debt that is required to be paid to reduce an accumulated FS debt.


1061ZZFS(1) Subject to subsection (2), if a decision of the Secretary under this Chapter is set aside after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision had not been made.

1061ZZFS(2) If the decision is set aside after a review under Chapter 6 and another decision is substituted for the original decision, this Chapter has effect, and is taken to have always had effect, as if the substituted decision had been the original decision.

  If a decision of the Secretary under this Chapter is varied after a review under Chapter 6, this Chapter has effect, and is taken to have always had effect, as if the decision as varied had been the original decision.


  If any rights of a participating corporation to receive a payment from a person under this Chapter are transferred to the Commonwealth, the Secretary must, as soon as practicable, arrange for a written notice to be given to the person:

 (a) stating that the rights have been transferred; and

 (b) identifying any future payments that, because of the transfer, are required to be made to the Commonwealth.

  A transfer to the Commonwealth under this Chapter of any of the corporation’s rights under a financial supplement contract, or any other act or thing done or transaction entered into under this Chapter, is not subject to taxation under a law of a State or Territory.


Chapter 3—General provisions relating to payability and rates

 

 1062(1) The following are the usual steps in the rate calculation process:

 (a) start with a maximum basic rate;

 (b) add any additional amounts that are subject to income or assets testing;

 (c) apply the income and assets tests;

 (d) add any additional amounts that are not subject to income or assets testing.

 1062(2) The overall rate calculation process is usually described in an early Module of the relevant Rate Calculator.

 1063(1) The Rate Calculators use the following standard categories of family situations:

– not member of a couple;

– member of a couple (or partnered);

– partnered (partner getting neither pension nor benefit);

– partnered (partner getting pension or benefit);

– partnered (partner getting pension);

– partnered (partner getting benefit);

– partnered (partner in gaol).

Note: see section 4 for definitions of those terms.

 1063(2) If it is necessary to distinguish between the members of sub‑categories of these standard categories further words of description are added to the standard category label.


 

 1064(1) The rate of:

 (a) age pension; and

 (b) disability support pension or disability wage supplement of a person who has turned 21; and

 (c) wife pension; and

 (d) carer payment; and

 (f) mature age allowance under Part 2.12A; and

 (g) mature age partner allowance;

is, subject to subsection (2), to be calculated in accordance with the Rate Calculator at the end of this section.

Note 1: 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.

Note 2: the rate obtained by applying the Rate Calculator may be reduced because of:

 1064(2) Subsection (1) does not apply to a person’s age or disability support pension or to a person’s disability wage supplement if the person is permanently blind.

Note: the rate for an age pension or disability support pension payable to a person who is permanently blind is dealt with in section 1065.

 1064(4) If:

 (a) a person has a relationship with a person of the opposite sex (other person); and

 (b) the relationship between them is a marriage‑like relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

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

the person’s pension 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 limited for armed service widow

 1064(5) If:

 (a) an armed services widow is receiving 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; and

 (b) one of the following is payable to the widow:

 (i) an age pension;

 (ii) a disability support pension;

 (iii) a wife pension;

 (iv) a carer payment;

 (v) a mature age allowance under Part 2.12A;

 (vi) disability wage supplement;

the widow’s pension rate is not to exceed:

 (c) if:

 (i) the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and

 (ii) immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and

 (iii) the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986;

  the rate of pension received by the widow immediately before 1 November 1986; and

 (d) in any other case—$3,247.40.

Note: for armed services widow see subsection 4(1).

Rate limited for armed services widower

 1064(6) If:

 (a) an armed services widower is receiving 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; and

 (b) one of the following is payable to the widower:

 (i) an age pension;

 (ii) a disability support pension;

 (iii) a carer payment;

 (iv) disability wage supplement;

the rate of pension payable to the widower is not to exceed $3,247.40.

Note: for armed services widower see subsection 4(1).

Method of calculating rate

1064‑A1  The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out the person’s maximum basic rate using MODULE B below.

Step 1A. Work out the amount of pension supplement using Module BA below.

Step 2. Work out the amount per year (if any) of pharmaceutical allowance using MODULE C below.

Step 3. Work out the amount per year (if any) for rent assistance (using MODULE D).

Step 4. Add up the amounts obtained in Steps 1, 1A, 2 and 3: the result is called the maximum payment rate.

Step 5. Apply the ordinary income test using MODULE E below to work out the income reduction.

Step 8. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Step 9. Apply the assets test using MODULE G below to work out the reduction for assets.

Step 10. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 11. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 12. The rate of pension is the amount obtained by:

 (a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) adding any amount payable by way of remote area allowance (see Module H).

Note 1: if a person’s assets reduced rate is less than the person’s income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Note 1A: If a person’s rate is, or is to be, an income reduced rate or an assets reduced rate, and at least one of those reduced rates is not a nil rate, the person may be able to take advantage of provisions dealing with the pension loans scheme (sections 1133AA to 1144).

Note 2: if a person’s rate is reduced under Step 11 the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate first, then rent assistance).

Note 3: the rate calculation for a member of a couple is affected by the operation of points 1064‑A2 and 1064‑A3.

Note 4: in some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 5: a person’s rate may also be reduced because the person or the person’s partner receives compensation (see section 1168) or because the person or the person’s partner is receiving a foreign pension (see scheduled international social security agreements at section 1208).

Note 6: An amount of remote area allowance is to be added under Step 11 only if the person’s rate of pension after Step 10 is greater than nil.

Members of a couple

1064‑A2  Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1064‑E2, 1064‑F2 and 1064‑G2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see points 1064‑D7 and 1064‑D8 below).

Maximum basic rate

1064‑B1  A person’s maximum basic rate depends on the person’s family situation. Work out which family situation in Table B applies to the person. The maximum basic rate is the corresponding amount in column 3.

 

Table B—Maximum basic rates

Column 1

Item

Column 2

Person’s family situation

Column 3

Rate per year

Column 4

Rate per fortnight

1.

Not member of couple

$8,114.60

$312.10

2.

Partnered

$6,767.80

$260.30

3.

Member of illness separated couple

$8,114.60

$312.10

4.

Member of respite care couple

$8,114.60

$312.10

5.

Partnered (partner in gaol)

$8,114.60

$312.10

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

Note 2: the maximum basic rates are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Pension supplement

 1064‑BA1 The amount of a person’s pension supplement depends on the person’s maximum basic rate. There is a pension supplement amount for each maximum basic rate listed in the table in point 1064‑B1.

Amount of pension supplement

 1064‑BA2 The amount of a person’s pension supplement is worked out by:

 (a) calculating the amount (the provisional supplement amount) that is 4% of the person’s 1 July 2000 maximum basic rate; and

 (b) rounding off the provisional supplement amount in accordance with points 1064‑BA4 to 1064‑BA6.

Note: The pension supplement amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

 1064‑BA3 A person’s 1 July 2000 maximum basic rate is the maximum basic rate that would have been the person’s maximum basic rate if the rate had not changed since 1 July 2000.

Rounding off of provisional supplement amount

 1064‑BA4 If a provisional supplement amount is a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount.

 1064‑BA5 If a provisional supplement amount is not a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount rounded up or down to the nearest multiple of $2.60.

 1064‑BA6 If a provisional supplement amount is not a multiple of $2.60, but is a multiple of $1.30, the amount of the pension supplement is the provisional supplement amount rounded up to the nearest multiple of $2.60.

Qualification for pharmaceutical allowance

 1064‑C1 Subject to points 1064‑C2, 1064‑C3, 1064‑C4 and 1064‑C6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans’ Entitlements Act

 1064‑C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans’ Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 1064‑C3 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 VEA at the higher rate (rather than the person and the person’s partner each receiving pharmaceutical allowance at the lower rate).

No pharmaceutical allowance before advance payment period ends

 1064‑C4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance under:

 (i) Part 2.23 of this Act; or

 (ii) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (b) the person’s advance payment period has not ended.

Note: advance payment period see point 1064‑C5.

Advance payment period

 1064‑C5 A person’s advance payment period:

 (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

 (b) ends after the number of paydays worked out using the following formula have passed:

where:

amount of advance is the amount of the advance paid to the person.

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

 1064‑C6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance during the current calendar year; and

 (b) the total amount paid to the person for that year by way of:

 (i) pharmaceutical allowance; and

 (ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

 Note 1: for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: the annual limit is affected by:

VEA payments taken into account

 1064‑C7 In points 1064‑C5 and 1064‑C6:

advance pharmaceutical allowance includes advance pharmaceutical allowance under the Veterans’ Entitlements Act; and

pharmaceutical allowance includes pharmaceutical allowance under the Veterans’ Entitlements Act.

Amount of pharmaceutical allowance

 1064‑C8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

 

Pharmaceutical allowance amount table

Column 1

Item

Column 2

Person’s family situation

Column 3

Rate per year

Column 4

rate per fortnight

1.

Not member of couple

$135.20

$5.20

2.

Partnered

$67.60

$2.60

3.

Member of illness separated couple

$135.20

$5.20

4.

Member of respite care couple

$135.20

$5.20

5.

Partnered (partner getting service pension)

$67.60

$2.60

6.

Partnered (partner in gaol)

$135.20

$5.20

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

Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Qualification for rent assistance

 1064‑D1 An additional amount to help cover the cost of rent is to be added to a person’s maximum basic rate if:

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

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

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

 (d) the rent is payable at a rate of more than the rent threshold rate; and

 (e) the rent is in respect of premises in Australia; and

 (f) either of the following applies:

 (i) if the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple and is entitled to be paid family tax benefit—the person’s maximum Part A rate of family tax benefit does not include rent assistance;

 (ii) if the person is a member of a couple other than an illness separated couple, a respite care couple or a temporarily separated couple, and the person, or the person’s partner, is entitled to be paid family tax benefit—the maximum Part A rate of family tax benefit of the person, or the person’s partner, does not include rent assistance.

Note 1: for rent, Government rent and ineligible homeowner see section 13.

Note 2: for temporarily separated couple, illness separated couple and respite care couple see section 4.

Note 3: for rent threshold rate see point 1064‑D2.

Rent threshold rate

 1064‑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 per year

Column 4

Amount per fortnight

1.

Not member of couple

$1,560.00

$60.00

2.

Partnered—partner does not have rent increased pension

$2,600.00

$100.00

3.

Partnered and partner:

(a) is receiving social security pension; and

(b) has rent increased pension

$2,600.00

$100.00

4.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) does not have a dependent child or dependent children

$2,600.00

$100.00

5.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

$3,120.00

$120.00

6.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 3 or more dependent children

$3,120.00

$120.00

7.

Member of illness separated couple

$1,560.00

$60.00

8.

Member of respite care couple

$1,560.00

$60.00

9.

Member of temporarily separated couple

$1,560.00

$60.00

10.

Partnered (partner in gaol)

$1,560.00

$60.00

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

Note 2: for partner with a rent increase pension see point 1064‑D4.

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

Factors affecting rate of rent assistance

 1064‑D3 The rate of rent assistance depends on:

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

 (c) whether or not the person has a partner with a rent increased pension.

Partner with rent increased pension

 1064‑D4 A person has a partner with a rent increased pension, for the purposes of this Module, if:

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

 (b) the partner is in receipt of a social security, service pension or income support supplement; and

 (c) the rate of the pension or supplement is increased to take account of rent paid or payable by the person.

Note 2: for the treatment of rent paid by a member of a couple see point 1064‑D7.

Rate of rent assistance

 1064‑D5 The rate of rent assistance per year is worked out using Table D. 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. If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two‑thirds of the rate that would otherwise have been Rate B for the person.

 

Table D—Rate of rent assistance

Column 1

Item

Column 2

Person’s family situation

Column 3

Rate A

Column 4

Rate B

1.

Not member of couple

$1,747.20

2.

Partnered—partner does not have rent increased pension

$1,643.20

3.

Partnered and partner:

(a) is receiving a social security pension; and

(b) has rent increased pension

$821.60

4.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) does not have a dependent child or dependent children

$821.60

5.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

$959.40

6.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 3 or more dependent children

$1,094.60

7.

Member of illness separated couple

$1,747.20

8.

Member of respite care couple

$1,747.20

9.

Member of temporarily separated couple

$1,643.20

10.

Partnered (partner in gaol)

$1,747.20

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

Note 2: For dependent child see section 5.

Note 2A: For single person sharing accommodation see section 5A.

Note 3: For partner with a rent increase pension see point 1064‑D4.

Note 4: The Rate B amounts, and the rent threshold amounts in column 3, are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Annual rent

 1064‑D6 Annual rent is the annual rent paid or payable by the person whose pension rate is being calculated.

Rent paid by a member of a couple

 1064‑D7 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 or respite care couple

 1064‑D8 If a person is a member of an illness separated or respite care couple, any rent that the person’s partner pays or is liable to pay in respect of the premises occupied by the person is to be treated as paid or payable by the person.

Note: for illness separated couple and respite care couple see section 4.

Effect of income on maximum payment rate

 1064‑E1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a yearly basis.

 Note: for the treatment of the ordinary income of members of a couple see point 1064‑E2.

Step 2. Work out the person’s ordinary income free area (see points 1064‑E4 to 1064‑E9 below).

 Note: a person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment rate.

Step 3. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Step 4. If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

Step 5. If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess 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 1064‑E10 to 1064‑E12 below.

Note 1: see point 1064‑A1 (Steps 5 to 8) for the significance of the person’s reduction for ordinary income.

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

Ordinary incomes of members of couples

 1064‑E2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.

Payment of arrears of periodic compensation payments

 1064‑E3 If:

 (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving age pension, disability support pension, wife pension, carer pension, mature age allowance under Part 2.12A or mature age partner allowance; and

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

the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note: for periodic payments period see section 17.

How to calculate a person’s ordinary income free area

 1064‑E4 A person’s ordinary income free area is worked out using Table E‑1. Work out which family situation in Table E‑1 applies to the person. The ordinary income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each dependent child of the person.

 

Table E‑1—Ordinary free area limits

Column 1

Item

Column 2

Category of person

Column 3

Basic free area per year

Column 4

Basic free area per fortnight

Column 5

Additional free area per year

Column 6

Additional free area per fortnight

1.

Not member of a couple

$2,080

$80

$639.60

$24.60

2.

Partnered (partner getting neither pension nor benefit)

$1,820

$70

$639.60

$24.60

3.

Partnered (partner getting benefit)

$1,820

$70

$639.60

$24.60

4.

Partnered (partner getting pension)

$1,820

$70

$319.80

$12.30

Note 1: for member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 2: for dependent child see section 5 and point 1064‑E12.

Note 3: items 2, 3 and 4 of Table E‑1 apply to members of illness separated and respite care couples.

Note 4: the basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).

No additional free area for certain prescribed student children

 1064‑E5 No additional free area is to be added for a dependent child who:

 (a) has turned 18; and

 (b) is a prescribed student child;

unless the person whose rate is being calculated, or the person’s partner, receives carer allowance for the child.

Note: this point may not apply to a person who has been receiving additional free area since 1 January 1990: see clause 29 in Schedule 1A.

Reduction of additional free area for dependent children

 1064‑E6 The additional free area for a dependent child of a person to whom item 1, 2 or 3 of Table E‑1 applies is reduced by the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 1064‑E8 do not result in a reduction.

 1064‑E7 The additional free area for a dependent child of a person to whom item 4 of Table E‑1 applies is reduced by 50% of the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 1064‑E8 do not result in a reduction.

 1064‑E8 No reduction is to be made under point 1064‑E6 or 1064‑E7 for a payment:

 (a) under this Act; or

 (b) of maintenance income; or

 (c) under the VEA; or

 (d) under an Aboriginal study assistance scheme; or

 (e) under the Assistance for Isolated Children Scheme.

Note: for Aboriginal study assistance scheme see subsection 23(1).

 1064‑E9 Examples of the kinds of payments that result in a reduction under points 1064‑E6 and 1064‑E7 are:

 (a) amounts received from State authorities or benevolent societies in respect of the boarding out of the child; or

 (b) amounts of superannuation or compensation paid in respect of the child; or

 (c) amounts (other than amounts covered by point 1064‑E8 above) paid in respect of the child under educational schemes; or

 (e) foster care allowance payments made by a State welfare authority.

ORDINARY INCOME FREE AREA EXAMPLES (using rates to 30.6.91) 

Example 1: 

Facts Wayne and Mary are members of a couple. They both receive pensions. They have 2 dependent children—Max and Angela. Angela is being fostered by Wayne and Mary and they receive $15 per week from the NSW Government by way of a foster care payment in respect of Angela.

Application The foster care payment calculated on a yearly basis is $15 52 = $780. As point 1064‑E7 applies to Wayne and Mary (they are covered by item 4 of Table E‑1 in point 1064‑E4), the reduction is at the 50% rate (i.e. $390 per year). The possible additional amount for Angela ($312) is therefore reduced to nil.

 The amount that Wayne gets for Max is not subject to reduction and is $312 per year. Mary gets $312 for Max as well.

 Wayne’s ordinary income free area is $1,820 + $312 = $2,132. Mary’s ordinary income free area is the same.

Example 2: 

Facts The same facts as in example 1 except that Wayne and Mary receive only $10 a week ($520 a year) foster care payment for Angela.

Application The amount that each person would be allowed for Angela is:

 Then each would have an ordinary income free area of
$1,820 + $312 + $52 = $2,184

Pension reduction for ordinary income in excess of ordinary income free area

 1064‑E10 A person’s reduction for ordinary income is:

Ordinary income excess

 1064‑E11 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

 1064‑E12 In this Module:

dependent child, in relation to a person, includes any child of the person who is under 18 and is receiving a youth allowance.

Effect of assets on maximum payment rate

 1064‑G1 This is how to work out the effect of a person’s assets on the person’s maximum payment rate:

Method statement

Step 1. Work out the value of the person’s assets.

 Note 1: for the treatment of the assets of members of a couple see point 1064‑G2.

 Note 2: for the assets that are to be disregarded in valuing a person’s assets see section 1118.

 Note 3: for the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2. Work out the person’s assets value limit (see point 1064‑G3 below).

 Note: a person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3. Work out whether the value of the person’s assets exceeds the person’s assets value limit.

Step 4. If the value of the person’s assets does not exceed the person’s assets value limit, the person’s assets excess is nil.

Step 5. If the value of the person’s assets exceeds the person’s assets value limit, the person’s assets excess is the value of the person’s assets less the person’s assets value limit.

Step 6. Use the person’s assets excess to work out the person’s reduction for assets using points 1064‑G4 to 1064‑G7 below.

Note 1: see point 1064‑A1 (steps 9 and 10) for the significance of the person’s reduction for assets.

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

Value of assets of members of couples

 1064‑G2 For the purposes of this Module:

 (a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

 (i) the value of the person’s assets; and

 (ii) the value of the person’s partner’s assets; and

 (b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

 (i) the value of the person’s assets of that kind; and

 (ii) the value of the person’s partner’s assets of that kind.

Assets value limit

 1064‑G3 A person’s assets value limit is worked out using Table G‑1. Work out the person’s family situation and home ownership situation. The assets value limit is the corresponding amount in column 3.

 

Table G‑1—Assets value limit

Column 1

Column 2

Column 3

Assets value limit

Item

Person’s family situation

Column 3A

Either person or partner homeowner

column 3B

Neither person nor partner homeowner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither pension nor benefit)

$78,750

$118,500

3.

Partnered (partner getting pension or benefit)

$78,750

$118,500

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 homeowner see section 11.

Note 3: items 2 and 3 apply to members of illness separated and respite care couples.

Note 4: the assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit

 1064‑G4 A person’s reduction for assets is worked out using Table G‑2. Work out which family situation applies to the person. The reduction for assets is the amount per year worked out using the corresponding calculation in column 3.

 

Table G‑2—Reduction for assets

Column 1

Item

Column 2

Person’s family situation

Column 3

Reduction

1.

Not member of a couple

2.

Partnered (partner getting neither pension nor benefit)

3.

Partner (partner getting pension or benefit)

Note 1: for member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 4: for assets excess see point 1064‑G5 below.

Assets excess

 1064‑G5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

 1064‑G7 In calculating a person’s assets excess under point 1064‑G5 disregard any part of the excess that is not a multiple of $250.

Remote area allowance

 1064‑H1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

 (aa) either:

 (i) the person’s rate of pension apart from this point is greater than nil; or

 (ii) apart from this point the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

 (A) Part 2.23 of this Act; or

 (B) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (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: for remote area and physically present in the remote area see section 14.

Rate of remote area allowance

 1064‑H2 The rate of remote area allowance payable to a person is worked out using Table H. 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 5 for each FTB child of the person.

 

Table H—Remote area allowance

Column 1

Item

Column 2

Person’s family situation

Column 3

Basic allowance per year

Column 4

Basic allowance per fortnight

Column 5

Additional allowance per year

Column 6

Additional allowance per fortnight

1.

Not member of couple

$473.20

$18.20

$189.80

$7.30

2.

Partnered

$405.60

$15.60

$189.80

$7.30

3.

Member of illness separated couple

$473.20

$18.20

$189.80

$7.30

4.

Member of respite care couple

$473.20

$18.20

$189.80

$7.30

5.

Partnered (partner in gaol)

$473.20

$18.20

$189.80

$7.30

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

Special rule where partner has an FTB child but is not receiving a pension

 1064‑H5 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

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

 (c) the person’s partner has an FTB child;

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule where partner has an FTB child but is not receiving additional allowance for the FTB child

 1064‑H6 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

 (b) the person’s partner has an FTB child; and

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

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule dealing with the death of an FTB child

 1064‑H7 If an FTB child of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.


 

 1065(1) The rate of:

 (a) age pension payable to a person who is permanently blind; and

 (b) disability support pension payable to a person who:

 (i) is permanently blind; and

 (ii) has turned 21;

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.

 1065(3) Where:

 (a) a person who is permanently blind has a relationship with a person of the opposite sex (other person); and

 (b) the relationship between them is a marriage‑like relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

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

the rate of pension payable to the person who is permanently blind 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 limited for certain armed services widows

 1065(4) If:

 (a) an armed services widow is receiving 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; and

 (b) an age or disability support pension is payable to the widow;

the rate of pension payable to the widow is not to exceed:

 (c) if:

 (i) the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and

 (ii) immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and

 (iii) the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986;

  the rate of pension received by the widow immediately before 1 November 1986; and

 (d) in any other case—$3,247.40.

Note: for armed services widow see subsection 4(1).

Rate limited for certain armed services widowers

 1065(5) If:

 (a) an armed services widower is receiving 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; and

 (b) an age or disability support pension is payable to the widower;

the rate of pension payable to the widower is not to exceed $3,247.40.

Note: for armed services widower see subsection 4(1).

Method of calculating rate

 1065‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out what would be the person’s rate of pension if Pension Rate Calculator A applied to the person: the result is called the notional income/assets tested rate.

Step 2. Work out the person’s maximum basic rate using MODULE B below.

Step 2A. Work out the amount of pension supplement using Module BA below.

Step 3. Work out the amount per year (if any) of pharmaceutical allowance using MODULE C below.

Step 4. Add up the amounts obtained in Steps 2, 2A and 3: the result is called the maximum payment rate.

Step 5. Work out the non‑income/assets tested rate by:

 (a) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) adding any amount payable by way of remote area allowance (see Module E).

Step 6. Compare the notional income/assets tested rate and the non‑income/assets tested rate: whichever is the greater is the person’s rate of pension.

Note 1: the person will also be qualified for a pharmaceutical allowance under Part 2.22.

Note 2: an amount of remote area allowance is to be added under Step 5 only if the person’s rate of pension after Step 4 is greater than nil.

Maximum basic rate

 1065‑B1 A person’s maximum basic rate depends on the person’s family situation. Work out which family situation in Table B applies to the person. The maximum basic rate is the corresponding amount in column 3 of the Table.

 

Table B—Maximum basic rates

Column 1

Item

Column 2

Person’s family situation

Column 3

Rate per year

Column 4

Rate per fortnight

1.

Not member of couple

$8,114.60

$312.10

2.

Partnered

$6,767.80

$260.30

3.

Member of illness separated couple

$8,114.60

$312.10

4.

Member of respite care couple

$8,114.60

$312.10

5.

Partnered (partner in gaol)

$8,114.60

$312.10

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

Note 2: the maximum basic rates are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Pension supplement

 1065‑BA1 The amount of a person’s pension supplement depends on the person’s maximum basic rate. There is a pension supplement amount for each maximum basic rate listed in the table in point 1065‑B1.

Amount of pension supplement

 1065‑BA2 The amount of a person’s pension supplement is worked out by:

 (a) calculating the amount (the provisional supplement amount) that is 4% of the person’s 1 July 2000 maximum basic rate; and

 (b) rounding off the provisional supplement amount in accordance with points 1065‑BA4 to 1065‑BA6.

Note: The pension supplement amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

 1065‑BA3 A person’s 1 July 2000 maximum basic rate is the maximum basic rate that would have been the person’s maximum basic rate if the rate had not changed since 1 July 2000.

Rounding off of provisional supplement amount

 1065‑BA4 If a provisional supplement amount is a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount.

 1065‑BA5 If a provisional supplement amount is not a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount rounded up or down to the nearest multiple of $2.60.

 1065‑BA6 If a provisional supplement amount is not a multiple of $2.60, but is a multiple of $1.30, the amount of the pension supplement is the provisional supplement amount rounded up to the nearest multiple of $2.60.

Qualification for pharmaceutical allowance

 1065‑C1 Subject to points 1065‑C2, 1065‑C3, 1065‑C4 and 1065‑C6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans’ Entitlements Act

 1065‑C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans’ Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 1065‑C3 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 VEA at the higher rate (rather than the person and the person’s partner each receiving pharmaceutical allowance at the lower rate).

No pharmaceutical allowance before advance payment period ends

 1065‑C4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance under:

 (i) Part 2.23 of this Act; or

 (ii) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (b) the person’s advance payment period has not ended.

Note: for advance payment period see point 1065‑C5.

Advance payment period

 1065‑C5 A person’s advance payment period:

 (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

 (b) ends after the number of paydays worked out using the following formula have passed:

where:

amount of advance is the amount of the advance paid to the person.

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

 1065‑C6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance during the current calendar year; and

 (b) the total amount paid to the person for that year by way of:

 (i) pharmaceutical allowance; and

 (ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: the annual limit is affected by:

VEA payments taken into account

 1065‑C7 In points 1065‑C5 and 1065‑C6:

advance pharmaceutical allowance includes advance pharmaceutical allowance under the Veterans’ Entitlements Act.

pharmaceutical allowance includes pharmaceutical allowance under the Veterans’ Entitlements Act.

Amount of pharmaceutical allowance

 1065‑C8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

 

Pharmaceutical allowance amount table

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Amount per fortnight

1.

Not member of couple

$135.20

$5.20

2.

Partnered

$67.60

$2.60

3.

Member of illness separated couple

$135.20

$5.20

4.

Member of respite care couple

$135.20

$5.20

5.

Partnered (partner getting service pension)

$67.60

$2.60

6.

Partnered (partner in gaol)

$135.20

$5.20

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

Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Remote area allowance

 1065‑E1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

 (aa) either:

 (i) the person’s rate of pension apart from this point is greater than nil; or

 (ii) apart from this point the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

 (A) Part 2.23 of this Act; or

 (B) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (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: for remote area and physically present in the remote area see section 14.

Rate of remote area allowance

 1065‑E2 The rate of remote area allowance payable to a person is worked out using Table E. 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 5 for each FTB child of the person.

Table E—Remote area allowance

Column 1

Item

Column 2

Person’s family situation

Column 3

Basic allowance per year

Column 4

Basic allowance per fortnight

Column 5

Additional allowance per year

Column 6

Additional allowance per fortnight

1.

Not member of couple

$473.20

$18.20

$189.80

$7.30

2.

Partnered

$405.60

$15.60

$189.80

$7.30

3.

Member of illness separated couple

$473.20

$18.20

$189.80

$7.30

4.

Member of respite care couple

$473.20

$18.20

$189.80

$7.30

5.

Partnered (partner in gaol)

$473.20

$18.20

$189.80

$7.30

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

Note 2: for dependent child see section 5.

Special rule where partner has an FTB child but is not receiving a pension

 1065‑E4 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

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

 (c) the person’s partner has an FTB child;

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule where partner has an FTB child but is not receiving additional allowance for the FTB child

 1065‑E5 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

 (b) the person’s partner has an FTB child; and

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

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule dealing with the death of an FTB child

 1065‑E6 If an FTB child of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.


 

 1066(1) The rate of:

 (b) bereavement allowance; and

 (c) widow B pension;

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.

 1066(3) If:

 (a) a person has a relationship with a person of the opposite sex (other person); and

 (b) the relationship between them is a marriage‑like relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

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

the person’s pension 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 1: although there is only 1 maximum basic rate specified in point 1066‑B1 of Pension Rate Calculator C, the ordinary income test (Module E) and assets test (Module G) do depend on whether the recipient is a member of a couple or not.

Method of calculating rate

 1066‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out the person’s maximum basic rate using MODULE B below.

Step 1A. Work out the amount of pension supplement using Module BA below.

Step 2. Work out the amount per year (if any) of pharmaceutical allowance using MODULE C below.

Step 3. Work out the amount per year (if any) for rent assistance (using MODULE D).

Step 4. Add up the amounts obtained in Steps 1, 1A, 2 and 3: the result is called the maximum payment rate.

Step 5. Apply the ordinary income test using MODULE E below to work out the income reduction.

Step 8. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Step 9. Apply the assets test using MODULE G below to work out the reduction for assets.

Step 10. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 11. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 12. The rate of pension is the amount obtained by:

 (a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) adding any amount payable by way of remote area allowance (see Module H).

Note 1: if a person’s assets reduced rate is less than the person’s income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Note 1A: If a person’s rate is, or is to be, an income reduced rate or an assets reduced rate, and at least one of those reduced rates is not a nil rate, the person may be able to take advantage of provisions dealing with the pension loans scheme (sections 1133AA to 1144).

Note 2: if a person’s rate is reduced under Step 11, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate first, then rent assistance).

Note 3: although most of the categories of person whose rate is to be worked out using this Rate Calculator will not be members of a couple, some categories are persons who are members of a couple (see subparagraphs 249(1)(a)(ii) and (iii)).

Note 4: in some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 5: an amount of remote area allowance is to be added under Step 11 only if the person’s rate of pension after Step 10 is greater than nil.

Members of a couple

 1066‑A2 If 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1066‑E2, 1066‑F2 and 1066‑G2).

Maximum basic rate

 1066‑B1 A person’s maximum basic rate is $8,114.60 per year ($312.10 per fortnight).

Note: the maximum basic rate is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Pension supplement

 1066‑BA1 The amount of a person’s pension supplement depends on the person’s maximum basic rate.

Amount of pension supplement

 1066‑BA2 The amount of a person’s pension supplement is worked out by:

 (a) calculating the amount (the provisional supplement amount) that is 4% of the person’s 1 July 2000 maximum basic rate; and

 (b) rounding off the provisional supplement amount in accordance with points 1066‑BA4 to 1066‑BA6.

Note: The pension supplement amount is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

 1066‑BA3 A person’s 1 July 2000 maximum basic rate is the maximum basic rate that would have been the person’s maximum basic rate if the rate had not changed since 1 July 2000.

Rounding off of provisional supplement amount

 1066‑BA4 If a provisional supplement amount is a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount.

 1066‑BA5 If a provisional supplement amount is not a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount rounded up or down to the nearest multiple of $2.60.

 1066‑BA6 If a provisional supplement amount is not a multiple of $2.60, but is a multiple of $1.30, the amount of the pension supplement is the provisional supplement amount rounded up to the nearest multiple of $2.60.

Qualification for pharmaceutical allowance

 1066‑C1 Subject to points 1066‑C2, 1066‑C3 and 1066‑C5, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans’ Entitlements Act

 1066‑C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans’ Entitlements Act.

Note: a person can receive both:

(a) a disability pension under the VEA; and

(b) a pension under this Act;

 and pharmaceutical allowance might be built into the disability pension rate.

No pharmaceutical allowance before advance payment period ends

 1066‑C3 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance under:

 (i) Part 2.23 of this Act; or

 (ii) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (b) the person’s advance payment period has not ended.

Note: for advance payment period see point 1066‑C4.

Advance payment period

 1066‑C4 A person’s advance payment period:

 (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

 (b) ends after the number of paydays worked out using the following formula have passed:

where:

amount of advance is the amount of the advance paid to the person.

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

 1066‑C5 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance during the current calendar year; and

 (b) the total amount paid to the person for that year by way of:

 (i) pharmaceutical allowance; and

 (ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: the annual limit is affected by:

VEA payments taken into account

 1066‑C6 In points 1066‑C4 and 1066‑C5:

advance pharmaceutical allowance includes advance pharmaceutical allowance under the Veterans’ Entitlements Act.

pharmaceutical allowance includes pharmaceutical allowance under the Veterans’ Entitlements Act.

Amount of pharmaceutical allowance

 1066‑C7 The amount of pharmaceutical allowance is $135.20 per year ($5.20 per fortnight).

Note: the annual amount is adjusted annually in line with CPI increases (see section 1206A).

Qualification for rent assistance

 1066‑D1 An additional amount to help cover the cost of rent is to be added to a person’s maximum basic rate if:

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

 (aa) the person is not an aged care resident; 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 $1,560 per year ($60 per fortnight); and

 (d) the rent is in respect of premises in Australia; and

 (e) if the person is entitled to be paid family tax benefit—the person’s maximum Part A rate of family tax benefit does not include rent assistance.

Note 1: for rent, Government rent and ineligible homeowner see section 13.

Note 2: the amount in paragraph (c) is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Annual rent affects rate of rent assistance

 1066‑D3 The rate of rent assistance depends on the annual rent paid or payable by the person.

Rate of rent assistance

 1066‑D4 The rate of rent assistance per fortnight is worked out using Table D. Calculate Rate A for the person using the formula in column 1. This will be the person’s rate of rent assistance but only up to the person’s maximum rent assistance rate. If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B worked out using column 2 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two‑thirds of Rate B.

 

Table D—Rate of rent assistance

Column 1

Rate A

Column 2

Rate B

$1, 638.00

Note 1: For single person sharing accommodation see section 5A.

Note 2: the amount in column 1 is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 3: the Rate B amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Rate B increase

 1066‑D4A Rate B for a person in Table D in point 1066‑D4 is increased by $104.00 on 25 March 1993.

Note: Rate B was indexed on 20 March 1993 (see sections 1191 to 1194).

Annual rent

 1066‑D5 Annual rent is the annual rent paid or payable by the person.

Effect of income on maximum payment rate

 1066‑E1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a yearly basis.

 Note: for the treatment of the ordinary income of members of a couple see point 1066‑E2.

Step 2. Work out the person’s ordinary income free area (see points 1066‑E4 to 1066‑E7 below).

 Note: a person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment rate.

Step 3. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Step 4. If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

Step 5. If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess 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 1066‑E8 to 1066‑E9 below.

Note 1: see point 1066‑A1 (Steps 5 to 8) for the significance of the person’s reduction for ordinary income.

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

Ordinary incomes of members of couples

 1066‑E2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.

How to calculate a person’s ordinary income free area

 1066‑E4 A person’s ordinary income free area is worked out using Table E. The ordinary income free area is the amount in column 1 plus an additional amount in column 3 for each dependent child of the person.

 

Table E—Ordinary income free area

Column 1

Basic free area per year

Column 2

Basic free area per fortnight

Column 3

Additional free area per year

Column 4

Additional free area per fortnight

$2,080

$80

$639.60

$24.60

Note 1: for dependent child see section 5 and point 1066‑E10.

Note 2: the basic free area per year is indexed annually in line with CPI increases (see sections 1191 to 1194).

Reduction of additional free area for dependent children

 1066‑E5 The additional free area for a dependent child is reduced by the annual amount of any payment received by the person for or in respect of that particular child. The payments referred to in point 1066‑E6 do not result in a reduction.

 1066‑E6 No reduction is to be made under point 1066‑E5 for a payment:

 (a) under this Act; or

 (b) of maintenance income; or

 (c) under the Veterans’ Entitlements Act; or

 (d) under an Aboriginal study assistance scheme; or

 (e) under the Assistance for Isolated Children Scheme.

Note: for Aboriginal study assistance scheme see subsection 23(1).

 1066‑E7 Examples of the kinds of payments that result in a reduction under point 1066‑E5 are:

 (a) amounts received from State authorities or benevolent societies in respect of the boarding out of the child; or

 (b) amounts of superannuation or compensation paid in respect of the child; or

 (c) amounts (other than amounts covered by point 1066‑E5 above) paid in respect of the child under educational schemes; or

 (e) foster care allowance payments made by a State welfare authority.

ORDINARY INCOME FREE AREA EXAMPLE (using rates to 30.6.91) 

Example 

Facts Mary is a sole parent with 2 dependent children, Jim and Susan. Mary is getting a family allowance payment from another country for Jim at the rate of $40 a month. On a yearly basis, this amounts to $480.

Application Point 1066‑E4 applies to Mary (see paragraph 1066‑E7(d)). As a result, the possible additional free area per year for Jim ($624) must be reduced by $480.

 Mary’s ordinary income free area per year is therefore:

Reduction for ordinary income

 1066‑E8 A person’s reduction for ordinary income is:

Ordinary income excess

 1066‑E9 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

 1066‑E10 In this Module:

dependent child, in relation to a person, includes any child of the person who is under 18 and is receiving a youth allowance.

Effect of assets on maximum payment rate

 1066‑G1 This is how to work out the effect of a person’s assets on the person’s maximum payment rate:

 Method statement

Step 1. Work out the value of the person’s assets.

 Note 1: for the treatment of the assets of members of a couple see point 1066‑G2.

 Note 2: for the assets that are to be disregarded in valuing a person’s assets see section 1118.

 Note 3: for the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2. Work out the person’s assets value limit (see point 1066‑G3 below).

 Note: a person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3. Work out whether the value of the person’s assets exceeds the person’s assets value limit.

Step 4. If the value of the person’s assets does not exceed the person’s assets value limit, the person’s assets excess is nil.

Step 5. If the value of the person’s assets exceeds the person’s assets value limit, the person’s assets excess is the value of the person’s assets less the person’s assets value limit.

Step 6. Use the person’s assets excess to work out the person’s reduction for assets using points 1066‑G4 to 1066‑G6 below.

Note 1: see point 1066‑A1 (Steps 9 and 10) for the significance of the person’s reduction for assets.

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

Value of assets of members of couples

 1066‑G2 For the purposes of this Module:

 (a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

 (i) the value of the person’s assets; and

 (ii) the value of the person’s partner’s assets; and

 (b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

 (i) the value of the person’s assets of that kind; and

 (ii) the value of the person’s partner’s assets of that kind.

Assets value limit

 1066‑G3 A person’s assets value limit is worked out using Table G. Work out which family situation applies to the person. The assets value limit is the corresponding amount in column 3.

 

Table G—Assets value limit

Column 1

Column 2

Column 3

Assets value limit

Item

Person’s family situation

Column 3A

Either person or partner homeowner

Column 3B

Neither person nor partner homeowner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither pension nor benefit)

$78,750

$118,500

3.

Partnered (partner getting pension or benefit)

$78,750

$118,500

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 homeowner see section 11.

Note 3: the assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit

 1066‑G4 A person’s reduction for assets is:

Assets excess

 1066‑G5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

 1066‑G6 In calculating a person’s assets excess under points 1066‑G4 and 1066‑G5 disregard any part of that excess which is not a multiple of $250.

Remote area allowance

 1066‑H1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

 (aa) either:

 (i) the person’s rate of pension apart from this point is greater than nil; or

 (ii) apart from this point the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

 (A) Part 2.23 of this Act; or

 (B) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (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: for remote area and physically present in the remote area see section 14.

Rate of remote area allowance

 1066‑H2 The rate of remote area allowance payable to a person is worked out using Table H. 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 5 for each FTB child of the person.

 

Table H—Remote area allowance

Column 1

Item

Column 2

Person’s family situation

Column 3

Basic allowance per year

Column 4

Basic allowance per fortnight

Column 5

Additional allowance per year

Column 6

Additional allowance per fortnight

1.

Not member of couple

$473.20

$18.20

$189.80

$7.30

2.

Partnered

$405.60

$15.60

$189.80

$7.30

3.

Partnered (partner in gaol)

$473.20

$18.20

$189.80

$7.30

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

Special rule where partner has an FTB child but is not receiving a pension

 1066‑H4 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

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

 (c) the person’s partner has an FTB child;

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule where partner has an FTB child but is not receiving additional allowance for the FTB child

 1066‑H5 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

 (b) the person’s partner has an FTB child; and

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

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule dealing with the death of an FTB child

 1066‑H6 If an FTB child of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.


 

 1066A(1) The rate of disability support pension of a person who has not turned 21 is, subject to subsection (2), 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.

 1066A(2) Subsection (1) does not apply if the person is permanently blind.

Note: the rate for a disability support pension payable to a person under 21 who is permanently blind is dealt with in section 1066B.

 1066A(3) A person’s disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person’s rate were calculated using Pension Rate Calculator A at the end of section 1064.

 1066A(5) If:

 (a) a person has a relationship with a person of the opposite sex (other person); and

 (b) the relationship between them is a marriage‑like relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

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

the person’s disability support pension 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.

Method of calculating rate

 1066A‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out the person’s maximum basic rate using MODULE B below.

Step 2. Work out the amount per year for youth disability, Supplement using MODULE C below.

Step 3. Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.

Step 4. Work out the amount per year (if any) for rent assistance (using MODULE EA if the person is under 18, or MODULE EB if the person is at least 18).

Step 5. Add up the amounts obtained in Steps 1, 2, 3 and 4: the result is called the maximum payment rate.

Step 6. Apply the ordinary income test using MODULE F below to work out the income reduction.

Step 9. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.

Step 10. Apply the assets test using MODULE H below to work out the reduction for assets.

Step 11. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.

Step 12. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate.

Step 13. The rate of pension is the amount obtained by:

 (a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) adding any amount payable by way of remote area allowance (see Module I).

Note 1: if a person’s assets reduced rate is less than the person’s income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Note 2: if a person’s rate is reduced under Step 12 the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate and youth disability supplement first, then rent assistance).

Note 3: the rate calculation for a member of a couple is affected by the operation of points 1066A‑A2.

Note 5: an amount of remote area allowance is to be added under Step 12 if the person’s rate of pension after Step 11 is greater than nil.

Members of a couple

 1066A‑A2 Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1066A‑F2, 1066A‑G3 and 1066A‑H2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see points 1066A‑EA14, 1066A‑EA15, 1066A‑EB15 and 1066A‑EB16 below).

Maximum basic rate

 1066A‑B1 A person’s maximum basic rate is to be worked out using Table B. Work out the family situation and whether the person has a dependent child. The maximum basic rate is the corresponding amount in column 3.

 

Table B—Maximum basic rates

Column 1
Item

Column 2
Person’s family situation

Column 3
Rate per year

Column 4
Rate per fortnight

 

 

Column 3A
Person with dependent child

Column 3B
Person without dependent child

Column 4A
Person with dependent child

Column 4B
Person without dependent child

1

Not a member of a couple and person:

(a) is under 18 years of age; and

(b) is not a homeless person; and

(c) is not an independent young person; and

(d) is not living away from the person’s parental home because of a medical condition of the person

$9,575.80

$4,001.40

$368.30

$153.90

2

Not a member of a couple and person:

(a) is under 18 years of age; and

(b) is:

(i) a homeless person; or

(ii) an independent young person; or

(iii) living away from the person’s parental home because of a medical condition of the person

$9,575.80

$7,308.60

$368.30

$281.10

3

Not a member of a couple and person:

(a) has reached 18 years of age; and

(b) is living at a home of parent or parents

$9,575.80

$4,810.00

$368.30

$185.00

4

Not a member of a couple and person:

(a) has reached 18 years of age; and

(b) is not living at a home of parent or parents

$9,575.80

$7,308.60

$368.30

$281.10

5

Partnered

$8,026.20

$7,308.60

$308.70

$281.10

6

Member of illness separated couple, member of respite care couple or partnered (partner in gaol)

$9,575.80

$7,308.60

$368.30

$281.10

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

Note 2: For dependent child, homeless person and independent young person see section 5.

Note 3: For living away from the person’s parental home see subsection 23(4D).

Note 4: The rates in columns 3A and 3B are adjusted annually in line with CPI changes (see section 1198B).

Youth disability supplement

 1066A‑C1 An amount by way of youth disability supplement is to be added to a person’s rate. The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).

Note 1: the rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Note 2: on 1 January 1992 the rate of youth disability supplement is to be increased by $111.80 ($4.30 per fortnight), under section 45 of the Social Security Legislation Amendment Act (No. 3) 1991. This is in addition to the annual CPI indexation occurring on 1 January 1992.

Qualification for pharmaceutical allowance

 1066A‑D1 Subject to points 1066A‑D2, 1066A‑D3,1066A‑D4 and 1066A‑D6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans’ Entitlements Act

 1066A‑D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans’ Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 1066A‑D3 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.

No pharmaceutical allowance before advance payment period ends

 1066A‑D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance under:

 (i) Part 2.23 of this Act; or

 (ii) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (b) the person’s advance payment period has not ended.

Note: for advance payment period see point 1066A‑D5.

Advance payment period

 1066A‑D5 A person’s advance payment period:

 (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

 (b) ends after the number of paydays worked out using the following formula have passed:

where:

amount of advance is the amount of the advance paid to the person.

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

 1066A‑D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance during the current calendar year; and

 (b) the total amount paid to the person for that year by way of:

 (i) pharmaceutical allowance; and

 (ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: the annual limit is affected by:

VEA payments taken into account

 1066A‑D7 In points 1066A‑D5 and 1066A‑D6:

advance pharmaceutical allowance includes advance pharmaceutical allowance under the Veterans’ Entitlements Act.

pharmaceutical allowance includes pharmaceutical allowance under the Veterans’ Entitlements Act.

Amount of pharmaceutical allowance

 1066A‑D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

 

Pharmaceutical allowance amount table

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Amount per fortnight

1.

Not member of couple

$135.20

$5.20

2.

Partnered

$67.60

$2.60

3.

Member of illness separated couple

$135.20

$5.20

4.

Member of respite care couple

$135.20

$5.20

5.

Partnered (partner getting service pension)

$67.60

$2.60

6.

Partnered (partner in gaol)

$135.20

$5.20

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

Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Application

 1066A‑EA1 This Module applies to a person who has not turned 18 and is not permanently blind.

Rent assistance

 1066A‑EA2 Subject to point 1066A‑EA3, an amount to help cover the cost of rent is to be added to the maximum basic rate of:

 (a) a member of a couple; or

 (c) a person who is in disability accommodation; or

 (ca) a homeless person; or

 (cb) an independent young person; or

 (cc) a person who is living away from the person’s parental home because of a medical condition of the person;

if:

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

 (da) the person is not, or is taken not to be, an aged care resident; and

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

 (f) the rent is payable at a rate of more than the rent threshold rate; and

 (g) the rent is in respect of premises in Australia; and

 (h) either of the following applies:

 (i) if the person is a member of an illness separated couple, a respite care couple or a temporarily separated couple and is entitled to be paid family tax benefit—the person’s maximum Part A rate of family tax benefit does not include rent assistance;

 (ii) if the person is not a member of an illness separated couple, a respite care couple or a temporarily separated couple, and the person or the person’s partner is entitled to be paid family tax benefit—the maximum Part A rate of family tax benefit of the person, or the person’s partner, does not include rent assistance.

Note 2: for in disability accommodation see subsection 23(4C).

Note 3: for rent, Government rent and ineligible homeowner see section 13.

Note 4: for homeless person and independent young person see subsection 5(1).

Note 5: for rent threshold rate see point 1066A‑EA2A.

Rent threshold rate

 1066A‑EA2A A person’s rent threshold rate depends on the person’s family situation. Work out which family situation in Table EAA applies to the person. The rent threshold rate is the corresponding amount in column 3.

 

Table EAA—Rent threshold rates

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Amount per fortnight

1.

Not member of couple and in disability accommodation

$1,560.00

$60.00

2.

Not member of couple and either independent young person or homeless person

$1,560.00

$60.00

3.

Partnered—partner does not have rent increased pension

$2,600.00

$100.00

4.

Partnered and partner:

(a) is receiving social security pension; and

(b) has rent increased pension;

$2,600.00

$100.00

5.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) does not have a dependent child or dependent children

$2,600.00

$100.00

6.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

$3,120.00

$120.00

7.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 3 or more dependent children

$3,120.00

$120.00

8.

Member of illness separated couple

$1,560.00

$60.00

9.

Member of respite care couple

$1,560.00

$60.00

10.

Member of temporarily separated couple

$1,560.00

$60.00

11.

Partnered (partner in gaol)

$1,560.00

$60.00

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

Note 2: for partner with a rent increase pension see point 1066A‑EA11.

Note 3: for in disability accommodation see subsection 23(4C).

Note 4: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

No rent assistance if partner getting incentive allowance

 1066A‑EA3 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 1066A‑EA2 if the person’s partner is receiving incentive allowance.

Note: for incentive allowance see Module J of Pension Rate Calculator A and Module F of Pension Rate Calculator B.

Factors affecting rate of rent assistance

 1066A‑EA10 The rate of rent assistance depends on:

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

 (c) whether or not the person has a partner who has a rent increased pension; and

 (d) whether or not the person is in disability accommodation.

Note: for in disability accommodation see subsection 23(4C).

Partner with rent increased pension

 1066A‑EA11 A person has a partner with a rent increased pension, for the purposes of this Module, if:

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

 (b) the partner is in receipt of a social security or, service pension or income support supplement; and

 (c) the rate of the, pension or supplement is increased to take account of rent paid or payable by the person.

Note: for the treatment of rent paid by a member of a couple see point 1066A‑EA14.

Rate of rent assistance

 1066A‑EA12 The rate of rent assistance per year is worked out using Table EA. 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. If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two‑thirds of the rate that would otherwise have been Rate B for the person.

Table EA—Rate of rent assistance

Column 1

Item

Column 2

Person’s family situation

Column 3

Rate A

Column 4

Rate B

1.

Not member of couple and in disability accommodation

$1,747.20

2.

Not member of couple and either an independent young person or a homeless person

$1,747.20

3.

Partnered—partner does not have rent increased pension

$1,643.20

4.

Partnered and partner:

(a) is receiving a social security pension; and

(b) has rent increased pension

(c) does not have a dependent child or dependent children

$821.60

5.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) does not have a dependent child or dependent children

$821.60

6.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

$959.40

7.

Partnered and partner

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 3 or more dependent children

$1,094.60

8.

Member of illness separated couple

$1,747.20

9.

Member of respite care couple

$1,747.20

10.

Member of temporarily separated couple

$1,643.20

11.

Partnered (partner in gaol)

$1,747.20

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

Note 1A: For dependent child see section 5.

Note 1B: For independent young person and homeless person see section 5.

Note 2: for partner with a rent increase pension see point 1066A‑E11.

Note 3: for in disability accommodation see subsection 23(4C).

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

Note 4: the rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 5: the Rate B amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Annual rent

 1066A‑EA13 Annual rent is the annual rent paid or payable by the person whose rate of pension is being calculated.

Rent paid by a member of a couple

 1066A‑EA14 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

 1066A‑EA15 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.

Application

 1066A‑EB1 This module applies to a person who has turned 18 and is not permanently blind.

Rent assistance

 1066A‑EB2 Subject to point 1066A‑EB4, an amount to help cover the cost of rent is to be added to the maximum basic rate of:

 (a) a member of a couple; or

 (c) a person who is living permanently or indefinitely away from person’s parental home; or

 (d) a person in disability accommodation;

if:

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

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

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

 (g) the rent is payable at a rate of more than the rent threshold rate; and

 (h) the rent is in respect of premises in Australia; and

 (i) either of the following applies:

 (i) if the person is a member of an illness separated couple, a respite care couple or a temporarily separated couple and is entitled to be paid family tax benefit—the person’s maximum Part A rate of family tax benefit does not include rent assistance;

 (ii) if the person is not a member of an illness separated couple, a respite care couple or a temporarily separated couple, and the person or the person’s partner is entitled to be paid family tax benefit—the maximum Part A rate of family tax benefit of the person, or the person’s partner, does not include rent assistance.

Note 2: for rent, Government rent and ineligible homeowner see section 13.

Note 3: for living away from parental home see subsection 23(4D).

Note 4: for in disability accommodation see subsection 23(4C).

Note 5: for rent threshold rate see point 1066A‑EAB2A.

Rent threshold rate

 1066A‑EB2A A person’s rent threshold rate depends on the person’s family situation. Work out which family situation in Table EBA applies to the person. The rent threshold rate is the corresponding amount in column 3.

 

Table EBA—Rent threshold rates

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Amount per fortnight

1.

Not member of couple and in disability accommodation

$1,560.00

$60.00

2.

Not member of couple and living permanently or indefinitely away from the person’s parental home

$1,560.00

$60.00

3.

Partnered—partner does not have rent increased pension

$2,600.00

$100.00

4.

Partnered and partner:

(a) is receiving social security pension; and

(b) has rent increased pension

$2,600.00

$100.00

5.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) does not have a dependent child or dependent children

$2,600.00

$100.00

6.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

$3,120.00

$120.00

7.

Partnered and partner:

(a) is receiving service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 3 or more dependent children

$3,120.00

$120.00

8.

Member of illness separated couple

$1,560.00

$60.00

9.

Member of respite care couple

$1,560.00

$60.00

10.

Member of temporarily separated couple

$1,560.00

$60.00

11.

Partnered (partner in gaol)

$1,560.00

$60.00

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

Note 2: for partner with a rent increase pension see point 1066A‑EB12.

Note 3: for in disability accommodation see subsection 25(4C).

Note 4: for living away from parental home see subsection 23(4D).

Note 5: the column 3 amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Parent

 1066A‑EB3 For the purposes of point 1066A‑EB2 a step‑parent 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)).

No rent assistance if partner getting incentive allowance

 1066A‑EB4 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 1066A‑EB2 if the person’s partner is receiving incentive allowance.

Factors affecting rate of rent assistance

 1066A‑EB11 The rate of rent assistance depends on:

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

 (c) whether or not the person has a partner who has a rent increased pension; and

 (d) whether or not the person is in disability accommodation; and

 (e) whether the person is living permanently or indefinitely away from the person’s parental home.

Note 1: for in disability accommodation see subsection 23(4C).

Note 2: for living away from parental home see subsection 23(4D).

Partner with rent increased pension

 1066A‑EB12 A person has a partner with a rent increased pension, for the purposes of this Module if:

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

 (b) the partner is in receipt of a social security or, service pension or income support supplement; and

 (c) the rate of the, pension or supplement is increased to take account of rent paid or payable by the person.

Rate of rent assistance

 1066A‑EB13 The rate of rent assistance per year is worked out using Table EB. 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. If the person is not a single person sharing accommodation, the person’s maximum rent assistance rate is Rate B for the person worked out using column 4 of the Table. If the person is a single person sharing accommodation, the person’s maximum rent assistance rate is two‑thirds of the rate that would otherwise have been Rate B for the person.

 

Table EB—Rate of rent assistance

Column 1

Item

Column 2

Person’s family situation

Column 3

Rate A

Column 4

Rate B

1.

Not member of couple and in disability accommodation

$1,747.20

2.

Not member of couple and living permanently or indefinitely away from the person’s parental home

$1,747.20

3.

Partnered—partner does not have rent increased pension

$1,643.20

4.

Partnered and partner:

(a) is receiving a social security pension; and

(b) has rent increased pension

$821.60

5.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) does not have a dependent child or dependent children

$821.60

6.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 1 or 2 dependent children

$959.40

7.

Partnered and partner:

(a) is receiving a service pension or income support supplement; and

(b) has rent increased pension; and

(c) has 3 or more dependent children

$1,094.60

8.

Member of illness separated couple

$1,747.20

 9.

Member of respite care couple

$1,747.20

10.

Member of temporarily separated couple

$1,643.20

11.

Partnered (partner in gaol)

$1,747.20

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

Note 1A: For dependent child see section 5.

Note 2: for partner with a rent increase pension see point 1066A‑EB12.

Note 3: for in disability accommodation see subsection 25(4C).

Note 4: for living away from parental home see subsection 23(4D).

Note 4A: For single person sharing accommodation see section 5A.

Note 5: the rent threshold amounts in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 6: the Rate B amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Annual rent

 1066A‑EB14 Annual rent is the annual rent paid or payable by the person whose rate is being calculated.

Rent paid by a member of a couple

 1066A‑EB15 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

 1066A‑EB16 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.

Effect of income on maximum payment rate

 1066A‑F1 This is how to work out the effect of a person’s ordinary income on the person’s maximum payment rate:

Method statement

Step 1. Work out the amount of the person’s ordinary income on a yearly basis.

 Note: for the treatment of the ordinary income of members of a couple see point 1066A‑F2.

Step 2. Work out the person’s ordinary income free area (see points 1066A‑F3 to 1066A‑F8 below).

 Note: a person’s ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person’s maximum payment.

Step 3. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area.

Step 4. If the person’s ordinary income does not exceed the person’s ordinary income free area, the person’s ordinary income excess is nil.

Step 5. If the person’s ordinary income exceeds the person’s ordinary income free area, the person’s ordinary income excess 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 1066A‑F9 to 1066A‑F11 below.

Note 1: see point 1066A‑A1 (Steps 6 to 9) for the significance of the person’s reduction for ordinary income.

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

Ordinary incomes of members of couples

 1066A‑F2 If a person is a member of a couple, add the couple’s ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person’s ordinary income for the purposes of this Module.

Payment of arrears of periodic compensation payments

 1066A‑F2A If:

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

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

the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note: for periodic payments period see section 17.

How to calculate a person’s ordinary income free area

 1066A‑F3 A person’s ordinary income free area is worked out using Table F‑1. Work out which family situation in Table F‑1 applies to the person. The ordinary income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each dependent child of the person.

Table F‑1—Ordinary income free area

Column 1

Item

Column 2

Category of person

Column 3

Basic free area per year

Column 4

Basic free area per fortnight

Column 5

Additional free area per year

Column 6

Additional free area per fortnight

1.

Not member of a couple

$2,184

$80

$639.60

$24.60

2.

Partnered (partner getting neither pension nor benefit)

$1,924

$70

$639.60

$24.60

3.

Partnered—(partner getting benefit)

$1,924

$70

$639.60

$24.60

4.

Partnered—(partner getting pension)

$1,924

$70

$319.80

$12.30

Note 1: for member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 2: for dependent child see section 5 and point 1066A‑F11.

Note 3: items 2, 3 and 4 of Table F‑1 apply to members of illness separated couples.

Note 4: the basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).

No additional free area for certain prescribed student children

 1066A‑F4 No additional free area is to be added for a dependent child who:

 (a) has turned 18; and

 (b) is a prescribed student child;

unless the person whose rate is being calculated, or the person’s partner, receives carer allowance for the child.

Reduction of additional free area for dependent children

 1066A‑F5 The additional free area for a dependent child of a person to whom item 1, 2 or 3 of Table F‑1 applies is reduced by the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 1064‑F7 do not result in a reduction.

 1066A‑F6 The additional free area for a dependent child of a person to whom item 4 of Table F‑1 applies is reduced by 50% of the annual amount of any payment received by the person or the person’s partner for or in respect of that particular child. The payments referred to in point 1066A‑F7 do not result in a reduction.

 1066A‑F7 No reduction is to be made under point 1066A‑F5 or 1066A‑F6 for a payment:

 (a) under this Act; or

 (b) of maintenance income; or

 (c) under the VEA; or

 (d) under an Aboriginal study assistance scheme; or

 (e) under the Assistance for Isolated Children Scheme.

Note: for Aboriginal study assistance scheme see subsection 23(1).

 1066A‑F8 Examples of the kinds of payments that result in a reduction under points 1066A‑F5 and 1066A‑F6 are:

 (a) amounts received from State authorities or benevolent societies in respect of the boarding out of the child; or

 (b) amounts of superannuation or compensation paid in respect of the child; or

 (c) amounts (other than amounts covered by point 1066A‑F7 above) paid in respect of the child under educational schemes; or

 (e) foster care allowance payments made by a State welfare authority.

ORDINARY INCOME FREE AREA EXAMPLES (using rates to 30.6.91) 

Example 1: 

Facts Wayne and Mary are members of a couple. They both receive pensions. They have 2 dependent children—Max and Angela. Angela is being fostered by Wayne and Mary and they receive $15 per week from the NSW Government by way of a foster care payment in respect of Angela.

Application The foster care payment calculated on a yearly basis is $15 52 = $780. As point 1066A‑F6 applies to Wayne and Mary (they are covered by item 4 of Table F‑1 in point 1066A‑F3), the reduction is at the 50% rate (i.e. $390 per year). The possible additional amount for Angela ($312) is therefore reduced to nil.

 The amount that Wayne gets for Max is not subject to reduction and is $312 per year. Mary gets $312 for Max as well.

 Wayne’s ordinary free area limit is $1,820 + $312 = $2,132. Mary’s ordinary free area limit is the same.

Example 2: 

Facts The same facts as in Example 1 except that Wayne and Mary receive only $10 a week ($520 a year) foster care payment for Angela.

Application The amount that each person would be allowed for Angela is:

 Then each would have an ordinary free area limit of
$1,820 + $312 + $52 = $2,184.

Pension reduction for ordinary income in excess of ordinary income free area

 1066A‑F9 A person’s reduction for ordinary income is worked out using Table F‑2. Work out which family situation applies to the person. The reduction for ordinary income is the amount per year worked out using the corresponding calculation in column 3.

 

Table F‑2—Reduction for ordinary income

Column 1

Item

Column 2

Person’s family situation

Column 3

Reduction

1.

Not member of a couple

2.

Partnered (partner getting neither pension nor benefit)

3.

Partnered (partner getting benefit or pension)

Note 1: for member of a couple, partnered (partner getting neither pension not benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 3: for ordinary income excess see point 1066A‑F10 below.

Ordinary income excess

 1066A‑F10 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

 1066A‑F11 In this Module:

dependent child, in relation to a person, includes any child of the person who is under 18 and is receiving a youth allowance.

Effect of assets on maximum payment rate

 1066A‑H1 This is how to work out the effect of a person’s assets on the person’s maximum payment rate:

Method statement

Step 1. Work out the value of the person’s assets.

 Note 1: for the treatment of the assets of members of a couple see point 1066A‑H2.

 Note 2: for the assets that are to be disregarded in valuing a person’s assets see section 1118.

 Note 3: for the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2. Work out the person’s assets value limit (see point 1066A‑H3 below).

 Note: a person’s assets value limit is the maximum value of assets the person can have without affecting the person’s pension rate.

Step 3. Work out whether the value of the person’s assets exceeds the person’s assets value limit.

Step 4. If the value of the person’s assets does not exceed the person’s assets value limit, the person’s assets excess is nil.

Step 5. If the value of the person’s assets exceeds the person’s assets value limit, the person’s assets excess is the value of the person’s assets less the person’s assets value limit.

Step 6. Use the person’s assets excess to work out the person’s reduction for assets using points 1066A‑H4 to 1066A‑H7 below.

Note 1: see point 1066A‑A1 Steps 10 and 11 for the significance of the person’s reduction for assets.

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

Value of assets of members of couples

 1066A‑H2 For the purposes of this Module:

 (a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

 (i) the value of the person’s assets; and

 (ii) the value of the person’s partner’s assets; and

 (b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

 (i) the value of the person’s assets of that kind; and

 (ii) the value of the person’s partner’s assets of that kind.

Assets value limit

 1066A‑H3 A person’s assets value limit is worked out using Table H‑1. Work out the person’s family situation and home ownership situation. The assets value limit is the corresponding amount in column 3.

 

Table H‑1—Assets value limit

Column 1

Column 2

Column 3

Assets value limit

Item

Person’s family situation

Column 3A

Either person or partner homeowner

Column 3B

Neither person nor partner homeowner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither pension nor benefit)

$78,750

$118,500

3.

Partnered (partner getting pension or benefit)

$78,750

$118,500

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 homeowner see section 11.

Note 3: items 2 and 3 apply to members of illness separated couples.

Note 4: the assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit

 1066A‑H4 A person’s reduction for assets is worked out using Table H‑2. Work out which family situation applies to the person. The reduction for assets is the amount per year worked out using the corresponding calculation in column 3.

 

Table H‑2—Reduction for assets

Column 1

Item

Column 2

Person’s family situation

Column 3

Reduction

1.

Not member of couple

2.

Partnered (partner getting neither pension nor benefit)

3.

Partner (partner getting pension or benefit)

Note 1: for member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 3: for assets excess see point 1066A‑H5 below.

Assets excess

 1066A‑H5 A person’s assets excess is the value of the person’s assets less the person’s assets value limit.

 1066A‑H7 In calculating a person’s assets excess under point 1066A‑H5 disregard any part of the excess that is not a multiple of $250.

Remote area allowance

 1066A‑I1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

 (aa) either:

 (i) the person’s rate of pension apart from this point is greater than nil; or

 (ii) apart from this point the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

 (A) Part 2.23 of this Act; or

 (B) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (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: for remote area and physically present in the remote area see section 14.

Rate of remote area allowance

 1066A‑I2 The rate of remote area allowance payable to a person is worked out using Table I. 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 5 for each FTB child of the person.

 

Table I—Remote area allowance

Column 1

Item

Column 2

Person’s family situation

Column 3

Basic allowance per year

Column 4

Basic allowance per fortnight

Column 5

Additional allowance per year

Column 6

Additional allowance per fortnight

1.

Not member of couple

$473.20

$18.20

$189.80

$7.30

2.

Partnered

$405.60

$15.60

$189.80

$7.30

3.

Member of illness separated couple

$473.20

$18.20

$189.80

$7.30

4.

Member of respite care couple

$473.20

$18.20

$189.80

$7.30

5.

Partnered (partner in gaol)

$473.20

$18.20

$189.80

$7.30

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

Special rule where partner has an FTB child but is not receiving a pension

 1066A‑I4 If:

 (a) a person who is a member of a couple is qualified for an amount by way of additional allowance; and

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

 (c) the person’s partner has an FTB child;

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule where partner has an FTB child but is not receiving additional allowance for the FTB child

 1066A‑I5 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

 (b) the person’s partner has an FTB child; and

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

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule dealing with the death of an FTB child

 1066A‑I6 If an FTB child of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.


 

 1066B(1) The rate of disability support pension of a person who has not turned 21 and is permanently blind 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.

 1066B(2) A person’s disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person’s rate were calculated using Pension Rate Calculator B at the end of section 1065.

 1066B(4) Where:

 (a) a person who is permanently blind has a relationship with a person of the opposite sex (other person); and

 (b) the relationship between them is a marriage‑like relationship in the Secretary’s opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

 (c) that other person is under the age of consent applicable in the State or Territory in which the person is living;

the rate of disability support pension payable to the person who is permanently blind is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.

Method of calculating rate

 1066B‑A1 The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1. Work out what would be the person’s rate of pension if Pension Rate Calculator D applied to the person: the result is called the notional income/assets tested rate.

Step 2. Work out the person’s maximum basic rate using MODULE B below.

Step 3. Work out the amount per year for youth disability supplement using MODULE C below.

Step 4. Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.

Step 5. Add up the amounts obtained in Steps 2, 3 and 4: the result is called the maximum payment rate.

Step 6. Work out the non‑income/assets tested rate by:

 (a) subtracting from the maximum payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) adding any amount payable by way of remote area allowance (see Module F).

Step 7. Compare the notional income/assets tested rate and the non‑income/assets tested rate: whichever is the greater is the person’s rate of pension.

Note: an amount of remote area allowance is to be added under Step 6 only if the person’s rate of pension after Step 5 is greater than nil.

Maximum basic rate

 1066B‑B1 A person’s maximum basic rate is to be worked out using Table B. Work out the family situation and whether the person has a dependent child. The maximum basic rate is the corresponding amount in column 3 of the Table.

 

Table B—Maximum basic rates

Column 1
Item

Column 2
Person’s family situation

Column 3
Rate per year

Column 4
Rate per fortnight

 

 

Column 3A
Person with dependent child

Column 3B
Person without dependent child

Column 4A
Person with dependent child

Column 4B
Person without dependent child

1

Not a member of a couple and person:

(a) is under 18 years of age; and

(b) is not a homeless person; and

(c) is not an independent young person; and

(d) is not living away from the person’s parental home because of a medical condition of the person

$9,575.80

$4,001.40

$368.30

$153.90

2

Not a member of a couple and person:

(a) is under 18 years of age; and

(b) is:

(i) a homeless person; or

(ii) an independent young person; or

(iii) living away from the person’s parental home because of a medical condition of the person

$9,575.80

$7,308.60

$368.30

$281.10

3

Not a member of a couple and person:

(a) has reached 18 years of age; and

(b) is living at a home of parent or parents

$9,575.80

$4,810.00

$368.30

$185.00

4

Not a member of a couple and person:

(a) has reached 18 years of age; and

(b) is not living at a home of parent or parents

$9,575.80

$7,308.60

$368.30

$281.10

5

Partnered

$8,026.20

$7,308.60

$308.70

$281.10

6

Member of illness separated couple, member of respite care couple or partnered (partner in gaol)

$9,575.80

$7,308.60

$368.30

$281.10

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

Note 2: For dependent child, homeless person and independent young person see section 5.

Note 3: For living away from the person’s parental home see subsection 23(4D).

Note 4: The rates in columns 3A and 3B are adjusted annually in line with CPI changes (see section 1198B).

Youth disability supplement

 1066B‑C1 An amount by way of youth disability supplement is to be added to a person’s rate. The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).

Note: the rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Qualification for pharmaceutical allowance

 1066B‑D1 Subject to points 1066B‑D2, 1066B‑D3, 1066B‑D4 and 1066B‑D6, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans’ Entitlements Act

 1066B‑D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans’ Entitlements Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 1066B‑D3 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 VEA at the higher rate (rather than the person and the person’s partner each receiving pharmaceutical allowance at the lower rate).

No pharmaceutical allowance before advance payment period ends

 1066B‑D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance under:

 (i) Part 2.23 of this Act; or

 (ii) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (b) the person’s advance payment period has not ended.

Note: for advance payment period see point 1066B‑D5.

Advance payment period

 1066B‑D5 A person’s advance payment period:

 (a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and

 (b) ends after the number of paydays worked out using the following formula have passed:

where:

amount of advance is the amount of the advance paid to the person.

pharmaceutical allowance rate is the yearly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

 1066B‑D6 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if:

 (a) the person has received an advance pharmaceutical allowance during the current calendar year; and

 (b) the total amount paid to the person for that year by way of:

 (i) pharmaceutical allowance; and

 (ii) advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1: for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2: the annual limit is affected by:

VEA payments taken into account

 1066B‑D7 In points 1066B‑D5 and 1066B‑D6:

advance pharmaceutical allowance includes advance pharmaceutical allowance under the Veterans’ Entitlements Act.

pharmaceutical allowance includes pharmaceutical allowance under the Veterans’ Entitlements Act.

Amount of pharmaceutical allowance

 1066B‑D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

 

Pharmaceutical allowance amount table

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per year

Column 4

Amount per fortnight

1.

Not member of couple

$135.20

$5.20

2.

Partnered

$67.60

$2.60

3.

Member of illness separated couple

$135.20

$5.20

4.

Member of respite care couple

$135.20

$5.20

5.

Partnered (partner getting service pension)

$67.60

$2.60

6.

Partnered (partner in gaol)

$135.20

$5.20

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

Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Remote area allowance

 1066B‑F1 An amount by way of remote area allowance is to be added to a person’s rate of pension if:

 (aa) either:

 (i) the person’s rate of pension apart from this point is greater than nil; or

 (ii) apart from this point the person’s rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

 (A) Part 2.23 of this Act; or

 (B) Division 2 of Part VIIA of the Veterans’ Entitlements Act; and

 (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: for remote area and physically present in the remote area see section 14.

Rate of remote area allowance

 1066B‑F2 The rate of remote area allowance payable to a person is worked out using Table F. 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 5 for each FTB child of the person.

 

Table F—Remote area allowance

Column 1

Item

Column 2

Person’s family situation

Column 3

Basic allowance per year

Column 4

Basic allowance per fortnight

Column 5

Additional allowance per year

Column 6

Additional allowance per fortnight

1.

Not member of couple

$473.20

$18.20

$189.80

$7.30

2.

Partnered

$405.60

$15.60

$189.80

$7.30

3.

Member of illness separated couple

$473.20

$18.20

$189.80

$7.30

4.

Member of respite care couple

$473.20

$18.20

$189.80

$7.30

5.

Partnered (partner in gaol)

$473.20

$18.20

$189.80

$7.30

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

Special rule where partner has an FTB child but is not receiving a pension

 1066B‑F4 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

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

 (c) the person’s partner has an FTB child;

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule where partner has an FTB child but is not receiving additional allowance for the FTB child

 1066B‑F5 If:

 (a) a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

 (b) the person’s partner has an FTB child; and

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

the child is taken, for the purposes of this Module, to be an FTB child of the person.

Special rule dealing with the death of an FTB child

 1066B‑F6 If an FTB child of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.


 

General definitions

 1067(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 State care has the meaning given by subsection 1067A(8).

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.

in unsupported State care, in relation to a person, means being a person in State care in respect of whom either of the following applies:

 (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.

living at home has the meaning given by section 1067E.

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.

Application

 1067A(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

 1067A(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

 1067A(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.

Person aged 25 years or more

 1067A(4) A person is independent if the person is at least 25 years old. This age will be progressively reduced over time.

Orphan

 1067A(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

 1067A(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;

whether or not the person is dependent, or was last dependent, on someone other than a parent of the person.

Refugee

 1067A(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.

However, a person is not independent under this subsection if the person has a parent living in Australia, or is wholly or substantially dependent on someone else on a long‑term basis.

Person in State care

 1067A(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.

A person to whom this subsection applies is taken, for the purposes of this Part to be in State care.

Unreasonable to live at home

 1067A(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) because the parent or parents are unable to provide the person with a suitable home owing to a lack of 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.

People who are self‑supporting

 1067A(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 any period of 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) a period or periods of employment over an 18 month period since the person last left secondary school, earning the person at least the equivalent of 75% of the maximum Commonwealth training award payment that applied at the start of the period of the employment.

People who are disadvantaged

 1067A(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 person is taken to be an accommodated independent person for the purposes of this Part if, and only if, the person:

 (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; and

 (f) is not a person who:

 (i) qualified for the independent living allowance under the AUSTUDY scheme, as in force immediately before the commencement of Schedule 11 to the Social Security Legislation Amendment (Youth Allowance Consequential and Related Measures) Act 1998, only under AUSTUDY Regulation 68, as in force at that time; and

 (ii) had not, at that time, turned 25.

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

Current member of a YA couple

 1067C(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.

Former member of a YA couple

 1067C(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.

Criteria for forming opinion about relationship

 1067C(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

 1067C(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

 1067C(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).

When a person is taken to be required to live away from home

 1067D(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).

Secretary may have regard to advice from case manager

 1067D(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

 1067D(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.

  If a person:

 (a) is not independent; and

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

the person is taken for the purposes of this Part to be living at home.

 1067F(1) A person is a long term income support student if the person:

 (a) is at least 21 years old; and

 (ba) does not have a dependent child; 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 weeks out of the period of 39 weeks that ended when the person commenced to undertake the full‑time study referred to in paragraph (c), 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;

 (xii) benefit parenting allowance;

 (xiii) benefit PP (partnered).

 1067F(2) A person is also a long term income support student if the person:

 (a) is at least 21 years old; 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.

Youth allowance rate calculator

 1067G(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

 1067G(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;

the rate of the person’s youth allowance is not to be more than the rate at which the allowance would be payable to the person if the other person were the person’s partner.

Method of calculating rate

 1067G‑A1 The rate of allowance is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

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 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 fortnightly 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 1210 (maximum basic rate first, then rent assistance, then pharmaceutical allowance).

Step 14. The rate of allowance is the amount obtained by:

 (a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) except where the person is a CDEP Scheme participant in respect of the whole or a part of the period for which the rate of allowance is being worked out, adding any amount payable by way of remote area allowance (see Module K).

Maximum basic rate

 1067G‑B1 The maximum basic rate of a person other than a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out 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.

The maximum basic rate of a person who is a CDEP Scheme participant in respect of the whole or a part of the period for which the maximum basic rate is being worked out is nil (see section 552C).

Person who is not independent

 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).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

 

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).

Person who is independent

 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)).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

 

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).

Long term income support student

 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); and

 (d) whether the person is a member of a couple (see section 4).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

 

Table BC—Maximum basic rates (long term income support students)

Column 1

Item

Column 2

Person’s situation

Column 3

Rate

1

Not independent, lives at home and not a member of a couple

$227.20

2

Not independent, required to live away from home and not a member of a couple

$341.40

3

Accommodated independent person and not a member of a couple

$227.20

4

Independent, not an accommodated independent person and not a member of a couple

$341.40

5

Member of a couple

$308.70

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

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

Qualification for pharmaceutical allowance

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

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 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).

Amount of pharmaceutical allowance

 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).

Rent assistance

 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 rent is in respect of premises 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) either of the following applies:

 (i) if the person is not a member of a couple, or is a member of an illness separated couple, a respite care couple or a temporarily separated couple and is entitled to be paid family tax benefit—the person’s maximum Part A rate of family tax benefit does not include rent assistance;

 (ii) if the person is a member of a couple other than an illness separated couple, a respite care couple or a temporarily separated couple, and the person or the person’s partner is entitled to be paid family tax benefit—the maximum Part A rate of family tax benefit of the person, or the person’s partner, does not include rent assistance.

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

Rent threshold rate

 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).

Partner with rent increased pension

 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, service pension or income support supplement; and

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

Factors affecting rate of rent assistance

 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.

Partner with 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.

Rate of rent assistance

 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.

Fortnightly rent

 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.

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

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

 (c) is receiving ABSTUDY and:

 (ii) has a partner who is receiving ABSTUDY; or

 (iii) is a single parent; or

 (d) is a person to whom section 1061ZK applies by virtue of subsection 1061ZK(5); or

 (e) is a person to whom section 1061ZO applies by virtue of subsection 1061ZO(2), (3) or (4).

Appropriate tax year

 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).

Change to appropriate tax year because of increase in combined parental income

 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;

the appropriate tax year, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends after 30 September in a year, is the tax year following the base tax year.

Change to appropriate tax year at person’s request

 1067G‑F7 If:

 (aa) a person’s combined parental income for the tax year following the base tax year is substantially less than it was in the base tax year and is likely to continue to be so for 2 years after the later of:

 (i) 1 January in the tax year following the base tax year; or

 (ii) the day on which the combined parental income is reduced; and

 (a) the 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;

the appropriate tax year, for that purpose, 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 is to be recalculated if the person’s actual combined parental income for that tax year exceeds the amount that the person estimated;

the Secretary must determine that, for the purpose of applying this Module to the person in respect of a youth allowance payment period that ends on or after:

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

 (f) 1 January in a year;

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

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

 (d) the parent’s net passive business 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 total see subpoint 1067G‑F11(2).

Note 4: For target foreign income see subpoint 1067G‑F11(3).

Note 5: For net passive business loss see subpoint 1067G‑F11(4).

Income components for tax year

 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.

 

 1067G‑F11(2) A parent’s adjusted fringe benefits total for a tax year is the amount worked out using the formula:

where:

FBT rate is the rate of tax set by the Fringe Benefits Tax Act 1986 for the FBT year (as defined in the Fringe Benefits Tax Assessment Act 1986) beginning on the 1 April just before the start of the tax year.

reportable fringe benefits total is the amount that the Secretary is satisfied is the parent’s reportable fringe benefits total (as defined in the Fringe Benefits Tax Assessment Act 1986) for the year of income that is the tax year.

 1067G‑F11(3) A parent’s target foreign income for a tax year is the accepted estimate of the amount of the parent’s foreign income (as defined in section 10A) for the tax year that is not:

 (a) taxable income; or

 (b) received in the form of a fringe benefit (as defined in the Fringe Benefits Tax Assessment Act 1986, as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986) in relation to the parent as employee (as defined in the Fringe Benefits Tax Assessment Act 1986) and a year of tax.

1067G‑F11(4) A person’s net passive business loss for a tax year is the difference between:

 (a) the total amount of the person’s loss or outgoings for that year that are or will be deductible under the Income Tax Assessment Act because they were necessarily incurred in relation to a passive business; and

 (b) the gross income from the business for that year.

Note: For passive business see point 1067G‑F19A.

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.

Accepted estimate

 1067G‑F13 An accepted estimate of an income component or an amount described in subpoint 1067G‑F11(3), in respect of a parent, for a tax year is that income component or amount 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 or an amount described in subpoint 1067G‑F11(3), 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.

However, if the parent gives a notice, any notice given, in respect of the same income component or amount and the same tax year, by the person claiming or receiving youth allowance is taken not to be, or not to have been, given.

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.

 1067G‑F19A(1) In subpoint 1067G‑F11(4):

passive business, in relation to a person, means a business in relation to which the person is usually engaged for less than 17.5 hours in a week.

 1067G‑F19A(2) In this point:

business includes:

 (a) the carrying on of primary production; and

 (b) the provision of professional services; and

 (c) the earning of income as a rentier;

  but does not include employment (whether or not the employment is remunerated by wages or salary).

Income reduced by maintenance paid by a parent

 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.

Income increased by maintenance paid to a 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.

Parental income free area

 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.

Additional amounts for children

 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) $3,792 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) $3,792 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) $1,230 for a dependent child who:

 (i) is under 16 years of age; and

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

 (d) $2,562 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).

Additional amounts for certain tertiary students

 1067G‑F24 An additional amount of $7,585 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 in a course of study or instruction that the Employment Minister has determined, under section 5D of the Student Assistance Act 1973, to be a tertiary course for the purposes of that Act; and

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

 (d) the student is 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.

Parents paying maintenance

 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).

Rounding off

 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.

How to work out effect of actual means of a person’s family on maximum payment rate

 1067G‑G1 This is how to work out the effect (if any) of the actual means of a person’s family on the person’s maximum payment rate in respect of a particular youth allowance payment period.

Method statement

Step 1. Work out whether the family actual means test applies to the person using Submodule 2.

Step 2. If the family actual means test applies to the person, identify the appropriate tax year in relation to the person using Submodule 3.

Step 3. Work out the actual means of the person’s family for that year using Submodule 4.

Step 4. Work out the person’s family actual means free area using Submodule 5.

Step 5. Work out the person’s reduction for family actual means for that year using Submodule 6.

General provision

 1067G‑G2 Subject to point 1067G‑G3, the family actual means test applies to a person who:

 (a) claims or receives youth allowance; and

 (b) is not independent; and

 (c) has a parent who is a designated parent.

Exceptions

 1067G‑G3(1)  The family actual means test does not apply to a person:

 (a) while a family member of the person is receiving exceptional circumstances relief payment; or

 (b) for so much of the calendar year in which the relief payment is received as follows the cessation of the relief payment.

 1067G‑G3(2) In subpoint (1):

exceptional circumstances relief payment means:

 (a) exceptional circumstances relief payment under the Farm Household Support Act 1992; or

 (b) drought relief payment under that Act as in force immediately before the commencement of the Farm Household Support Amendment (Restart and Exceptional Circumstances) Act 1997.

Meaning of appropriate tax year

 1067G‑G4 The appropriate tax year in relation to a person for a youth allowance payment period is:

 (a) the base tax year for the period; or

 (b) if a determination of a tax year is made by the Secretary under point 1067G‑G6 in relation to the person in respect of the period—the tax year specified in the determination.

Person who may request Secretary to determine appropriate tax year

 1067G‑G5(1)  This point applies to a person who claims or receives youth allowance if the following conditions are satisfied.

 1067G‑G5(2) The first condition is that, except for this point, youth allowance:

 (a) would not be payable to the person because the rate of youth allowance is calculated to be nil; or

 (b) would be calculated to be payable at a reduced rate.

 1067G‑G5(3) The second condition is that the person gives to the Secretary, in writing:

 (a) evidence, or an estimate, that the amount of the actual means of the person’s family for the tax year (the following tax year) immediately after the base tax year is substantially less than it was in the base tax year:

 (i) because of a circumstance or event that is beyond the control of the person and the person’s family members; or

 (ii) because the person or a family member of the person is undertaking full‑time study in the following tax year; or

 (iii) because a designated parent of the person has ceased to be a parent of the kind referred to in paragraph 10B(3)(c), (d), (e), (f) or (g); and

 (b) if subparagraph (a)(i) applies—evidence of the circumstance or event concerned;

and, if the person gives an estimate as referred to in paragraph (a), the person agrees, in writing, to the person’s rate of youth allowance being recalculated if the actual means of the person’s family for the following tax year exceed the amount of the estimate.

 1067G‑G5(4) For the purposes of subparagraph (3)(a)(i), an expected decrease in the profitability of a business is not ordinarily to be taken to be a circumstance or event that is beyond the control of the person and the person’s family members.

 1067G‑G5(5) The third condition is that the person’s family actual means are unlikely to increase beyond the amount evidenced, or estimated, under paragraph (3)(a) for the 2 years beginning on the later of the following days:

 (a) 1 January in the following tax year; or

 (b) the day on which the amount of the family’s actual means was reduced.

Making of request

 1067G‑G6(1)  A person to whom point 1067G‑G5 applies may request the Secretary, in accordance with a form approved by the Secretary, to make a determination under this point in relation to a youth allowance payment period.

 1067G‑G6(2) If:

 (a) the person makes such a request; and

 (b) the youth allowance payment period to which the request relates ends on or after the later of:

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

 (ii) 1 January in a year;

the Secretary must determine, subject to subpoint (3), that the appropriate tax year for the person in relation to the youth allowance payment period is the tax year immediately after the base tax year.

 1067G‑G6(3) If the request is based on an estimate, the Secretary may make a determination only if he or she is satisfied that the estimate is current and reasonable.

How to work out the actual means of person’s family

 1067G‑G7(1)  To work out the actual means of the family of a person (the claimant/recipient) for the appropriate tax year, first calculate, in accordance with this Submodule, the actual means of the claimant/recipient and the actual means of each family member of the claimant/recipient and then apply the formula in subpoint 1067G‑G13(1) using the results of those calculations.

 1067G‑G7(2) A reference in any of the following provisions of this Submodule to a relevant person is a reference to the claimant/recipient or a family member of the claimant/recipient.

Meaning of actual means

 1067G‑G8(1)  Subject to point 1067G‑G9, the actual means of a relevant person for the appropriate tax year is an amount equal to the total spending and savings of the person in that tax year.

 1067G‑G8(2) An amount of spending or savings is taken to have been spent or saved in the appropriate tax year if the Secretary considers that the amount should be so taken.

Amounts not included in actual means of a relevant person

 1067G‑G9(1)  This point applies in working out the actual means, for the appropriate tax year, of a relevant person.

 1067G‑G9(2) The following amounts spent or saved in the appropriate tax year by the person are not included in the actual means of the person:

 (a) spending or savings from any income assistance received by the person in that tax year;

 (b) spending for the maintenance of:

 (i) a child of the person if the person does not have legal responsibility for the day‑to‑day care, welfare and development of the child; or

 (ii) a former partner of the person;

 (c) spending in boarding away from home a family member who qualified for the boarding allowance under the AIC scheme—to the extent of the lesser of:

 (i) the amount of the spending; and

 (ii) $5,274, less the amount of the boarding allowance;

 (d) spending in boarding away from home a family member who:

 (i) is a secondary student; and

 (ii) is not independent; and

 (iii) is required to live away from home;

  to the extent of the lesser of:

 (iv) the amount of the spending; and

 (v) $5,274, less the amount of the person’s after‑tax income concession (if any) for the student under point 1067G‑G11;

 (e) if the person has a disability—spending to acquire, or modify, property to assist the person to cope with the disability;

 (f) spending or savings from any arm’s length loan received by the person in that tax year;

 (g) spending to repay a loan received by the person in that tax year that is not an arm’s length loan, or to pay interest on the loan;

 (h) spending or savings from the proceeds of any liquidation of assets of the person that were held at the beginning of that year;

 (i) spending or savings from the amount of any windfall gain that is not a gift to the person;

 (j) spending or savings, of not more than $6,000, from income that is exempt income under item 1.4 of the table in section 51‑5 of the Income Tax Assessment Act 1997;

 (k) spending or savings from any part of a lump sum compensation payment made to the person on which tax is not payable under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.

 1067G‑G9(3) Also, the actual means of the person do not include the following amounts:

 (a) subject to subpoint (4), an amount equal to the amount of the income or resources of a business of the person that is deductible under the Income Tax Assessment Act 1936, or the Income Tax Assessment Act 1997 because the amount was, or will be, necessarily incurred in carrying on the business;

 (b) an amount equal to the amount of any reduction in liquid assets of the person held at the beginning of the appropriate tax year and not accounted for by spending of a kind referred to in subpoint (2).

 1067G‑G9(4) The reference in paragraph (3)(a) to the amount of the income or resources of a business of the person that is deductible does not include:

 (a) the amount of any losses from the business that are carried forward from a tax year earlier than the appropriate tax year; or

 (b) the amount of a contribution to a superannuation fund, in relation to the business, that exceeds:

 (i) for an employee—the minimum contribution for the employee under the Superannuation Guarantee (Administration) Act 1992; or

 (ii) for a person engaged otherwise than as an employee—the lesser of $3,000 and the total amount of the contributions for the person, and each family member of the person, for the appropriate tax year.

Amounts not included in actual means of a family member of claimant/recipient

 1067G‑G10 In working out the actual means, for the appropriate tax year, of a family member of the claimant/recipient, being a family member of a kind referred to in subparagraph 23(15)(b)(i), (ii) or (iii), spending or savings from any income of the family member from independent employment (except so much of such spending or savings as exceeds $6,000) is not included.

After‑tax income concession for secondary student

 1067G‑G11(1)  This point explains how a relevant person’s after‑tax income concession for a secondary student referred to in subparagraph 1067G‑G9(2)(d)(v) is worked out.

 1067G‑G11(2) The purpose of the concession is to compensate the family of a secondary student who is required to live away from home for the additional expenditure incurred in maintaining the student while he or she is required to live away from home. The compensation is effected by reducing the actual means of the family by an amount calculated by reference to the additional amount of youth allowance that is payable because the student is required to live away from home.

 1067G‑G11(3) Accordingly, a relevant person’s after‑tax income concession is the amount worked out using the formula:

 1067G‑G11(4) In this section:

after‑tax income means the amount calculated using the formula:

income tax means the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986, that would be notionally payable by a person for the appropriate tax year if the person’s taxable income were the amount obtained by dividing the parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income.

medicare levy means the amount of medicare levy that would be notionally payable by a married person for the appropriate tax year if:

 (a) the person’s taxable income were the amount obtained by dividing the parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income; and

 (b) the person were a parent of the student, and of all the family members of the student who were children referred to in paragraph 23(15)(b); and

 (c) the student and each of those children had no separate net income, within the meaning of section 159J of the Income Tax Assessment Act 1936, in the appropriate tax year.

notional after‑tax income means the amount calculated using the formula:

notional income tax means the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986, that would be notionally payable by a person for the appropriate tax year if the person’s taxable income were the amount obtained by dividing the notional parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income.

notional medicare levy means the amount of medicare levy that would be notionally payable by a married person for the appropriate tax year if:

 (a) the person’s taxable income were the amount obtained by dividing the notional parental income by the number of parents whose income is included in the claimant/recipient’s combined parental income; and

 (b) the person were a parent of the student, and of all the family members of the student who were children referred to in paragraph 23(15)(b); and

 (c) the student and each of those children had no separate net income, within the meaning of section 159J of the Income Tax Assessment Act 1936, in the appropriate tax year.

notional parental income means the minimum amount of the combined parental income in relation to the student for the appropriate tax year that would cause the student’s youth allowance rate to be reduced to nil if the student’s maximum basic rate were the amount specified in column 3 of item 1 of Table BA in point 1067G‑B2 as at 1 January of that year.

number of students means the number of persons who:

 (a) are included in the group of persons constituted by the student and his or her family members; and

 (b) are secondary students; and

 (c) receive youth allowance; and

 (d) are not independent; and

 (e) are required to live away from home.

parental income means the minimum amount of the combined parental income in relation to the student for the appropriate tax year that would cause the student’s youth allowance rate to be reduced to nil if the student’s maximum basic rate were the amount specified in column 3 of item 3 of Table BA in point 1067G‑B2 as at 1 January of that year.

Powers of Secretary to determine fair market value

 1067G‑G12(1)  If the Secretary considers that an amount of spending that would otherwise be included in the actual means of a relevant person does not represent the fair market value of the matter or thing to which the spending related:

 (a) the Secretary must determine the fair market value of the matter or thing; and

 (b) an amount equal to the value so determined is taken to be the amount of the spending.

 1067G‑G12(2) If the Secretary considers that spending by a person other than a family member of a relevant person is spending for the benefit of the relevant person:

 (a) the Secretary must determine the fair market value of the matter or thing to which the spending related; and

 (b) an amount equal to the value so determined is taken to be an amount of spending by the relevant person.

Actual means of family of claimant/recipient

1067G‑G13(1)  The actual means of the family of a claimant/recipient for the appropriate tax year is the amount worked out using the formula:

 1067G‑G13(2) In this section:

after‑tax income, in relation to a parent of the claimant/recipient for the appropriate tax year, means the gross income of the parent for that year less any income tax or medicare levy payable in respect of the parent’s taxable income for that year.

GAM (gross actual means), in relation to the claimant/recipient’s family for the appropriate tax year, means the total of the amounts of the actual means, for that year, of the claimant/recipient and of each of the family members of the claimant/recipient.

NITML (notional income tax/medicare levy), in relation to a parent of the claimant/recipient for the appropriate tax year, means the sum of:

 (a) the amount of income tax, before any rebates, and without regard to any increase occurring in the tax free threshold because of section 20C or 20D of the Income Tax Rates Act 1986 that would be notionally payable by the parent for that year; and

 (b) the amount of medicare levy that would be notionally payable by the parent for that year if none of the parent’s children who are children referred to in paragraph 23(15)(b) had a separate net income within the meaning of section 159J of the Income Tax Assessment Act 1936 in that year;

that would result in the after‑tax income of the parent for that year being an amount equal to one‑half of GAM of the claimant/recipient’s family for that year.

NPBL (net passive business loss) means the sum of the net passive business losses (if any) of each of the parents of the claimant/recipient in the appropriate tax year.

TFTI (tax‑free threshold increase) means 20% of the total of the amounts calculated in respect of each of the parents of the claimant/recipient for the appropriate tax year under section 20C (without regard to section 20K) of the Income Tax Rates Act 1986.

TNITML (total notional income tax/medicare levy) means the total of the amounts of NITML in relation to each of the parents of the claimant/recipient for the appropriate tax year.

Family actual means free area

 1067G‑G14 A person’s family actual means free area is the amount that is the person’s parental income free area worked out under Submodule 5 of Module F.

Reduction for family actual means

 1067G‑G15(1)  A person’s reduction for family actual means for the appropriate tax year is the amount obtained by dividing by 26 the person’s family actual means excess for that year.

 1067G‑G15(2) A person’s family actual means excess for the appropriate tax year is the amount worked out using the formula:

where:

actual family means means the actual means of the person’s family for that year.

actual means free area means the person’s family actual means free area.

 1067G‑G15(3) If the amount worked out under subsection (2) is an amount of dollars and cents, disregard the amount of cents.

 1067G‑G15(4) If the amount worked out under subsection (2) is less than $1, the amount is taken to be nil.

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 streams (sections 1095 to 1099D);

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

Ordinary income of members of certain couples

 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, income support supplement 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.

Friendly society amounts

 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;

is not to include any amount received from an approved friendly society in respect of the incapacity to which the temporary incapacity exemption relates.

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;

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

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;

the person is, for the purposes of this point, taken to have received a sick leave payment equal to the person’s sick leave entitlements in respect of that day, assuming that the person does not exercise any rights the person may have in relation to the amount to be paid 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;

point 1067G‑H5 applies to the person in respect of the person’s sick leave entitlements.

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;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

Certain leave payments taken to be ordinary income—employment continuing

 1067G‑H11 If:

 (a) a person is employed; and

 (b) the person is on leave for a period; and

 (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain leave payments taken to be ordinary income—employment terminated

 1067G‑H12 If:

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

 (b) the person receives a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the payment relates.

More than one leave payment on a day

 1067G‑H13 If:

 (a) the person is covered by point 1067G‑H12; and

 (b) the person receives more than one leave payment on a day;

the income maintenance period is worked out by adding the leave periods to which the payments relate.

Start of income maintenance period—employment continuing

 1067G‑H14   If the person is covered by point 1067G‑H11, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated

 1067G‑H14A  Subject to point 1067G‑H14C, if the person is covered by point 1067G‑H12, the income maintenance period starts, subject to point 1067G‑H14B, on the day the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment—employment terminated

 1067G‑H14B  If a person who is covered by point 1067G‑H12 is subject to an income maintenance period (the first period) and the person is paid another leave payment during that period (the second leave payment), the income maintenance period for the second leave payment commences the day after the end of the first period.

Start of income maintenance period where liquid assets test waiting period applies

 1067G‑H14C  If a person to whom point 1067G‑H14A applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.

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;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

 (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  If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.

When a person receives a leave payment

 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.

Single payment in respect of different kinds of leave—employment terminated

 1067G‑H18 If a person who is covered by point 1067G‑H12 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 part of the payment that is in respect of a different kind of leave is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the leave periods to which the separate 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‑H23A, 1067‑H23B, 1067G‑H24 and 1067G‑H25 and section 1073, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

Claimant or recipient receives lump sum amount for remunerative work

 1067G‑H23A If a person whose claim for youth allowance has been granted receives, after the claim was made, a lump sum amount that:

 (a) is paid to him or her in relation to remunerative work; and

 (b) is not a payment to which point 1067G‑H24 applies; and

 (c) is not an exempt lump sum;

the person is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

Partner of claimant or recipient receives lump sum amount for remunerative work

 1067G‑H23B If:

 (a) a person whose claim for youth allowance has been granted is a member of a couple; and

 (b) after the person had made the claim, the person’s partner receives a lump sum amount that:

 (i) is paid to him or her in relation to remunerative work; and

 (ii) is not a payment to which point 1067G‑H24 applies; and

 (iii) is not an exempt lump sum;

the partner is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.

Operation of points 1067G‑H23A and 1067G‑H23B

 1067G‑H23C Points 1067G‑H23A and 1067G‑H23B have effect even if the person who has made the claim:

 (a) is subject to a liquid assets test waiting period or an income maintenance period in respect of the allowance claimed; or

 (b) is subject to a seasonal work preclusion period;

during the period of 12 months referred to in those points.

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;

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

 (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.

Payment of arrears of periodic compensation payments

 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;

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

 (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.

Partner income free area

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

 (a) if the person’s partner is not receiving a social security benefit and has not turned 21—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full‑time study (see section 541B); or

 (b) if the person’s partner is not receiving a social security benefit and has turned 21—the amount of income of the partner (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the partner if the partner were qualified for a newstart allowance; or

 (c) if the person’s partner is receiving a social security benefit—the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

Partner income excess

 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, income support supplement or a rehabilitation allowance; and

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

then:

 (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.

Partner income reduction

 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—$236; or

 (b) otherwise—$62.

Ordinary income excess

 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.

Ordinary income reduction

 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).

Lower range reduction

 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.

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 $236:

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

 (b) the income credit is an amount equal to the difference between $236 and the first‑mentioned amount.

Drawing from income bank credit

 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 $236:

 (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 $236.

Income bank fortnight

 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)).

Rate of remote area allowance

 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

$18.20

$7.30

2

Partnered

$15.60

$7.30

3

Member of an illness separated couple

$18.20

$7.30

4

Partnered (partner in gaol)

$18.20

$7.30

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

Meaning of remote area allowance

 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.

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;

the child is taken, for the purposes of this Module, to be a child of the person, being 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;

the child is taken, for the purposes of this Module, to be a child of the person, being a child to whom point 1067G‑K8 applies.

Child to whom this point applies

 1067G‑K8 This point applies to an FTB child in respect of whom a person is eligible for a Part A rate of family tax benefit that exceeds the person’s base rate of family tax benefit under clause 4 of Schedule 1 to the Family Assistance Act.

Special rule dealing with the death of an FTB child

 1067G‑K9 If a child to whom point 1067G‑K8 applies dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.

 

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 is receiving age pension

(Part 2.4)

7

Service pension (partner)—if partner is receiving service pension (age)

(Section 38 of the Veterans’ Entitlements Act)

7A

Income support supplement

(section 45A 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)

20

War widow’s pension—if the widow has a dependent child

(Section 13 of the Veterans’ Entitlements Act)

21

Wife pension—if husband is receiving a disability support pension

(Part 2.4 as in force on 11 November 1991)

22

Wife’s service pension—if husband is receiving 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

Austudy payment

(Part 2.11A)


 

  In this Part:

living at home has the meaning given by section 1067J.

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

  A person lives at home if the person lives at the home of either or both of his or her parents.

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

 1067K(1) A person is a long term income support student if the person:

 (b) does not have a dependent child; and

 (c) is undertaking study (whether as a full‑time student or as a concessional study‑load student) in respect of a course of education that the person has commenced after turning 21; and

 (d) has, for at least 26 weeks in the period of 39 weeks that ended when the person commenced to undertake the study referred to in paragraph (c), been receiving one or more of the following:

 (i) newstart allowance;

 (ii) sickness allowance;

 (iii) special benefit;

 (iv) disability support pension;

 (v) wife pension;

 (vi) carer payment;

 (vii) bereavement allowance;

 (viii) disability wage supplement;

 (ix) pension PP (single);

 (x) sole parent pension;

 (xi) benefit parenting allowance;

 (xii) benefit PP (partnered).

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

Note 2: For full‑time student and concessional study‑load student see sections 569C and 569D.

 1067K(2) A person is also a long term income support student if the person:

 (b) does not have a dependent child; 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.

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

Austudy Payment Rate Calculator

 1067L(1) The rate of austudy payment of a person referred to in subsection 581(1) is to be calculated in accordance with the Rate Calculator in this section.

Limit on rate of payment

 1067L(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 under the age of consent that applies in the State or Territory in which they are living;

the rate of the person’s austudy payment is not to be more than the rate at which the austudy payment would be payable to the person if the other person were the person’s partner.

Method of calculating rate

 1067L‑A1 The rate of payment is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

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. Add up the amounts obtained in Steps 1 to 2: the result is the maximum payment rate.

Step 4. Apply the income test using Module D below to work out the person’s income reduction.

Step 5. Take away the person’s income reduction from the maximum payment rate: the result is the provisional fortnightly payment rate.

 Note: If a person’s rate is reduced under this step, the order in which the reduction is to be made is laid down by section 1210 (maximum basic rate first, then pharmaceutical allowance).

Step 6. The rate of payment is the amount obtained by:

 (a) subtracting from the provisional fortnightly payment rate any special employment advance deduction (see Part 3.16B); and

 (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

 (c) adding any amount payable by way of remote area allowance (see Module F).

Maximum basic rate

 1067L‑B1 A person’s maximum basic rate is to be worked out as follows:

 (a) if the person is not a long term income support student (see section 1067K)—use Table BA;

 (b) if the person is a long term income support student—use point 1067L‑B3.

Person who is not a long term income support student

 1067L‑B2(1)  If the person is not a long term income support student (see section 1067K), work out:

 (a) whether the person is a member of a couple (see section 4); and

 (b) whether the person has a dependent child (see subsections 5(2) to (9)); and

 (c) if the person is not a member of a couple, whether the person has a YA child (see subpoint (2)).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

 

Table BA—Maximum basic rates (persons who are not long term income support students)

Column 1

Item

Column 2

Person’s situation

Column 3

Rate

1

Does not have a dependent child or a YA child

$281.10

2

Is a member of a couple and has a dependent child

$308.70

3

Is not a member of a couple and has a dependent child or YA child

$368.30

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

 1067L‑B2(2)  In this point:

YA child, in relation to a person who is not a member of a couple, means a child who is receiving youth allowance, is under 18 years of age and would be a dependent child of the person if he or she were not receiving the allowance.

Person who is a long term income support student

 1067L‑B3 If the person is a long term income support student (see section 1067K), work out whether the person is a member of a couple (see section 4).

The person’s maximum basic rate is the amount in column 3 of the table that corresponds to the person’s situation as described in column 2 of the table.

 

Table BB—Maximum basic rates (persons who are long term income support students)

Column 1

Item

Column 2

Person’s situation

Column 3

Rate

1

Is a member of a couple

$308.70

2

Is not a member of a couple

$341.40

Qualification for pharmaceutical allowance

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

 (b) the person has turned 60; and

 (c) the person has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph).

Note 1: For income support payment see subsection 23(1).

Note 2: For the determination of the continuous period in respect of which a person received income support payments see section 38B.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans’ Entitlements Act and not a service pensioner

 1067L‑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).

Amount of pharmaceutical allowance

 1067L‑C3 The amount of pharmaceutical allowance is the amount per fortnight worked out using the following table:

 

Table C—Pharmaceutical allowance amounts

Column 1

Item

Column 2

Person’s family situation

Column 3

Amount per 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).

Effect of ordinary income on maximum payment rate

 1067L‑D1 This is how to work out the effect of:

 (a) a person’s ordinary income; and

 (b) 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 1067L‑D2 to 1067L‑D24).

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

Step 2. If the person is a member of a couple, work out the partner income free area using point 1067L‑D25.

 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 1067L‑D26 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 1067L‑D27.

Step 5. Use point 1067L‑D29 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 1067L‑D30, 1067L‑D31 and 1067L‑D32.

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 4 of the Method statement in point 1067L‑A1.

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

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

(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 income streams (sections 1096 to 1099D);

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

Ordinary income of members of certain couples

 1067L‑D2 If a person is a member of a couple and the person’s partner is receiving a social security pension, a service pension, income support supplement 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.

Termination payments

 1067L‑D3 Subject to points 1067L‑D4 to 1067L‑D16 (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;

the person is taken to have received the lump sum payment on the day on which the person’s employment was terminated.

Rolling over lump sum leave payments

 1067L‑D4 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;

the lump sum leave payment is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

Certain leave payments taken to be ordinary income—employment continuing

 1067L‑D5 If:

 (a) a person is employed; and

 (b) the person is on leave for a period; and

 (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain leave payments taken to be ordinary income—employment terminated

 1067L‑D6 If:

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

 (b) the person receives a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the payment relates.

More than one leave payment on a day

 1067L‑D7 If:

 (a) the person is covered by point 1067L‑D6; and

 (b) the person receives more than one leave payment on a day;

the income maintenance period is worked out by adding the leave periods to which the payments relate.

Start of income maintenance period—employment continuing

 1067L‑D8 If the person is covered by point 1067L‑D5, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period—employment terminated

 1067L‑D9 Subject to point 1067L‑D10A, if the person is covered by point 1067L‑D6, the income maintenance period starts, subject to point 1067L‑D10, on the day on which the person is paid the leave payment.

Commencement of income maintenance period where there is a second leave payment—employment terminated

 1067L‑D10 If:

 (a) a person who is covered by point 1067L‑D6 is subject to an income maintenance period (the first period); and

 (b) the person is paid another leave payment during that period (the second leave payment);

the income maintenance period for the second leave payment starts on the day after the end of the first period.

Start of income maintenance period where liquid assets test waiting period applies

 1067L‑D10A  If a person to whom point 1067L‑D10 applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.

Leave payments in respect of periods longer than a fortnight

 1067L‑D11 If:

 (a) a person receives a leave payment; and

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

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

 (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.

 1067L‑D12 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3: If an income maintenance period applies to a person, then, during that period:

(a) the allowance claimed may not be payable to the person; or

(b) the amount of the allowance payable to the person may be reduced.

When a person receives a leave payment

 1067L‑D13 For the purposes of points 1067L‑D4 to 1067L‑D12 (inclusive), a person (first person) is taken to receive a leave payment if:

 (a) the payment is made to another person:

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

 (ii) on behalf of the first person; or

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

 (b) the first person waives or assigns his or her right to receive the payment.

Single payment in respect of different kinds of leave—employment terminated

 1067L‑D14 If a person who is covered by point 1067L‑D6 receives a single payment in respect of different kinds of leave, then, for the purposes of the application of points 1067L‑D4 to 1067L‑D13 (inclusive):

 (a) each part of the payment that is in respect of a different kind of leave is taken to be a separate payment; and

 (b) the income maintenance period in respect of the single payment is worked out by adding the leave periods to which the separate payments relate.

Definitions

 1067L‑D15 In points 1067L‑D4 to 1067L‑D14 (inclusive):

payment fortnight means a fortnight in respect of which an austudy payment 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 meaning that roll‑over has in section 27D of the Income Tax Assessment Act 1936 in relation to an eligible termination payment.

Meaning of leave payment

 1067L‑D16 In points 1067L‑D4 to 1067L‑D15 (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

 1067L‑D17 Subject to point 1067L‑D18 (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

 1067L‑D18 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

 1067L‑D19 Subject to points 1067L‑D20, 1067L‑D21, 1067L‑D23 and 1067L‑D24 and section 1073, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

Claimant or recipient receives lump sum amount for remunerative work

 1067L‑D20 If a person whose claim for austudy payment has been granted receives, after the claim was made, a lump sum amount that:

 (a) is paid to him or her in relation to remunerative work; and

 (b) is not a payment to which point 1067L‑D21 applies; and

 (c) is not an exempt lump sum;

the person is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

Partner of claimant or recipient receives lump sum amount for remunerative work

 1067L‑D21 If:

 (a) a person whose claim for austudy payment has been granted is a member of a couple; and

 (b) after the person has made the claim, the person’s partner receives a lump sum amount that:

 (i) is paid to him or her in relation to remunerative work; and

 (ii) is not a payment to which point 1067L‑D23 applies; and

 (iii) is not an exempt lump sum;

the partner is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.

Operation of points 1067L‑D20 and 1067L‑D21

 1067L‑D22 Points 1067L‑D20 and 1067L‑D21 have effect even if the person who has made the claim is, during the period of 12 months referred to in those points, subject to a liquid assets test waiting period, or an income maintenance period, in respect of the allowance claimed.

Ordinary income received at intervals longer than one fortnight

 1067L‑D23 Subject to points 1067L‑D4 to 1067L‑D16 (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 predicability or regularity as to the timing of the payments; and

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

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

 (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.

Payment of arrears of periodic compensation payments

 1067L‑D24 If:

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

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

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

 (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.

Partner income free area

 1067L‑D25 The partner income free area for a person is:

 (a) if the person’s partner is not receiving a social security benefit and has not turned 21—the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full‑time study (see section 541B); or

 (b) if the person’s partner is not receiving a social security benefit and has turned 21—the amount of income of the partner (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the partner if the partner were qualified for a newstart allowance; or

 (c) if the person’s partner is receiving a social security benefit—the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

Partner income excess

 1067L‑D26 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, income support supplement or a rehabilitation allowance; and

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

then:

 (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.

Partner income reduction

 1067L‑D27 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 1067L‑D25 is $462.

Result: Martin’s ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067L‑D26 of:

 Alice’s partner income reduction under point 1067L‑D27 is therefore:

Ordinary income free area

 1067L‑D28 A person’s ordinary income free area is $236.

Ordinary income excess

 1067L‑D29 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.

Ordinary income reduction

 1067L‑D30 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 1067L‑D31); and

 (b) the person’s upper range reduction (if any) (see point 1067L‑D32).

Lower range reduction

 1067L‑D31 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

 1067L‑D32 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.

Student income bank

 1067L‑E1 A person’s ordinary income under Module D 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 austudy payment may be payable to the person, is to be reduced; and

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

 

Income bank credit

 1067L‑E2 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 1067L‑E3, 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 1067L‑E3—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 1067L‑E4—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

 1067L‑E3 For the purposes of point 1067L‑E2, 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 $236:

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

 (b) the income credit is an amount equal to the difference between $236 and the first‑mentioned amount.

Drawing from income bank credit

 1067L‑E4 For the purposes of point 1067L‑E2, 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 $236:

 (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 $236.

Income bank fortnight

 1067L‑E5 For the purposes of this Module, an income bank fortnight of a person is any fortnight in respect of which an austudy payment may be payable to the person.

Remote area allowance—person physically in remote area

 1067L‑F1 An amount by way of remote area allowance is to be added to a person’s rate of austudy payment if:

 (a) the person’s rate of austudy payment 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)).

Rate of remote area allowance

 1067L‑F2 A person’s rate of remote area allowance is worked out using Table F. 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 the additional corresponding amount in column 4 for each child of the person, being a child to whom point 1067L‑F8 applies.

 

Table F—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

$18.20

$7.30

2

Partnered

$15.60

$7.30

3

Member of an illness separated couple

$18.20

$7.30

4

Partnered (partner in gaol)

$18.20

$7.30

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

Meaning of remote area allowance

 1067L‑F3 In Table F, remote area allowance means an amount added to a person’s austudy payment by way of remote area allowance.

In remote area

 1067L‑F4 For the purposes of Table F, 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.

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

 1067L‑F6 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 1067L‑F8 applies;

the child is taken, for the purposes of this Module, to be a child of the person, being a child to whom point 1067L‑F8 applies.

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

 1067L‑F7 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 1067L‑F8 applies; and

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

the child is taken, for the purposes of this Module, to be a child of the person, being a child to whom point 1067L‑F8 applies.

Child to whom this point applies

 1067L‑F8 This point applies to an FTB child in respect of whom a person is eligible for a Part A rate of family tax benefit that exceeds the person’s base rate of family tax benefit under clause 4 of Schedule 1 to the Family Assistance Act.

Special rule dealing with the death of an FTB child

 1067L‑F9 If a child to whom point 1067L‑F8 applies dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note: This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child during that 14 weeks.

 

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