Contents
Chapter 3—General provisions relating to payability and rates 1
Part 3.6—Benefit Rate Calculator B 1
1068...................... Rate of jobseeker payment.................................................. 1
Benefit Rate Calculator B 2
Module A—Overall rate calculation process 2
Module B—Maximum basic rate 4
Module BA—Pension supplement 10
Module C—Energy supplement 11
Module D—Pharmaceutical allowance 13
Module G—Income test 17
Module J—Remote area allowance 31
Part 3.6A—Parenting Payment Rate Calculator 35
1068A................... Rate of parenting payment—pension PP (single)............. 35
Pension PP (Single) Rate Calculator 35
Module A—Overall rate calculation process 35
Module B—Maximum basic rate 37
Module BA—Pension supplement 37
Module BB—Energy supplement 38
Module C—Pharmaceutical allowance 39
Module E—Ordinary income test 41
Module F—Remote area allowance 49
1068B.................... Rate of parenting payment—PP (partnered)..................... 50
Benefit PP (Partnered) Rate Calculator 50
Module A—Overall rate calculation process 50
Module C—Maximum basic rate 53
Module D—Income test 54
Module DA—Pension supplement 63
Module DB—Energy supplement 65
Module E—Pharmaceutical allowance 66
Module G—Remote area allowance 70
Part 3.7—Rent assistance 73
Division 1—Operation of this Part 73
1070...................... When this Part applies...................................................... 73
1070A................... Effect of this Part.............................................................. 73
Division 2—Qualification for rent assistance 74
1070B.................... Qualification—general rule............................................... 74
1070C.................... Common requirements (about aged care residence, home ownership and rent) 74
1070D................... Specific requirement (carer payments and certain age and disability support pensions) 74
1070E.................... Specific requirement (certain parenting payments)............ 75
1070F.................... Specific requirement (certain disability support pensions) 76
1070G................... Specific requirement (youth allowance)............................ 79
1070H................... Specific requirement (austudy payment and jobseeker payment) 80
1070J..................... Specific requirement (certain parenting payments)............ 81
Division 3—Rate of rent assistance 83
1070K.................... Rate depends on social security payment and family situation 83
1070L.................... Rate for carer payments and certain age and disability support pensions 83
1070M................... Rate for certain parenting payments.................................. 86
1070N................... Rate for disability support pension (person aged under 18) 87
1070P.................... Rate for disability support pension (person aged between 18 and 21) 91
1070Q................... Rate for youth allowance, austudy payment and jobseeker payment 94
1070R.................... Rate for certain parenting payments.................................. 96
Division 4—Certain concepts used in this Part 98
1070S.................... Division has effect for purposes of Part........................... 98
1070T.................... Rent threshold amount...................................................... 98
1070U................... Fortnightly rent................................................................. 98
1070V................... Rent paid by a member of certain couples......................... 99
1070W................... Partner with a rent increased pension................................ 99
1070X................... Partner with a rent increased benefit................................. 99
Part 3.9—Seniors Health Card Income Test Calculator 102
1071...................... Seniors Health Card Income Test Calculator.................. 102
Seniors Health Card Income Test Calculator 102
Part 3.9A—Health Care Card Income Test Calculator 110
1071A................... Health care card income test............................................ 110
Health Care Card Income Test Calculator 110
Part 3.10—General provisions relating to the ordinary income test 115
Division 1—Ordinary income concept and treatment of certain income amounts 115
1072...................... General meaning of ordinary income.............................. 115
1072A................... Treatment of certain lump sum payments........................ 115
1073...................... Certain amounts taken to be received over 12 months.... 116
Division 1AAA—Work bonus 118
1073AA................ Work bonus.................................................................... 118
1073AAA............. Meaning of gainful work................................................ 123
1073AB................. Unused concession balance............................................ 125
Division 1AA—Employment income attribution rules 126
1073A................... Attribution of employment income paid in respect of a particular period or periods 126
1073B.................... Attribution of employment income paid monthly............ 128
1073BA................. Attribution of employment income paid not in respect of a particular period 129
1073BB................. Anti‑avoidance................................................................ 131
1073BC................. Exclusion of certain payments........................................ 133
1073BD................. Daily attribution of employment income for amounts not elsewhere covered in this Division 134
1073C.................... Fortnightly or yearly expression of attributed employment income 134
Division 1AB—Working credit accrual and depletion rules and their consequences 135
1073D................... To whom do working credit accrual and depletion rules apply? 135
1073E.................... Opening balance............................................................. 135
1073F.................... Working out accruals and depletions of working credit for social security beneficiaries 139
1073G................... Working out the effect of a working credit depletion on the fortnightly rate of ordinary income for a social security beneficiary......................................................... 141
1073H................... Working out accruals and depletions of working credit for social security pensioners 141
1073I..................... Working out the effect of a working credit depletion on the yearly rate of ordinary income for a social security pensioner........................................................................ 143
1073J..................... Working credit balance prevents loss of qualification in certain cases 144
Division 1A—Business income 145
1074...................... Ordinary income from a business—treatment of trading stock 145
1075...................... Permissible reductions of business income..................... 145
Division 1B—Income from financial assets (including income streams (short term) and certain income streams (long term)) 147
1076...................... Deemed income from financial assets—persons other than members of couples 147
1077...................... Deemed income from financial assets—members of pensioner couples 148
1078...................... Deemed income from financial assets—members of non‑pensioner couples 149
1081...................... Deeming threshold.......................................................... 150
1082...................... Below threshold rate, above threshold rate..................... 151
1083...................... Actual return on financial assets not treated as ordinary income 151
1084...................... Certain money and financial investments not taken into account 151
1084A................... Valuation and revaluation of certain financial investments 152
Division 1C—Income from income streams not covered by Division 1B 153
Subdivision B—Income streams that are not family law affected income streams 153
1097A................... Scope of Subdivision...................................................... 153
1098...................... Income from asset‑test exempt income stream................ 153
1099...................... Income—income stream not a defined benefit income stream 154
1099A................... Income—income stream is a defined benefit income stream 155
1099AA................ Income from market‑linked asset‑test exempt income stream.. 155
1099B.................... Income from asset‑tested income stream (long term)...... 157
1099C.................... Income—asset‑tested income stream (long term) that is not a defined benefit income stream 158
1099D................... Income—asset‑tested income stream (long term) that is a defined benefit income stream 159
1099DAA............. Income from certain low‑payment asset‑tested income streams 159
1099DAB.............. Income—asset‑tested income stream (lifetime)............... 161
Subdivision C—Family law affected income streams 161
1099DA................ Scope of Subdivision...................................................... 161
1099DB................. Income from asset‑test exempt income streams.............. 162
1099DC................. Income from asset‑tested income stream (long term)...... 163
1099DCA.............. Income from asset‑tested income stream (lifetime)......... 163
1099DD................ Decision‑making principles............................................ 163
Division 1D—Aged care accommodation bonds: certain transactions before 6 November 1997 164
1099E.................... Scope of Division........................................................... 164
1099F.................... Exempt bond amount does not count as income............. 165
1099G................... Person’s ordinary income reduced using financial asset rules 165
1099H................... Meaning of exempt bond amount................................... 165
Division 1E—Refunds to charge exempt residents 167
1099J..................... Scope of Division........................................................... 167
1099K.................... Refunded amount does not count as income................... 167
1099L.................... Person’s ordinary income reduced using financial asset rules 167
1099M................... Application of Division.................................................. 168
Division 2—Conversion of foreign currency amounts 169
1100...................... How value of a payment received in a foreign currency is to be determined 169
1100A................... Determining value of a payment originally denominated in a foreign currency but made in Australian currency........................................................................................ 170
Division 3—Disposal of ordinary income 172
1106...................... Disposal of ordinary income........................................... 172
1107...................... Amount of disposition.................................................... 173
1108...................... Disposal of ordinary income—individuals..................... 173
1109...................... Disposal of ordinary income—members of couples....... 174
1111...................... Dispositions more than 5 years old to be disregarded..... 175
Part 3.12—General provisions relating to the assets test 177
Division 1—Value of person’s assets 177
1118...................... Certain assets to be disregarded in calculating the value of a person’s assets 177
1118A................... Value of superannuation investments determined by Minister to be disregarded 185
1118AA................ Value of assets reduced by amounts received from Mark Fitzpatrick Trust 186
1118AB................. Value of person’s assets reduced: certain transactions to do with aged care accommodation bonds 187
1118AC................. Value of person’s assets reduced: refunds to charge exempt residents 187
1119...................... Value of asset‑tested income streams that are not defined benefit income streams, asset‑tested income streams (lifetime) or family law affected income streams............. 187
1120...................... Value of asset‑tested income streams that are defined benefit income streams 189
1120AA................ Value of asset‑tested income streams (lifetime) that are managed investments 190
1120AB................. Value of asset‑tested income streams (lifetime) that are not managed investments 192
1120A................... Value of asset‑tested FLA income streams..................... 198
1120B.................... Value of partially asset‑test exempt income streams....... 199
1120C.................... Value of superannuation reserves for superannuation funds of 4 members or less 199
1121...................... Effect of charge or encumbrance on value of assets........ 200
1121A................... Effect of certain liabilities on value of assets used in primary production 202
1121B.................... Value of life policy......................................................... 203
1122...................... Loans.............................................................................. 204
Division 2—Disposal of assets 205
1123...................... Disposal of assets........................................................... 205
1124...................... Amount of disposal or disposition.................................. 206
1124A................... Disposal of assets in pre‑pension years—individuals..... 207
1125...................... Disposal of assets in pension years—individuals........... 208
1125A................... Disposal of assets in pre‑pension years—members of couples 209
1126...................... Disposal of assets in pension years—members of couples 211
1126AA................ Disposal of assets in income year—individuals.............. 213
1126AB................. Disposals of assets in 5 year period—individuals.......... 214
1126AC................. Disposal of assets in income year—members of couples 216
1126AD................ Disposal of assets in 5 year period—members of couples 217
1126A................... Disposal of assets in pre‑pension year—family members 219
1126B.................... Disposal of assets in pension year—family members..... 220
1126C.................... Disposal of assets in income year—family members...... 221
1126D................... Disposals of assets in 5 year period—family members.. 223
1126E.................... Modification of this Division in respect of certain assets 224
1127...................... Disposition more than 5 years old to be disregarded...... 226
1127A................... Division does not apply for purposes of care receiver assets test 226
Division 3—Financial hardship 227
1129...................... Access to financial hardship rules—pensions................. 227
1130...................... Application of financial hardship rules—pensions......... 228
1130A................... Division does not apply for purposes of care receiver assets test 231
1130B.................... Access to financial hardship rules—pension PP (single) 231
1130C.................... Application of financial hardship rules—pension PP (single) 233
1131...................... Access to financial hardship rules—benefits.................. 235
1132...................... Application of financial hardship rules—benefits........... 236
Division 4—Pension loans scheme 239
1133AA................ Pension loans scheme definitions................................... 239
1133...................... Qualification for participation in pension loans scheme.. 239
1134...................... Effect of participation in pension loans scheme—pension rate 242
1135...................... Effect of participation in pension loans scheme—creation of debt 242
1135A................... Effect of participation in pension loans scheme—maximum loan available 243
1136...................... Need for a request to participate...................................... 245
1137...................... Need for a request to later nominate or change nominated amount or rate of pension 246
1137A................... Non‑receipt of social security pension or social security