Social Security Act 1991

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 1B. Work out the energy supplement (if any) using Module C below.

Step 3. Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).

Step 4. Add up the amounts obtained in Steps 1, 1A, 1B 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.

Note: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

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

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: Section 1210 deals with the application of income and assets test reductions.

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 1173) or because the person or the person’s partner is receiving a foreign pension (see scheduled international social security agreements at section 1208).

Note 7: Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.

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 and 1064‑G2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).

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 adjusted 6 monthly: see sections 1191 to 1198A.

Module C—Energy supplement

Pension supplement

1064‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.

1064‑BA2 If the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks;

the person’s pension supplement amount is:

(d) otherwise—the amount worked out under point 1064‑BA3.

Residents in Australia etc.—no election in force

1064‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a multiple of $2.60;

rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item	Person’s family situation	Use this %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Residents in Australia etc.—election in force

1064‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1064‑BA3 as if the election were not in force;

(b) from that amount, subtract the person’s minimum pension supplement amount.

Persons absent from Australia for more than 6 weeks

1064‑BA5 If the person is not covered by point 1064‑BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

1064‑C1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Note: Section 918 may affect the addition of the energy supplement.

1064‑C2 However, this Module does not apply if quarterly energy supplement is payable to the person.

1064‑C3 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation	Amount of energy supplement
1	Not a member of a couple	$366.60
2	Partnered	$275.60
3	Member of an illness separated couple	$366.60
4	Member of a respite care couple	$366.60
5	Partnered (partner in gaol)	$366.60

Module E—Ordinary income test

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 1: For the treatment of the ordinary income of members of a couple see point 1064‑E2.

Note 2: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 2. Work out the person’s ordinary income free area (see point 1064‑E4 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:

the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);
the work bonus (section 1073AA);
business income (sections 1074 and 1075);
income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);
income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);
disposal of income (sections 1106 to 1111).

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.

Note: For the purposes of working out a person’s disability support pension rate under this Rate Calculator, Module F applies to working out the ordinary incomes of both members of the couple.

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 or carer 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

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.

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
1.	Not member of a couple	$2,080	$80
2.	Partnered (partner getting neither pension nor benefit)	$1,820	$70
3.	Partnered (partner getting benefit)	$1,820	$70
4.	Partnered (partner getting pension)	$1,820	$70

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: 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).

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.

Module F—Ordinary income for the purposes of disability support pension

Application of this Module

1064‑F1 This Module applies only for the purposes of working out the rate of disability support pension payable to a person. It so applies to that person and, if the person is a member of a couple, to the person’s partner.

Lump sum payments arising from termination of employment

1064‑F2 Subject to points 1064‑F4 to 1064‑F14 (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.

Certain leave payments taken to be ordinary income—employment continuing

1064‑F4 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 payments taken to be ordinary income—employment terminated

1064‑F5 If:

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

(b) the person receives a termination 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 period to which the payment relates.

More than one termination payment on a day

1064‑F6 If:

(a) a person is covered by point 1064‑F5; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1064‑F7 If a person is covered by point 1064‑F4, 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

1064‑F8 If a person is covered by point 1064‑F5, the income maintenance period starts, subject to point 1064‑F9, on the day on which the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1064‑F9 If:

(a) a person who is covered by point 1064‑F5 is subject to an income maintenance period (the first period); and

(b) the person is paid another termination payment during that period (the second termination payment);

the income maintenance period for the second termination payment starts on the day after the end of the first period.

Leave payments or termination payments in respect of periods longer than a fortnight

1064‑F10 If:

(a) a person receives a leave payment or termination payment; and

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

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

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

1064‑F11 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 pension claimed may not be payable to the person; or

(b) the amount of the pension payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1064‑F12 For the purposes of points 1064‑F4 to 1064‑F11 (inclusive), a person (the first person) is taken to receive a leave payment or termination 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 termination payments

1064‑F13 If a person who is covered by point 1064‑F5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1064‑F4 to 1064‑F12 (inclusive):

(a) each part of the payment that is in respect of a different kind of termination payment 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 periods to which the separate payments relate.

Definitions

1064‑F14 In this Module:

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

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

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated—the period for which the person would have received that amount of ordinary income; or

(c) if the payment is a termination payment and paragraph (b) does not apply—the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if:

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Module G—Assets test

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 disposal of assets (sections 1123 to 1128), retirement villages (sections 1145 to 1157) and financial hardship (sections 1129 and 1130).

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	$250,000	$450,000
2.	Partnered (partner getting neither pension nor benefit)	$187,500	$287,500
3.	Partnered (partner getting pension or benefit)	$187,500	$287,500

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	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
2.	Partnered (partner getting neither pension nor benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
3.	Partner (partner getting pension or benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$

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.

Module H—Remote area allowance

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 election by the person under subsection 1061VA(1) is in force; 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, and each regular care 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: 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 or regular care 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the 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 or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1064‑H7 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Part 3.3—Pension Rate Calculator B

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

(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; and

(i) is permanently blind; and

(ii) has not turned 21; and

(iii) has one or more dependent children;

is to be calculated in accordance with the Rate Calculator at the end of this section.

Note 2: For dependent child see section 5.

(3) Where:

(a) a person who is permanently blind has a relationship with another person, whether of the same sex or a different sex (other person); and

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.

Rate limited for certain armed services widows

(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:

(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

(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).

Rate limited for certain armed services widows and widowers

(6) If:

(b) an age or disability support pension is payable to the widow or widower;

the rate of pension payable to the widow or widower is not to exceed $3,247.40.

Note: For armed services widow and armed services widower see subsection 4(1).

Pension Rate Calculator B

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 energy supplement (if any) 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

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 adjusted 6 monthly: see sections 1191 to 1198A.

Module C—Energy supplement

Pension supplement

1065‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents in Australia etc.

1065‑BA2 If the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks;

the person’s pension supplement amount is:

(d) otherwise—the amount worked out under point 1065‑BA3.

Residents in Australia etc.—no election in force

1065‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

(b) if:

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (a) is not a multiple of $2.60;

rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Item	Person’s family situation	Use this %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Residents in Australia etc.—election in force

1065‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1065‑BA3 as if the election were not in force;

(b) from that amount, subtract the person’s minimum pension supplement amount.

Persons absent from Australia for more than 6 weeks

1065‑BA5 If the person is not covered by point 1065‑BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

1065‑C1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

Note: Section 918 may affect the addition of the energy supplement.

1065‑C2 However, this Module does not apply if quarterly energy supplement is payable to the person.

1065‑C3 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation	Amount of energy supplement
1	Not a member of a couple	$366.60
2	Partnered	$275.60
3	Member of an illness separated couple	$366.60
4	Member of a respite care couple	$366.60
5	Partnered (partner in gaol)	$366.60

Module E—Remote area allowance

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 election by the person under subsection 1061VA(1) is in force; 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, and each regular care 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: 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 or regular care 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the 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 or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1065‑E6 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Part 3.4A—Pension Rate Calculator D

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

(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.

(2) Subsection (1) does not apply if:

(a) the person is permanently blind; or

(b) the person has one or more dependent children.

Note 1: The rate for a disability support pension payable to a person under 21 who is permanently blind is dealt with in section 1066B.

Note 2: For dependent child see section 5.

Note 3: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1064 or 1065.

(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.

(5) If:

(a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and

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.

Pension Rate Calculator D

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 1A. Work out the energy supplement (if any) using Module BA 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 in accordance with paragraph 1070A(b).

Step 5. Add up the amounts obtained in Steps 1, 1A, 2, 3 and 4: the result is called the maximum payment rate.

Note: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.

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

Note 2: Section 1210 deals with the application of income and assets test reductions.

Note 3: The rate calculation for a member of a couple is affected by the operation of point 1066A‑A2.

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, and 1066A‑H2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).

Module BA—Energy supplement

Maximum basic rate

1066A‑B1 A person’s maximum basic rate is to be worked out using Table B. Work out the family situation. 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 a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and (c) is not living away from the person’s parental home because of a medical condition of the person	$9,695.40	$372.90
2	Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person’s parental home because of a medical condition of the person	$15,672.80	$602.80
3	Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent	$11,164.40	$429.40
4	Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i) is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent	$15,672.80	$602.80
5	Partnered	$15,672.80	$602.80
6	Member of illness separated couple, member of respite care couple or partnered (partner in gaol)	$15,672.80	$602.80

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 independent see section 5.

Note 3: For living away from the person’s parental home see subsection 23(4D).

Note 4: The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).

1066A‑BA1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the person.

Note: Section 918 may affect the addition of the energy supplement.

1066A‑BA2 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation for maximum basic rate	Amount of energy supplement
1	If the person’s maximum basic rate is worked out under item 1 of the table in point 1066A‑B1	$153.40
2	If the person’s maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066A‑B1	$236.60
3	If the person’s maximum basic rate is worked out under item 3 of the table in point 1066A‑B1	$171.60

Module C—Youth disability supplement

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: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

Module D—Pharmaceutical allowance

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 certain supplements under other Acts

1066A‑D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

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:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

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 Part 2.23 of this 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:

$Start formula start fraction amount of advance times 26 over pharmaceutical allowance rate end fraction end formula$

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:

how long during the calendar year the person was on pension or benefit;
the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

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).

Module F—Ordinary income test

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 1: For the treatment of the ordinary income of members of a couple see point 1066A‑F2.

Note 2: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.

Step 2. Work out the person’s ordinary income free area (see point 1066A‑F3 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 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:

the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);
business income (sections 1074 and 1075);
income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);
income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);
disposal of income (sections 1106 to 1111).

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.

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
1.	Not member of a couple	$2,184	$80
2.	Partnered (partner getting neither pension nor benefit)	$1,924	$70
3.	Partnered—(partner getting benefit)	$1,924	$70
4.	Partnered—(partner getting pension)	$1,924	$70

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: 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).

Pension reduction for ordinary income in excess of ordinary income free area

1066A‑F9 A person’s reduction for ordinary income is:

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.

Module G—Payments taken to be ordinary income

Application of this Module

1066A‑G1 This Module applies to a person and, if the person is a member of a couple, the person’s partner.

Lump sum payments arising from termination of employment

1066A‑G2 Subject to points 1066A‑G4 to 1066A‑G14 (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.

Certain leave payments taken to be ordinary income—employment continuing

1066A‑G4 If:

(a) a person is employed; and

(b) the person is on leave for a period; and

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 payments taken to be ordinary income—employment terminated

1066A‑G5 If:

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

(b) the person receives a termination 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 period to which the payment relates.

More than one termination payment on a day

1066A‑G6 If:

(a) a person is covered by point 1066A‑G5; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1066A‑G7 If a person is covered by point 1066A‑G4, 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

1066A‑G8 If a person is covered by point 1066A‑G5, the income maintenance period starts, subject to point 1066A‑G9, on the day on which the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1066A‑G9 If:

(a) a person who is covered by point 1066A‑G5 is subject to an income maintenance period (the first period); and

(b) the person is paid another termination payment during that period (the second termination payment);

the income maintenance period for the second termination payment starts on the day after the end of the first period.

Leave payments or termination payments in respect of periods longer than a fortnight

1066A‑G10 If:

(a) a person receives a leave payment or termination payment; and

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

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

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

1066A‑G11 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 pension claimed may not be payable to the person; or

(b) the amount of the pension payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1066A‑G12 For the purposes of points 1066A‑G4 to 1066A‑G11 (inclusive), a person (the first person) is taken to receive a leave payment or termination 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 termination payments

1066A‑G13 If a person who is covered by point 1066A‑G5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1066A‑G4 to 1066A‑G12 (inclusive):

(a) each part of the payment that is in respect of a different kind of termination payment 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 periods to which the separate payments relate.

Definitions

1066A‑G14 In this Module:

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

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

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Module H—Assets test

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.

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	$250,000	$450,000
2.	Partnered (partner getting neither pension nor benefit)	$187,500	$287,500
3.	Partnered (partner getting pension or benefit)	$187,500	$287,500

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	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
2.	Partnered (partner getting neither pension nor benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$
3.	Partner (partner getting pension or benefit)	$Start formula start fraction Assets excess times 19.5 over 250 end fraction end formula$

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.

Module I—Remote area allowance

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 Part 2.23 of this 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, and each regular care 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 or regular care 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the 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 or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1066A‑I6 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Part 3.4B—Pension Rate Calculator E

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

(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.

(1A) Subsection (1) does not apply if the person has one or more dependent children.

Note 1: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1065.

Note 2: For dependent child see section 5.

(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.

(4) Where:

(a) a person who is permanently blind has a relationship with another person, whether of the same sex or a different sex (other person); and

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.

Pension Rate Calculator E

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 2A. Work out the energy supplement (if any) using Module BA 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, 2A, 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

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.

Module BA—Energy supplement

Maximum basic rate

1066B‑B1 A person’s maximum basic rate is to be worked out using Table B. Work out the family situation. 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 a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and (c) is not living away from the person’s parental home because of a medical condition of the person	$9,695.40	$372.90
2	Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person’s parental home because of a medical condition of the person	$15,672.80	$602.80
3	Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent	$11,164.40	$429.40
4	Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i) is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent	$15,672.80	$602.80
5	Partnered	$15,672.80	$602.80
6	Member of illness separated couple, member of respite care couple or partnered (partner in gaol)	$15,672.80	$602.80

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 independent see section 5.

Note 3: For living away from the person’s parental home see subsection 23(4D).

Note 4: The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).

1066B‑BA1 An energy supplement is to be added to the person’s maximum basic rate if the person is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the person.

Note: Section 918 may affect the addition of the energy supplement.

1066B‑BA2 The person’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Person’s family situation for maximum basic rate	Amount of energy supplement
1	If the person’s maximum basic rate is worked out under item 1 of the table in point 1066B‑B1	$153.40
2	If the person’s maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066B‑B1	$236.60
3	If the person’s maximum basic rate is worked out under item 3 of the table in point 1066B‑B1	$171.60

Module C—Youth disability supplement

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).

Module D—Pharmaceutical allowance

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 certain supplements under other Acts

1066B‑D2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

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:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

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 Part 2.23 of this 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:

$Start formula start fraction amount of advance times 26 over pharmaceutical allowance rate end fraction end formula$

where:

amount of advance is the amount of the advance paid to the person.

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:

how long during the calendar year the person was on pension or benefit;
the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

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).

Module F—Remote area allowance

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 Part 2.23 of this 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, and each regular care 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: 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 or regular care 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the 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 or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1066B‑F6 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Part 3.5—Youth Allowance Rate Calculator

1067 Definitions

General definitions

(1) In this Part:

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

independent has the meaning given by section 1067A.

Note: This definition also applies in Parts 2.11, 2.11B, 3.4A, 3.4B and 3.7.

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.

1067A When a person is regarded as independent

Application

(1) This section applies to determine whether a person is to be regarded as independent for the purposes of this Part and Parts 2.11, 2.11B, 3.4A, 3.4B and 3.7. A person is not to be regarded as independent except as provided by this section.

Member of a YA couple

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

Person with a dependent child

(3) A person is independent if:

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

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

Person at least a certain age

(4) For the purposes of Parts 2.11 and 2.11B, this Part and section 1070G, a person is independent at a time in a period specified in an item of the table if at the time the person is at least the age specified in the item:

Age when person becomes independent
Item	Period	Age
1	The period starting at the start of 1 April 2010 and ending at the end of 31 December 2010	24 years
2	The year 2011	23 years
3	A year after 2011	22 years

(4A) For the purposes of Parts 3.4A, 3.4B and 3.7, except section 1070G, a person is independent if the person is at least 25 years old.

Orphan

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

If parents cannot exercise responsibilities

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

(a) serving a prison sentence; or

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

(d) missing;

whether or not the person is dependent, or was last dependent, on someone other than a parent of the person.

Refugee

(7) A person is independent if the person:

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

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

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

(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

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

(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

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

(a) full‑time employment of on average 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) for the purposes of Parts 3.4A, 3.4B and 3.7, except section 1070G—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:

(i) the maximum rate of pay under Wage Level A of a transitional Australian Pay and Classification Scale or modern award generally applicable to trainees; or

(ii) that maximum rate as varied or replaced from time to time by the Fair Work Commission;

that applied at the start of the period of employment; or

(d) for the purposes of Parts 2.11 and 2.11B, this Part and section 1070G—a period or periods of employment over a 14 month period since the person last left secondary school, earning the person at least the equivalent of 75% of:

(i) the maximum rate of pay under Wage Level A of a transitional Australian Pay and Classification Scale or modern award generally applicable to trainees; or

(ii) that maximum rate as varied or replaced from time to time by the Fair Work Commission;

that applied at the start of the period of employment.

(10A) For the purposes of determining whether a person is to be regarded as independent for the purposes of Part 2.11 or 2.11B, this Part or section 1070G:

(a) paragraph (10)(b) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(d); and

(b) paragraph (10)(d) does not apply unless subsection (10E) applies to the person because of paragraph (10E)(e).

(10E) This subsection applies to a person if:

(a) the person’s family home is:

(i) in a location categorised under the Remoteness Structure as Inner Regional Australia, Outer Regional Australia, Remote Australia or Very Remote Australia; or

(ii) on Norfolk Island; and

(b) the person is required to live away from home (see section 1067D); and

(d) in relation to paragraph (10)(b)—the person’s combined parental income (as defined in point 1067G‑F10) for:

(i) the last tax year that ended before the start of the 2 years referred to in that paragraph; or

(ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G;

is less than the threshold amount (see subsection (10K)) for the person for that tax year; and

(e) in relation to paragraph (10)(d)—the person’s combined parental income (as defined in point 1067G‑F10) for:

(i) the last tax year that ended before the start of the 14‑month period referred to in that paragraph; or

(ii) the appropriate tax year worked out under Submodule 3 of Module F of the Youth Allowance Rate Calculator in section 1067G;

is less than the threshold amount (see subsection (10K)) for the person for that tax year.

(10F) For the purposes of paragraph (10E)(a), Remoteness Structure means the Remoteness Structure described in:

(a) the document titled “Australian Statistical Geography Standard (ASGS): Volume 5 ‑ Remoteness Structure, July 2011”, published by the Australian Statistician and as amended from time to time; or

(b) any replacement document that is published by the Australian Statistician and that is in effect in accordance with subsection (10G); or

(c) any document that is determined by the Secretary in an instrument under subsection (10H) and that is in effect in accordance with subsection (10J).

(10G) If a replacement document mentioned in paragraph (10F)(b) is published by the Australian Statistician:

(a) the replacement document takes effect on the first 1 January or 1 July to occur after the day of that publication and then has effect as amended from time to time; and

(b) the document in effect immediately before that publication is taken to continue to have effect until the end of the day before that 1 January or 1 July.

(10H) The Secretary may, by notifiable instrument, determine a document for the purposes of paragraph (10F)(c). The Secretary may do so only if the Australian Statistician has notified the Secretary that the Australian Statistician will no longer be publishing replacement documents mentioned in paragraph (10F)(b).

(10J) A document determined in an instrument under subsection (10H) takes effect on the day specified in the determination and then has effect as amended from time to time.

(10K) For the purposes of paragraphs (10E)(d) and (e) and (14)(d), the threshold amount for the person (the primary person) for a tax year is the sum of the following:

(a) $160,000;

(b) $10,000 for each person who is a related person (see subsection (10L)) of the primary person on:

(i) subject to subparagraph (ii)—30 June of that tax year; or

(ii) if that tax year is the tax year following the base tax year because of point 1067G‑F7 or 1067G‑F8—the day the request was made.

(10L) For the purposes of paragraph (10K)(b), a person (the first person) is a related person of the primary person on a day if on that day:

(a) the first person is aged under 22; and

(b) a parent of the first person is also a parent of the primary person; and

(i) the first person is living away from the home of each parent covered by paragraph (b) and the first person is a member of a YA couple under subsection 1067C(1);

(ii) the first person is living away from the home of each parent covered by paragraph (b) and the first person has a natural child, adoptive child or relationship child who is wholly or substantially dependent on the first person or the first person’s partner (if any);

(iii) the first person is receiving youth allowance or disability support pension and the first person is independent under subsection (9);

(iv) the first person is in State care.

Note: For parent, see paragraph (b) of the definition of parent in subsection 5(1).

(10M) For the purposes of the application of paragraph (10)(a), (b) or (d) in relation to a person:

(a) if, for a week that falls wholly in the 2‑year period referred to in paragraph (10)(a) and wholly in the COVID‑19 concession period, the person was not in paid work consisting of full‑time employment of at least 30 hours—the person is taken, for that week, to have been in paid work consisting of full‑time employment of 30 hours; and

(b) if, for a week that falls wholly in the 2‑year period referred to in paragraph (10)(b) and wholly in the COVID‑19 concession period, the person was not in paid work consisting of part‑time employment of at least 15 hours—the person is taken, for that week, to have been in paid work consisting of part‑time employment of 15 hours; and

(c) if, for a week that falls wholly in the 14‑month period referred to in paragraph (10)(d) and wholly in the COVID‑19 concession period, the person was not in paid work consisting of employment that earnt the person at least the equivalent of 75% of the maximum rate applicable under that paragraph on 25 March 2020—the person is taken, for that week, to have been in paid work consisting of employment that earnt the person 75% of that maximum rate.

(10N) For the purposes of subsection (10M), the COVID‑19 concession period is the period:

(a) beginning on 25 March 2020; and

(b) ending at the end of 24 September 2020.

People who are disadvantaged

(11) A person is independent if the person:

(a) is at least 18 years old; and

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

(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).

People with a partial capacity to work

(12) For the purposes of this Part and Parts 2.11, 2.11B and 3.7 (except sections 1070F and 1070N), a person is independent if the person:

(a) has turned 16; and

(b) has a partial capacity to work; and

Note 1: For partial capacity to work see section 16B.

Note 2: For undertaking full‑time study see section 541B.

Note 3: For new apprentice see subsection 23(1).

Parents of relationship children

(13) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of subsections (5), (6), (7), (8), (9) and (11).

Agricultural work

(14) A person is independent if:

(a) subparagraph 540(1)(a)(i) (about full time study) applies in relation to the person; and

(b) the person undertook qualifying agricultural work between 30 November 2020 and 31 December 2021; and

(d) the person’s combined parental income (as defined in point 1067G‑F10) for the 2019‑2020 tax year or 2018‑2019 tax year is less than the threshold amount (see subsection (10K)) for the person for that tax year.

(15) For the purposes of this section, qualifying agricultural work is work of a kind determined in an instrument under subsection (16).

(16) The Secretary of the Department administered by the Minister administering the Social Security (International Agreements) Act 1999 may, by legislative instrument, determine kinds of work for the purposes of subsection (15).

1067B Accommodated independent person

(1) A person is taken to be an accommodated independent person for the purposes of Part 2.11B and 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

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

(e) has never had a natural child, adoptive child or relationship 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).

(2) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of paragraph (1)(b).

1067C Member of a YA couple

Current member of a YA couple

(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

(aa) both of the following conditions are met:

(i) a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;

(ii) the person 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 another person, whether of the same sex or a different 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 de facto relationship;

(v) if, at the time the relationship became a de facto 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 de facto 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.

Former member of a YA couple

(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

(aa) both of the following conditions are met:

(i) a relationship between the person and another person (whether of the same sex or a different sex) was registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section (whether or not the relationship is still registered);

(ii) the person 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 the relationship was registered; or

(b) all of the following conditions are met:

(i) the person had a relationship with another person, whether of the same sex or a different 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 de facto relationship;

(vii) the person and the partner were not within a prohibited relationship.

Criteria for forming opinion about relationship

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

People living separately and apart

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

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

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

1067D Person required to live away from home

When a person is taken to be required to live away from home

(1) A person is taken to be required to live away from home for the purposes of Part 2.11B and 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

(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; or

(iii) the person needs to live away from home because the person is a new apprentice.

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

Matters to which Secretary is to have regard

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

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

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

Parents of relationship children

(4) If a person (other than a person who is an adopted child) is a relationship child of another person because he or she is a child of the other person, and of a third person, within the meaning of the Family Law Act 1975, the other person and the third person are taken to be the person’s only parents for the purposes of paragraph (1)(b).

1067E Person living at home

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 Long term income support student

(1) A person is a long term income support student if the person:

(a) is at least 22 years old; and

(ba) does not have a dependent child; and

(i) undertaking full‑time study in respect of a course of education that the person had commenced after turning 22; or

(ii) a new apprentice and became a new apprentice after turning 22; 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 or became a new apprentice, been receiving one or more of the following:

(i) jobseeker payment;

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

(iv) special benefit;

(v) disability support pension;

(vii) carer payment;

(x) pension PP (single);

(xi) sole parent pension;

(xii) benefit parenting allowance;

(xiii) benefit PP (partnered).

(2) A person is also a long term income support student if the person:

(a) is at least 22 years old; and

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

1067G Rate of youth allowance

Youth allowance rate calculator

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

Limit on rate of allowance

(2) If:

(a) a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person (whether the persons are the same sex or different sexes); and

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.

Youth Allowance Rate Calculator

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 1A. Work out the energy supplement (if any) using Module BA below.

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

Step 2A. Work out the amount per fortnight (if any) for youth disability supplement using Module D below.

Step 3. Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

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, work out the person’s reduction for parental income using Module E.

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

Step 13. Take away from the maximum payment rate the greatest of the following that apply:

(a) the person’s reduction for parental income;

(If a reduction described in paragraph (a) applies, and is not less than any other reduction that applies, take away from the maximum payment rate the first‑mentioned reduction.) The result is the provisional fortnightly payment rate. If that rate is nil because of the taking away of a reduction described in paragraph (a) then youth allowance is not payable to the person.

Note: If a person’s maximum payment rate is reduced under this step, section 1210 sets the order in which the components of that rate are to be reduced.

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

Module BA—Energy supplement

Maximum basic rate

1067G‑B1 The maximum basic rate of a person 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 or point 1067G‑B3A;

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	$372.90
2	Lives at home and at least 18 years old	$429.40
3	Required to live away from home	$602.80

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	$372.90
2	Accommodated independent person and at least 18 years old	$429.40
3	In supported State care and not yet 18 years old	$372.90
4	In supported State care and at least 18 years old	$429.40
5	In unsupported State care	$602.80
6	Not a member of a couple and has a dependent child	$760.40
7	Member of a couple and has a dependent child	$652.60
8	Not an accommodated independent person, not in supported State care, not in unsupported State care and does not have a dependent child	$602.80

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

Certain children treated as dependent children if in recipient’s care for at least minimum period

1067G‑B3AA For the purposes of point 1067G‑B3, the maximum basic rate for a person receiving youth allowance is worked out as if the person had a dependent child if:

(a) the person is not undertaking full‑time study and is not a new apprentice; and

(b) either:

(i) the person is legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of a child under 16; or

(ii) under a family law order, registered parenting plan or parenting plan that is in force, a child under 16 is supposed to live or spend time with the person; and

(i) the instalment period in relation to which the maximum basic rate is being worked out; or

(ii) if the Secretary, under point 1067G‑B3AB, determines another period for the person for the purposes of this subparagraph—that other period; and

(d) none of subsections 5(3), (6) and (7) prevents the child from being a dependent child of the person.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice, family law order, registered parenting plan and parenting plan see subsection 23(1).

1067G‑B3AB The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1067G‑B3AA(c)(ii). In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1067G‑B3AD.

1067G‑B3AC A determination made under point 1067G‑B3AB is not a legislative instrument.

1067G‑B3AD The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1067G‑B3AB.

1067G‑B3A Despite point 1067G‑B3, if a person:

(a) is independent (see section 1067A) and is not a long term income support student (see section 1067F); and

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

(i) has an exemption under section 542FA because of a determination in relation to the person under subsection 542FA(3) or (3A); or

(ii) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under subsection 40P(2) of the Administration Act because of paragraph 40P(2)(a) or (b) of that Act;

the person’s maximum basic rate is the amount worked out as follows:

$Start formula start fraction Pension PP (Single) maximum basic amount over 26 end fraction end formula$

where:

pension PP (Single) maximum basic amount is the sum of:

(a) the amount that would have been the person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment; and

(b) the amount that would have been the person’s pension supplement under Module BA of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment.

Note: A person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with increases in Male Total Average Weekly Earnings (see section 1195).

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

(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	$505.20
2	Not independent, required to live away from home and not a member of a couple	$711.90
3	Accommodated independent person and not a member of a couple	$505.20
4	Independent, not an accommodated independent person and not a member of a couple	$711.90
5	Member of a couple	$652.60

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

1067G‑BA1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.

General case—recipient not covered by point 1067G‑B3A and youth disability supplement not added

1067G‑BA2 The recipient’s energy supplement is the amount worked out using the following table if:

(a) the recipient is not covered by point 1067G‑B3A; and

(b) an amount of youth disability supplement is not added under Module D to the recipient’s rate.

Energy supplement
Item	Recipient’s family situation for maximum basic rate	Amount of energy supplement
1	If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067G‑B2	$3.90
2	If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067G‑B2	$4.60
3	If the recipient’s maximum basic rate is worked out under item 3 of the table in point 1067G‑B2	$7.00
4	If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G‑B3	$3.90
5	If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G‑B3	$4.60
6	If the recipient’s maximum basic rate is worked out under item 5 of the table in point 1067G‑B3	$7.00
7	If the recipient’s maximum basic rate is worked out under item 6 of the table in point 1067G‑B3	$9.20
8	If the recipient’s maximum basic rate is worked out under item 7 of the table in point 1067G‑B3	$7.70
9	If the recipient’s maximum basic rate is worked out under item 8 of the table in point 1067G‑B3	$7.00
10	If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G‑B4	$5.70
11	If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G‑B4	$8.60
12	If the recipient’s maximum basic rate is worked out under item 5 of the table in point 1067G‑B4	$7.70

Recipient covered by point 1067G‑B3A

1067G‑BA3 If the recipient is covered by point 1067G‑B3A, the recipient’s energy supplement is $12.00.

Youth disability supplement added to the recipient’s rate

1067G‑BA4 If an amount of youth disability supplement is added under Module D to the recipient’s rate, the recipient’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Recipient’s family situation for maximum basic rate	Amount of energy supplement
1	If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067G‑B2	$5.90
2	If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067G‑B2	$6.60
3	If the recipient’s maximum basic rate is worked out under item 3 of the table in point 1067G‑B2	$8.50
4	If the recipient’s maximum basic rate is worked out under item 1 or 3 of the table in point 1067G‑B3	$5.90
5	If the recipient’s maximum basic rate is worked out under item 2 or 4 of the table in point 1067G‑B3	$6.60
6	If the recipient is a member of a couple and the recipient’s maximum basic rate is worked out under item 5 or 8 of the table in point 1067G‑B3	$7.70
6A	If the recipient is not a member of a couple and the recipient’s maximum basic rate is worked out under item 5 or 8 of the table in point 1067G‑B3	$8.50
7	If the recipient’s maximum basic rate is worked out under item 6 of the table in point 1067G‑B3	$9.20
8	If the recipient’s maximum basic rate is worked out under item 7 of the table in point 1067G‑B3	$7.70

Module C—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1067G‑C1 Subject to points 1067G‑C2 and 1067G‑C2A, an amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person:

(a) has a partial capacity to work; or

(b) is the principal carer of at least one child and is not a member of a couple; or

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

(ii) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act.

Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24).

No pharmaceutical allowance if partner receiving certain supplements under other Acts

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:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

No pharmaceutical allowance for full‑time students and new apprentices without temporary incapacity exemptions

1067G‑C2A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person:

(a) does not have a temporary incapacity exemption under section 542A; and

(b) is undertaking full‑time study or is a new apprentice.

Note 1: For undertaking full‑time study see section 541B.

Note 2: For new apprentice see subsection 23(1).

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).

Module D—Youth disability supplement

Youth disability supplement

1067G‑D1 If a person:

(a) has a partial capacity to work; and

(b) has not turned 22;

an amount by way of youth disability supplement is to be added to a person’s rate. The rate of youth disability supplement is $92.40 per fortnight.

Note 1: For partial capacity to work see section 16B.

Note 2: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).

1067G‑D2 If:

(a) an amount by way of youth disability supplement is to be added to a person’s rate of youth allowance under point 1067G‑D1; and

(b) the sum of:

(i) the person’s maximum basic rate of youth allowance; and

(ii) the amount of youth disability supplement;

would exceed the maximum basic rate of jobseeker payment for a person with a partial capacity to work;

the rate of youth disability supplement is to be reduced (but not below zero) by the amount of the excess.

Note: For partial capacity to work, see section 16B.

Module E—Person’s reduction for parental income

Person’s reduction for parental income

1067G‑E1 This is how to work out the person’s reduction for parental income for the purposes of the method statement in point 1067G‑A1.

Method statement

Step 1. Work out the MIT reducible amount by subtracting the base FTB child rate in point 1067G‑E2 from the maximum FTB child rate in point 1067G‑E3 and then multiplying the result by:

$Start formula start fraction 14 over 365 end fraction end formula$

Step 2. Apply the parental income test in Module F to work out the parental income test result for the person.

Step 3. If the parental income test result is equal to or more than the MIT reducible amount, the person’s reduction for parental income is the parental income test result.

Step 4. If the parental income test result is less than the person’s MIT reducible amount, apply the maintenance income test in Module GA to work out the maintenance income test result for the person.

Step 5. Add the parental income test result to the maintenance income test result to get the person’s notional reduction.

Step 6. If the notional reduction is less than or equal to the MIT reducible amount, the person’s reduction for parental income is the notional reduction.

Step 7. If the notional reduction is more than the MIT reducible amount, the person’s reduction for parental income is the MIT reducible amount.

Base FTB child rate

1067G‑E2 The base FTB child rate is the amount that would be the base FTB child rate within the meaning of the Family Assistance Act, if the person were an FTB child of a parent of the person.

Maximum FTB child rate

1067G‑E3 The maximum FTB child rate is the amount specified for item 2 in column 2 of the table in clause 7 of Schedule 1 to the Family Assistance Act.

Note: The amount is indexed under Schedule 4 of the Family Assistance Act.

Module F—Parental income test

Submodule 1—Parental income test result

Parental income test result

1067G‑F1 This is how to work out the parental income test result for a person for the purposes of the method statement in point 1067G‑E1.

Method statement

Step 1. Work out whether the person is exempt from the parental income test using Submodule 2. If the person is exempt, go to step 5.

Step 2. If the person is not exempt, 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:

(a) the person’s combined parental income does not exceed the person’s parental income free area; or

(b) the person is exempt from the parental income test;

then the parental income test result for the person is nil.

Step 6. If the person’s combined parental income exceeds the person’s parental income free area, then the parental income test result for the person is the amount worked out using Submodule 6.

Submodule 2—Exemption from parental income test

Parent receiving Commonwealth benefit

1067G‑F3 A person is exempt from the parental income test while a parent of the person:

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

Submodule 3—Appropriate tax year

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

(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.

Submodule 4—Combined parental income

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, disregarding each parent’s assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997) for that year;

(b) the parent’s adjusted fringe benefits total for that year;

(d) the parent’s total net investment loss for that year;

(da) the parent’s tax free pensions or benefits for that year (worked out in accordance with clause 7 of Schedule 3 to the Family Assistance Act);

(e) the parent’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.

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 total net investment loss, see subsection 10B(2).

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:

other employer fringe benefits total is the amount that is the sum of the following:

(a) each of the parent’s reportable fringe benefits amounts for the tax year under section 135P of the Fringe Benefits Tax Assessment Act 1986;

(b) each of the parent’s reportable fringe benefits amounts for the tax year under section 135Q of the Fringe Benefits Tax Assessment Act 1986, to the extent that section relates to the parent’s employment by an employer described in section 58 of that Act.

section 57A employer fringe benefits total is the amount that is the sum of each of the parent’s individual quasi‑fringe benefits amounts for the tax year under section 135Q of the Fringe Benefits Tax Assessment Act 1986, to the extent that section relates to the parent’s employment by an employer described in section 57A of that Act.

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.

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.

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.

Submodule 5—Parental income free area

Parental income free area

1067G‑F22 For the purposes of this Module, a person’s parental income free area for a time in a calendar year is an amount equal to the income free area under clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999, as affected by indexation under Schedule 4 to that Act, on 1 January in the calendar year.

Note: The parental income free area is not indexed under this Act because it is affected by indexation under the A New Tax System (Family Assistance) Act 1999.

Submodule 6—If person’s combined parental income exceeds parental income free area

Having parental income in common

1067G‑F26 For the purposes of this Submodule, 2 or more persons have parental income in common if:

(a) the parental income test applies to each of them; and

(b) a parent of one of the persons is also a parent of each of the other persons.

Note: See also points 1067G‑F30 and 1067G‑F31, which extend the situations in which a person will have parental income in common with other persons.

Person who does not have parental income in common with anyone else

1067G‑F27 Work out a person’s parental income test result using the following formula and point 1067G‑F29 if:

(a) the person does not have parental income in common with anyone else; and

(b) the person’s combined parental income (see Submodule 4) for the appropriate tax year exceeds the person’s parental income free area (see Submodule 5):

$Start formula start fraction The excess over 130 end fraction end formula$

Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5 (so that the parental income test result is only 20 cents for each dollar of the excess).

Person who has parental income in common with someone else

1067G‑F28 Work out a person’s parental income test result using the following formula and point 1067G‑F29 if:

(a) the person has parental income in common with one or more other persons; and

(b) the person’s combined parental income (see Submodule 4) for the appropriate tax year exceeds the person’s parental income free area (see Submodule 5):

$Start formula start fraction The excess over 130 end fraction times start fraction Person's maximum payment rate under Module A over Total of maximum payment rate of each person who has parental income in common end fraction end formula$

Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5.

Rounding the parental income test result

1067G‑F29 If the result of the formula in whichever of points 1067G‑F27 and 1067G‑F28 applies is not a multiple of 10 cents, round the result to the nearest 10 cents (rounding a multiple of 5 cents upwards).

Extension to recipients under ABSTUDY or Assistance for Isolated Children Scheme

1067G‑F30 This Submodule applies in relation to a person in respect of whom a payment is made under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme and to whom a parental income test under that scheme applies as if:

(a) the parental income test under this Module applied to the person; and

(b) the total of the amounts described in the following table as relevant to the person were the maximum payment rate for the person for the purposes of this Submodule.

Amounts included in total treated as maximum payment rate
Item	If this allowance is being paid in respect of the person	This amount is relevant to the person
1	Living allowance under the ABSTUDY Scheme	The person’s maximum payment rate of the living allowance
2	Group 2 school fees allowance under the ABSTUDY Scheme	1/26 of the school fees allowance amount subject to income testing
3	Additional boarding allowance under the Assistance for Isolated Children Scheme	1/26 of the maximum rate of the additional boarding allowance

Note: This Submodule does not (of its own force) affect the amount payable to the person under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme.

Extension to FTB children and regular care children

1067G‑F31 In working out a person’s (the recipient’s) parental income test result for the purposes of this Module:

(a) an FTB child, or a regular care child, of someone who is a parent of the recipient is taken to be a person (a relevant sibling) who has parental income in common with the recipient; and

(b) in using the formula in point 1067G‑F28 for the recipient, the maximum payment rate for relevant siblings is 14/365 of the amount worked out under point 1067G‑F32.

Note: For FTB child and regular care child, see section 23.

1067G‑F32 For the purposes of paragraph 1067G‑F31(b), the amount worked out under this point is the amount that would, at the time the recipient’s rate of youth allowance is worked out, be the parent’s maximum rate:

(a) under step 1 of the method statement in clause 3 of Schedule 1 to the Family Assistance Act (having regard only to clauses 7 and 11 for the purposes of paragraph (a) of that step); or

(b) if the only relevant sibling is a regular care child—under step 1 of the method statement in clause 28A of Schedule 1 to the Family Assistance Act.

1067G‑F33 In working out the parent’s maximum rate for the purposes of point 1067G‑F32:

(a) assume that the parent has made a claim for payment of family tax benefit by instalment in accordance with the Family Assistance Administration Act; and

(b) assume that the parent has not made an election under subsection 58A(1) of the Family Assistance Act; and

1067G‑F34 Work out the amount under point 1067G‑F32 for one parent only.

1067G‑F35 Count the amount worked out under point 1067G‑F32 once only in using the formula in point 1067G‑F28 for a recipient, regardless of how many relevant siblings the recipient has.

Module GA—Maintenance income test

Submodule 1—Maintenance income test result

Maintenance income test result

1067G‑GA1 This is how to work out the maintenance income test result for a person for the purposes of the method statement in point 1067G‑E1.

Method statement

Step 1. Work out whether the person is exempt from the maintenance income test using Submodule 2. If the person is exempt, go to step 5.

Step 2. If the person is not exempt, work out the annualised amount of maintenance income for a parent of the person (the parent’s maintenance income) using Submodule 3.

Step 3. Work out the parent’s maintenance income free area using Submodule 4.

Step 4. Work out whether the parent’s maintenance income exceeds the parent’s maintenance income free area.

Step 5. If:

(a) the parent’s maintenance income does not exceed the parent’s maintenance income free area; or

(b) the person is exempt from the maintenance income test;

then the maintenance income test result for the person is nil.

Step 6. If the parent’s maintenance income exceeds the parent’s maintenance income free area, multiply the excess by 0.5. The result, divided by 26, is the maintenance income test result for the person.

Submodule 2—Exemption from maintenance income test

Parent exempt from FTB maintenance income test

1067G‑GA2 A person is exempt from the maintenance income test if paragraphs 19B(a) and (b) of Schedule 1 to the Family Assistance Act apply to the person’s parent or to the parent’s partner.

Submodule 3—Annualised amount of maintenance income for parent of a person

Annualised amount of maintenance income

1067G‑GA3 Work out the annualised amount of maintenance income for a parent of the person as if step 1 of the method statement in clause 20 of Schedule 1 to the Family Assistance Act applied. In doing so:

(a) assume that the person is an FTB child of the parent; and

(b) assume that paragraphs (a), (b), (c) and (d) are not in the step; and

(d) in working out whether maintenance income is received in relation to the person, have regard to the considerations that would apply under the Family Assistance Act; and

(e) have regard to maintenance income for the income year in respect of which the person’s rate of youth allowance is being worked out.

Submodule 4—Maintenance income free area

Main rule

1067G‑GA4 The maintenance income free area for a parent of a person is:

(a) the column 2 amount (see point 1067G‑GA7); or

(b) if another point in this Submodule applies—the amount worked out in the point.

If there are other siblings including an FTB child

1067G‑GA5 This point applies if the parent of the person is also the parent of:

(a) an FTB child in relation to whom the parent receives maintenance income; or

(b) both:

(i) an FTB child in relation to whom the parent receives maintenance income; and

(ii) another person who is receiving youth allowance and in relation to whom the parent receives maintenance income.

The maintenance income free area for the parent is the column 3 amount (see point 1067G‑GA7).

If there are other siblings but no FTB child

1067G‑GA6 This point applies if the parent of the person:

(a) is also the parent of another person (an other recipient) who is receiving youth allowance and in relation to whom the parent receives maintenance income; and

(b) is not the parent of an FTB child in relation to whom the parent receives maintenance income.

The maintenance income free area for the parent is worked out using this formula:

$Start formula start fraction Column 2 amount plus Column 3 amount for each other recipient over 1 plus Number of other recipients end fraction end formula$

Definitions of column 2 amount and column 3 amount

1067G‑GA7 In this Submodule:

column 2 amount means the amount specified for item 1 in column 2 of the table in clause 22 of Schedule 1 to the Family Assistance Act.

column 3 amount means the amount specified for item 1 in column 3 of the table in clause 22 of Schedule 1 to the Family Assistance Act.

Note: The amounts are indexed under Schedule 4 of the Family Assistance Act.

Receiving maintenance income in relation to a person

1067G‑GA8 In working out whether a parent of a person receives maintenance income in relation to an FTB child or other person, have regard to the considerations that would apply under the Family Assistance Act.

Module H—Income test

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).

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 and the treatment of certain income amounts (Division 1 of Part 3.10);

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

(c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(d) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(e) disposal of income (sections 1106 to 1111).

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 veteran payment, 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.

1067G‑H3A The ordinary income of a person:

(a) who is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act; or

(b) who is a partner of a person who is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act;

is not to include any amount received from an approved friendly society in respect of the incapacity that resulted in the determination.

Lump sum payments arising from termination of employment

1067G‑H4 Subject to points 1067G‑H11 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 the person:

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

(b) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act;

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

(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.

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

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 termination payments taken to be ordinary income

1067G‑H12 If:

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

(b) the person receives a termination 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 period to which the payment relates.

Exception to points 1067G‑H11 and 1067G‑H12

1067G‑H12A Point 1067G‑H11 or 1067G‑H12 does not apply in relation to a person’s entitlement referred to in paragraph 1067G‑H11(c) or in relation to a person’s termination payment referred to in paragraph 1067G‑H12(b) if:

(a) the person makes a claim for youth allowance on or after the commencement of this point; and

(b) the person makes the claim after the death of the person’s partner on or after the commencement of this point; and

(c) if the person is a man or a woman who was not pregnant when her partner died—the person makes the claim in the period of 14 weeks starting on the day of the death of the partner; and

(d) if the person is a woman who was pregnant when her partner died—the person makes the claim:

(i) in the period of 14 weeks starting on the day of the death of the partner; or

(ii) in the period starting on the day of the death of the partner and ending when the child is born or the woman otherwise stops being pregnant;

whichever ends later; and

(e) the entitlement referred to in paragraph 1067G‑H11(c) arose, or the termination payment referred to in paragraph 1067G‑H12(b) was paid, in the period applicable under paragraph (c) or (d) of this point.

More than one termination payment on a day

1067G‑H13 If:

(a) the person is covered by point 1067G‑H12; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the 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 termination payment.

Commencement of income maintenance period where there is a second termination payment

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 termination payment during that period (the second leave payment), the income maintenance period for the second termination 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 or termination payments in respect of periods longer than a fortnight

1067G‑H15 Subject to points 1067G‑H5 to 1067G‑H8 (inclusive), if:

(a) a person receives a leave payment or termination payment; and

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

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

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

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 or a termination 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 or termination 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

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

Single payment in respect of different kinds of termination payments

1067G‑H18 If a person who is covered by point 1067G‑H12 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067G‑H11 to 1067G‑H17 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

1067G‑H19 In points 1067G‑H11 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.

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

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, but does not include an instalment of parental leave pay.

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 a parent, child, brother or sister of the person.

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 sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note: See Division 1AA of Part 3.10 for the treatment of employment income.

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

(d) is not employment income;

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; and

(iv) is not employment income;

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‑H11 to 1067G‑H20 (inclusive), if:

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

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

(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 22—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 22—the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; 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.

1067G‑H26A For the purposes of paragraph 1067G‑H26(a), disregard steps 2, 2A and 3 of the method statement in point 1067G‑A1.

1067G‑H26B For the purposes of paragraph 1067G‑H26(b), disregard steps 2 and 3 of the method statement in point 1068‑A1.

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, a service pension, income support supplement or a veteran payment; and

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 60% of the person’s partner income excess.

Example:

Facts: Alice’s partner Martin has an ordinary income of $800. Assume that the partner income free area under point 1067G‑H26 is $640.

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, other than in compliance with a requirement contained in an employment pathway plan that is in force in relation to the person—$400; or

(aa) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$400; or

(b) otherwise—$150.

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:

(b) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$80; or

Upper range reduction

1067G‑H33 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds:

(b) if the person is a new apprentice at any time in the fortnight in respect of which a youth allowance may be payable—$80; or

Module J—Student income bank

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.

Flowchart showing how to work out whether there is a reduction under Module J to the person's ordinary income for a fortnight with respect to youth allowance, and if so, 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) or is a new apprentice (see subsection 23(1)) 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 and the person is not a new apprentice—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 $10,000; or

(aa) if the person has an income credit for that fortnight under point 1067G‑J4 and the person is a new apprentice—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 $1,000; 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 the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)):

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

(b) the income credit is an amount equal to the difference between the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)) 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 the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)):

(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 the ordinary income free area (see paragraph 1067G‑H29(a) or (aa)).

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.

Opening balance following cancellation of another social security pension or benefit

1067G‑J7 If:

(a) a person ceases to be a working credit participant because of a determination to cancel, or an automatic cancellation of, the person’s social security pension or social security benefit; and

(b) the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and

(d) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and

(e) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day;

the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following suspension of youth allowance

1067G‑J8 If:

(a) a person ceases to be a working credit participant because of a determination to suspend the person’s youth allowance; and

(b) the person had a working credit balance greater than nil immediately before the date of effect of the determination; and

(i) the person commences to undertake full‑time study or becomes a new apprentice; and

(ii) the payment of the person’s youth allowance is resumed; and

(d) the person becomes a person to whom this module applies on the day with effect from which the person’s youth allowance is resumed;

the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the day mentioned in paragraph (d).

Opening balance following suspension and subsequent cancellation of another social security pension or benefit

1067G‑J9 If:

(a) a person ceases to be a working credit participant because of a determination to suspend the person’s social security pension or social security benefit; and

(b) while the person’s pension or benefit is suspended, there is a determination to cancel the person’s pension or benefit; and

(c) the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and

(d) the person makes a claim, or is taken to have made a claim, for a youth allowance; and

(e) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and

(f) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day;

the working credit balance mentioned in paragraph (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following commencement of full‑time study by youth allowance recipient

1067G‑J10 If:

(a) a person is receiving youth allowance and is not undertaking full‑time study; and

(b) the person commences to undertake full‑time study; and

(c) either because of a determination made as a result of the commencement or, if no determination is necessary, because of the commencement itself, the person, on a day (the module application day):

(i) ceases to be a working credit participant; and

(ii) becomes a person to whom this Module applies; and

(d) the person had a working credit balance greater than nil immediately before the module application day;

the working credit balance mentioned in paragraph (d) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following commencement as a new apprentice by youth allowance recipient

1067G‑J11 If:

(a) a person is receiving youth allowance and is not a new apprentice; and

(b) the person becomes a new apprentice; and

(c) either because of a determination made as a result of the commencement or, if no determination is necessary, because of the commencement itself, the person, on a day (the module application day):

(i) ceases to be a working credit participant; and

(ii) becomes a person to whom this Module applies; and

(d) the person had a working credit balance greater than nil immediately before the module application day;

the working credit balance mentioned in paragraph (d) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Module K—Remote area allowance

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

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 FTB child, and each regular care child, of the person.

Table K—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance	Column 4 Additional allowance for each FTB child and regular care 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 an FTB or regular care 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule if partner has an FTB or regular care 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 an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1067G‑K9 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Module L—Table of pensions, benefits, allowances and compensation

Table of pensions, benefits, allowances and compensation
Item	Type of pension, benefit, allowance and compensation
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)
4A	Compensation for an armed services widow who has no dependent children	(Paragraph 234(1)(b) or subsection 236(5) of the Military Rehabilitation and Compensation Act)
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)
7B	Veteran payment	(section 45SB of the Veterans’ Entitlements Act)
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)
20	War widow’s pension—if the widow has a dependent child	(Section 13 of the Veterans’ Entitlements Act)
20A	Compensation for an armed services widow who has a dependent child	(Paragraph 234(1)(b) or subsection 236(5) of the Military Rehabilitation and Compensation Act)
22	Wife’s service pension—if husband is receiving an invalidity service pension	(Section 40 of the Veterans’ Entitlements Act)
23	Jobseeker payment	(Part 2.12)
25	Special benefit	(Part 2.15)
26	Benefit PP (partnered)	(Part 2.10)
27	Austudy payment	(Part 2.11A)

Part 3.5A—Austudy Payment Rate Calculator

1067H Definitions

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.

1067J Person living at home

(1) 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 Long term income support student

(1) A person is a long term income support student if the person:

(b) does not have a dependent child; and

(i) 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; or

(ii) a new apprentice and became a new apprentice 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 or became a new apprentice, been receiving one or more of the following:

(i) jobseeker payment;

(iii) special benefit;

(iv) disability support pension;

(vi) carer payment;

(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.

(2) A person is also a long term income support student if the person:

(b) does not have a dependent child; 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).

1067L Rate of austudy payment

Austudy Payment Rate Calculator

(1) The rate of austudy payment of a person referred to in section 581 is to be calculated in accordance with the Rate Calculator in this section.

Limit on rate of payment

(2) If:

(b) the other person is 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.

Austudy Payment Rate Calculator

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 1A. Work out the pension supplement amount (if any) using Module BA below.

Step 1B. Work out the energy supplement (if any) using Module BB below.

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

Step 2A. Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

Step 3. Add up the amounts obtained in Steps 1, 1A, 1B, 2 and 2A: 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.

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

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

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	$602.80
2	Is a member of a couple and has a dependent child	$652.60
3	Is not a member of a couple and has a dependent child or YA child	$760.40

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

(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	$652.60
2	Is not a member of a couple	$711.90

Module BB—Energy supplement

Pension supplement

1067L‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia, has reached pension age and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

1067L‑BA2 The person’s pension supplement amount is:

(a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1067L‑BA4; and

(b) otherwise—the amount worked out under point 1067L‑BA3.

Amount if no election in force

1067L‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

(b) dividing the result by 26; and

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (b) is not a multiple of 10 cents;

rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).

Item	Person’s family situation	Use this %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Amount if election in force

1067L‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1067L‑BA3 as if the election were not in force;

(b) from that amount, subtract 1/26 of the person’s minimum pension supplement amount.

1067L‑BB1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.

Recipient has reached pension age

1067L‑BB2 If the recipient has reached pension age, the recipient’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Recipient’s family situation	Amount of energy supplement
1	Not a member of a couple	$14.10
2	Partnered	$10.60
3	Member of an illness separated couple	$14.10
4	Member of a respite care couple	$14.10
5	Partnered (partner in gaol)	$14.10

Recipient has not reached pension age

1067L‑BB3 If the recipient has not reached pension age, the recipient’s energy supplement is worked out using the following table:

Energy supplement
Item	Recipient’s family situation for maximum basic rate	Amount of energy supplement
1	If the recipient’s maximum basic rate is worked out under item 1 of the table in subpoint 1067L‑B2(1)	$7.00
2	If the recipient’s maximum basic rate is worked out under item 2 of the table in subpoint 1067L‑B2(1)	$7.70
3	If the recipient’s maximum basic rate is worked out under item 3 of the table in subpoint 1067L‑B2(1)	$9.20
4	If the recipient’s maximum basic rate is worked out under item 1 of the table in point 1067L‑B3	$7.70
5	If the recipient’s maximum basic rate is worked out under item 2 of the table in point 1067L‑B3	$8.60

Module C—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1067L‑C1 Subject to points 1067L‑C1A and 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 55; 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 person receiving pension supplement

1067L‑C1A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if a pension supplement amount has been added to that rate.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

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:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

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).

Module D—Income test

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).

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 and the treatment of certain income amounts (Division 1 of Part 3.10);

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

(c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(d) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(e) disposal of income (sections 1106 to 1111).

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 veteran payment, 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.

Lump sum payments arising from termination of employment

1067L‑D3 Subject to points 1067L‑D5 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.

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

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 termination payments taken to be ordinary income

1067L‑D6 If:

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

(b) the person receives a termination 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 period to which the payment relates.

More than one termination payment on a day

1067L‑D7 If:

(a) the person is covered by point 1067L‑D6; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the 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 termination payment.

Commencement of income maintenance period where there is a second termination payment

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 termination payment during that period (the second leave payment);

the income maintenance period for the second termination 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 or termination payments in respect of periods longer than a fortnight

1067L‑D11 If:

(a) a person receives a leave payment or termination payment; and

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

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

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

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 or a termination payment

1067L‑D13 For the purposes of points 1067L‑D5 to 1067L‑D12 (inclusive), a person (first person) is taken to receive a leave payment or termination 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 termination payments

1067L‑D14 If a person who is covered by point 1067L‑D6 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067L‑D5 to 1067L‑D13 (inclusive):

(a) each part of the payment that is in respect of a different kind of termination payment 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 periods to which the separate payments relate.

Definitions

1067L‑D15 In points 1067L‑D5 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.

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Meaning of leave payment

1067L‑D16 In points 1067L‑D5 to 1067L‑D15 (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

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 a parent, child, brother or sister of the person.

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 sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note: See Division 1AA of Part 3.10 for the treatment of employment income.

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

(d) is not employment income;

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; and

(iv) is not employment income;

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:

(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

1067L‑D23 Subject to points 1067L‑D5 to 1067L‑D16 (inclusive), if:

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

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

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:

(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:

1067L‑D25A For the purposes of paragraph 1067L‑D25(a), disregard steps 2, 2A and 3 of the method statement in point 1067G‑A1.

1067L‑D25B For the purposes of paragraph 1067L‑D25(b), disregard steps 2 and 3 of the method statement in point 1068‑A1.

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, a service pension, income support supplement or a veteran payment; and

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 60% of the person’s partner income excess.

Example:

Facts: Alice’s partner Martin has an ordinary income of $800. Assume that the partner income free area under point 1067L‑D25 is $640.

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 $400.

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 60% of the part (if any) of the person’s ordinary income excess that exceeds $80.

Module E—Student income bank

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.

Flowchart showing how to work out whether there is a reduction under Module E to a person's ordinary income for the fortnight with respect to austudy payment, and if so, 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 and the person is not a new apprentice—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 $10,000; or

(aa) if the person has an income credit for that fortnight under point 1067L‑E3 and the person is a new apprentice—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 $1,000; 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 the ordinary income free area (see point 1067L‑D28):

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

(b) the income credit is an amount equal to the difference between the ordinary income free area (see point 1067L‑D28) 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 the ordinary income free area (see point 1067L‑D28):

(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 the ordinary income free area (see point 1067L‑D28).

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.

Opening balance following cancellation of another social security pension or benefit

1067L‑E6 If:

(a) a person ceases to be a working credit participant because of a determination to cancel, or an automatic cancellation of, the person’s social security pension or social security benefit; and

(b) the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and

(d) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (b); and

(e) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day; and

(f) the person has not reached pension age before the module application day;

the working credit balance mentioned in paragraph (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following suspension and subsequent cancellation of another social security pension or benefit

1067L‑E7 If:

(a) a person ceases to be a working credit participant because of a determination to suspend the person’s social security pension or social security benefit; and

(b) while the person’s pension or benefit is suspended, there is a determination to cancel the person’s pension or benefit; and

(c) the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and

(d) the person makes a claim, or is taken to have made a claim, for an austudy payment; and

(e) the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph (c); and

(f) the person becomes a person to whom this Module applies on a day (the module application day), being either the day with effect from which the claim is granted or a day following that day; and

(g) the person has not reached pension age before the module application day;

the working credit balance mentioned in paragraph (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Module F—Remote area allowance

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

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 FTB child, and each regular care child, of the person.

Table F—Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance	Column 4 Additional allowance for each FTB child and regular care 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 an FTB or regular care 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule if partner has an FTB or regular care 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 an FTB child or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1067L‑F9 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Part 3.6—Benefit Rate Calculator B

1068 Rate of jobseeker payment

(1) The rate of jobseeker payment is to be calculated in accordance with the Rate Calculator at the end of this section.

(2) If:

(a) a person has a relationship with another person, whether of the same sex or a different sex (other person); and

the person’s benefit rate is not to exceed the rate at which it would be payable to the person if the other person were the person’s partner.

Note: This provision has the effect of taking into account the ordinary income and assets of the partner in applying the ordinary income test and assets test respectively.

Rate of benefit limited for certain armed services widows

(3) 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) the widow has been receiving a payment referred to in paragraph (a) continuously since before 1 November 1986; and

the rate of benefit payable to the widow is not to be increased:

(d) if, immediately before 1 November 1986, the widow was receiving a social security benefit at a rate less than $124.90 per fortnight—to a rate greater than $124.90 per fortnight; or

(e) if, immediately before 1 November 1986, the widow was receiving a social security benefit at a rate equal to or greater than $124.90 per fortnight—to a rate greater than the rate at which it was payable immediately before 1 November 1986.

Note 1: A benefit is not payable to a widow who starts to get a payment referred to in subsection (3) after 1 November 1986—see section 614.

Note 2: For armed services widow see subsection 4(1).

Benefit Rate Calculator B

Method of calculating rate

1068‑A1 The rate of benefit 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 1A. Work out the pension supplement amount (if any) using Module BA below.

Step 1B. Work out the energy supplement (if any) using Module C below.

Step 2. Work out the amount per fortnight (if any) of pharmaceutical allowance using MODULE D below.

Step 3. Work out the applicable amount per fortnight (if any) for rent assistance in accordance with paragraph 1070A(a).

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

Step 5. Apply the income test using MODULE G below to work out the income reduction.

Step 6. Take the income reduction away from the maximum payment rate: the result is called the provisional fortnightly payment rate.

Step 7. The rate of benefit 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

Note 1: If a person’s rate is reduced under step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210.

Note 2: In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 3: An amount of remote area allowance is to be added under paragraph (c) of step 7 only if the conditions in point 1068‑J1 are satisfied.

Maximum basic rate

1068‑B1 The maximum basic rate of a person is worked out using Table B. Work out the person’s family situation and whether the person has a dependent child or not. The maximum basic rate is the corresponding amount in the rate column.

Table B—Maximum basic rates
Column 1	Column 2	Column 3 Rate
Item	Person’s family situation	Column 3A Person with dependent child	Column 3B Person without dependent child
4A	Not member of couple and: (a) person receives jobseeker payment; and (b) person has not turned 55; and (c) point 1068‑B1AA does not apply to person	$816.90	$762.70
4B	Not member of couple and: (a) person receives jobseeker payment; and (b) person has turned 55; and (c) person has not been receiving one, or a combination, of social security pension or social security benefit or service pension, income support supplement or veteran payment for a continuous period of at least 9 months; and (d) point 1068‑B1AA does not apply to person	$816.90	$762.70
5	Not member of couple and: (a) person has turned 55; and (b) person has been receiving one, or a combination, of social security pension or social security benefit or service pension or income support supplement for a continuous period of at least 9 months; and (c) point 1068‑B1AA does not apply to person	$816.90	$816.90
6	Not member of couple and: (a) person receives jobseeker payment; and (b) point 1068‑B1AA applies to person	$816.90	$816.90
7	Partnered	$698.30	$698.30
9	Member of illness separated couple	$816.90	$816.90
11	Partnered (partner in gaol)	$816.90	$816.90

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

Note 2: For dependent child see section 5.

Note 5: The rates in column 3 are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Note 7: Some dependent children will not be taken into account in working out a person’s maximum basic rate (see point 1068‑B2).

Note 8: Some recipients of jobseeker payment have a maximum basic rate based on the maximum basic rate under the Pension PP (Single) Rate Calculator (see point 1068‑B5).

Partial capacity to work—less than 15 hours per week of work

1068‑B1AA This point applies to a person if:

(a) the person is receiving jobseeker payment; and

(b) the person has a partial capacity to work because of an impairment; and

(i) the impairment of itself prevents the person from doing 15 hours per week of work independently of a program of support within the next 2 years; and

(ii) no training activity (within the meaning of section 16B) is likely (because of the impairment) to enable the person to do 15 hours per week of work independently of a program of support within the next 2 years.

Note 1: For partial capacity to work see section 16B.

Note 2: In deciding whether the Secretary is satisfied, the Secretary must comply with any guidelines made by the Minister under section 16B (see subsection 16B(3)).

1068‑B1AB In point 1068‑B1AA, 15 hours per week of work means work:

(a) that is for at least 15 hours per week on wages that are at or above the relevant minimum wage; and

(b) that exists in Australia, even if not within the person’s locally accessible labour market.

Certain children who are not young persons are to be treated as dependent children

1068‑B1A If:

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

(b) the person has at least one natural child, adopted child or relationship child who has turned 16 but has not turned 18; and

(i) a social security benefit is payable to the child; or

(ii) if the person is receiving jobseeker payment—a disability support pension is payable to the child; and

(d) the child is substantially dependent on the person;

the person’s maximum basic rate is worked out as if the person had a dependent child.

Certain children treated as dependent children if in recipient’s care for at least minimum period

1068‑B1B The maximum basic rate for a person receiving jobseeker payment is worked out as if the person had a dependent child if:

(a) either:

(i) the person is legally responsible (whether alone or jointly with another person) for the day‑to‑day care, welfare and development of a child under 16; or

(ii) under a family law order, registered parenting plan or parenting plan that is in force, a child under 16 is supposed to live or spend time with the person; and

(b) the child is in the person’s care for at least 14% of:

(i) the instalment period in relation to which the maximum basic rate is being worked out; or

(ii) if the Secretary, under point 1068‑B1C, determines another period for the person for the purposes of this subparagraph—that other period; and

(d) the person is not a member of a couple.

Note: For family law order, registered parenting plan and parenting plan see subsection 23(1).

1068‑B1C The Secretary may, in writing, determine a period of either 14 days or 28 days for the purposes of subparagraph 1068‑B1B(b)(ii). In making the determination, the Secretary must have regard to the guidelines (if any) determined under point 1068‑B1E.

1068‑B1D A determination made under point 1068‑B1C is not a legislative instrument.

1068‑B1E The Secretary may, by legislative instrument, determine guidelines to be complied with when making a determination under point 1068‑B1C.

Certain dependent children to be disregarded

1068‑B2 For the purposes of items 4A and 4B of Table B in point 1068‑B1, if:

(a) a person has a dependent child; and

(b) the child has turned 18; and

the child is to be disregarded in working out the person’s maximum basic rate under that point.

Note: For prescribed student child see section 5.

1068‑B3 On 20 March 1994 the amounts specified in items 3, 4, 4A and 4B in column 3B of Table B in point 1068‑B1 are increased by $6.00. The increase is to be made after the indexation of the amounts on that day has occurred.

1068‑B4 The amounts in items 3, 4, 4A and 4B in columns 3A and 3B of Table B in point 1068‑B1 are to be indexed on 20 September 1993 and 20 March 1994 under section 1192 as if Part 2 of the Social Security Amendment Act (No. 2) 1993 had commenced on 1 September 1993.

Maximum basic rate for certain jobseeker payment recipients

1068‑B5 Despite point 1068‑B1, if a person:

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

(b) receives jobseeker payment; and

(c) is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under subsection 40P(2) of the Administration Act because of paragraph 40P(2)(a) or (b) of that Act;

the person’s maximum basic rate is the amount worked out as follows:

$Start formula start fraction Pension PP (Single) maximum basic amount over 26 end fraction end formula$

where:

pension PP (Single) maximum basic amount is the sum of:

(a) the amount that would have been the person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment; and

(b) the amount that would have been the person’s pension supplement under Module BA of the Pension PP (Single) Rate Calculator if the person was receiving parenting payment.

Note: A person’s maximum basic rate under Module B of the Pension PP (Single) Rate Calculator is indexed 6 monthly in line with increases in Male Total Average Weekly Earnings (see section 1195).

Module C—Energy supplement

Pension supplement

1068‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate if the person is residing in Australia, has reached pension age and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

1068‑BA2 The person’s pension supplement amount is:

(a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068‑BA4; and

(b) otherwise—the amount worked out under point 1068‑BA3.

Amount if no election in force

1068‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

(b) dividing the result by 26; and

(i) the person is not partnered; and

(ii) the amount resulting from paragraph (b) is not a multiple of 10 cents;

rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).

Item	Person’s family situation	Use this %
1	Not member of couple	66.33%
2	Partnered	50%
3	Member of illness separated couple	66.33%
4	Member of respite care couple	66.33%
5	Partnered (partner in gaol)	66.33%

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Amount if election in force

1068‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1068‑BA3 as if the election were not in force;

(b) from that amount, subtract 1/26 of the person’s minimum pension supplement amount.

1068‑C1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.

Recipient has reached pension age

1068‑C2 If the recipient has reached pension age and is not covered by point 1068‑B5, the recipient’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Recipient’s family situation	Amount of energy supplement
1	Not a member of a couple	$14.10
2	Partnered	$10.60
3	Member of an illness separated couple	$14.10
4	Member of a respite care couple	$14.10
5	Partnered (partner in gaol)	$14.10

Recipient has not reached pension age

1068‑C3 If the recipient has not reached pension age and is not covered by point 1068‑B5, the recipient’s energy supplement is the amount worked out using the following table:

Energy supplement
Item	Recipient’s family situation for maximum basic rate	Amount of energy supplement
1	If the recipient’s maximum basic rate is worked out under column 3A of item 4A, 4B, 5, 6, 9 or 11 of the table in point 1068‑B1	$9.50
2	If the recipient’s maximum basic rate is worked out under column 3A of item 7 of the table in point 1068‑B1	$7.90
3	If the recipient’s maximum basic rate is worked out under column 3B of item 4A or 4B of the table in point 1068‑B1	$8.80
4	If the recipient’s maximum basic rate is worked out under column 3B of item 5, 6, 9 or 11 of the table in point 1068‑B1	$9.50
5	If the recipient’s maximum basic rate is worked out under column 3B of item 7 of the table in point 1068‑B1	$7.90

Recipient covered by point 1068‑B5

1068‑C4 If the recipient is covered by point 1068‑B5, the recipient’s energy supplement is $12.00.

Module D—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1068‑D1 Subject to points 1068‑D3A, 1068‑D4, 1068‑D5, 1068‑D6 and 1068‑D8, an additional amount by way of pharmaceutical allowance is to be added to a person’s maximum basic rate if the person is receiving jobseeker payment and point 1068‑D2, 1068‑D2B or 1068‑D3 applies to the person.

Incapacity for work—jobseeker payment

1068‑D2 This point applies to a person if the person is receiving jobseeker payment and the person is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act.

Jobseeker payment recipients who have a partial capacity to work or are principal carers

1068‑D2B This point applies to a person who is receiving jobseeker payment if the person:

(a) has a partial capacity to work; or

(b) is the principal carer of at least one child and is not a member of a couple.

Note 1: For partial capacity to work see section 16B.

Note 2: For principal carer see subsections 5(15) to (24).

Long term recipients over 55

1068‑D3 This point applies to a person if the person:

(a) has turned 55; and

(b) 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 person receiving pension supplement

1068‑D3A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if a pension supplement amount has been added to that rate.

No pharmaceutical allowance if person receiving certain supplements under other Acts

1068‑D4 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

1068‑D5 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:

(i) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019; and

No pharmaceutical allowance before advance payment period ends

1068‑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 under Part 2.23 of this Act; and

(b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1068‑D7.

Advance payment period

1068‑D7 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:

$Start formula start fraction amount of advance times 26 over pharmaceutical allowance rate end fraction end formula$

where:

amount of advance is the amount of the advance paid to the person;

pharmaceutical allowance rate is the fortnightly amount of pharmaceutical allowance which would be added to the person’s maximum basic rate in working out the social security benefit instalment for the day on which the advance is paid if a social security benefit were payable to the person and pharmaceutical allowance were to be added to the person’s maximum basic rate on that day.

Note: The person may have come on social security benefit after having been a pension recipient and have received an advance while a pension recipient.

No pharmaceutical allowance if annual limit reached

1068‑D8 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:

• how long during the calendar year the person was on pension or benefit;

• the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

Amount of pharmaceutical allowance

1068‑D10 The amount of pharmaceutical allowance is the amount per fortnight worked out using the following Table:

Pharmaceutical allowance amount table
Column 1 Item	Column 2 Person’s family situation	Column 3 Amount per fortnight
1.	Not member of couple	$5.20
2.	Partnered	$2.60
4.	Member of illness separated couple	$5.20
5.	Member of respite care couple	$5.20
6.	Partnered (partner getting service pension)	$2.60
7.	Partnered (partner in gaol)	$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 indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1206A).

Module G—Income test

Effect of ordinary income on maximum payment rate

1068‑G1 This is how to work out the effect of a person’s ordinary income, 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.

Note: For the treatment of amounts received from friendly societies, see point 1068‑G4.

Step 2. If the person is a member of a couple, work out the partner income free area using point 1068‑G9.

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

Step 3. Use paragraphs 1068‑G10(a), (b) and (c) to work out whether the person has a partner income excess.

Step 4. If the requirements of paragraphs 1068‑G10(a), (b) and (c) are not satisfied then the person’s partner income excess is nil.

Step 5. If the requirements of paragraphs 1068‑G10(a), (b) and (c) are satisfied, the person’s partner income excess is the partner’s ordinary income less the partner income free area.

Step 6. Use the person’s partner income excess to work out the person’s partner income reduction using point 1068‑G11.

Step 7. Work out whether the person’s ordinary income exceeds the person’s ordinary income free area under point 1068‑G12.

Note: A person’s ordinary income free area is the maximum amount of ordinary income the person may have without affecting the person’s benefit rate.

Step 8. 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 9. 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 10. Use the person’s ordinary income excess to work out the person’s ordinary income reduction using points 1068‑G14, 1068‑G15, 1068‑G16 and 1068‑G17.

Step 11. Add the person’s partner income reduction and ordinary income reduction: the result is the person’s income reduction referred to in Step 5 of point 1068‑A1.

Note 1: For ordinary income see section 8.

Note 2: See point 1068‑A1 (Steps 6 to 9) for the significance of the person’s income reduction.

Note 3: The application of the ordinary income test is affected by provisions concerning:

• the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

• business income (sections 1074 and 1075);

• income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

• income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

• disposal of income (sections 1106 to 1111).

Ordinary income of members of certain couples

1068‑G2 Subject to point 1068‑G3, 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 veteran payment, 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

1068‑G4 The ordinary income of a person to whom, or to whose partner, jobseeker payment is payable and who, or whose partner, is not required to satisfy the employment pathway plan requirements because of a determination that is in effect under section 40L of the Administration Act and that has been made because of the circumstance referred to in paragraph 40L(5)(a) of that Act, is not to include any amount received by the person or partner from an approved friendly society in respect of the incapacity because of which the person or partner is not required to satisfy those employment pathway plan requirements.

Board and lodging

1068‑G6 A person’s ordinary income is not to include a payment to the person for board or lodging provided by the person to a parent, child, brother or sister of the person.

Lump sum payments arising from termination of employment

1068‑G7 Subject to points 1068‑G7AF to 1068‑G7AR (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.

Directed termination payments excluded

1068‑G7AF 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; and

(c) the payment, or part of the payment, is a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of Module G of section 1068.

Certain leave payments taken to be ordinary income—employment continuing

1068‑G7AG If:

(a) a person is employed; and

(b) the person is on leave for a period; and

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 termination payments taken to be ordinary income

1068‑G7AH If:

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

(b) the person receives a termination 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 period to which the payment relates.

Exception to points 1068‑G7AG and 1068‑G7AH

1068‑G7AI Point 1068‑G7AG or 1068‑G7AH does not apply in relation to a person’s entitlement referred to in paragraph 1068‑G7AG(c) or in relation to a person’s termination payment referred to in paragraph 1068‑G7AH(b) if:

(a) the person makes a claim for jobseeker payment on or after the commencement of this point; and

(b) the person makes the claim after the death of the person’s partner on or after the commencement of this point; and

(c) if the person is a man or a woman who was not pregnant when her partner died—the person makes the claim in the period of 14 weeks starting on the day of the death of the partner; and

(d) if the person is a woman who was pregnant when her partner died—the person makes the claim:

(i) in the period of 14 weeks starting on the day of the death of the partner; or

(ii) in the period starting on the day of the death of the partner and ending when the child is born or the woman otherwise stops being pregnant;

whichever ends later; and

(e) the entitlement referred to in paragraph 1068‑G7AG(c) arose, or the termination payment referred to in paragraph 1068‑G7AH(b) was paid, in the period applicable under paragraph (c) or (d) of this point.

More than one termination payment on a day

1068‑G7AJ If:

(a) the person is covered by point 1068‑G7AH; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1068‑G7AK If the person is covered by point 1068‑G7AG, 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

1068‑G7AKA Subject to point 1068‑G7AKC, if the person is covered by point 1068‑G7AH, the income maintenance period starts, subject to point 1068‑G7AKB, on the day the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1068‑G7AKB If a person who is covered by point 1068‑G7AH is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second termination payment commences the day after the end of the first period.

Start of income maintenance period where liquid assets test waiting period applies

1068‑G7AKC If a person to whom point 1068‑G7AKA 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 or termination payments in respect of periods longer than a fortnight

1068‑G7AL If:

(a) a person receives a leave payment or termination payment; and

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

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

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

1068‑G7AM 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 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 payment or allowance claimed may not be payable to the person; or

(b) the amount of the payment or allowance payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1068‑G7AN For the purposes of points 1068‑G7AF to 1068‑G7AM (inclusive), a person (the first person) is taken to receive a leave payment or termination 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

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

Single payment in respect of different kinds of termination payments

1068‑G7AP If a person who is covered by point 1068‑G7AH receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068‑G7AG to 1068‑G7AN (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

1068‑G7AQ In points 1068‑G7AG to 1068‑G7AP (inclusive):

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

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

redundancy payment includes a payment in lieu of notice, but does not include a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

1068‑G7AR In points 1068‑G7AG to 1068‑G7AQ (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

Ordinary income generally taken into account when first earned, derived or received

1068‑G7A Subject to points 1068‑G7B, 1068‑G7C, 1068‑G8 and 1068‑G8A and sections 1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note: See Division 1AA of Part 3.10 for the treatment of employment income.

Claimant or recipient receives lump sum amount for remunerative work

1068‑G7B If a person whose claim for a payment or an allowance has been granted receives a lump sum amount after the claim was made that:

(a) is paid to him or her in relation to remunerative work; and

(b) is not a payment to which point 1068‑G8 applies; and

(d) is not employment income;

Partner of claimant or recipient receives lump sum amount for remunerative work

1068‑G7C If:

(a) a person whose claim for a payment or an allowance 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 1068‑G8 applies; and

(iii) is not an exempt lump sum; and

(iv) is not employment income;

Reference to payment or allowance

1068‑G7D A reference in point 1068‑G7B or 1068‑G7C to a payment or an allowance is a reference to a payment or an allowance the rate of which is calculated under this Rate Calculator.

Operation of points 1068‑G7B and 1068‑G7C

1068‑G7E Points 1068‑G7B and 1068‑G7C have effect even if the person who has made the claim:

(a) has to serve an ordinary waiting period or a liquid assets test waiting period in respect of the payment or allowance claimed; or

(b) is subject to an income maintenance period in respect of the payment or allowance claimed; or

during the period of 12 months referred to in those points.

Ordinary income received at intervals longer than one fortnight

1068‑G8 Subject to points 1068‑G7AF to 1068‑G7AR (inclusive), if:

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

(b) each payment is in respect of a period (in this point called the work period) that is greater than a fortnight; 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 (the result is called the 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

1068‑G8A If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving jobseeker 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 (the result is called the 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

1068‑G9 The partner income free area for a person is:

1068‑G9A For the purposes of paragraph 1068‑G9(a), disregard steps 2, 2A and 3 of the method statement in point 1067G‑A1.

1068‑G9B For the purposes of paragraph 1068‑G9(b), disregard steps 2 and 3 of the method statement in point 1068‑A1.

Partner income excess

1068‑G10 If:

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

(b) the person’s partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and

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

1068‑G11 If a person has a partner income excess, the person’s partner income reduction is an amount equal to 60% of the part of the partner’s ordinary income that exceeds the partner income free area.

Example:

Facts: Susan’s partner Colin has an ordinary income of $800. Assume that the partner income free area under point 1068‑G9 is $640.

Application: Colin’s ordinary income exceeds the partner income free area. He therefore has a partner income excess under point 1068‑G10 of:

Susan’s partner income reduction under point 1068‑G11 is therefore:

Ordinary income free area

1068‑G12 A person’s ordinary income free area is $150.

Note: The income free area is used in the ordinary income test in relation to fortnightly income.

Ordinary income excess

1068‑G13 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—general

1068‑G14 Subject to point 1068‑G17, 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 (see point 1068‑G15); and

(b) the person’s upper range reduction (if any) (see point 1068‑G16).

Lower range reduction

1068‑G15 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 $106.

Upper range reduction

1068‑G16 The person’s upper range reduction is an amount equal to 60% of the part (if any) of the person’s ordinary income excess that exceeds $106.

Ordinary income reduction for certain recipients of jobseeker payment

1068‑G17 If:

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

(b) the person is receiving jobseeker payment; and

(d) the person is the principal carer of a child;

the person’s ordinary income reduction is an amount equal to 40% of the person’s ordinary income excess.

Module J—Remote area allowance

Remote area allowance—person physically in remote area

1068‑J1 An amount by way of remote area allowance is to be added to a person’s rate if:

(aa) any of the following subparagraphs applies:

(i) apart from this point, the person’s rate would be greater than nil;

(ii) apart from this point, the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act;

(iii) apart from this point, the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force;

(iv) apart from this point, the person’s rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); 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 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

1068‑J3 The rate of remote area allowance payable to a person is worked out using Table J. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each FTB child, and regular care child, of the person.

Table J Remote area allowance
Column 1 Item	Column 2 Person’s family situation	Column 3 Basic allowance	Column 4 Additional allowance for each FTB child and regular care child
1.	Not member of couple	$18.20	$7.30
2.	Partnered	$15.60	$7.30
3.	Member of illness separated couple	$18.20	$7.30
5.	Partnered (partner in gaol)	$18.20	$7.30

Meaning of remote area allowance

1068‑J4 In Table J, remote area allowance means:

(a) an amount added to a person’s social security pension or benefit by way of remote area allowance; or

(b) a remote area allowance payable under point SCH6‑G1 of the VEA.

In remote area

1068‑J5 For the purposes of Table J in point 1068‑J3, a person is in the remote area if:

(a) the person’s usual place of residence is in the remote area; and

(b) the person is physically present in the remote area.

Special rule where partner has an FTB or regular care child but is not receiving a pension

1068‑J7 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

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

1068‑J8 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 or a regular care child; and

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

1068‑J9 If an FTB child, or a regular care 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, or a regular care child, during that 14 weeks.

Part 3.6A—Parenting Payment Rate Calculator

1068A Rate of parenting payment—pension PP (single)

(1) If a person is not a member of a couple, the person’s rate of parenting payment is the pension PP (single) rate.

(2) The pension PP (single) rate is worked out in accordance with the rate calculator at the end of this section.

Note: For rate of a person who is a member of a couple see section 1068B.

(3) If:

(a) a person has a relationship with another person, whether of the same sex or a different sex (the other person); and

the person’s pension PP (single) rate is not to exceed the benefit PP (partnered) rate which would be payable to the person if the other person were the person’s partner.

Pension PP (Single) Rate Calculator

Method of calculating rate

1068A‑A1 The rate of pension PP (single) 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 1B. Work out the energy supplement (if any) using Module BB 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 in accordance with paragraph 1070A(b).

Step 4. Add up the amounts obtained in Steps 1, 1A, 1B, 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 6. Take the income reduction away from the maximum payment rate: the result is called the provisional annual payment rate.

Step 7. The rate of pension PP (single) 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

Note 1: If a person’s rate is reduced under Step 6, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210.

Note 2: In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 3: An amount of remote area allowance is to be added under Step 7 only if the person’s provisional payment rate under Step 6 is greater than nil.

Maximum basic rate

1068A‑B1 A person’s maximum basic rate is $21,470.80 per year ($825.80 per fortnight).

Note: The maximum basic rate is indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Module BB—Energy supplement

Pension supplement

1068A‑BA1 A pension supplement amount is to be added to the person’s maximum basic rate.

Residents of pension age who are in Australia etc.

1068A‑BA2 If the person is residing in Australia, has reached pension age and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks;

the person’s pension supplement amount is:

(d) otherwise—the amount worked out under point 1068A‑BA3.

Residents of pension age in Australia etc.—no election in force

1068A‑BA3 The person’s pension supplement amount is the amount worked out by:

(a) working out 66.33% of the combined couple rate of pension supplement; and

(b) if the result is not a multiple of $2.60, rounding the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).

Note: For combined couple rate of pension supplement, see subsection 20A(1).

Residents of pension age in Australia etc.—election in force

1068A‑BA4 The person’s pension supplement amount is the amount worked out as follows:

(a) work out the amount for the person under point 1068A‑BA3 as if the election were not in force;

(b) from that amount, subtract the person’s minimum pension supplement amount.

Other persons

1068A‑BA5 If the person is not covered by point 1068A‑BA2, the person’s pension supplement amount is the person’s pension supplement basic amount.

1068A‑BB1 An energy supplement is to be added to the person’s (the recipient’s) maximum basic rate if the recipient is residing in Australia and:

(a) is in Australia; or

(b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note: Section 918 may affect the addition of the energy supplement.

Recipient has reached pension age

1068A‑BB2 If the recipient has reached pension age, the recipient’s energy supplement is $366.60.

Recipient has not reached pension age

1068A‑BB3 If the recipient has not reached pension age, the recipient’s energy supplement is $312.00.

Module C—Pharmaceutical allowance

Qualification for pharmaceutical allowance

1068A‑C1 Subject to points 1068A‑C1A, 1068A‑C2, 1068A‑C3 and 1068A‑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 has reached pension age

1068A‑C1A Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person has reached pension age.

No pharmaceutical allowance if person receiving certain supplements under other Acts

1068A‑C2 Pharmaceutical allowance is not to be added to a person’s maximum basic rate if the person is receiving:

(a) veterans supplement under section 118A of the Veterans’ Entitlements Act; or

(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or

(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006; or

(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019.

No pharmaceutical allowance before advance payment period ends

1068A‑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 Part 2.23 of this Act; and

(b) the person’s advance payment period has not ended.

Note: For advance payment period see point 1068A‑C4.

Advance payment period

1068A‑C4(1) A person’s advance payment period starts on the day on which the advance pharmaceutical allowance is paid to the person.

(2) The period ends after the number of paydays worked out using the following formula have passed:

$Start formula start fraction Amount of advance times 26 over Pharmaceutical allowance rate end fraction end formula$

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 person’s rate of pension PP (single) on 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

1068A‑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 (7).

Note 2: The annual limit is affected by the following:

(a) how long during the calendar year the person was on pension or benefit;

(b) the rate of pharmaceutical allowance the person attracts at various times depending on the person’s family situation.

Amount of pharmaceutical allowance

1068A‑C7 The amount of pharmaceutical allowance is $140.40 per year ($5.40 per fortnight).

Note: The annual amount is adjusted annually in line with CPI increases (see section 1206A).

Module E—Ordinary income test

Effect of income on maximum payment rate

1068A‑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.

Step 2. Work out the person’s ordinary income free area (see points 1068A‑E14 to 1068A‑E18 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 6. Use the person’s ordinary income excess to work out the person’s reduction for ordinary income using points 1068A‑E19 and 1068A‑E20 below.

Note 1: See point 1068A‑A1 (Steps 5 and 6) 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 the following:

(a) the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);

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

(c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);

(d) income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);

(e) disposal of income (sections 1106 to 1111).

Directed termination payments excluded

1068A‑E2 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; and

(c) the payment, or part of the payment, is a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997;

the payment, or that part, 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

1068A‑E3 If:

(a) a person is employed; and

(b) the person is on leave for a period; and

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 termination payments taken to be ordinary income

1068A‑E4 If:

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

(b) the person receives a termination 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 period to which the payment relates.

More than one termination payment on a day

1068A‑E5 If:

(a) the person is covered by point 1068A‑E4; and

(b) the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period—employment continuing

1068A‑E6 If the person is covered by point 1068A‑E3, 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

1068A‑E7 If the person is covered by point 1068A‑E4, the income maintenance period starts, subject to point 1068A‑E8, on the day the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

1068A‑E8 If a person who is covered by point 1068A‑E4 is subject to an income maintenance period (the first period) and the person is paid another termination payment during that period (the second leave payment), the income maintenance period for the second termination payment commences on the day after the end of the first period.

1068A‑E9 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).

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 pension PP (single) claimed may not be payable to the person; or

(b) the amount of the pension PP (single) payable to the person may be reduced.

When a person receives a leave payment or a termination payment

1068A‑E10 For the purposes of points 1068A‑E2 to 1068A‑E9 (inclusive), a person (the first person) is taken to receive a leave payment or termination 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

the first person waives or assigns the first person’s right to receive the payment.

Single payment in respect of different kinds of termination payments

1068A‑E11 If a person who is covered by point 1068A‑E4 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1068A‑E3 to 1068A‑E10 (inclusive), each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment and the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

1068A‑E12 In points 1068A‑E3 to 1068A‑E12 (inclusive):

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

period to which the payment relates means:

(a) if the payment is a leave payment—the leave period to which the payment relates; or

(i) the person’s employment had continued; and

(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

termination payment includes:

(a) a redundancy payment; and

(b) a leave payment relating to a person’s employment that has been terminated; and

Payment of arrears of periodic compensation payments

1068A‑E13 If:

(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving a compensation affected payment; 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 compensation affected payment and periodic payments period see section 17.

How to calculate a person’s ordinary income free area

1068A‑E14 A person’s ordinary income free area is worked out using Table E. The ordinary income free area is the amount in Column 2 plus the additional amount in Column 4 for each dependent child of the person.

Table E—Ordinary income free area
1	$2,600	$100	$639.60	$24.60

Table E—Ordinary income free area

Column 1

Item

Column 2

Basic free area per year

Column 3

Basic free area per fortnight

Column 4

Additional free area per year

Column 5

Additional free area per fortnight

$2,600

$100

$639.60

$24.60

Note 1: For dependent child see section 5 and point 1068A‑E21.

Note 2: The basic free area per year is indexed annually in line with CPI increases (see sections 1191 to 1194).

No additional free area for certain prescribed student children

1068A‑E15 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 receives carer allowance for the child.

Reduction of additional free area for dependent children

1068A‑E16 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 1068A‑E17 do not result in a reduction.

Payments that do not reduce additional free area

1068A‑E17 No reduction is to be made under point 1068A‑E16 for a payment:

(a) under this Act; or

(b) of maintenance income; 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).

Examples of payments reducing additional free area

1068A‑E18 Examples of the kinds of payments that result in a reduction under point 1068A‑E16 are:

(a) amounts received from State authorities or registered public benevolent institutions in respect of the boarding out of the child; or

(b) amounts of superannuation or compensation paid in respect of the child; or

(d) foster care allowance payments made by a State welfare authority.

Ordinary income excess

1068A‑E19 A person’s ordinary income excess is the person’s ordinary income less the person’s ordinary income free area.

Reduction for ordinary income

1068A‑E20 A person’s reduction for ordinary income is:

1068A‑E21 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.

Module F—Remote area allowance

Remote area allowance

1068A‑F1 An amount by way of remote area allowance is to be added to a person’s rate if:

(a) any of the following subparagraphs applies:

(i) apart from this point, the person’s rate would be greater than nil;

(ii) apart from this point, the person’s rate would be nil merely because an advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act;

(iii) apart from this point, the person’s rate would be nil merely because an election by the person under subsection 1061VA(1) is in force;

(iv) apart from this point, the person’s rate would be nil merely because of both of the matters mentioned in subparagraphs (ii) and (iii); and

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

Note: For remote area and physically present in the remote area see section 14.

Rate of remote area allowance

1068A‑F2 The rate of remote area allowance payable to a person is worked out using Table F. The rate of remote area allowance is the amount in Column 2 plus the additional corresponding amount in Column 4 for each FTB child, and each regular care child, of the person.

Table F—Remote area allowance
1	$473.20	$18.20	$189.80	$7.30

Table F—Remote area allowance

Column 1

Item

Column 2

Basic allowance per year

Column 3

Basic allowance per fortnight

Column 4

Additional allowance per year

Column 5

Additional allowance per fortnight

$473.20

$18.20

$189.80

$7.30

1068B Rate of parenting payment—PP (partnered)

(1) If a person is a member of a couple, the person’s rate of parenting payment is the benefit PP (partnered) rate.

(2) The benefit PP (partnered) rate is worked out in accordance with the rate calculator at the end of this section.

Note: For member of a couple see section 4.

Benefit PP (Partnered) Rate Calculator