Document ID: chunk:federal_register_of_legislation:C2015A00159:clause:1_25
Version: federal_register_of_legislation:C2015A00159
Segment Type: clause
Provision Reference: sch 1 cl 25
Character Range: 9316–11235

25  After Module D of the Youth Allowance Rate Calculator
Insert:

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.
           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.