Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p21
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 21/35)
Character Range: 89990–92783

Part 2 of Schedule 1.

Rate of income support supplement (dependent child or children)

20. The Rate Calculator in section 45Y of the Principal Act is amended:

    (a) by omitting the heading to Module A and substituting the following:

"MODULE A—GENERAL PROVISIONS";

    (b) by omitting point 45Y-A1 and substituting the following point:

    "45Y-A1. This Module contains provisions of general application in the Calculator.";

    (c) by adding at the end of Module A the following point:

    "45Y-A7. The amount of the reduction in the pension is worked out by using the formula:

where:

    FPR (full pension rate) is the amount per annum that would have been the annual rate of the pension if it had not been reduced; and

    CRR (compensation reduced rate) is the annual rate of pension payable to the person after the pension has been reduced.";

    (d) by omitting Modules B and C and substituting the Modules set out in Part 1 of Schedule 2;

    (e) by inserting after point 45Y-D3 the following point:

Payment of arrears of periodic compensation payments

    "45Y-D3A. 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 pension; and

         (b) in relation to the entitlement, the person receives a payment ('arrears 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 of the arrears payment by the number of days in the periodic payments period.

        Note: For 'event that gives rise to an entitlement to compensation' and 'periodic payments period' see section 5NB.";

    (f) by adding at the end the Module set out in Part 2 of Schedule 2.

Method of calculating rate at which income support supplement would have been payable in certain circumstances

21. Section 45ZE of the Principal Act is amended by omitting paragraphs (d) and (e) and substituting the following paragraphs:

     "(d) if the Income Support Supplement Rate Calculator Where There Are No Dependent Children at the end of section 45X is to be used—as if Step 12 of the Method statement in point 45X-A1 were omitted and the following Step were substituted:
Step 12.  This Step applies only to a person whose pension under Part II or IV is not compensation reduced. Work out the person's provisional rate as follows: compare the adjusted income reduced rate and the assets reduced rate; the person's provisional rate is equal to:

              (a) whichever is the lower of those rates; or

              (b) if the 2 rates are the same—those rates.'; or

     (e) if the Income Support Supplement Rate Calculator Where There Are Dependent Children at the end of section