Document ID: chunk:federal_register_of_legislation:C2025C00162:section:4:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 4 (pt 1/7)
Character Range: 1974699–1977662

4                            Partnered (partner in gaol)           $785.20

Note 1: For illness separated couple, respite care couple and partnered (partner in gaol) see section 4.
Note 2: The rates are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Module D—Income test

Effect of income on maximum payment rate
 1068B‑D1 This is how to work out the effect of a person's ordinary income, and the ordinary income of the person's partner, 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: The amount of the person's ordinary income is affected by points 1068B‑D2 to 1068B‑D21.
           Step 2. Work out the partner income free area using point 1068B‑D22.
                  Note: The partner income free area is the maximum amount of ordinary income the person's partner can have without affecting the person's rate.
           Step 3. Use point 1068B‑D23 to work out the person's partner income excess.
           Step 4. Use the person's partner income excess to work out the person's partner income reduction using point 1068B‑D24.
           Step 5. Work out whether the person's ordinary income exceeds the person's ordinary income free area (see point 1068B‑D27).
                  Note: A person's ordinary income free area is the maximum amount of ordinary income the person can have without affecting the person's rate.
           Step 6. 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 7. 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 8. Use the person's ordinary income excess to work out the person's ordinary income reduction using points 1068B‑D29 to 1068B‑D31.
           Step 9. Add the person's ordinary income reduction and partner income reduction: the result is the person's income reduction referred to in step 5 of the method statement in point 1068B‑A2.
Note 1: For ordinary income see section 8.
Note 2: See point 1068B‑A2 (step 6) for the significance of the person's income reduction.
Note 3: 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).

Ordinary income of members of certain couples
 1068B‑D2 If a person's partner