Document ID: chunk:federal_register_of_legislation:C2024C00583:clause:1_25
Version: federal_register_of_legislation:C2024C00583
Segment Type: clause
Provision Reference: sch 1 cl 25
Character Range: 373281–375284

25  Method of calculating Part A rate
  Subject to the operation of clauses 25A, 25C and 25D, if the individual's Part A rate is to be calculated using this Part, it is calculated as follows:

      Method statement
           Step 1. Add the following amounts:

                (a) the individual's standard rate under Division 2 of this Part (clauses 26 and 27);
                (ba) the individual's newborn supplement (if any) under Division 1A of Part 5 (clauses 35A and 35B);
                (c) the individual's multiple birth allowance (if any) under Division 2 of Part 5 (clauses 36 to 38);
                (d) the individual's FTB Part A supplement under Division 2A of Part 5 (clause 38A);
                (e) the individual's energy supplement (Part A) under Subdivision B of Division 2AA of Part 5 (clause 38AF).

            The result is the individual's Method 2 base rate.
                  Note: Paragraph (e) does not apply to certain individuals: see clause 25C.
           Step 2. Apply the income test in Division 3 of this Part (clause 28) to work out any reduction for adjusted taxable income. Take any reduction away from the individual's Method 2 base rate: the result is the individual's provisional Part A rate.
           Step 3. Work out the rate that would be the individual's income and maintenance tested rate under step 3 of the method statement in clause 3 if the individual's Part A rate were to be calculated using Part 2 (but disregarding clause 24G): the result is the individual's Method 2 income and maintenance tested rate.
                  Note: Clause 25D modifies the application of this step.
           Step 4. The individual's Part A rate is:

                (a) the individual's provisional Part A rate if it is equal to or greater than the individual's Method 2 income and maintenance tested rate; or
                (b) the individual's Method 2 income and maintenance tested rate if it is greater than the individual's provisional Part A rate.