Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1 (pt 1/2)
Character Range: 1965657–1968517

1                                  $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
 (c) under the Veterans' Entitlements Act; 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
 (c) amounts (other than amounts covered by point 1068A‑E17) paid in respect of the child under educational schemes; 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