Document ID: chunk:federal_register_of_legislation:C2004A04771:front:0:p62
Version: federal_register_of_legislation:C2004A04771
Segment Type: other
Provision Reference: 
Character Range: 161188–164553

6.  Use the person's adjusted income excess to work out the person's reduction for ordinary income using points 45Y-D11 to 45Y-D13 below.

    Note 1: See point 45Y-A1 (Steps 4 to 9) for the significance of the person's reduction for adjusted income.
Note 2: The application of the adjusted income test is affected by provisions concerning:
    • investment income (sections 46-46U);
    • disposal of income (sections 48-48E);
    • earnings credit (section 49).

Adjusted incomes of members of couples

"45Y-D2. If a person is a member of a couple, add the couple's adjusted incomes (on a yearly basis) and divide by 2 to work out the amount of the person's adjusted income for the purposes of this Module.

Partner's DSS earnings credit to be taken into account

  "45Y-D3. If:

  (a) a person is a member of a couple; and

     (b) the person's partner is receiving a social security pension or benefit; and

     (c) an amount earned by the partner is disregarded under section 1113 or 1115A of the Social Security Act;

that amount is also to be disregarded in working out the adjusted income of the person for the purposes of point 45Y-D2.

Adjusted income free area

"45Y-D4. A person's adjusted income free area is the amount of adjusted income the person can have without any deduction being made from the person's maximum payment rate.

How to calculate a person's adjusted income free area

"45Y-D5. A person's adjusted income free area is worked out using Table D-1. Work out which family situation in Table D-1 applies to the person. The adjusted income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each dependent child of the person.

TABLE D-1
ADJUSTED INCOME FREE AREA
column 1                   column 2                                                 column 3                  column 4                       column 5                       column 6
item                       category of person                                       basic free area per year  basic free area per fortnight  additional free area per year  additional free area per fortnight
1.                         Not member of couple                                     $2,340                    $90                            $624                           $24
2.                         Partnered (partner getting neither pension nor benefit)  $2,028                    $78                            $624                           $24
3.                         Partnered (partner getting benefit)                      $2,028                    $78                            $624                           $24
4.                         Partnered (partner getting pension)                      $2,028                    $78                            $312                           $12

    Note 1: For 'member of a couple', 'partnered (partner getting neither pension nor benefit', 'partnered (partner getting benefit)', 'partnered (partner getting pension)' and 'dependent child' see sections 5E and 5F.
Note 2: Items 2, 3 and 4 of Table D-1 apply to members of illness separated and respite care couples.
Note 3: The basic free area is indexed annually in line with CPI increases (see sections 59B to 59E).

Maintenance obligation

"45Y-D6. For the purposes of point 45Y-D5, a child is a dependent child of