Document ID: chunk:federal_register_of_legislation:C2025C00162:section:4:p6
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 4 (pt 6/7)
Character Range: 1987385–1990167

social security pension, a service pension, income support supplement or a veteran payment; and
 (c) the partner's ordinary income exceeds the partner income free area for the partner;
the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area. Otherwise, the person's partner income excess is nil.

Partner income reduction
 1068B‑D24 If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the part of the partner's ordinary income that exceeds the partner income free area.

Ordinary income free area
 1068B‑D27 A person's ordinary income free area is $150.
Note: The income free area is used in the ordinary income test in relation to fortnightly income.

Ordinary income excess
 1068B‑D28 If a person's ordinary income exceeds the person's ordinary income free area:
 (a) the person has an ordinary income excess; and
 (b) the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area.

Ordinary income reduction
 1068B‑D29 If a person has an ordinary income excess, the person's ordinary income reduction is the sum of:
 (a) the person's lower range reduction (see point 1068B‑D30); and
 (b) the person's upper range reduction (if any) (see point 1068B‑D31).

Lower range reduction
 1068B‑D30 The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $106.

Upper range reduction
 1068B‑D31 The person's upper range reduction is an amount equal to 60% of the part (if any) of the person's ordinary income excess that exceeds $106.

Module DA—Pension supplement

Pension supplement
 1068B‑DA1 A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia, has reached pension age and:
 (a) is in Australia; or
 (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.
 1068B‑DA2 The person's pension supplement amount is:
 (a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068B‑DA4; and
 (b) otherwise—the amount worked out under point 1068B‑DA3.

Amount if no election in force
 1068B‑DA3 The person's pension supplement amount is the amount worked out by:
 (a) applying the applicable percentage in the following table to the combined couple rate of pension supplement; and
 (b) dividing the result by 26; and
 (c) if:
 (i) the person is not partnered; and
 (ii) the amount resulting from paragraph (b) is not a multiple of 10 cents;
  rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of