Document ID: chunk:federal_register_of_legislation:C2024C00866:clause:6_2:p3
Version: federal_register_of_legislation:C2024C00866
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 3/80)
Character Range: 2117661–2121208

receive on each day in the periodic payments period an amount calculated by dividing the amount of the arrears payment by the number of days in the periodic payments period.
Note: For event that gives rise to an entitlement to compensation, compensation affected pension and periodic payments period see section 5NB.

Ordinary/adjusted income free area
 SCH6‑E5 A person's ordinary/adjusted income free area is the amount of ordinary/adjusted income the person can have without any deduction being made from the person's maximum payment rate.

How to calculate a person's ordinary/adjusted income free area
 SCH6‑E6 A person's ordinary/adjusted income free area is worked out using Table E‑1. Work out which family situation in Table E‑1 applies to the person. The ordinary/adjusted income free area is the corresponding amount in column 3.

Table E‑1—Ordinary/adjusted income free area
Column 1                                      Column 2                                                 Column 3                         Column 4
Item                                          Category of person                                       Basic income free area per year  Basic income free area per fortnight
                                                                                                       $                                $
1.                                            Not member of a couple                                   2,548                            98
2.                                            Partnered (partner getting neither pension nor benefit)  2,236                            86
                                              Partnered (partner getting benefit)
3.                                            Partnered (partner getting pension)                      2,236                            86

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 5E.

Note 3: Items 2 and 3 of Table E‑1 apply to members of illness separated and respite care couples.

Note 4: The basic free area is indexed annually in line with CPI increases (see sections 59B to 59E).

Reduction for ordinary/adjusted income in excess of ordinary/adjusted income free area
        SCH6‑E11 (1) A person's reduction for ordinary/adjusted income is:

 (2) In this point:
ordinary/adjusted income excess, in relation to a person, means the person's ordinary/adjusted income less the person's ordinary/adjusted income free area.

Module F—Assets test

Effect of assets on maximum payment rate
 SCH6‑F1 This is how to work out the effect of a person's assets on the person's maximum payment rate:

      Method statement
           Step 1. Work out the value of the person's assets.
                  Note 1: For the treatment of the assets of members of a couple see point SCH6‑F2.
                  Note 2: For the assets that are to be disregarded in valuing a person's assets see section 52.
                  Note 3: For the valuation of an asset that is subject to a charge or encumbrance see sections 52C and 52CA.
           Step 2. Work out the person's assets value limit (see point SCH6‑F3 below).

                Note: A person's assets value limit is the maximum value of assets the person can have without affecting the person's rate of service pension, income support supplement or veteran payment.

           Step 3. Work out whether the value of the person's assets exceeds the person's