Document ID: chunk:federal_register_of_legislation:C2005C00734:clause:6_1073f
Version: federal_register_of_legislation:C2005C00734
Segment Type: clause
Provision Reference: sch 6 cl 1073F
Character Range: 137144–139841

1073F  Working out accruals and depletions of working credit for social security beneficiaries

  This section determines, in respect of each working credit participant who is receiving a social security benefit, whether, for each day in an instalment period:
 (a) there is an accrual to the participant's working credit balance; or
 (b) the participant's working credit balance is unaffected; or
 (c) the participant's working credit balance is depleted;
and, if there is an accrual to, or a depletion from, the participant's working credit balance, the amount of that accrual or depletion.

      Method statement
           Step 1. Work out the amount of the participant's employment income earned, derived or received on the day. This could be a nil amount or it could be an amount that is taken, under section 1073B, to have been earned, derived or received on the day.
           Step 2. Multiply the amount determined under step 1 by 14. This is the participant's rate of employment income on a fortnightly basis for the day.
           Step 3. Add to the participant's rate of employment income on a fortnightly basis for the day the participant's rate of any other ordinary income on a fortnightly basis for the day. This is the participant's fortnightly rate of total ordinary income on a fortnightly basis for the day.
           Step 4. If the participant's rate of total ordinary income on a fortnightly basis for the day is less than $48, there is an accrual to the participant's working credit balance for the day of an amount equal to one fourteenth of the amount by which $48 exceeds that rate. The maximum working credit balance is $1,000.
           Step 5. If the participant's rate of total ordinary income on a fortnightly basis for the day is at least $48 but does not exceed the ordinary income free area applicable to the participant for the day under the income test module of the appropriate rate calculator, the participant's working credit balance for the day is neither increased nor reduced.
           Step 6. If the participant's rate of total ordinary income on a fortnightly basis for the day is at least $48 and exceeds the participant's applicable ordinary income free area for the day, the participant's working credit balance, if it is greater than nil on the day, is depleted on that day by the least of:

                (a) the amount of employment income determined under step 1; or
                (b) one fourteenth of the amount by which the participant's rate of total ordinary income on a fortnightly basis exceeds the participant's applicable ordinary income free area; or
                (c) the participant's available working credit balance.