Document ID: chunk:federal_register_of_legislation:C2004A04993:body:0:p37
Version: federal_register_of_legislation:C2004A04993
Segment Type: other
Provision Reference: 
Character Range: 93889–96675

(1B) (description of care receiver)".

7. After subsection 198(1A):

Insert:

"(1B) This subsection applies to a severely handicapped person if the person:

(a) requires constant care; and

(b) is at least 16; and

(c) is an Australian resident; and

(d) is not receiving a social security pension, social security benefit or service pension; and

(e) passes the income test under section 198A; and

(f) either:

(i) passes the assets test under section 198D; or

       (ii) is the subject of a decision in force under subsection 198N(2), (3) or (4) that the person is taken to satisfy subparagraph (i).

Note: For Australian resident see subsection 7(2).".

SCHEDULE 10—continued

8. After section 198:

Insert in Subdivision A of Division 1 of Part 2.5:

Income test

Passing the income test

"198A.(1) A care receiver passes the income test if his or her taxable income worked out under section 198B for the appropriate tax year determined under section 198C is not more than $61,020.00 (the income ceiling).

Note: The income ceiling is indexed (see sections 1190, 1191 and 1194).

Some grounds for failing income test

"(2) A care receiver does not pass the income test if:

    (a) the care receiver does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year; or

    (b) any partner of the care receiver does not have an assessed taxable income or an accepted estimated taxable income for the appropriate tax year.

Initial income ceiling

"(3) If the Secretary determines in writing that the income ceiling should be more than $61,020.00, subsection (1) has effect from the commencement of this section as if it specified that higher amount.

Limit on determination of initial income ceiling

"(4) The Secretary must not determine an amount more than the basic ceiling amount taken to be specified in column 1 of Table H1 in Module H of the Family Payment Rate Calculator on 1 January 1996 after indexation.

Determination is disallowable

"(5) A determination is a disallowable instrument.

Taxable income

Taxable income of care receiver and partner

"198B.(1) For the purposes of this Subdivision:

    (a) if a care receiver is a member of a couple, the care receiver's taxable income includes the taxable income of the care receiver's partner; and

    (b) a person's taxable income for a tax year is:

(i) the person's assessed taxable income for the tax year; or

SCHEDULE 10—continued

      (ii) if the Commissioner of Taxation has not made an assessment of the person's taxable income for the tax year—the person's accepted estimated taxable income for the tax year.

Assessed taxable income

"(2) At a particular time, a person's assessed taxable income for a tax year is the taxable income according to whichever