Document ID: chunk:federal_register_of_legislation:C2004A04954:body:0:p19
Version: federal_register_of_legislation:C2004A04954
Segment Type: other
Provision Reference: 
Character Range: 50691–53535

free area

"1067E-G15. A person's ordinary income free area is $60.

SCHEDULE 12—continued

Ordinary income excess

"1067E-G16. 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

"1067E-G17. 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 1067E-G18); and

    (b) the person's upper range reduction (if any) (see point 1067E-G19).

Lower range reduction

"1067E-G18. 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 $80.

Upper range reduction

"1067E-G19. The person's upper range reduction is an amount equal to 70% of the part (if any) of the person's ordinary income excess that exceeds $80.

Example:

Facts:

Further to the example at the end of point 1067E-G14, Alice is receiving sickness allowance. Her ordinary income is $95.

Application:

Alice's ordinary income free area under point 1067E-G15 is $60.

Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess under point 1067E-G16 of $95 - $60 = $35.

Because her ordinary income excess does not exceed $80:

      •          her lower range reduction under point 1067E-G18 is 50% of $35 = $17.50; and

      •          there is no upper range reduction under point 1067E-G19.

Her ordinary income reduction under point 1067E-G17 is therefore $17.50.

Alice's income reduction referred to in Step 9 of point 1067E-A1 is $105 + $17.50 = $122.50.".

PART 2—AMENDMENTS OF THE STUDENT AND YOUTH ASSISTANCE ACT 1973

8. Subsection 135(2) (Note):

Omit "ordinary income test", substitute "income test"

SCHEDULE 12—continued

9. Subsection 218(1):

After "subsections" insert "(1A), (1B),".

10. After subsection 218(1):

Insert:

"(1A) Subject to subsection (3), for the purposes of the application of this Act in relation to a person's rate of youth training allowance, if:

    (a) a person who is a member of a couple has, on or after 14 May 1987, disposed of ordinary income of the person; and

    (b) the amount of the disposition is not greater than the least amount that, if added to the person's ordinary income (disregarding this section), would cause the person's rate of youth training allowance to be reduced to nil;

the amount of the disposition is to be included in the person's ordinary income.

"(1B) Subject to subsection (3), for the purposes of the application of this Act in relation to a person's rate of youth training allowance, if:

    (a) a person who is a member of