Document ID: chunk:federal_register_of_legislation:C2025C00143:section:10:p30
Version: federal_register_of_legislation:C2025C00143
Segment Type: section
Provision Reference: s 10 (pt 30/50)
Character Range: 84071–86918

Other Services (Compensation) Act 1995:

compensation
compensation payer
judgment
reimbursement arrangement
settlement.

Subdivision 44‑E—The income test

44‑21  The income test
 (1) The income test for the care recipient under step 4 of the residential care subsidy calculator in section 44‑2 is applied by working out the amount (if any) of the income tested reduction in respect of the *payment period.
 (2) The income tested reduction in respect of the *payment period is the sum of all the *daily income tested reductions for days during the period on which the care recipient is provided with residential care through the residential care service in question.
 (3) The *daily income tested reduction for a particular day is worked out as follows:

      Income tested reduction calculator
           Step 1. Work out the care recipient's *total assessable income on a yearly basis (see section 44‑24).
           Step 2. Work out the care recipient's *total assessable income free area (see section 44‑26).
           Step 3. If the care recipient's *total assessable income does not exceed the care recipient's *total assessable income free area, the income tested reduction is zero.
           Step 4. If the care recipient's *total assessable income exceeds the care recipient's *total assessable income free area, the smallest of the following amounts (rounded down to the nearest cent) is the *daily income tested reduction:

                (a) the amount equal to 5/12 of that excess (worked out on a per day basis);
                (b) the amount equal to 135% of the *basic age pension amount for that day (worked out on a per day basis);
                (c) the subsidy related amount for a care recipient for a day (see subsection (4)).

                  Note: In some circumstances, a different *daily income tested reduction will apply under section 44‑22 or 44‑23.
 (4) The subsidy related amount for a care recipient for a day is the total of the following amounts:
 (a) the adjusted basic subsidy amount for the care recipient for the day (see subsection (5));
 (b) the amounts of any primary supplements worked out using Subdivision 44‑C for the care recipient for the day;
less the amounts of any reductions in subsidy worked out using Subdivision 44‑D for the care recipient for the day.
 (5) The adjusted basic subsidy amount for a care recipient for a day is an amount:
 (a) determined by the Minister by legislative instrument; or
 (b) worked out in accordance with a method determined by the Minister by legislative instrument.

44‑22  Daily income tested reduction taken to be zero in some circumstances
 (1) The *daily income tested reduction in respect of the care recipient is taken to be zero for each day, during the *payment period, on which one or more of the following applies:
 (a) the care recipient was