Document ID: chunk:federal_register_of_legislation:C2025C00162:section:5:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 5 (pt 1/8)
Character Range: 1661596–1664545

5                  Partnered (partner in gaol)            $366.60

Module E—Ordinary income test

Effect of income on maximum payment rate
 1064‑E1 This is how to work out the effect of a person's ordinary income on the person's maximum payment rate:

      Method statement
           Step 1. Work out the amount of the person's ordinary income on a yearly basis.
                  Note 1: For the treatment of the ordinary income of members of a couple see point 1064‑E2.
                  Note 2: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.
           Step 2. Work out the person's ordinary income free area (see point 1064‑E4 below).
                  Note: A person's ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person's maximum payment rate.
           Step 3. Work out whether the person's ordinary income exceeds the person's ordinary income free area.
           Step 4. If the person's ordinary income does not exceed the person's ordinary income free area, the person's ordinary income excess is nil.
           Step 5. If the person's ordinary income exceeds the person's ordinary income free area, the person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.
           Step 6. Use the person's ordinary income excess to work out the person's reduction for ordinary income using points 1064‑E10 to 1064‑E12 below.
Note 1: See point 1064‑A1 (Steps 5 to 8) for the significance of the person's reduction for ordinary income.
Note 2: The application of the ordinary income test is affected by provisions concerning:
                 *    the general concept of ordinary income and the treatment of certain income amounts (Division 1 of Part 3.10);
                 *    the work bonus (section 1073AA);
                 *    business income (sections 1074 and 1075);
                 *    income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 1B of Part 3.10);
                 *    income from income streams not covered by Division 1B of Part 3.10 (Division 1C of Part 3.10);
                 *    disposal of income (sections 1106 to 1111).

Ordinary incomes of members of couples
 1064‑E2 If a person is a member of a couple, add the couple's ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person's ordinary income for the purposes of this Module.
Note: For the purposes of working out a person's disability support pension rate under this Rate Calculator, Module F applies to working out the ordinary incomes of both members of the couple.

Payment of arrears of periodic compensation payments
 1064‑E3 If:
 (a) at the time of an event that gives rise