Document ID: chunk:federal_register_of_legislation:C2004A04771:front:0:p63
Version: federal_register_of_legislation:C2004A04771
Segment Type: other
Provision Reference: 
Character Range: 164316–166960

separated and respite care couples.
Note 3: The basic free area is indexed annually in line with CPI increases (see sections 59B to 59E).

Maintenance obligation

"45Y-D6. For the purposes of point 45Y-D5, a child is a dependent child of a person if the person is liable to maintain the child under a law of the Commonwealth, a State or a Territory.

Additional free area for children in some cases

  "45Y-D7. If:

  (a) a person is a member of a couple; and

     (b) the person's partner is receiving an age service pension or invalidity service pension; and

     (c) the partner's service pension rate includes a child add-on for a child or child add-ons for children;

the person's adjusted income free area is to be increased by $312 for the child or for each of the children.

No additional free area for certain prescribed student children

"45Y-D8. No additional free area is to be added for a dependent child who:

  (a) has turned 18; and

  (b) is a prescribed student child;

unless the person whose rate is being calculated, or the person's partner, receives child disability allowance under the Social Security Act for the child.

Reduction of additional free area for dependent children

"45Y-D9. The additional free area for a dependent child of a person to whom item 1, 2 or 3 of Table D-1 applies is reduced by the annual amount

of any payment received by the person or the person's partner for or in respect of that particular child. The payments referred to in point 45Y-D11 do not result in a reduction.

"45Y-D10. The additional free area for a dependent child of a person to whom item 4 of Table D-1 applies is reduced by 50% of the annual amount of any payment received by the person or the person's partner for or in respect of that particular child. The payments referred to in point 45Y-D11 do not result in a reduction.

"45Y-D11. No reduction is to be made under point 45Y-D9 or 45Y-D10 for a payment:

  (a) under this Act; or

  (b) of maintenance income; or

  (c) under the Social Security Act; or

  (d) under the AUSTUDY scheme; or

  (e) under an Aboriginal study assistance scheme; or

  (f) under the Assistance for Isolated Children Scheme; or

  (g) that is similar in nature to family payment under the Social Security Act.

Note: For 'Aboriginal study assistance scheme' see section 5F.

Reduction for adjusted income in excess of adjusted income free area

"45Y-D12. A person's reduction for adjusted income is worked out using Table D-2. Work out which family situation applies to the person. The reduction for adjusted income is the amount per year worked out using the corresponding calculation