Document ID: chunk:federal_register_of_legislation:C2025C00162:section:3:p3
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 3 (pt 3/10)
Character Range: 1710578–1713476

couple see point 1066A‑F2.
                  Note 2: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.
           Step 2. Work out the person's ordinary income free area (see point 1066A‑F3 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.
           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 1066A‑F9 to 1066A‑F11 below.
Note 1: See point 1066A‑A1 (Steps 6 to 9) 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);
                 *    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
 1066A‑F2 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.

Payment of arrears of periodic compensation payments
 1066A‑F2A If:
 (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving disability support pension; and
 (b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;
the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Note: For periodic payments period see section 17.

How to calculate a person's ordinary income free area
 1066A‑F3 A person's ordinary income free area is worked out using Table F‑1. Work out which family situation in Table F‑1 applies to the person. The ordinary income