Document ID: chunk:federal_register_of_legislation:C2004A04731:front:0:p12
Version: federal_register_of_legislation:C2004A04731
Segment Type: other
Provision Reference: 
Character Range: 30848–33637

(c) the person applies to the Secretary under section 1240 for review of the previous decision; and

     (d) a determination granting the claim is made as a result of the application for review;

the determination takes effect on the day on which the previous decision took effect.

"Division 5—Rate of home child care allowance

Purpose of Division

"925. The purpose of this Division is to work out the annual rate at which home child care allowance is payable to a person.

Interpretation

  "926. For the purposes of this Division, 'ordinary income' includes:

     (a) a payment by way of a social security pension, social security benefit or rehabilitation allowance other than that part of the payment that is for rent assistance, pharmaceutical allowance or remote area allowance; and

     (b) a payment received by a trainee in full-time training under a program included in the programs known as the Labour Force Programs, to the extent that the payment includes one or more of the following amounts:

      (i) an amount calculated by a reference to a rate of job search or newstart allowance;

      (ii) an amount known as the training component;

     (iii) an amount by way of a living away from home allowance; and

    (c) a payment received by the person under the scheme known as the New Enterprise Incentive Scheme; and

    (d) a payment received by the person under a scheme known as the Aboriginal Employment Incentive Scheme; and

  (e) a payment by way of a service pension.

Note: For general definition of 'ordinary income' see subsection 8(1).

Ordinary income free area

"927.(1)  A person's 'ordinary income free area' is the amount of ordinary income that the person can have without a deduction being made from the person's home child care allowance payment.

  "(2) The ordinary income free area is $282.00 a year.

Maximum rate of home child care allowance

"928. The maximum rate of home child care allowance is $1,560.00 per annum.

How to calculate a person's annual rate of home child care allowance

"929.(1)  To work out the person's annual rate of home child care allowance, first, work out the person's ordinary income excess using the following Method statement:

                   Method statement
Step 1.  Work out the amount of the person's ordinary income on a yearly basis.
Step 2.  Work out whether the person's ordinary income exceeds the ordinary income free area.
Step 3.  If the person's ordinary income exceeds the ordinary income free area, the person's ordinary income excess is the person's ordinary income less the ordinary income free area.
Step 4.  If the person's ordinary income does not exceed the ordinary income free area, the person's ordinary income excess is nil.

"(2) If the person's ordinary income excess is