Document ID: chunk:federal_register_of_legislation:C2025C00162:section:3:p4
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 3 (pt 4/10)
Character Range: 1713240–1716422

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 free area is the corresponding amount in column 3.

Table F‑1—Ordinary income free area
Column 1                             Column 2                                                  Column 3                  Column 4
Item                                 Category of person                                        Basic free area per year  Basic free area per fortnight
1.                                   Not member of a couple                                    $2,184                    $80
2.                                   Partnered (partner getting neither pension nor benefit)   $1,924                    $70
3.                                   Partnered—(partner getting benefit)                       $1,924                    $70
4.                                   Partnered—(partner getting pension)                       $1,924                    $70

Note 1: For member of a couple, partnered (partner getting neither pension nor benefit), partnered (partner getting benefit) and partnered (partner getting pension) see section 4.
Note 3: Items 2, 3 and 4 of Table F‑1 apply to members of illness separated couples.
Note 4: The basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).

Pension reduction for ordinary income in excess of ordinary income free area
 1066A‑F9 A person's reduction for ordinary income is:

Ordinary income excess
 1066A‑F10 A person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.

Module G—Payments taken to be ordinary income

Application of this Module
 1066A‑G1 This Module applies to a person and, if the person is a member of a couple, the person's partner.

Lump sum payments arising from termination of employment
 1066A‑G2 Subject to points 1066A‑G4 to 1066A‑G14 (inclusive), if:
 (a) a person's employment has been terminated; and
 (b) as a result the person is entitled to a lump sum payment from the person's former employer;
the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.

Certain leave payments taken to be ordinary income—employment continuing
 1066A‑G4 If:
 (a) a person is employed; and
 (b) the person is on leave for a period; and
 (c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;
the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

Certain payments taken to be ordinary income—employment terminated
 1066A‑G5 If:
 (a) a person's employment has been terminated; and
 (b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);
the person