Document ID: chunk:federal_register_of_legislation:F2018C00315:reg:3:p3
Version: federal_register_of_legislation:F2018C00315
Segment Type: reg
Provision Reference: reg 3 (pt 3/7)
Character Range: 29182–31953

worked out in accordance with this Part.
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                 1. Step 1—Determine the excess amount for each eligible period
If the actual wage for an eligible period (worked out in accordance with section 3.09) is more than the productivity-scored wage for that period (worked out in accordance with section 3.14) the excess amount for the period is nil.
In all other cases, the excess amount is the amount worked out by subtracting the actual wage for an eligible period (worked out in accordance with section 3.09) from the productivity-scored wage for that period (worked out in accordance with section 3.14).
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                 1. Step 2—Determine the excess amount for each eligible financial year
Add up the excess amount for each eligible period in an eligible financial year to obtain the excess amount for each eligible financial year.
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                 1. Step 3—Index the amount for each eligible financial year to calculate the total excess amount
Apply subsection 8A(1) of the Act to the amount for each eligible financial year as if the excess amount for each eligible financial year were an annual portion.
The result from Step 5 from the method statement to subsection 8A(1) of the Act is the total excess amount.
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                 1. Step 4—Work out the payment amount
Multiply the total excess amount for the person worked out in Step 3 (section 3.18) by 0.7.
Note: Paragraph 8(3)(a) of the Act provides that the amount a person should receive should broadly reflect the amount that is 70% of the excess of a productivity-scored wage over an actual wage indexed to reflect compounding increases in the Consumer Price Index since the financial years in which eligible days occurred.
The before-tax payment amount for the person is the amount worked out in subsection (1) rounded to the nearest dollar, unless:
the amount is less than $1—in which case the before-tax payment amount for the person is nil; or
the amount is more than $1, but less than $100—in which case the before-tax payment amount for the person is $100.
Note: This provision of the Rules applies the formula in subsection 8(4) of the Act.
If the person would not be required to pay tax on the before-tax payment amount worked out in subsection (2), the before-tax payment amount is the payment amount.
If the person would be required to pay tax on the before-tax payment amount worked out in subsection (2), the payment amount is the before-tax payment amount plus an amount so that the payment amount is equal to the before-tax payment amount which the person would have been entitled to receive had the payment amount been free and