Document ID: chunk:federal_register_of_legislation:C2025C00162:section:5:p11
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 5 (pt 11/13)
Character Range: 1940593–1943404

steps 2, 2A and 3 of the method statement in point 1067G‑A1.
 1068‑G9B For the purposes of paragraph 1068‑G9(b), disregard steps 2 and 3 of the method statement in point 1068‑A1.

Partner income excess
 1068‑G10 If:
 (a) a person is a member of a couple; and
 (b) the person's partner is not receiving a social security pension, a service pension, income support supplement or a veteran payment; and
 (c) the partner's ordinary income exceeds the partner income free area for the partner;
then:
 (d) the person has a partner income excess; and
 (e) the person's partner income excess is the amount by which the partner's ordinary income exceeds the partner income free area.

Partner income reduction
 1068‑G11 If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the part of the partner's ordinary income that exceeds the partner income free area.
Example:
             Facts: Susan's partner Colin has an ordinary income of $800. Assume that the partner income free area under point 1068‑G9 is $640.
             Application: Colin's ordinary income exceeds the partner income free area. He therefore has a partner income excess under point 1068‑G10 of:
              Susan's partner income reduction under point 1068‑G11 is therefore:

Ordinary income free area
 1068‑G12 A person's ordinary income free area is $150.
Note: The income free area is used in the ordinary income test in relation to fortnightly income.

Ordinary income excess
 1068‑G13 If a person's ordinary income exceeds the person's ordinary income free area:
 (a) the person has an ordinary income excess; and
 (b) the person's ordinary income excess is the amount by which the person's ordinary income exceeds the person's ordinary income free area.

Ordinary income reduction—general
 1068‑G14 Subject to point 1068‑G17, if a person has an ordinary income excess, the person's ordinary income reduction is the sum of:
 (a) the person's lower range reduction (see point 1068‑G15); and
 (b) the person's upper range reduction (if any) (see point 1068‑G16).

Lower range reduction
 1068‑G15 The person's lower range reduction is an amount equal to 50% of the part of the person's ordinary income excess that does not exceed $106.

Upper range reduction
 1068‑G16 The person's upper range reduction is an amount equal to 60% of the part (if any) of the person's ordinary income excess that exceeds $106.

Ordinary income reduction for certain recipients of jobseeker payment
 1068‑G17 If:
 (a) a person has an ordinary income excess; and
 (b) the person is receiving jobseeker payment; and
 (c) the person is not a member of a couple; and
 (d) the person is the principal carer of a child;
the person's ordinary income reduction is an amount equal to 40% of the person's ordinary income