Document ID: chunk:federal_register_of_legislation:C2025C00162:section:6:p2
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 6 (pt 2/7)
Character Range: 1796381–1799145

less than or equal to the MIT reducible amount, the person's reduction for parental income is the notional reduction.
           Step 7. If the notional reduction is more than the MIT reducible amount, the person's reduction for parental income is the MIT reducible amount.

Base FTB child rate
 1067G‑E2 The base FTB child rate is the amount that would be the base FTB child rate within the meaning of the Family Assistance Act, if the person were an FTB child of a parent of the person.

Maximum FTB child rate
 1067G‑E3 The maximum FTB child rate is the amount specified for item 2 in column 2 of the table in clause 7 of Schedule 1 to the Family Assistance Act.
Note: The amount is indexed under Schedule 4 of the Family Assistance Act.

Module F—Parental income test

Submodule 1—Parental income test result

Parental income test result
 1067G‑F1 This is how to work out the parental income test result for a person for the purposes of the method statement in point 1067G‑E1.

      Method statement
           Step 1. Work out whether the person is exempt from the parental income test using Submodule 2. If the person is exempt, go to step 5.
           Step 2. If the person is not exempt, identify the appropriate tax year using Submodule 3.
           Step 3. Work out the person's combined parental income for the appropriate tax year using Submodule 4.
           Step 4. Work out the person's parental income free area using Submodule 5.
           Step 5. If:

                (a) the person's combined parental income does not exceed the person's parental income free area; or
                (b) the person is exempt from the parental income test;

            then the parental income test result for the person is nil.
           Step 6. If the person's combined parental income exceeds the person's parental income free area, then the parental income test result for the person is the amount worked out using Submodule 6.

Submodule 2—Exemption from parental income test

Parent receiving Commonwealth benefit
 1067G‑F3 A person is exempt from the parental income test while a parent of the person:
 (a) is receiving a payment of pension, benefit, allowance or compensation referred to in Module L; or
 (c) is receiving a payment under the ABSTUDY Scheme.

Submodule 3—Appropriate tax year

Appropriate tax year
 1067G‑F4 Subject to this Submodule, the appropriate tax year for a youth allowance payment period is the base tax year for that period.

Base tax year
 1067G‑F5 The base tax year for a youth allowance payment period is the tax year that ended on 30 June in the calendar year that came immediately before the calendar year in which the period ends.
Example: A youth allowance payment period ends on 25 January 1999—this day occurs