Document ID: chunk:federal_register_of_legislation:C2024C00866:clause:6_2:p2
Version: federal_register_of_legislation:C2024C00866
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 2/80)
Character Range: 2114836–2117887

supplement or veteran payment.
           Step 3. Work out whether the person's ordinary/adjusted income exceeds the person's ordinary/adjusted income free area.
           Step 4. If the person's ordinary/adjusted income does not exceed the person's ordinary/adjusted income free area, the person's ordinary/adjusted income excess is nil.
           Step 5. If the person's ordinary/adjusted income exceeds the person's ordinary/adjusted income free area, the person's ordinary/adjusted income excess is the person's ordinary/adjusted income less the person's ordinary/adjusted income free area.
           Step 6. Use the person's ordinary/adjusted income excess to work out the person's reduction for ordinary/adjusted income using point SCH6‑E11 below.
                  Note 1: See the Method statements in point SCH6‑A1 for the significance of the person's reduction for ordinary/adjusted income.
                  Note 2: The application of the ordinary/adjusted income test is affected by provisions about the following:
                     (a) the general concept of ordinary income (sections 46 and 46A);
                     (aa) the work bonus (section 46AA);
                     (b) business income (sections 46B and 46C);
                     (c) income from financial assets (including income streams (short term) and certain income streams (long term)) (Division 3 of Part IIIB);
                     (d) income from income streams not covered by Division 3 of Part IIIB (Division 4 of Part IIIB);
                     (e) disposal of income (sections 48‑48E).

Ordinary/adjusted incomes of members of couples
 SCH6‑E3 If a person is a member of a couple, add the annual rates of the couple's ordinary/adjusted incomes and divide by 2 to work out the amount of the person's ordinary/adjusted income for the purposes of this Module. However, in making this calculation disregard any amount that is taken (whether for the purposes of this Act or of the Social Security Act) to be ordinary income of either partner because of section 59TA of this Act or section 1174 of the Social Security Act.

Additional ordinary income because of excess compensation payments
 SCH6‑E3A Add to the amount derived for a person under point SCH6‑E3 any amount that is taken (whether for the purposes of this Act or of the Social Security Act) to be ordinary income of the person because of section 59TA of this Act or section 1174 of the Social Security Act.

Payment of arrears of periodic compensation payments
 SCH6‑E4 If:
 (a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving a compensation affected pension; and
 (b) in relation to the entitlement, the person receives a payment (an arrears payment) of arrears of periodic compensation;
the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount of the arrears payment by the number of days in the periodic payments period.
Note: For event that gives rise to an entitlement to