Document ID: chunk:federal_register_of_legislation:C2023C00380:clause:1_6:p7
Version: federal_register_of_legislation:C2023C00380
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 7/9)
Character Range: 147720–150497

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
 1067L‑D30 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 (if any) (see point 1067L‑D31); and
 (b) the person's upper range reduction (if any) (see point 1067L‑D32).

Lower range reduction
 1067L‑D31 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 $80.

Upper range reduction
 1067L‑D32 The person's upper range reduction is an amount equal to 70% of the part (if any) of the person's ordinary income excess that exceeds $80.
Example:
Facts: Further to the example at the end of point 1067L‑D27, Alice has ordinary income of $265.
Result: Alice's ordinary income free area under point 1067L‑D28 is $230.
 Her ordinary income exceeds her ordinary income free area. She therefore has an ordinary income excess under point 1067L‑D29 of:

 Because her ordinary income excess does not exceed $80:
(a) her lower range reduction under point 1067L‑D31 is:

(b) there is no upper range reduction under point 1067L‑D32.
 Her ordinary income reduction under point 1067L‑D30 is therefore $17.50.
 Alice's income reduction referred to in Step 4 of point 1067L‑A1 is:

Module E—Student income bank

Student income bank
 1067L‑E1 A person's ordinary income under Module D may be reduced under this Module. This diagram sets out how to work out:
 (a) whether the person's ordinary income for a particular fortnight in respect of which austudy payment may be payable to the person, is to be reduced; and
 (b) if it is to be reduced, the amount of the reduction.

Income bank credit
 1067L‑E2 A person's income bank credit for a particular income bank fortnight of the person is to be worked out as follows:

      Method statement
           Step 1. Assume that the person's income bank credit, at the time this Module starts applying to the person, is an opening balance of zero.
           Step 2. If, for the person's first income bank fortnight, the person has an income credit under point 1067L‑E3, add it to the opening balance.
           Step 3. For each subsequent income bank fortnight of the person, up to but not including the fortnight in question, either:

                (a) if the person has an income credit for that fortnight under point 1067L‑E3—add it to the balance of the person's income bank credit in respect of all the previous fortnights, but not so as to increase the balance beyond $6,000; or
                (b) if the person has, in respect of that fortnight, drawn