Document ID: chunk:federal_register_of_legislation:C2009A00081:clause:7_46aa
Version: federal_register_of_legislation:C2009A00081
Segment Type: clause
Provision Reference: sch 7 cl 46AA
Character Range: 160247–162463

46AA  Income concession
 (1) This section applies to a person if:
 (a) the person's rate of service pension or income support supplement is calculated in accordance with the Rate Calculator; and
 (b) the person has reached qualifying age.
Note: For qualifying age see section 5Q.
 (2) If the person's employment income for a pension period is greater than or equal to the income concession amount for that period, the amount of the person's employment income to be disregarded for that period for the purposes of Module E of that Rate Calculator is 50% of that income concession amount.
Note: For employment income see section 46AB.
 (3) If a person's employment income for a pension period is less than the income concession amount for that period, the amount of the person's employment income to be disregarded for that period for the purposes of Module E of that Rate Calculator is 50% of the person's employment income for that period.

Definition
 (4) The income concession amount is $500.

Interpretation
 (5) To avoid doubt, apply this section before applying Point SCH6‑E3 of Schedule 6.
Example 1: David and Amy are members of a couple. David earns $50 of employment income in a pension period and Amy earns $500 of employment income in that period.
 For David, $25 of the $50 is disregarded for the purposes of the ordinary/adjusted income test.
 For Amy, $250 of the $500 is disregarded for the purposes of the ordinary/adjusted income test.
Example 2: Ian and Simone are members of a couple. Ian earns no employment income in a pension period and Simone earns $1,000 of employment income in that period.
 For Simone, $250 is disregarded for the purposes of the ordinary/adjusted income test (which is 50% of the income concession amount).
 (6) If:
 (a) apart from this subsection, an amount (the initial amount) would be disregarded under subsection (2) or (3) in relation to a person and a pension period; and
 (b) an amount is worked out under subsection 115G(1) or (2) in relation to that person and that period, and that amount is greater than or equal to the initial amount;
then subsection (2) or (3) of this section, as the case may be, does not apply in relation to that person and that period.