Module D–Income test

 

	1067L-D1. Effect of ordinary income on maximum payment rate
	1067L-D2. Ordinary income of members of certain couples
	1067L-D3. Lump sum payments arising from termination of employment
	1067L-D4 Directed termination payments excluded
	1067L-D5. Certain leave payments taken to be ordinary income-employment continuing
	1067L-D6. Certain termination payments taken to be ordinary income
	1067L-D7. More than one termination payment on a day
	1067L-D8. Start of income maintenance period-employment continuing
	1067L-D9. Start of income maintenance period-employment terminated
	1067L-D10. Commencement of income maintenance period where there is a second termination payment
	1067L-D10A. Start of income maintenance period where liquid assets test waiting period applies
	1067L-D11. Leave payments or termination payments in respect of periods longer than a fortnight
	1067L-D12. Secretary may determine in certain circumstances that the whole or a part of an income maintenance period does not apply
	1067L-D13. When a person receives a leave payment or a termination payment
	1067L-D14. Single payment in respect of different kinds of termination payments
	1067L-D15. Definitions
	1067L-D16. Meaning of leave payment
	1067L-D17. Ordinary income includes certain periodical payments from relatives
	1067L-D18. Board and lodging
	1067L-D19. Ordinary income generally taken into account when first earned, derived or received
	1067L-D20. Claimant or recipient receives lump sum amount for remunerative work
	1067L-D21. Partner of claimant or recipient receives lump sum amount for remunerative work
	1067L-D22. Operation of points 1067L-D20 and 1067L-D21
	1067L-D23. Ordinary income received at intervals longer than one fortnight
	1067L-D24. Payment of arrears of periodic compensation payments
	1067L-D25. Partner income free area
	1067L-D26. Partner income excess
	1067L-D27. Partner income reduction
	1067L-D28. Ordinary income free area
	1067L-D29. Ordinary income excess
	1067L-D30. Ordinary income reduction
	1067L-D31. Lower range reduction
	1067L-D32. Upper range reduction

1067L-D1.         Effect of ordinary income on maximum payment rate

 

1067L-D1.  This is how to work out the effect of:

 

(a)

a person's ordinary income; and

(b)

the ordinary income of a partner of the person;

 

on the person's maximum payment rate:

 

 

Note 1:     For ordinary income see subsection 8(1).

Note 2:     The application of the income test is affected by provisions concerning the following:

(a)   the general concept of ordinary income (sections 1072 and 1073);

(b)   business income (sections 1074 and 1075);

(c)   deemed income from financial assets (sections 1076 to 1084A);

(d)   income from income streams (sections 1096 to 1099DAA);

(e)   disposal of income (sections 1106 to 1112).

 

History

Point 1067L-D1 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D1 (Step 1, Note) repealed by Act No. 35, 2003, by s.3, Schedule 6, Part 2(23);

Point 1067L-D1 (paragraph (d) of Note 2) amended by Act No. 36, 2006, by s.3, Schedule 8, Part 2(37);

 

1067L-D2.         Ordinary income of members of certain couples

 

1067L-D2.  If a person is a member of a couple and the person's partner is receiving a social security pension, a service pension, income support supplement or a rehabilitation allowance, the person's ordinary income is taken to be one half of the sum of:

 

(a)

the amount that would be the person's ordinary income if he or she were not a member of a couple; and

(b)

the amount that would be the ordinary income of the person's partner if the partner were not a member of a couple.

 

History

Point 1067L-D2 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D2 amended by Act No. 73 of 2002, by s.3, Schedule 1(89);

 

1067L-D3.         Lump sum payments arising from termination of employment

 

History

Heading replaced by Act No. 154, 2005, by s.3, Schedule 18, Part 2(20);

 

1067L-D3.  Subject to points 1067L‑D4 to 1067L‑D16 (inclusive), if:

 

(a)

a person's employment has been terminated; and

(b)

as a result the person is entitled to a lump sum payment from the person's former employer;

 

the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.

 

History

Point 1067L-D3 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D4          Directed termination payments excluded

 

1067L‑D4.  If:

 

(a)

a person's employment has been terminated; and

(b)

as a result the person is entitled to a lump sum payment from the person's former employer; and

(c)

the payment, or part of the payment, is a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997;

 

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of this Module.

 

History

Point 1067L-D4 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D4 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(4);

Point 1067L-D4 repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(309);

 

1067L-D5.         Certain leave payments taken to be ordinary income–employment continuing

 

1067L‑D5.  If:

 

(a)

a person is employed; and

(b)

the person is on leave for a period; and

(c)

the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

 

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the leave period to which the leave payment entitlement relates.

 

History

Point 1067L-D5 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D6.         Certain termination payments taken to be ordinary income

 

History

Heading replaced by Act No. 154, 2005, by s.3, Schedule 18, Part 2(4) (Note);

 

1067L‑D6.  If:

 

(a)

a person's employment has been terminated; and

(b)

the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

 

the person is taken to have received ordinary income for a period (the income maintenance period) equal to the period to which the payment relates.

 

History

Point 1067L-D6 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D6(b) amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(5);

Point 1067L-D6 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(6);

 

1067L-D7.         More than one termination payment on a day

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(7) (Note);

 

1067L‑D7.  If:

 

(a)

the person is covered by point 1067L‑D6; and

(b)

the person receives more than one termination payment on a day;

 

the income maintenance period is worked out by adding the periods to which the payments relate.

 

History

Point 1067L-D7 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D7 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(7);

Point 1067L-D7 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(8);

 

1067L-D8.         Start of income maintenance period–employment continuing

 

1067L‑D8.  If the person is covered by point 1067L‑D5, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

 

History

Point 1067L-D8 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D9.         Start of income maintenance period–employment terminated

 

1067L‑D9.  Subject to point 1067L‑D10A, if the person is covered by point 1067L‑D6, the income maintenance period starts, subject to point 1067L‑D10, on the day on which the person is paid the termination payment.

 

History

Point 1067L-D9 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D9 amended by Act No. 70, 2000, by s.3, Schedule 3(21);

Point 1067L-D9 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(9);

 

1067L-D10.        Commencement of income maintenance period where there is a second termination payment

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(10) (Note);

 

1067L-D10.  If:

 

(a)

a person who is covered by point 1067L‑D6 is subject to an income maintenance period (the first period); and

(b)

the person is paid another termination payment during that period (the second leave payment);

 

the income maintenance period for the second termination payment starts on the day after the end of the first period.

 

History

Point 1067L-D10 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D10 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(10);

 

1067L-D10A.     Start of income maintenance period where liquid assets test waiting period applies

 

1067L‑D10A.  If a person to whom point 1067L‑D10 applies is subject to a liquid assets test waiting period, the income maintenance period is taken to have started on the day on which the liquid assets test waiting period started.

 

History

Point 1067L-D10A inserted by Act No. 70, 2000, by s.3, Schedule 3(22);

 

1067L-D11.        Leave payments or termination payments in respect of periods longer than a fortnight

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(11) (Note);

 

1067L-D11.  If:

 

(a)

a person receives a leave payment or termination payment; and

(b)

the payment is in respect of a period longer than a fortnight;

 

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

 

(c)

dividing the amount received by the number of days in the period to which the payment relates (daily rate); and

(d)

multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

 

History

Point 1067L-D11 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D11(a) amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(11);

Point 1067L-D11(b), (c) and (d) amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(12);

 

1067L-D12.        Secretary may determine in certain circumstances that the whole or a part of an income maintenance period does not apply

 

1067L‑D12.  If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

 

Note 1:     For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2:     For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3:     If an income maintenance period applies to a person, then, during that period:

(a)   the allowance claimed may not be payable to the person; or

(b)   the amount of the allowance payable to the person may be reduced.

 

History

Point 1067L-D12 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D12 repealed and substituted (including Notes 1, 2 and 3) by Act No. 45, 1998, by s.3, Schedule 3, Part 4(30);

 

1067L-D13.        When a person receives a leave payment or a termination payment

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(13) (Note);

 

1067L-D13.  For the purposes of points 1067L‑D4 to 1067L‑D12 (inclusive), a person (first person) is taken to receive a leave payment or termination payment if:

 

(a)

the payment is made to another person:

 

(i)

at the direction of the first person or a court; or

(ii)

on behalf of the first person; or

(iii)

for the benefit of the first person; or

 

(b)

the first person waives or assigns his or her right to receive the payment.

 

History

Point 1067L-D13 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D13 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(13);

 

1067L-D14.        Single payment in respect of different kinds of termination payments

 

History

Heading amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(14) (Note);

 

1067L-D14.  If a person who is covered by point 1067L‑D6 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1067L‑D5 to 1067L‑D13 (inclusive):

 

(a)

each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and

(b)

the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

 

History

Point 1067L-D14 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D14 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(14);

Point 1067L-D14(a) amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(15);

Point 1067L-D14(b) amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(16);

Point 1067L-D14 amended by Act No. 15, 2007, by s.3, Schedule 1, Part 2(310);

 

1067L-D15.        Definitions

 

1067L-D15.  In points 1067L‑D5 to 1067L‑D14 (inclusive):

 

payment fortnight means a fortnight in respect of which an austudy payment is paid, or would be paid apart from the application of an income maintenance period, to a person.

 

period to which the payment relates means:

 

(a)

if the payment is a leave payment–the leave period to which the payment relates; or

(b)

if the payment is a redundancy payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the redundancy) have received from the employment that was terminated–the period for which the person would have received that amount of ordinary income; or

(c)

if the payment is a redundancy payment and paragraph (b) does not apply–the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the redundancy payment if:

 

(i)

the person's employment had continued; and

(ii)

the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

 

redundancy payment does not include a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997.

 

termination payment means:

 

(a)

a leave payment relating to a person's employment that has been terminated; or

(b)

a redundancy payment.

 

History

Point 1067L-D15 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

period to which the payment relates inserted by Act No. 154, 2005, by s.3, Schedule 18, Part 2(17);

redundancy payment inserted by Act No. 154, 2005, by s.3, Schedule 18, Part 2(18);

redundancy payment repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(311);

roll-over amended by Act No. 154, 2005, by s.3, Schedule 18, Part 2(19);

roll-over repealed by Act No. 15, 2007, by s.3, Schedule 1, Part 2(312);

termination payment inserted by Act No. 154, 2005, by s.3, Schedule 18, Part 2(20);

Point 1067L-D15 amended by Act No. 15, 2007, by s.3, Schedule 1, Part 2(310);

 

1067L-D16.        Meaning of leave payment

 

1067L-D16.  In points 1067L‑D4 to 1067L‑D15 (inclusive):

 

leave payment includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

 

History

Point 1067L-D16 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D17.        Ordinary income includes certain periodical payments from relatives

 

1067L-D17.  Subject to point 1067L‑D18 (and despite paragraph 8(8)(z)), a person's ordinary income for the purposes of this Module includes a periodical payment or benefit by way of gift or allowance from the father, mother, son, daughter, brother or sister of the person.

 

History

Point 1067L-D17 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D18.        Board and lodging

 

1067L-D18.  A person's ordinary income is not to include a payment to the person for board or lodging provided by the person to the person's father, mother, son, daughter, brother or sister.

 

History

Point 1067L-D18 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D19.        Ordinary income generally taken into account when first earned, derived or received

 

1067L-D19.  Subject to points 1067L‑D20, 1067L‑D21, 1067L‑D23 and 1067L‑D24 and section 1073, ordinary income is to be taken into account in the fortnight in which it is first earned, derived or received.

 

History

Point 1067L-D19 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D20.        Claimant or recipient receives lump sum amount for remunerative work

 

1067L-D20.  If a person whose claim for austudy payment has been granted receives, after the claim was made, a lump sum amount that:

 

(a)

is paid to him or her in relation to remunerative work; and

(b)

is not a payment to which point 1067L-D21 applies; and

(c)

is not an exempt lump sum;

 

the person is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

 

History

Point 1067L-D20 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D21.        Partner of claimant or recipient receives lump sum amount for remunerative work

 

1067L-D21.  If:

 

(a)

a person whose claim for austudy payment has been granted is a member of a couple; and

(b)

after the person has made the claim, the person's partner receives a lump sum amount that:

 

(i)

is paid to him or her in relation to remunerative work; and

(ii)

is not a payment to which point 1067L-D23 applies; and

(iii)

is not an exempt lump sum;

 

the partner is, for the purposes of this Module, taken to receive one fifty‑second of that amount as ordinary income during each week in the 12 months commencing on the day on which the partner becomes entitled to receive that amount.

 

History

Point 1067L-D21 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D22.        Operation of points 1067L-D20 and 1067L-D21

 

1067L-D22.  Points 1067L-D20 and 1067L-D21 have effect even if the person who has made the claim is, during the period of 12 months referred to in those points, subject to a liquid assets test waiting period, or an income maintenance period, in respect of the allowance claimed.

 

History

Point 1067L-D22 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D23.        Ordinary income received at intervals longer than one fortnight

 

1067L-D23.  Subject to points 1067L‑D4 to 1067L‑D16 (inclusive), if:

 

(a)

a person receives a number of ordinary income payments; and

(b)

each payment is in respect of a period (work period) that is greater than a fortnight; and

(c)

there is reasonable predicability or regularity as to the timing of the payments; and

(d)

there is reasonable predicability as to the quantum of the payments;

 

the person is taken to receive in a fortnight falling within, or overlapping with, a work period an amount calculated by:

 

(e)

dividing the amount received by the number of days in the work period (daily rate); and

(f)

multiplying the daily rate by the number of days in the fortnight that are also within the work period.

 

History

Point 1067L-D23 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D24.        Payment of arrears of periodic compensation payments

 

1067L-D24.  If:

 

(a)

at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving an austudy payment; and

(b)

in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

 

the person is taken to receive, in a fortnight falling within, or overlapping with, the periodic payments period, an amount calculated by:

 

(c)

dividing the amount received by the number of days in the periodic payments period (daily rate); and

(d)

multiplying the daily rate by the number of days in the fortnight that are also within the periodic payments period.

 

Note:        For periodic payments period see section 17.

 

History

Point 1067L-D24 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D25.        Partner income free area

 

1067L-D25.  The partner income free area for a person is:

 

(a)

if the person's partner is not receiving a social security benefit and has not turned 21–the amount of income of the partner (rounded up to the nearest dollar) beyond which youth allowance would not be payable to the partner if the partner were qualified for a youth allowance and were not undertaking full-time study (see section 541B); or

(b)

if the person's partner is not receiving a social security benefit and has turned 21–the amount of income of the partner (rounded up to the nearest dollar) beyond which newstart allowance would not be payable to the partner if the partner were qualified for a newstart allowance; or

(c)

if the person's partner is receiving a social security benefit–the amount of income of the partner (rounded up to the nearest dollar) beyond which that benefit would not be payable to the partner.

 

History

Point 1067L-D25 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D26.        Partner income excess

 

1067L-D26.  If:

 

(a)

a person is a member of a couple; and

(b)

the person's partner is not receiving a social security pension, service pension, income support supplement or a rehabilitation allowance; 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.

 

History

Point 1067L-D26 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D26(b) amended by Act No. 73 of 2002, by s.3, Schedule 1(90);

 

1067L-D27.        Partner income reduction

 

1067L-D27.  If a person has a partner income excess, the person's partner income reduction is an amount equal to 60% of the person's partner income excess.

 

Example:

 

Facts:      Alice's partner Martin has an ordinary income of $800. Assume that the partner income free area under point 1067L‑D25 is $640.

 

Result:     Martin's ordinary income exceeds the partner income free area. Alice therefore has a partner income excess under point 1067L‑D26 of:

 

 

Alice's partner income reduction under point 1067L‑D27 is therefore:

 

 

History

Point 1067L-D27 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D27 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 1(1);

Point 1067L-D27 (example) repealed and substituted by Act No. 154, 2005, by s.3, Schedule 18, Part 1(2);

 

1067L-D28.        Ordinary income free area

 

1067L-D28.  A person's ordinary income free area is $236.

 

History

Point 1067L-D28 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D28 amended by Act No. 68, 1999, by s.3, at Schedule 1, Part 1(98);

 

1067L-D29.        Ordinary income excess

 

1067L-D29.  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.

 

History

Point 1067L-D29 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D30.        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).

 

History

Point 1067L-D30 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D31.        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.

 

History

Point 1067L-D31 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

 

1067L-D32.        Upper range reduction

 

1067L-D32.  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 $80.

 

History

Point 1067L-D32 inserted by Act No. 45, 1998, by s.3, Schedule 1(7);

Point 1067L-D32 (Example) repealed by Act No. 68, 1999, by s.3, at Schedule 1, Part 1(99);

Point 1067L-D32 amended by Act No. 154, 2005, by s.3, Schedule 18, Part 1(3);