Module F–Ordinary income for the purposes of disability support pension

 

History

Module F inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

	1064-F1. Application of this Module
	1064-F2. Lump sum payments arising from termination of employment
	1064-F3 Directed termination payments excluded
	1064-F4. Certain leave payments taken to be ordinary income-employment continuing
	1064-F5. Certain payments taken to be ordinary income-employment terminated
	1064-F6. More than one termination payment on a day
	1064-F7. Start of income maintenance period-employment continuing
	1064-F8. Start of income maintenance period-employment terminated
	1064-F9. Commencement of income maintenance period where there is a second termination payment
	1064-F10. Leave payments or termination payments in respect of periods longer than a fortnight
	1064-F11
	1064-F12. When a person receives a leave payment or a termination payment
	1064-F13. Single payment in respect of different kinds of termination payments
	1064-F14. Definitions

1064-F1.           Application of this Module

 

1064‑F1.  This Module applies only for the purposes of working out the rate of disability support pension payable to a person. It so applies to that person and, if the person is a member of a couple, to the person's partner.

 

History

Point 1064-F1 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F2.           Lump sum payments arising from termination of employment

 

1064‑F2.  Subject to points 1064‑F3 to 1064‑F14 (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 1064-F2 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F3            Directed termination payments excluded

 

1064‑F3.  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 Module E.

 

History

Point 1064-F3 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

Point 1064-F3 repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(297);

 

1064-F4.           Certain leave payments taken to be ordinary income–employment continuing

 

1064‑F4.  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 1064-F4 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F5.           Certain payments taken to be ordinary income–employment terminated

 

1064‑F5.  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 1064-F5 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F6.           More than one termination payment on a day

 

1064‑F6.  If:

 

(a)

a person is covered by point 1064‑F5; 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 1064-F6 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F7.           Start of income maintenance period–employment continuing

 

1064‑F7.  If a person is covered by point 1064‑F4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

 

History

Point 1064-F7 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F8.           Start of income maintenance period–employment terminated

 

1064‑F8.  If a person is covered by point 1064‑F5, the income maintenance period starts, subject to point 1064‑F9, on the day on which the person is paid the termination payment.

 

History

Point 1064-F8 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F9.           Commencement of income maintenance period where there is a second termination payment

 

1064‑F9.  If:

 

(a)

a person who is covered by point 1064‑F5 is subject to an income maintenance period (the first period); and

(b)

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

 

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

 

History

Point 1064-F9 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F10.          Leave payments or termination payments in respect of periods longer than a fortnight

 

1064‑F10.  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 (the 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 1064-F10 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064‑F11.  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 pension claimed may not be payable to the person; or

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

 

History

Point 1064-F11 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F12.          When a person receives a leave payment or a termination payment

 

1064‑F12.  For the purposes of points 1064‑F3 to 1064‑F11 (inclusive), a person (the 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 1064-F12 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

 

1064-F13.          Single payment in respect of different kinds of termination payments

 

1064‑F13.  If a person who is covered by point 1064‑F5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of 1064‑F4 to 1064‑F12 (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 1064-F13 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

Point 1064-F13 amended by Act No. 15, 2007, by s.3, Schedule 1, Part 2(298);

 

1064-F14.          Definitions

 

1064‑F14.  In this Module:

 

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

 

payment fortnight means a fortnight in respect of which a disability support pension 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 1064-F14 inserted by Act No. 154, 2005, by s.3, Schedule 16, Part 1(4);

redundancy payment repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(299);

roll-over repealed by Act No. 15, 2007, by s.3, Schedule 1, Part 2(300);