Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT (FAMILY MEASURES) ACT 1995 No. 106, 1995 - SCHEDULE 3

                          SCHEDULE 3                      Section 3

AMENDMENT OF THE SOCIAL SECURITY ACT 1991 IN RELATION TO THE
CALCULATION OF RATE OF FAMILY PAYMENT
1. Part 3.7:
Repeal, substitute:
PART 3.7-FAMILY PAYMENT RATE CALCULATOR Rate of family payment

"1069. The rate of a person's family payment rate is to be calculated in
accordance with the following Rate Calculator.

"FAMILY PAYMENT RATE CALCULATOR

"MODULE A-OVERALL RATE CALCULATION PROCESS Method of calculating rate

"1069-A1. The rate of family payment of a person (other than an approved care
organisation) who has an FP child or FP children is a fortnightly rate
calculated as follows:
Method statement Step 1. Add the amounts worked out under the following
Modules:
- MODULE B (standard family payment rate);
- MODULE C (large family supplement);
- MODULE D (multiple birth allowance);
- MODULE E (rent assistance);
- MODULE F (guardian allowance).
The result is the person's gross family payment rate.
Note: If 2 people who are not members of the same couple share the
daily care and legal responsibility of a child, Module G may apply. Step 2.
Apply the family payment income test in Submodule 3 of MODULE H to
the person's gross family payment rate to work out any reduction
for income. Take any reduction away from the person's gross family
payment rate: the result is the person's income tested family
payment rate. Step 3. Take away from the person's income tested family payment
rate the
person's minimum family payment rate: the result is the person's
adjusted income tested family payment rate.
Method statement-continued Step 4. Apply the maintenance income test in MODULE
J to the person's
adjusted income tested family payment rate to work out any
reduction for maintenance income. Take any reduction away from the
person's adjusted income tested family payment rate: the result is
the person's maintenance tested family payment rate. Step 5. Unless Step 6
applies, the person's family payment rate is:

   (a)  if there is no reduction for income or for maintenance
income-the person's gross family payment rate; or

   (b)  if there is a reduction for income but no reduction for
maintenance income-the person's income tested family payment rate;
or

   (c)  if there is a reduction for maintenance income-the sum of:

        (i)    the person's maintenance tested family payment rate; and

        (ii)   the person's minimum family payment rate. Step 6. If there is
               any reduction for income under Step 2 or any reduction
for maintenance income under Step 4, but the person's family
payment income worked out under Step 2 in Submodule 3 of MODULE H
is less than the person's income ceiling worked out under Step 3 of
Submodule 3 of MODULE H, then the person's family payment rate is
the greater of the following amounts:

   (a)  the rate obtained under Step 5;

   (b)  the minimum family payment rate.

Rate of family payment to approved care organisation

"1069-A2. The rate of family payment payable to an approved care organisation
for an FP child is $28.90 per fortnight. Note: The amount referred to in this
point is indexed annually in line with CPI increases (see sections 1191 to
1194).

"MODULE B-STANDARD FAMILY PAYMENT RATE

"1069-B1. This Module is subject to Module K. Standard family payment
rate-family payment advance

"1069-B2.(1) Subject to the following provisions of this Module, a person's
standard family payment rate is worked out using Table B. Work out which
category applies to each FP child of the person. The FP child rate is the
corresponding amount in column 3. The standard family payment rate is the sum
of the FP child rates.
TABLE B column 1 item
column 2
category of FP child
column 3
rate per fortnight
1.           FP child who is under 13 years of age

$88.90
2.           FP child who has reached 13,

             but is under 16, years of age               $115.80

3.           FP child who has reached 16,

             but is under 19, years of age                $55.70


"(2) If the Secretary determines in writing, for the purposes of column 3 of
item 1 or 2 of Table B, a higher amount in substitution for an amount set out
in that column of that item, the higher amount is taken, from the commencement
of this Part, to be substituted for the amount so set out. Note 1: For FP
child see section 831. Note 2: The item 1 rate is adjusted annually so that
the family payment for children covered by this item does not fall below 16.6%
of the combined pensioner couple maximum basic rate (see subsections 1199(1)
and (2)). Note 3: The item 2 rate is adjusted annually so that the family
payment for children covered by this item does not fall below 21.6% of the
combined pensioner couple maximum basic rate (see subsections 1199(3) and
(4)). Note 4: If point 1069-G1 or 1069-G2 (shared daily care and legal
responsibility) applies to a person's FP child or children, the part of the
person's basic family payment rate that relates to that child or each of those
children may be reduced.

"(3) A determination under subpoint (2) is a disallowable instrument. Standard
family payment rate-family payment advance to person

"1069-B3. If family payment advance is paid to a person, the person's rate of
family payment during the person's family payment advance period is to be
reduced by one-half of the person's minimum FP child rate. Note 1: Family
payment advance is payable under section 864A. Note 2: For family payment
advance period see subsections 864B(2) to (5). Standard family payment
rate-family payment advance to partner

"1069-B4. If:

   (a)  a person is a member of a couple at a particular time in a standard
        advance period; and

   (b)  either:

        (i)    the person's partner dies at that time; or

        (ii)   the person's partner's family payment is cancelled at that
               time; and

   (c)  family payment advance was paid to the person's partner during that
        standard advance period; the person's rate of family payment during
        the partner's family payment advance period is to be reduced by
        one-half of the person's minimum FP child rate. Person temporarily
        absent from Australia for more than 13 weeks

"1069-B5.(1) A person's standard rate of family payment at a time when the
person has been absent from Australia (whether before or after the
commencement of this Part) for more than 13 weeks may not exceed the person's
minimum family payment rate.

"(2) If a person:

   (a)  returns to Australia after having been absent from Australia (whether
        before or after the commencement of this Part) for more than 13 weeks;
        and

   (b)  leaves Australia before the end of 13 weeks after he or she so
        returned to Australia; the person is taken, for the purposes of this
        point, to have continued to be absent from Australia throughout the
        period from the time of the return to the time when the person so left
        Australia. Minimum standard family payment rate

"1069-B6. A person's minimum standard family payment rate is the amount per
fortnight worked out using the formula:
$21.70 x Number of dependent FP children where:
Number of dependent FP children means the number of dependent children of the
person who are FP children of the person. Note: The amount referred to in the
formula is indexed annually in line with CPI increases (see sections 1191 to
1194).
FP child temporarily absent from Australia

"1069-B7.(1) If an FP child of a person is outside Australia, the FP child
rate for that child is $21.70. Note: The amount referred to is indexed
annually in line with CPI increases (see sections 1191 to 1194).

"(2) If:

   (a)  a child who was born outside Australia but has not lived in Australia
        enters Australia; or

   (b)  a child returns to Australia after having been absent from Australia
        (whether before or after the commencement of this Part); and the child
        leaves Australia before the end of 13 weeks after he or she so entered
        or returned to Australia, the child is taken, for the purposes of this
        point, to have continued to be outside Australia throughout the period
        from the time of the entry or return to the time when he or she so
        left Australia. Note: A child that is outside Australia is taken into
        account, for up to 3 years, for the purposes of the calculation of any
        large family supplement (see Module C), a multiple birth allowance
        (see Module D) or rent assistance (see Module E). Standard family
        payment rate-recipient of other periodic payments

"1069-B8. The standard family payment rate of a person is the minimum standard
family payment rate if:

   (a)  the person or the person's partner is receiving a periodic payment
        under a law of the Commonwealth and the law provides for an increase
        in the rate of payment by reference to the child; or

   (b)  the person or the person's partner is receiving a periodic payment
        under a scheme administered by the Commonwealth and the scheme
        provides for an increase in the rate of payment by reference to the
        child.

"MODULE C-LARGE FAMILY SUPPLEMENT

"1069-C1. This Module is subject to Module K. Qualification for large family
supplement

"1069-C2. Subject to point 1069-C3, an amount by way of large family
supplement is to be added to a person's standard family payment rate if the
person has 4 or more FP children. Large family supplement payable only to one
member of a couple

"1069-C3. For the purposes of the large family supplement, a child is to be
taken not to be an FP child of a person who is a member of a couple if the
person's partner is already receiving large family supplement in respect of
the child. Rate of large family supplement

"1069-C4. The rate per fortnight of large family supplement is the amount per
fortnight worked out using the formula:
$7.20 x (Number of dependent FP children * 3); where:
Number of dependent FP children means the number of dependent children of the
person who are FP children of the person. Note: The amount set out in the
formula used in calculating the large family supplement is indexed annually in
line with CPI increases (see sections 1191 to 1194). Transitional indexation

"1069-C5.(1) If the Secretary determines in writing, for the purposes of point
1069-C4, a higher amount in substitution for the amount set out in the formula
in that point, the higher amount is taken, from the commencement of this Part,
to be substituted for the amount so set out.

"(2) A determination under subpoint (1) is a disallowable instrument. Large
family supplement not affected by certain factors

"1069-C6. Large family supplement is to be payable to a person even if point
1069-B6 applies in respect of any of the children or if another person has the
shared care and legal responsibility of any of the children.

"MODULE D-MULTIPLE BIRTH ALLOWANCE

"1069-D1. This Module is subject to Module K. Qualification for multiple birth
allowance

"1069-D2. An amount by way of multiple birth allowance is to be added to a
person's standard family payment rate if:

   (a)  the person has 3 or more FP children; and

   (b)  at least 3 of those children were born during the same multiple birth
        and are under the age of 6 years. Rate of multiple birth allowance

"1069-D3. The rate of multiple birth allowance is:

   (a)  if the number of the FP children born during the same multiple birth
        is 3-$87.00; and

   (b)  if the number of the FP children born during the same multiple birth
        is 4 or more-$116.00. Note 1: The multiple birth allowances are
        indexed annually in line with CPI increases (see sections 1191 to
        1194). Note 2: If point 1069-G1 or point 1069-G2 (shared daily care
        and legal responsibility) applies to a person's FP child or FP
        children, the person's rate of multiple birth allowance for that child
        or for each of those children may be reduced. Transitional indexation

"1069-D4.(1) If the Secretary determines in writing, for the purposes of point
1069-D3, a higher amount in substitution for an amount set out in paragraph
(a) or (b) of that point, the higher amount is taken, from the commencement of
this Part, to be substituted for the amount so set out.

"(2) A determination under subpoint (1) is a disallowable instrument.

"MODULE E-RENT ASSISTANCE

"1069-E1. This Module is subject to Module K. Qualification for rent
assistance

"1069-E2.(1) Subject to point 1069-E3, an amount by way of rent assistance is
to be added to a person's standard family payment rate if:

   (a)  the person is not an ineligible homeowner; and

   (b)  the person pays, or is liable to pay, rent (other than Government
        rent); and

   (c)  the rent is payable at a rate of more than:

        (i)    if the person is not a member of a couple-$83.40 per fortnight;
               or

        (ii)   if the person is a member of a couple (other than an illness
               separated couple, a respite care couple or a temporarily
               separated couple)- $125.60 per fortnight; or

        (iii)  if the person is a member of an illness separated couple, a
               respite care couple or a temporarily separated couple-$83.40
               per fortnight; and

   (d)  neither the person nor the person's partner is receiving payments of
        incentive allowance.

"(2) If the Secretary determines in writing, for the purposes of subpoint (1)
of this point, a higher amount in substitution for an amount set out in
subparagraph (c)(i), (ii) or (iii) of that subpoint, the higher amount is
taken, from the commencement of this Part, to be substituted for the amount so
set out.

"(3) A determination under subpoint (2) is a disallowable instrument. Note 1:
For rent, Government rent and ineligible homeowner see section 13. Note 2: For
temporarily separated couple, illness separated couple and respite care couple
see section 4. Note 3: For incentive allowance see subsection 23(1). Note 4:
The amounts in paragraph (1)(c) are indexed 6 monthly in line with CPI
increases (see sections 1191 to 1194). No person qualified for rent assistance
if approved care organisation receiving family payment for child

"1069-E3. If an approved care organisation is receiving family payment for a
person's only dependent child or all of the person's dependent children, rent
assistance is not payable to the person under this Module. Rate of rent
assistance

"1069-E4. The rate of rent assistance is worked out using Table E. Work out
the person's family situation and calculate Rate A for the person using the
corresponding formula in column 3. This will be the person's rate of rent
assistance but only up to the person's maximum rent assistance rate. The
person's maximum rent assistance rate is Rate B worked out using column 4.

TABLE E
RATE OF RENT ASSISTANCE column 1 item
column 2
family situation
column 3
Rate A
column 4
Rate B
                                         column 4A           column 4B

1 or 2 FP children
3 or more FP children 1.
Not member of a couple
(fortnightly rent*$83.40) 3
                                    4         $77.00           $88.00

2.      Member of a couple (other than an illness separated couple, a

respite care couple or a temporarily separated couple)
(fortnightly rent*$125.60) 3
                                    4         $77.00           $88.00

3.      Member of an illness separated couple, a respite care couple or a

temporarily separated couple
(fortnightly rent*$125.60) - 3
                                    4         $77.00           $88.00
Note 1: The Rate A and Rate B amounts are indexed 6 monthly in line with CPI
increases: see sections 1191 to 1194. Note 2: For temporarily separated
couple, illness separated couple and respite care couple, see section 4.
Transitional indexation

"1069-E5.(1) If the Secretary determines in writing, for the purposes of Table
E in point 1069-E4, a higher amount in substitution for an amount set out in
that Table, the higher amount is taken, from the commencement of this Part, to
be substituted for the amount so set out.

"(2) A determination under subpoint (1) is a disallowable instrument.
Fortnightly rent

"1069-E6. Fortnightly rent in Table E is the fortnightly rent paid or payable
by the person whose rent is being calculated. Rent paid by a member of a
couple

"1069-E7. If a person is a member of a couple and is living with his or her
partner in their home, any rent paid or payable by the partner is to be
treated as paid or payable by the person. FP children to include "shared"
children

"1069-E8. A reference in Table E to an FP child includes a reference to a
child in relation to whom the Secretary has made a declaration under
subsection   869(1).


"MODULE F-GUARDIAN ALLOWANCE

"1069-F1. This Module is subject to Module K. Qualification for guardian
allowance

"1069-F2.(1) Subject to subpoints (2) and (3), an amount by way of guardian
allowance is to be added to a person's standard family payment rate if:

   (a)  the person is not a member of a couple; or

   (b)  the person is a member of an illness separated couple; or

   (c)  the person is a member of a couple whose partner has been in gaol for
        a continuous period of at least 14 days.

"(2) An amount is not to be added to a person's standard family payment rate
under subpoint (1) if:

   (a)  the person is outside Australia and has been outside Australia for
        more than 13 weeks; or

   (b)  the person has only one FP child and that child is outside Australia.

"(3) If a person in receipt of family payment or the only FP child of such a
person:

   (a)  returns to Australia after having been absent from Australia (whether
        before or after the commencement of this Part) for more than 13 weeks;
        and

   (b)  leaves Australia before the end of 13 weeks after he or she so
        returned to Australia; the person or child, as the case may be, is
        taken, for the purposes of this point, to have continued to be absent
        from Australia throughout the period from the time of the return to
        the time when the person or child so left Australia. Approved care
        organisation is not qualified for guardian allowance

"1069-F3. An amount by way of guardian allowance is not payable to an approved
care organisation. Child to be disregarded if approved care organisation
receiving family payment for that child

"1069-F4. If an approved care organisation is receiving family payment for a
child, that child is to be disregarded in determining whether an amount by way
of guardian allowance is payable to any person. No guardian allowance if
another person is receiving guardian allowance

"1069-F5. If an amount by way of guardian allowance is payable to a person
because the person has a particular child, that child is to be disregarded in
determining whether an amount by way of guardian allowance is payable to any
other person for the child. Guardian allowance where 2 people share the daily
care and legal responsibility of a child

"1069-F6. In determining whether an amount by way of guardian allowance is
payable in respect of a child where 2 people share the daily care and legal
responsibility of the child, the child is to be taken into account only in
relation to whichever of them has the greater share of the daily care of, and
legal responsibility for, the child. Rate of guardian allowance

"1069-F7. The rate of guardian allowance is $30.10 a fortnight. Note: The rate
of guardian allowance is indexed annually in line with CPI increases (see
sections 1191 to 1194). Transitional indexation

"1069-F8.(1) If the Secretary determines in writing, for the purposes of point
1069-F7, a higher amount in substitution for the amount set out in that point,
the higher amount is taken, from the commencement of this Part, to be
substituted for the amount so set out.

"(2) A determination under subpoint (1) is a disallowable instrument.



"MODULE G-SHARED DAILY CARE AND LEGAL RESPONSIBILITY Sharing family payment
(determination under subsection 869(1))

"1069-G1. If:

   (a)  2 people who are not members of the same couple are each qualified for
        family payment for the same child; and

   (b)  the Secretary has made a declaration under subsection 869(1) in
        respect of family payment payable in respect of the child; and

   (c)  the declaration states the percentage of family payment in respect of
        the child that a person is to receive; the FP child rate for the
        child, in working out the rate of family payment payable to the
        person, is the stated percentage of the FP child rate that would
        otherwise apply to the child. Note: For FP child rate see Module B.
2 people who are not members of the same couple qualify for family payment for
same child (no determination under subsection 869(1))

"1069-G2. If:

   (a)  2 people who are not members of the same couple are each qualified for
        family payment for the same child; and

   (b)  the Secretary has not made a declaration under subsection 869(1) in
        respect of family payment payable in respect of the child; and

   (c)  the family payment rate of one of the people includes an FP child rate
        for the child; the FP child rate for the child is not to be included
        in the family payment rate of the other person. Sharing multiple birth
        allowance between 2 people (declaration under subsection 869(1))

"1069-G3. If:

   (a)  2 people who are not members of the same couple are each qualified for
        family payment for the same child; and

   (b)  the Secretary has made a declaration under subsection 869(1) in
        respect of the family payment payable in respect of the child; and

   (c)  the child is one of at least 3 children who were born during the same
        multiple birth; multiple birth allowance under Module D in respect of
        the multiple birth is to be dealt with in accordance with the
        declaration. 2 people who are not members of the same couple qualify
        for multiple birth allowance for same child (no determination under
        subsection 869(1))

"1069-G4. If:

   (a)  2 people who are not members of the same couple are each qualified for
        family payment for the same child; and

   (b)  the child is one of at least 3 children who were born during the same
        multiple birth; and

   (c)  the Secretary has not made a declaration under subsection 869(1) in
        respect of family payment payable in respect of the child; and

   (d)  the family payment rate of one of the people includes a multiple birth
        allowance in respect of the child; the family payment rate of the
        other person is not to include any amount by way of multiple birth
        allowance under Module D.



"MODULE H-FAMILY PAYMENT INCOME TEST

"Submodule 1-General Persons to whom the income test applies

"1069-H1. The family payment income test in Submodule 3 applies to a person
unless the person, or the person's partner, is receiving a social security
pension, a social security benefit, a youth training allowance or a service
pension. Income

"1069-H2. For the purposes of this Module, a person's family payment income
for a particular tax year is the sum of the following amounts (income
components):

   (a)  the person's taxable income for that year;

   (b)  the person's adjusted fringe benefits value for that year;

   (c)  the person's target foreign income for that year;

   (d)  the person's net rental property loss for that year. Note 1: For
        taxable income see subsection 23(1). Note 2: For adjusted fringe
        benefits value see points 1069-H25 and H26. Note 3: For target foreign
        income see subsection 10A(2). Note 4: For net rental property loss see
        subsection 10A(15). Income of members of couple to be added

"1069-H3. For the purposes of this Module, if a person is a member of a
couple, the person's income for a tax year includes the income for that year
of the person's partner. Fringe benefits value

"1069-H4. For the purposes of this Module, a person's fringe benefits value
for a tax year is the sum of the values of all the assessable fringe benefits
received by the person in that tax year. Secretary may determine that an event
is an assumed notifiable event

"1069-H5. The Secretary may determine that an event that is described in some
or all of the notices given under subsection 872(1) is to be an assumed
notifiable event for the purposes of this Module. Secretary may determine that
an event is a notifiable event

"1069-H6. If the Secretary gives a person a notice under subsection 872(1)
relating to the payment of family payment to the person, the Secretary may
state in the notice that an event described in the notice is a notifiable
event for the purposes of this Module. Person with unknown income for tax year

"1069-H7.(1) If a person does not have any one or more of the income
components for a tax year in accordance with point 1069-H8, the person is
taken to have an unknown income for that year. Note 1: For income component
see point 1069-H2. Note 2: A person is not qualified for family payment if an
income component of the person for the tax year is unknown (see points 1069-K1
and 1069-K2).

"(2) For the purposes of subpoint (1), a person has an income component even
though the amount of the component is nil. Income components for tax year

"1069-H8.(1) A person's taxable income for a tax year is:

   (a)  the person's assessed taxable income for that year; or

   (b)  if the person does not have an assessed taxable income for that year-
        the person's accepted estimate of taxable income for that year.

"(2) A person's adjusted fringe benefits value for a tax year is:

   (a)  the amount of that value as determined by the Secretary; or

   (b)  if a determination of that amount for that year has not been made by
        the Secretary-the person's accepted estimate of that amount for that
        year.

"(3) A person's target foreign income for a tax year is the person's accepted
estimate of the amount of that income for that year.

"(4) A person's net rental property loss for a tax year is the person's
accepted estimate of the amount of that loss for that year. Assessed taxable
income

"1069-H9. A person's assessed taxable income for a tax year at a particular
time is the most recent of:

   (a)  if, at that time, the Commissioner of Taxation has made an assessment
        or an amended assessment of that taxable income-that taxable income
        according to the assessment or amended assessment; or

   (b)  if, at that time, a tribunal has amended an assessment or an amended
        assessment made by the Commissioner-that taxable income according to
        the amendment made by the tribunal; or

   (c)  if, at that time, a court has amended an assessment or an amended
        assessment made by the Commissioner or an amended assessment made by a
        tribunal-that taxable income according to the amendment made by the
        court. Accepted estimate

"1069-H10. A person's accepted estimate of an income component for a tax year
is that income component according to the most recent notice given by the
person under point 1069-H11 and accepted by the Secretary for the purposes of
this Module. Notice estimating income component

"1069-H11. A person may give the Secretary a notice setting out the person's
estimate of an income component of the person for a tax year. Acceptance of
notice

"1069-H12. The Secretary is to accept a notice referred to in point 1069- H11
for the purposes of this Module only if the Secretary is satisfied that the
estimate is reasonable.

"Submodule 2-Appropriate tax year Appropriate tax year

"1069-H13. Subject to the following provisions of this Submodule, the
appropriate tax year for a family payment payday is the base tax year for that
payday. Base tax year

"1069-H14. The base tax year for a family payment payday is the tax year that
nded on 30 June in the calendar year that came immediately before the calendar
year in which the payday occurs. Example: A family payment payday occurs on 25
January 1995-this day ccurs in the calendar year 1 January 1995 to 31 December
1995-the calendar year that came immediately before this one is the calendar
year 1 January 1994 to 31 December 1994-the base tax year is the tax year that
ended on 30 June 1994 (ie the year of income that began on 1 July 1993).
Current tax year to be retained for consecutive calendar years in certain
circumstances

"1069-H15. If:

   (a)  family payment is payable to a person:

        (i)    on the last family payment payday in one calendar year; and

        (ii)   on the first family payment payday in the next calendar year;
               and

   (b)  the person's family payment rate on the last family payment payday in
        the earlier of the 2 calendar years is worked out on the basis that
        the person's appropriate tax year is the tax year in which the payday
        occurs (the current tax year); and

   (c)  the person's family payment rate on that payday was worked out on that
        basis because the person had made a request under point 1069-H21; and

   (d)  the person's income for the current tax year is less than the person's
        income for the base tax year; the person's appropriate tax year, as
        from the beginning of the later calendar year, is the current tax year
        and not the base tax year unless the income for the base tax year is
        less than the person's income free area. Note: For income see point
        1069-H2. Change to appropriate tax year because of assumed notifiable
        event

"1069-H16. If:

   (a)  an assumed notifiable event in relation to a person occurs after the
        end of the base tax year and before the beginning of the family
        payment period; and

   (b)  the person's income for the tax year in which the assumed notifiable
        event occurs exceeds:

        (i)    110% of the person's income for the base year; and

        (ii)   110% of the person's income free area; the appropriate tax
               year, for the purpose of applying this Module to the person
               from the beginning of the family payment period, is the tax
               year in which the assumed notifiable event occurs.

Note 1: For assumed notifiable event see point 1069-H5. Note 2: For income
free area see Table H2. Note 3: For family payment period see subsection 6(1).
Note 4: For income see point 1069-H2. Change to appropriate tax year because
of effect of assumed notifiable event on income for later tax year

"1069-H17. If:

   (a)  an assumed notifiable event occurs in relation to a person after the
        end of the base tax year and before the beginning of the family
        payment period; and

   (b)  point 1069-H16 does not make the year in which the event occurs (the
        event tax year) the appropriate tax year; and

   (c)  the person's income for the tax year that follows the event tax year
        is likely to exceed:

        (i)    110% of the person's income for the base tax year; and

        (ii)   110% of the person's income free area; the appropriate tax
               year, for the purpose of applying this Module to the person
               for:

   (d)  the part of the family payment period in which the event occurs that
        comes after the end of the event tax year; and

   (e)  the next family payment period after the one referred to in paragraph
        (d); is the year that follows the event tax year. Note: For income see
        point 1069-H2. Change to appropriate tax year because of notifiable
        event

"1069-H18. If:

   (a)  a notifiable event occurs in relation to a person; and

   (b)  the person's income for the tax year in which the notifiable event
        occurs exceeds:

        (i)    110% of the person's income for the base tax year; and

        (ii)   110% of the person's income free area; the appropriate tax
               year, for the purpose of applying this Module to the person for
               the remainder of the family payment period, is the tax year in
               which the notifiable event occurs. Note 1: For notifiable event
               see point 1069-H6. Note 2: For income see point 1069-H2. Change
               to appropriate tax year because of effect of notifiable event
               on income for later tax year

"1069-H19. If:

   (a)  a notifiable event occurs in relation to a person; and

   (b)  point 1069-H18 does not make the year in which the event occurs (the
        event tax year) the appropriate tax year; and

   (c)  the person's income for the tax year that follows the event tax year
        is likely to exceed:

        (i)    110% of the person's income for the base tax year; and

        (ii)   110% of the person's income free area; the appropriate tax
               year, for the purpose of applying this Module to the person
               for:

   (d)  the part of the family payment period in which the event occurs that
        comes after the end of the event tax year; and

   (e)  the next family payment period after the one referred to in paragraph
        (d); is the year that follows the event tax year. Note: For income see
        point 1069-H2. Change to appropriate tax year at recipient's request

"1069-H20. If:

   (a)  a person requests the Secretary to make a determination under point
        1069-H21; and

   (b)  as a result, the Secretary determines under that point that the
        appropriate tax year, for the purpose of applying this Module to the
        person for a family payment payday on or after the day on which the
        request is made, is the tax year in which the person makes the
        request; the appropriate tax year, for that purpose, is the tax year
        in which the person makes the request. Family payment recipient may
        ask Secretary to change appropriate tax year

"1069-H21. If:

   (a)  family payment:

        (i)    is not payable to a person because of this Module; or

        (ii)   is payable at a reduced rate because of this Module; and

   (b)  the person gives the Secretary an estimate of the person's income or a
        tax year; and

   (c)  the person requests the Secretary to make a determination under this
        point; and

   (d)  the person agrees that the person's rate of family payment for that
        tax year is to be recalculated if the person's actual income for that
        tax year exceeds 110% of the amount estimated by the person; the
        Secretary must determine that the appropriate tax year, for the
        purpose of applying this Module to the person for a family payment
        payday on or after the day on which the request is made, is the tax
        year in which the request is made.

Note 1: For income see point 1069-H2. Note 2: For the consequences of
underestimating income see section 885. Form of request

"1069-H22. A request under point 1069-H21 must be made in writing in
accordance with a form approved by the Secretary.

"Submodule 3-Family payment income test Satisfying the family payment income
test

"1069-H23. This is how to work out whether a person satisfies the family
payment income test:
Method statement Step 1. Work out the person's appropriate tax year using
Submodule 2. Step 2. Work out the person's family payment income for that tax
year by
adding:
- the person's taxable income for that tax year; and
- the person's adjusted fringe benefits value for that tax year;
and
- the person's target foreign income for that tax year; and
- the person's net rental property loss for that tax year.
Note: For the treatment of the income of members of a couple see
point 1069-H3. Step 3. Work out the person's income ceiling using point
1069-H27. Step 4. If the person's family payment income exceeds the income
ceiling,
the person does not satisfy the family payment income test and the
person's family payment rate is nil. Step 5. Work out the person's income free
area using point 1069-H28. Step 6. Work out whether the person's family
payment income exceeds the
person's income free area. Step 7. If the person's family payment income does
not exceed the person's
income free area, the person's annual income excess is nil. Step 8. If the
person's family payment income exceeds the person's income
free area, the person's annual income excess is the person's family
payment income less the person's income free area. Step 9. Convert the annual
income excess into a fortnightly income excess
using point 1069-H31. Step 10. Work out the amount of the person's reduction
for income using
point 1069-H32.
Note 1: It is only assessable fringe benefits that are used to work
out the person's fringe benefits value. An assessable fringe
benefit is a benefit that is a car benefit, school fees benefit,
health insurance benefit or loan fringe benefit. For assessable
fringe benefit see section 10A.
Note 2: For target foreign income see subsection 10A(2).
Note 3: For net rental property loss see subsection 10A(15).

Fringe benefits value free area

"1069-H24. A person's fringe benefits value free area is $1,000. Note: If a
person is a member of a couple, the person's fringe benefits value free area
is still $1,000. Person's adjusted fringe benefits value

"1069-H25. If a person's fringe benefits value exceeds the fringe benefits
value free area, the person's adjusted fringe benefits value is the person's
fringe benefits value less the free area. Nil adjusted fringe benefits value

"1069-H26. If the person's fringe benefits value does not exceed the fringe
benefits value free area, the person's adjusted fringe benefits value is nil.
Income ceiling

"1069-H27. A person's income ceiling is worked out using Table H1. A person's
income ceiling is the basic ceiling amount in column 1 plus an additional
amount in column 2 for each FP child of the person (after the first).
TABLE H1
FAMILY PAYMENT-INCOME CEILING
column 1                              column 2

basic ceiling amount                  additional amount for each FP

$61,020.00                            child (after the first)

$3,051.00 Note: The amounts in the Table are indexed in line with CPI
increases (see sections 1191 to 1194). Income free area

"1069-H28. A person's income free area is worked out using Table H2. A
person's income free area is the FP basic free amount in column 1 plus an
additional amount in column 2 for each FP child of the person (after the
first).
TABLE H2
FAMILY PAYMENT-INCOME FREE AREA
column 1                               column 2

FP basic free amount                   additional amount for each

$21,660.00                             FP child (after the first)

$624.00 Note: The FP basic free amount is indexed in line with CPI increases
(see sections 1191 to 1194). Transitional indexation

"1069-H29.(1) If the Secretary determines in writing, for the purposes of
Table H1 or Table H2, a higher amount in substitution for an amount set out in
that Table, the higher amount is taken, from the commencement of this Part, to
be substituted for the amount so set out.

"(2) A determination under subpoint (1) is a disallowable instrument. FP child
in point 1069-H28 includes children receiving prescribed educational scheme
payments and 'shared' children

"1069-H30. In point 1069-H28, FP child includes:

   (a)  a student child who:

        (i)    has reached 16, but is under 18, years of age; and

        (ii)   is receiving payments under a prescribed educational scheme; or

   (b)  a child in relation to whom the Secretary has made a declaration under
        subsection 869(1). Fortnightly excess

"1069-H31. The fortnightly income excess is:
annual income excess
26. Reduction for income

"1069-H32. The reduction for income is:
fortnightly income excess
2.

"MODULE J-MAINTENANCE INCOME TEST Effect of maintenance income on family
payment rate

"1069-J1. This is how to work out the effect of a person's maintenance income
on the person's rate of family payment:
Method statement Step 1. Work out the annual rate of the person's maintenance
income
disregarding any maintenance income for a dependent child who is
not an FP child. Note 1: For the treatment of maintenance income of members of
a couple
see point 1069-J2. Note 2: Special maintenance income (see subsection 10(1))
may in some
circumstances be disregarded under point 1069-J3. Step 2. Work out the
person's maintenance income free area (see points
1069-J8 and 1069-J9).
Note:    A person's maintenance income free area is the maximum amount of

maintenance income that the person may have without any deduction
being made for maintenance income from the person's rate of family
payment. Step 3. Work out whether the person's maintenance income exceeds the
person's maintenance income free area. Step 4. If the person's maintenance
income does not exceed the person's
maintenance income free area, the person's maintenance income
excess is nil and there is no reduction for maintenance income. Step 5. If the
person's maintenance income exceeds the person's maintenance
income free area, the person's maintenance income excess is the
person's maintenance income less the person's maintenance income
free area. Step 6. Use the person's maintenance income excess to work out the
person's
reduction for maintenance income using points 1069-J10 and
1069-J11.
Note: The application for the maintenance income test is affected
by provisions concerning:
- apportionment of capitalised maintenance income (section 1116);
- non-cash housing maintenance-value of substitute for family home
(section 1117).

Maintenance income of members of couple to be added

"1069-J2. The annual rate of the maintenance income of a person who is a
member of a couple is the sum of the rates that, apart from this Point, would
be the respective annual rates of each of the members of the couple. Special
maintenance income

"1069-J3. Subject to points 1069-J6 and 1069-J7, if a person has special
maintenance income in excess of the ceiling applicable to the person, the
excess is disregarded for the purposes of this Module. Note: For special
maintenance income see subsection 10(1). Amount of ceiling

"1069-J4. This is how to work out the ceiling applicable to a person:
Method statement Step 1. Work out the amount of the person's maintenance
income free area
using points 1069-J8 and 1069-J9. Step 2. Work out the amount of the person's
appropriate pension MBR
(maximum base rate) using point 1069-J5. Step 3. Work out the standard family
payment rate and deduct the minimum
standard family payment rate.
Note:    For standard family payment rate and minimum standard family

payment rate see subsection 6(1). Step 4. Work out the rent assistance that is
to be added to the person's
standard payment rate. Step 5. Work out the guardian allowance that is to be
added to the person's
standard payment rate. Step 6. Add up the amounts worked out under Steps 3, 4
and 5; annualise the
resulting amount by multiplying it by 26. Step 7. Add up the amount worked out
under Step 2 and the amount obtained
under Step 6; divide the resulting amount by 2. Step 8. Add up the amounts
obtained from Steps 1 and 7: the result is the
ceiling applicable to the person. Appropriate pension MBR (maximum basic rate)

"1069-J5. The appropriate pension MBR (maximum base rate) for a person at a
particular time is:

   (a)  if the person is not a member of a couple-the amount that is, at that
        time, the maximum basic rate of age pension payable to a person to
        whom item 1 of Table B in point 1064-B1 of Pension Rate Calculator A
        in section 1064 applies; or

   (b)  if the person is a member of a couple-the amount that is, at that
        time, twice the maximum basic rate of age pension payable to a person
        to whom item 2 of Table B in point 1064-B1 of Pension Rate Calculator
        A in section 1064 applies. Special maintenance income not disregarded
        where child support available

"1069-J6. No amount is to be disregarded under point 1069-J3 if:

   (a)  child support is not payable under the Child Support (Assessment)  Act
        1989 to the person for a child; and

   (b)  the person is entitled to make an application for assessment of child
        support under Part 5 of that Act for the child payable by another
        person; and

   (c)  either of the following subparagraphs applies:

        (i)    the person has neither properly made such an application, nor
               properly made an application under Part 6 of that Act for
               acceptance of an agreement in relation to the child;

        (ii)   the person has properly made an application of either kind, but
               has afterwards withdrawn the application or, after child
               support has become payable by the other person under that Act
               for the child, the person has ended the entitlement to child
               support. Special maintenance income not disregarded if child
               support application not in force

"1069-J7. No amount is to be disregarded under point 1069-J3 if:

   (a)  child support is payable under the Child Support (Assessment) Act 1989
        to the person for a child; and

   (b)  the person is entitled to make an application under section 128 of
        that Act; and

   (c)  an application by the person under that section is not in force. How
        to calculate a person's maintenance income free area

"1069-J8.(1) A person's maintenance income free area is worked out using Table
J. Work out which family situation in Table J applies to the person. The
maintenance income free area is the corresponding amount in column 3 plus an
additional corresponding amount in column 5 for each FP child after the first.

TABLE J
MAINTENANCE INCOME FREE AREA column 1 item
column 2
person's family situation
column 3
basic free area per year
column 4
basic free area per fortnight
column 5
additional free area per year
column 6
additional free area per fortnight
1.       Not a member of a couple

$865.80
$33.00
$288.60
$11.10
2.       Partnered (both the person and the partner have maintenance income)

$1,731.60
$66.60
$288.60
$11.10
3.       Partnered (only one has maintenance income)

$865.80
$33.60
$288.60
$11.10 Note 1: For member of a couple and partnered see section 4. Note 2: The
amounts are indexed in line with CPI increases (see sections 1191 to 1194).
Transitional indexation

"(2) If the Secretary determines in writing, for the purposes of Table J, a
higher amount in substitution for an amount set out in column 3 or column 5 in
that Table, the higher amount is taken, from the commencement of this Part, to
be substituted for the amount so set out.

"(3) A determination under subpoint (2) is a disallowable instrument. Only
maintenance actually received taken into account in applying Table J

"1069-J9. In determining whether or not item 2 or 3 of Table J applies to a
person, point 1069-J2 is to be disregarded. This has the effect of taking into
account only maintenance income that the person actually receives rather than
any maintenance income that the person is taken to receive because of
maintenance income received by the person's partner. Maintenance income excess

"1069-J10. A person's maintenance income excess is the person's maintenance
income less the person's maintenance income free area. Reduction for
maintenance income

"1069-J11. A person's reduction for maintenance income is:
maintenance income excess
52 Note: Explanation of derivation of maintenance income reduction formula:
start with the person's maintenance income excess-divide by 26 to convert from
a yearly to a fortnightly basis-divide by 2 and give a 50% taper.

"MODULE K-GENERAL Income component unknown-no qualification

"1069-K1. Subject to point 1069-K2, a person is not qualified for family
payment if:

   (a)  an income component of the person for the appropriate tax year for the
        family payment period is unknown; or

   (b)  an income component of the person's partner for the appropriate tax
        year for the family payment period is unknown. Note: For the
        circumstances in which an income component of a person is to be
        treated as unknown see point 1069-H7. Point K1 may not apply

"1069-K2. However, point 1069-K1 is not to apply if:

   (a)  the person is receiving a social security pension, a social security
        benefit, a youth training allowance or a service pension; or

   (b)  all the following subparagraphs apply:

        (i)    the person gives a notice under point 1069-H11;

        (ii)   the Secretary accepts the notice under point 1069-H12;

        (iii)  the Secretary makes a determination to give effect to the
               acceptance of the notice. Note: A person receiving a payment
               referred to in paragraph (a) is not subject to the family
               payment income test (see point 1069-H1). Effect of maintenance
               rights

"1069-K3. If:

   (a)  a person or a person's partner is entitled to claim or apply for
        maintenance for a child; and

   (b)  the Secretary considers that it is reasonable for the person or
        partner to take action to obtain maintenance; and

   (c)  the person or partner does not take action that the Secretary
        considers reasonable to obtain maintenance; then:

   (d)  the person's family payment rate in respect of the child is the amount
        set out in the formula in point 1069-B6 in Module B of the Family
        Payment Rate Calculator in section 1069; and

   (e)  the person does not qualify for rent assistance in respect of the
        child; and

   (f)  the person does not qualify for guardian allowance in respect of the
        child. Note 1: Rent assistance is payable under Module E of this Part.
        Note 2: Guardian allowance is payable under Module F of this Part.