Social Security and Other Legislation Amendment (Income Support for Students) Act 2010 (17 of 2010)

Schedule 1   Youth allowance

Part 2   Income tests

Division 2   Parental income test and family actual means test

Social Security Act 1991

14   Points 1067G-F26, 1067G-F27 and 1067G-F28

Repeal the points, substitute:

Having parental income in common

1067G-F26 For the purposes of this Submodule, 2 or more persons have parental income in common if:

(a) the parental income test applies to each of them; and

(b) a parent of one of the persons is also a parent of each of the other persons.

Note: Point 1067G-F30 affects whether a person to whom the parental income test applies has parental income in common with someone qualified for a payment under the ABSTUDY Scheme or for a payment under the Assistance for Isolated Children Scheme.

Person who does not have parental income in common with anyone else

1067G-F27 Work out a person's reduction for parental income using the following formula and point 1067G-F29 if:

(a) the person does not have parental income in common with anyone else; and

(b) the person's combined parental income (see Submodule 4) for the appropriate tax year exceeds the person's parental income free area (see Submodule 5):

Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5 (so that the reduction for parental income is only 20 cents for each dollar of the excess).

Person who has parental income in common with someone else

1067G-F28 Work out a person's reduction for parental income using the following formula and point 1067G-F29 if:

(a) the person has parental income in common with one or more other persons; and

(b) the person's combined parental income (see Submodule 4) for the appropriate tax year exceeds the person's parental income free area (see Submodule 5):

((The excess / 130) x (Person's maximum payment rate under Module A / Total of maximum payment rate of each person who has parental income in common))

Note: Dividing by 130 is equivalent to dividing by 26 (for 26 fortnights in a year) and dividing again by 5.

Rounding the reduction for parental income

1067G-F29 If the result of the formula in whichever of points 1067G-F27 and 1067G-F28 applies is not a multiple of 10 cents, round the result to the nearest 10 cents (rounding a multiple of 5 cents upwards).

Extension to recipients under ABSTUDY or Assistance for Isolated Children Scheme

1067G-F30 This Submodule applies in relation to a person in respect of whom a payment is made under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme and to whom a parental income test under that scheme applies as if:

(a) the parental income test under this Module applied to the person; and

(b) the total of the amounts described in the following table as relevant to the person were the maximum payment rate for the person for the purposes of this Submodule.

Note: This Submodule does not (of its own force) affect the amount payable to the person under the ABSTUDY Scheme or the Assistance for Isolated Children Scheme.