Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1067L

Austudy Payment Rate Calculator

  (1)   The rate of austudy payment of a person referred to in section   581 is to be calculated in accordance with the Rate Calculator in this section.

Limit on rate of payment

  (2)   If:

  (a)   a person is living with another person as the spouse of the other person on a genuine domestic basis although not legally married to the other person (whether the persons are the same sex or different sexes); and

  (b)   the other person is under the age of consent that applies in the State or Territory in which they are living;

the rate of the person's austudy payment is not to be more than the rate at which the austudy payment would be payable to the person if the other person were the person's partner.

Method of calculating rate

  1067L - A1   The rate of payment is a daily rate. That rate is worked out by dividing the fortnightly rate calculated according to this Rate Calculator by 14.

Maximum basic rate

  1067L - B1   A person's maximum basic rate is to be worked out as follows:

  (a)   if the person is not a long term income support student (see section   1067K)--use Table BA;

  (b)   if the person is a long term income support student--use point 1067L - B3.

Person who is not a long term income support student

  1067L - B2(1)   If the person is not a long term income support student (see section   1067K), work out:

  (a)   whether the person is a member of a couple (see section   4); and

  (b)   whether the person has a dependent child (see subsections   5(2) to (9)); and

  (c)   if the person is not a member of a couple, whether the person has a YA child (see subpoint (2)).

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Note:   The rates in column 3 are indexed annually in line with CPI increases (see sections   1191- 1194).

  (2)   In this point:

"YA child" , in relation to a person who is not a member of a couple, means a child who is receiving youth allowance, is under 18 years of age and would be a dependent child of the person if he or she were not receiving the allowance.

Person who is a long term income support student

  1067L - B3   If the person is a long term income support student (see section   1067K), work out whether the person is a member of a couple (see section   4).

The person's maximum basic rate is the amount in column 3 of the table that corresponds to the person's situation as described in column 2 of the table.

Pension supplement

  1067L - BA1   A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia, has reached pension age and:

  (a)   is in Australia; or

  (b)   is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

  1067L - BA2   The person's pension supplement amount is:

  (a)   if an election by the person under subsection   1061VA(1) is in force--the amount worked out under point 1067L - BA4; and

  (b)   otherwise--the amount worked out under point 1067L - BA3.

Amount if no election in force

  1067L - BA3   The person's pension supplement amount is the amount worked out by:

  (a)   applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

  (b)   dividing the result by 26; and

  (c)   if:

  (i)   the person is not partnered; and

  (ii)   the amount resulting from paragraph   (b) is not a multiple of 10 cents;

    rounding the amount up or down to the nearest multiple of 10 cents (rounding up if the amount is not a multiple of 10 cents but is a multiple of 5 cents).

Note:   For combined couple rate of pension supplement , see subsection   20A(1).

Amount if election in force

  1067L - BA4   The person's pension supplement amount is the amount worked out as follows:

  (a)   work out the amount for the person under point 1067L - BA3 as if the election were not in force;

  (b)   from that amount, subtract 1 / 26 of the person's minimum pension supplement amount.

  1067L - BB1   An energy supplement is to be added to the person's (the recipient's ) maximum basic rate if the recipient is residing in Australia and:

  (a)   is in Australia; or

  (b)   is temporarily absent from Australia and has been so for a continuous period not exceeding 6 weeks.

However, this Module does not apply if quarterly energy supplement is payable to the recipient.

Note:   Section   918 may affect the addition of the energy supplement.

Recipient has reached pension age

  1067L - BB2   If the recipient has reached pension age, the recipient's energy supplement is the amount worked out using the following table:

Recipient has not reached pension age

  1067L - BB3   If the recipient has not reached pension age, the recipient's energy supplement is worked out using the following table:

Qualification for pharmaceutical allowance

  1067L - C1   Subject to points 1067L - C1A and 1067L - C2, an amount by way of pharmaceutical allowance is to be added to a person's maximum basic rate if:

  (b)   the person has turned 55; and

  (c)   the person has been receiving income support payments in respect of a continuous period of at least 9 months (whether or not the kind of payment received has changed over the period and whether the period or any part of it occurred before or after the commencement of this paragraph).

Note 1:   For income support payment see subsection   23(1).

Note 2:   For the determination of the continuous period in respect of which a person received income support payments see section   38B.

No pharmaceutical allowance if person receiving pension supplement

  1067L - C1A   Pharmaceutical allowance is not to be added to a person's maximum basic rate if a pension supplement amount has been added to that rate.

No pharmaceutical allowance if partner receiving certain supplements under other Acts

  1067L - C2   Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

  (a)   the person is a member of a couple; and

  (b)   the person's partner is receiving:

  (i)   veterans supplement under section   118A of the Veterans' Entitlements Act; or

  (ii)   MRCA supplement under section   300 of the Military Rehabilitation and Compensation Act; or

  (iii)   pharmaceutical supplement under Part   3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 ; or

  (iv)   pharmaceutical supplement under Part   4 of the Treatment Benefits (Special Access) Act 2019 ; and

  (c)   the person's partner is not receiving a service pension or a veteran payment.

Amount of pharmaceutical allowance

  1067L - C3   The amount of pharmaceutical allowance is the amount per fortnight worked out using the following table:

Note 1:   For member of a couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section   4.

Note 2:   The amounts in column 3 are indexed or adjusted annually in line with CPI increases on 1   January (see sections   1191 to 1194 and 1206A).

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 and the treatment of certain income amounts (Division   1 of Part   3.10);

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

(c)   income from financial assets (including income streams (short term) and certain income streams (long term)) (Division   1B of Part   3.10);

(d)   income from income streams not covered by Division   1B of Part   3.10 (Division   1C of Part   3.10);

(e)   disposal of income (sections   1106 to 1111).

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 veteran payment, 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.

Lump sum payments arising from termination of employment

  1067L - D3   Subject to points 1067L - D5 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.

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.

Certain termination payments taken to be ordinary income

  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.

More than one termination payment on a day

  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.

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.

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.

Commencement of income maintenance period where there is a second termination payment

  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.

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.

Leave payments or termination payments in respect of periods longer than a fortnight

  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.

  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.

When a person receives a leave payment or a termination payment

  1067L - D13   For the purposes of points 1067L - D5 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.

Single payment in respect of different kinds of termination payments

  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.

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 termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) 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 termination 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 termination 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" includes a payment in lieu of notice.

"termination payment" includes:

  (a)   a redundancy payment; and

  (b)   a leave payment relating to a person's employment that has been terminated; and

  (c)   any other payment that is connected with the termination of a person's employment.

Meaning of leave payment

1067L - D16   In points 1067L - D5 to 1067L - D15 (inclusive):

"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.

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 a parent, child, brother or sister of the person.

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 sections   1072A and 1073, ordinary income (except employment income) is to be taken into account in the fortnight in which it is first earned, derived or received.

Note:   See Division   1AA of Part   3.10 for the treatment of employment income.

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; and

  (d)   is not employment income;

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.

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; and

  (iv)   is not employment income;

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.

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:

  (a)   is subject to a liquid assets test waiting period or an income maintenance period in respect of the allowance claimed; or

  (b)   is subject to a seasonal work preclusion period;

during the period of 12 months referred to in those points.

Ordinary income received at intervals longer than one fortnight

  1067L - D23   Subject to points 1067L - D5 to 1067L - D16 (inclusive), if:

  (a)   a person receives a number of payments of ordinary income (except employment income); and

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

  (c)   there is reasonable predictability or regularity as to the timing of the payments; and

  (d)   there is reasonable predictability 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.

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.

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 22--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 22--the amount of income of the partner (rounded up to the nearest dollar) beyond which jobseeker payment would not be payable to the partner if the partner were qualified for a jobseeker payment; 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.

1067L - D25A   For the purposes of paragraph   1067L - D25(a), disregard steps 2, 2A and 3 of the method statement in point 1067G - A1.

  1067L - D25B   For the purposes of paragraph   1067L - D25(b), disregard steps 2 and 3 of the method statement in point 1068 - A1.

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, a service pension, income support supplement or a veteran payment; 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.

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:

Ordinary income free area

  1067L - D28   A person's ordinary income free area is $400.

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.

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).

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.

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.

Student income bank

  1067L - E1   A person's ordinary income under Module D may be reduced under this Module. This diagram sets out how to work out:

  (a)   whether the person's ordinary income for a particular fortnight in respect of which austudy payment may be payable to the person, is to be reduced; and

  (b)   if it is to be reduced, the amount of the reduction.

Income bank credit

  1067L - E2   A person's income bank credit for a particular income bank fortnight of the person is to be worked out as follows:

Income credit

  1067L - E3   For the purposes of point 1067L - E2, if the amount that would, apart from this Module, be the person's ordinary income for an income bank fortnight of the person is less than the ordinary income free area (see point 1067L - D28):

  (a)   the person has an income credit for that fortnight; and

  (b)   the income credit is an amount equal to the difference between the ordinary income free area (see point 1067L - D28) and the first - mentioned amount.

Drawing from income bank credit

  1067L - E4   For the purposes of point 1067L - E2, if the amount that would, apart from this Module, be the person's ordinary income for an income bank fortnight of the person is greater than the ordinary income free area (see point 1067L - D28):

  (a)   the person is taken to have drawn from the person's income bank credit in respect of that fortnight; and

  (b)   the amount drawn is taken to be an amount equal to the difference between the first - mentioned amount and the ordinary income free area (see point 1067L - D28).

Income bank fortnight

  1067L - E5   For the purposes of this Module, an income bank fortnight of a person is any fortnight in respect of which an austudy payment may be payable to the person.

Opening balance following cancellation of another social security pension or benefit

  1067L - E6   If:

  (a)   a person ceases to be a working credit participant because of a determination to cancel, or an automatic cancellation of, the person's social security pension or social security benefit; and

  (b)   the person had a working credit balance greater than nil immediately before the date of effect of the determination or cancellation; and

  (c)   the person makes a claim, or is taken to have made a claim, for an austudy payment; and

  (d)   the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph   (b); and

  (e)   the person becomes a person to whom this Module applies on a day (the module application day ), being either the day with effect from which the claim is granted or a day following that day; and

  (f)   the person has not reached pension age before the module application day;

the working credit balance mentioned in paragraph   (b) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Opening balance following suspension and subsequent cancellation of another social security pension or benefit

  1067L - E7   If:

  (a)   a person ceases to be a working credit participant because of a determination to suspend the person's social security pension or social security benefit; and

  (b)   while the person's pension or benefit is suspended, there is a determination to cancel the person's pension or benefit; and

  (c)   the person had a working credit balance greater than nil immediately before the date of effect of the suspension determination; and

  (d)   the person makes a claim, or is taken to have made a claim, for an austudy payment; and

  (e)   the Secretary determines that the claim is to be granted with effect from a day within 12 months after the date of effect mentioned in paragraph   (c); and

  (f)   the person becomes a person to whom this Module applies on a day (the module application day ), being either the day with effect from which the claim is granted or a day following that day; and

  (g)   the person has not reached pension age before the module application day;

the working credit balance mentioned in paragraph   (c) becomes the opening balance of the income bank credit applicable to the person on the module application day.

Remote area allowance--person physically in remote area

  1067L - F1   An amount by way of remote area allowance is to be added to a person's rate of austudy payment if:

  (a)   the person's rate of austudy payment apart from this point is greater than nil; and

  (b)   the person's usual place of residence is situated in the remote area; and

  (c)   the person is physically present in the remote area.

Note 1:   For remote area see subsection   14(1).

Note 2:   A person may be considered to be physically present in a remote area during temporary absences (see subsection   14(2)).

Rate of remote area allowance

  1067L - F2   A person's rate of remote area allowance is worked out using Table F. Work out which family situation in the table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus the additional corresponding amount in column 4 for each FTB child, and each regular care child, of the person.

Note:   For member of a couple , partnered , illness separated couple and partnered (partner in gaol) see section   4.

Meaning of remote area allowance

  1067L - F3   In Table F, remote area allowance means an amount added to a person's austudy payment by way of remote area allowance.

In remote area

  1067L - F4   For the purposes of Table F, a person is in the remote area if:

  (a)   the person's usual place of residence is in the remote area; and

  (b)   the person is physically present in the remote area.

Special rule if partner has an FTB or regular care child but is not receiving a pension

  1067L - F6   If:

  (a)   an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

  (b)   the person's partner is not receiving a social security pension or social security benefit; and

  (c)   the person's partner has an FTB child or a regular care child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule if partner has an FTB or regular care child but is not receiving additional allowance for the child

  1067L - F7   If:

  (a)   an additional allowance is to be included in the rate of remote area allowance for a person who is a member of a couple; and

  (b)   the person's partner has an FTB child or a regular care child; and

  (c)   the person's partner is not receiving additional allowance for the child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

  1067L - F9   If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note:   This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.