Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The income test for the care recipient under step 4 of the residential care subsidy calculator in section 44 - 2 is applied by working out the amount (if any) of the income tested reduction in respect of the * payment period.
(2) The income tested reduction in respect of the * payment period is the sum of all the * daily income tested reductions for days during the period on which the care recipient is provided with residential care through the residential care service in question.
(3) The * daily income tested reduction for a particular day is worked out as follows:
Income tested reduction calculator
Step 1. Work out the care recipient's * total assessable income on a yearly basis (see section 44 - 24).
Step 2. Work out the care recipient's * total assessable income free area (see section 44 - 26).
Step 3. If the care recipient's * total assessable income does not exceed the care recipient's * total assessable income free area, the income tested reduction is zero.
Step 4. If the care recipient's * total assessable income exceeds the care recipient's * total assessable income free area, the smallest of the following amounts (rounded down to the nearest cent) is the * daily income tested reduction :
(a) the amount equal to 5 / 12 of that excess (worked out on a per day basis);
(b) the amount equal to 135% of the * basic age pension amount for that day (worked out on a per day basis);
(c) the subsidy related amount for a care recipient for a day (see subsection (4)).
Note: In some circumstances, a different * daily income tested reduction will apply under section 44 - 22 or 44 - 23.
(4) The subsidy related amount for a care recipient for a day is the total of the following amounts:
(a) the adjusted basic subsidy amount for the care recipient for the day (see subsection (5));
(b) the amounts of any primary supplements worked out using Subdivision 44 - C for the care recipient for the day;
less the amounts of any reductions in subsidy worked out using Subdivision 44 - D for the care recipient for the day.
(5) The adjusted basic subsidy amount for a care recipient for a day is an amount:
(a) determined by the Minister by legislative instrument; or
(b) worked out in accordance with a method determined by the Minister by legislative instrument.