Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a person if:
(a) the person's rate of service pension or income support supplement is calculated in accordance with the Rate Calculator; and
(b) the person has reached qualifying age.
Note: For qualifying age see section 5Q.
Work bonus income greater than or equal to income concession amount
(2) If the person's work bonus income for a pension period is greater than or equal to the income concession amount for that period, then, for the purposes of Module E of that Rate Calculator, the amount of the person's work bonus income for that period is reduced by an amount equal to the income concession amount.
Note: For work bonus income , see subsection (4BA).
Example 1: David has $2,300 of work bonus income in a pension period. David's rate of service pension or income support supplement for that period is greater than nil.
David's work bonus income for that period is reduced by $300, leaving David $2,000 of work bonus income for that period.
Example 2: Amy has $1,000 of work bonus income in a pension period. Amy's rate of service pension or income support supplement for that period is greater than nil.
Amy's work bonus income for that period is reduced by $300, leaving Amy $700 of work bonus income for that period.
(3) If the person's unused concession balance (see section 46AC) is greater than or equal to the amount (the current amount ) of the person's work bonus income that remains after applying subsection (2) of this section in relation to a pension period:
(a) for the purposes of Module E of that Rate Calculator, the person's work bonus income for that period is further reduced to nil; and
(b) if the person's rate of service pension or income support supplement for that period is greater than nil--the person's unused concession balance is reduced by an amount equal to the current amount.
Example 1: To continue example 1 in subsection (2), assume David's unused concession balance is $2,000. The current amount is $2,000.
David's work bonus income for that period is further reduced to nil.
David's unused concession balance is now nil.
Example 2: To continue example 2 in subsection (2), assume Amy's unused concession balance is $1,600. The current amount is $700.
Amy's work bonus income for that period is further reduced to nil.
Amy's unused concession balance is now $900.
(4) If the person's unused concession balance (see section 46AC) is greater than nil but less than the amount of the person's work bonus income that remains after applying subsection (2) of this section in relation to a pension period:
(a) for the purposes of Module E of that Rate Calculator, the person's work bonus income for that period is further reduced by an amount equal to that unused concession balance; and
(b) if the person's rate of service pension or income support supplement for that period is greater than nil--the person's unused concession balance is reduced to nil.
Example: Bill has $1,300 of work bonus income in a pension period. Bill's rate of service pension or income support supplement for that period is greater than nil.
Under subsection (2), Bill's work bonus income for that period is reduced by $300, leaving Bill $1,000 of work bonus income for that period.
Assume Bill's unused concession balance is $800.
Under subsection (4), Bill's work bonus income for that period is further reduced by $800 leaving Bill $200 of work bonus income for that period.
Bill's unused concession balance is now nil.
Work bonus income less than income concession amount
(4A) If the person has work bonus income for a pension period but that income is less than the income concession amount for that period:
(a) for the purposes of Module E of that Rate Calculator, the person's work bonus income for that period is reduced to nil; and
(b) if the person's rate of service pension or income support supplement for that period is greater than nil--the person's unused concession balance (see section 46AC) is increased, subject to subsection 46AC(2), by an amount equal to the difference between that income concession amount and that work bonus income (before it was reduced).
Note: For work bonus income , see subsection (4BA).
Example: Emma has $100 of work bonus income in a pension period. Emma's rate of service pension or income support supplement for that period is greater than nil.
Emma's work bonus income for that period is reduced to nil.
Emma's unused concession balance is increased by $200.
No work bonus income
(4B) If:
(a) the person has no work bonus income for a pension period; and
(b) the person's rate of service pension or income support supplement for that period is greater than nil;
the person's unused concession balance (see section 46AC) is increased, subject to subsection 46AC(2), by an amount equal to the income concession amount for that period.
Note: For work bonus income , see subsection (4BA).
(4BA) For the purposes of this section, a person's work bonus income for a pension period is the sum of the following:
(a) the person's employment income received in that period;
(b) the person's gainful work income for that period.
Note: For employment income , see section 46AB.
(4BB) For the purposes of this section, a person's gainful work income for a pension period is the amount worked out using the following formula:
where:
"annual amount" means the annual amount of ordinary income of the person that is earned, derived or received by the person from gainful work (within the meaning of section 46ABA) undertaken by the person, being the annual amount as last determined by the Commission.
(4C) The income concession amount for a pension period is $300.
Interpretation
(5) If the person is a member of a couple, apply this section in relation to the person, and to the person's partner, before applying Point SCH6 - E3 of Schedule 6.
(5A) If:
(a) the person is a member of a couple; and
(b) the person's partner's work bonus income (within the meaning of section 1073AA of the Social Security Act 1991 ) is reduced by one or more amounts (each of which is a reduction amount ) under section 1073AA of that Act;
then, in applying point SCH6 - E3 of Schedule 6, the ordinary/adjusted income of the person's partner is to be reduced by an amount equal to the total of the reduction amounts.
(6) This section is subject to section 46AD (about no double income reductions under this section and section 115G).