(1) If the relevant eligibility period of a person who is a category 1
student is a year, the ** maximum amount of financial supplement **for the period
in respect of the person is the lesser of:

(a) $7,000; and

(b) the amount worked out using the following Method statement.

Method statement

Step 1. Work out the total amount of youth allowance general rate, austudy payment general rate or pensioner education supplement that would be payable to the person for the eligibility period if the person did not apply for financial supplement.

Step 2. Work out the total amount of advance payment deductions (if any) to be made from the person's rate of youth allowance or austudy payment, under Part 3.16A, in the eligibility period.

Subtract that total amount from the total amount worked out under Step 1.

Step 3. Work out the total amount of overpayments (if any) for the eligibility period.

Subtract that total amount from the total amount worked out under Step 2.

Step 4. Work out the total amount of deductions (if any) that are to be paid to the Commissioner of Taxation, under section 1359, for the eligibility period.

Note: Section 1359 provides for the deduction and payment to the Commissioner of Taxation of amounts of tax that a person is required to pay.

Subtract that total amount from the total amount worked out under Step 3.

Step 5. Work out the total amount (if any) of youth allowance general rate, austudy payment general rate or pensioner education supplement that has already been paid for the eligibility period.

Ignore any amount that has already been dealt with under Step 2.

Ignore any amount that is taken never to have been paid because of section 1061ZZAW.

Subtract the total amount from the amount worked out under Step 4.

Step 6. Multiply the amount left by 2.

Step 7. If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(2) If the relevant eligibility period of a person who is a category 1
student is less than a year, the ** maximum amount of financial supplement **for
the period in respect of the person is the lesser of:

(a) the amount worked out using the Method statement in subsection (1); and

(b) the amount worked out using the following Method statement.

Method statement

Step 1. Multiply $7,000 by the number of days in the eligibility period.

Step 2. Divide the result by the number of days in the year in which the eligibility period is included.

If the result is not a number of whole dollars, round the result up to the next number of whole dollars.

(3) This section has effect subject to Subdivision C.