## Commonwealth Consolidated Acts

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### SOCIAL SECURITY ACT 1991 - SECT 1071A

Health care card income test

The Health Care Card Income Test Calculator at the end of this section is to be used in working out whether a person satisfies the health care card income test for the purposes of Division 3 of Part 2A.1.

Health Care Card Income Test Calculator

Satisfying the health care card income test: persons claiming a card

1071A-1  This is how to work out whether a person claiming a health care card satisfies the health care card income test on the day on which the person claims the card, whether or not the person is the holder of a health care card at that time.

Method statement

Step 1.    Work out the amount of the person's ascertained income for the period of 8 weeks ending on the day on which the person lodged the claim.

Step 2.    Work out the amount of the person's allowable income for the period.

Step 3.    If the person's ascertained income for the period is less than the person's allowable income for the period, the person satisfies the health care card income test.

Step 4.    If the person's ascertained income for the period equals or exceeds the person's allowable income for the period, the person does not satisfy the health care card income test.

Satisfying the health care card income test: cardholders

1071A-2  This is how to work out whether a person who holds a health care card satisfies the health care card income test at a particular time where there has been a change in circumstances.

Method statement

Step 1.    Work out the amount of the person's ascertained income for the period of 8 weeks ending on the day on which the change of circumstances occurred.

Step 2.    Work out the amount of the person's allowable income for the period.

Step 3.    If the person's ascertained income for the period is less than 125% of the person's allowable income for that period, the person satisfies the health care card income test.

Step 4.    If the person's ascertained income for the period is 125% or more of the person's allowable income for that period, the person does not satisfy the health care card income test.

1071A-2A  For the purposes of step 2 of the method statement in point 1071A-1 or 1071A-2:

(a)  disregard steps 1A, 2 and 3 of the method statement in point 1068-A1; and

(b)  the amount at step 1B of the method statement in point 1068-A1 is taken to be the amount applicable under item 5 of the table in point 1068-C3.

Cessation of dependency

1071A-3  For the purposes of point 1071A-2, if a person (the first person ) ceases to be a dependant of another person who is the holder of a health care card:

(a)  the fact that the first person has so ceased is to be disregarded for a period of 4 weeks commencing on the day on which the first person so ceased; and

(b)  if, at the end of the period, the first person has not become again a dependant of that other person, the first person is taken to have ceased to be a dependant of the other person at the expiration of that period of 4 weeks.

1071A-4  In this Part:

"allowable income" , in relation to any period of 8 weeks, means:

(a)  in relation to a person who had a dependant or dependants on the last day of the period--the amount worked out by multiplying by 8, or such other number as is prescribed, the aggregate of:

(i)  the amount of the weekly rate of income that would, on the last day of the period, be sufficient to prevent both members of a one-income couple from receiving jobseeker payment; and

(ii)  \$20, or such other amount as is prescribed; and

(iii)  an amount worked out by multiplying \$34, or such higher amount as is prescribed, by the number of the dependants of the person on the last day of the period; or

(b)  in relation to a person who had no dependants on the last day of the period--the amount worked out by multiplying by 8, or such other number as is prescribed, an amount equal to 60%, or such other percentage as is prescribed, of the aggregate of the amount worked out under subparagraph (a)(i) and the amount referred to in subparagraph (a)(ii) if paragraph (a) had applied to the person.

"ascertained income" , in relation to a period, means:

(a)  in relation to a person who is not a member of a couple--the income of the person in respect of that period; and

(b)  in relation to a person who is a member of a couple--the income of the person and his or her partner in respect of that period.

"income" , in relation to a person, means ordinary income and, to the extent that they are not ordinary income, includes:

(aa)  payments of a social security pension or a social security benefit; and

(a)  if the person is receiving a social security pension or benefit--the person's maintenance income (if any) within the meaning of the Family Assistance Act; and

(b)  payments of a pension under the Veterans' Entitlements Act; and

(c)  payments of a pension payable by a foreign country, being a pension that, in the opinion of the Secretary, is similar in character to a pension referred to in paragraph (b); and

(ca)  payments of income support supplement; and

(cb)  a payment under Part VIIAB (DFISA) of the Veterans' Entitlements Act (including a payment made under regulations made under that Part); and

(d)  payments under the scheme known as the New Enterprise Incentive Scheme; and

(e)  payments of compensation, including compensation within the meaning of the Military Rehabilitation and Compensation Act; and

(f)  instalments of parental leave pay; and

1071A-5  If a weekly rate of income referred to in subparagraph (a)(i) of the definition of allowable income in point 1071A-4 or an amount worked out under paragraph (b) of that definition includes an amount of cents, the amount of that weekly rate is, for the purposes of that definition, increased to the nearest whole dollar.

1071A-6  A couple is a one-income couple for the purposes of point 1071A-4 if only one member of the couple is receiving income.

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