Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis section determines, in respect of each working credit participant who is receiving a social security benefit, whether, for each day in an instalment period:
(a) there is an accrual to the participant's working credit balance; or
(b) the participant's working credit balance is unaffected; or
(c) the participant's working credit balance is depleted;
and, if there is an accrual to, or a depletion from, the participant's working credit balance, the amount of that accrual or depletion.
Method statement
Step 1. Work out the amount (including a nil amount) of the participant's employment income taken, in accordance with Division 1AA, to have been received on that day.
Step 2. Multiply the amount determined under step 1 by 14. This is the participant's rate of employment income on a fortnightly basis for the day.
Step 3. Add to the participant's rate of employment income on a fortnightly basis for the day the participant's rate of any other ordinary income on a fortnightly basis for the day. This is the participant's rate of total ordinary income on a fortnightly basis for the day.
Step 4. If the participant's rate of total ordinary income on a fortnightly basis for the day is less than $48, there is an accrual to the participant's working credit balance for the day of an amount equal to one fourteenth of the amount by which $48 exceeds that rate. The maximum working credit balance is:
(a) if the participant became a working credit participant on a day under subsection 1073E(2), (3), (4), (5), (5A) or (6) and on that day the participant was receiving youth allowance, the participant was not undertaking full - time study and the participant was not a new apprentice--$3,500; or
(b) in any other case--$1,000.
Step 5. If the participant's rate of total ordinary income on a fortnightly basis for the day is at least $48 but does not exceed the ordinary income free area applicable to the participant for the day under the income test module of the appropriate rate calculator, the participant's working credit balance for the day is neither increased nor reduced.
Step 6. If the participant's rate of total ordinary income on a fortnightly basis for the day is at least $48 and exceeds the participant's applicable ordinary income free area for the day, the participant's working credit balance, if it is greater than nil on the day, is depleted on that day by the least of:
(a) the amount of employment income determined under step 1; or
(b) one fourteenth of the amount by which the participant's rate of total ordinary income on a fortnightly basis exceeds the participant's applicable ordinary income free area; or
(c) the participant's available working credit balance.