25DWorking out the Method 2 income and maintenance tested rate

#### 25D Working out the Method 2 income and maintenance tested rate In applying step 3 of the method statement in clause 25, step 2 of the method statement in clause 3 is taken to be replaced with the following: Step 2. Subtract the individual’s income free area (worked out under clause 38N) from the individual’s higher income free area (worked out under clause 2). Step 2A. Work out 20% of the amount at step 2. Step 2B. Subtract the individual’s higher income free area (worked out under clause 2) from the individual’s adjusted taxable income. Step 2C. Work out 30% of the amount at step 2B. Step 2D. The individual’s reduction for adjusted taxable income is the sum of the amounts at steps 2A and 2C. Take that reduction away from the individual’s maximum rate: the result is the individual’s income tested rate.