44‑22 Working out the means tested amoun44‑22 Working out the means tested amount

#### 44‑22 Working out the means tested amount (1) The means tested amount for the care recipient is worked out as follows: Means tested amount calculator Work out the income tested amount using steps 1 to 4: Step 1. Work out the care recipient’s \*total assessable income on a yearly basis using section 44‑24. Step 2. Work out the care recipient’s \*total assessable income free area using section 44‑26. Step 3. If the care recipient’s total assessable income does not exceed the care recipient’s total assessable income free area, the income tested amount is zero. Step 4. If the care recipient’s \*total assessable income exceeds the care recipient’s total assessable income free area, the income tested amount is 50% of that excess divided by 364. Work out the per day asset tested amount using steps 5 to 10: Step 5. Work out the value of the care recipient’s assets using section 44‑26A. Step 6. If the value of the care recipient’s assets does not exceed the asset free area, the asset tested amount is zero. Step 7. If the value of the care recipient’s assets exceeds the asset free area but not the first asset threshold, the asset tested amount is 17.5% of the excess. Step 8. If the value of the care recipient’s assets exceeds the first asset threshold but not the second asset threshold, the asset tested amount is the sum of the following: (a) 1% of the excess; (b) 17.5% of the difference between the asset free area and the first asset threshold. Step 9. If the value of the care recipient’s assets exceeds the second asset threshold, the asset tested amount is the sum of the following: (a) 2% of the excess; (b) 1% of the difference between the first asset threshold and the second asset threshold; (c) 17.5% of the difference between the asset free area and the first asset threshold. Step 10. The per day asset tested amount is the asset tested amount divided by 364. The means tested amount is the sum of the income tested amount and the per day asset tested amount. (2) The asset free area is: (a) the amount equal to 2.25 times the \*basic age pension amount; or (b) such other amount as is calculated in accordance with the Subsidy Principles. (3) The first asset threshold and the second asset threshold are the amounts determined by the Minister by legislative instrument.