17Prescribed income test

17 Prescribed income test

(1) For the purposes of paragraph 37B(4)(b) of the Act, a payer is taken to satisfy the income test in relation to the first instalment of a social security pension or a social security benefit paid to the payer after the day on which an application is made under subsection 37B(2) of the Act if: (a) if that instalment was paid in respect of a fortnight—the total of: (i) the amount of that instalment, less any non‑taxable additional amounts; and (ii) the amount of the payer’s ordinary income for that fortnight; is not more than the highest maximum basic rate of pension for a fortnight under Table B of point 1064‑B1 in the Rate Calculator at the end of section 1064 of the Social Security Act 1991; or (b) if that instalment was paid in respect of a period of less than a fortnight—the total of: (i) the amount of that instalment, less any non‑taxable additional amounts; and (ii) the amount of the payer’s ordinary income for that period; is not more than the amount calculated using the formula: Start formula Highest maximum basic rate of pension referred to in paragraph (a) times start fraction Week days in that period over 10 end fraction end formula (2) For the purposes of paragraph 37B(5)(b) of the Act, a payer is taken not to satisfy the income test in relation to an instalment of a social security pension or a social security benefit paid to the payer for a particular fortnight if: (a) if that instalment was paid in respect of a fortnight—the total of: (i) the amount of that instalment, less any non‑taxable additional amounts; and (ii) the amount of the payer’s ordinary income for that fortnight; is more than the highest maximum basic rate of pension for a fortnight under Table B of point 1064‑B1 in the Rate Calculator at the end of section 1064 of the Social Security Act 1991; or (b) if that instalment was paid in respect of a period of less than a fortnight—the total of: (i) the amount of that instalment, less any non‑taxable additional amounts; and (ii) the amount of the payer’s ordinary income for that period; is more than the amount calculated using the formula: Start formula Highest maximum basic rate of pension referred to in paragraph (a) times start fraction Week days in that period over 10 end fraction end formula