24CAmount of accrual to a maintenance income credit balance

24C  Amount of accrual to a maintenance income credit balance

 (1) This is how to work out the amount of the accrual under clause 24B, for a day in an income year, to a maintenance income credit balance for a registered entitlement of an individual who is, or is the partner of, an eligible person under subclause 24B(2):

Method statement

Step 1. Work out the global maintenance entitlement of the eligible person for the day using clause 24D.

Step 2. Identify the lower of:

 (a) that global maintenance entitlement; and

 (b) the maintenance income free area that applied to the eligible person for the day.

Step 3. Subtract from the lower amount identified in step 2 the annualised amount of the maintenance income of the eligible person for the day.

Step 4. Divide the result of step 3 by 365.

Step 5. Unless subclause (2) applies to the individual, the amount that accrues to the maintenance income credit balance of the individual for the day is the amount worked out under step 4.

 If subclause (2) applies to the individual, take the amount worked out under step 4 and apply the method statement in subclause (2).

 (2) If either or both of the following apply:

 (a) the individual has more than one registered entitlement for the day in respect of which the condition in subclause 24B(5) is met;

 (b) if the individual is a member of a couple on the day—the individual’s partner has one or more registered entitlements for the day in respect of which the condition in subclause 24B(5) is met;

this is how to work out the amount of the accrual under clause 24B, for a day in an income year, to each of the maintenance income credit balances (the relevant balances) for those entitlements:

Method statement

Step 1. Work out the daily cap for each relevant balance. The daily cap for a relevant balance is the excess of the amount due in the income year from the registered entitlement to which the balance relates over the maintenance income received in the income year from the registered entitlement, divided by 365.

Step 2. Distribute the amount worked out under step 4 of the method statement in subclause (1) equally among each relevant balance, up to the amount of the daily cap for the relevant balance.

Step 3. Distribute any remaining amount equally among each relevant balance for which the daily cap has not been reached, up to the amount of the daily cap for the relevant balance.

Step 4. Reapply step 3 to any remaining amount until:

 (a) there is no remaining amount to distribute; or

 (b) the daily cap for each relevant balance is reached.