Div 11Estimates and verification of maintenance income for Youth Allowance Rate Calculator

Division 11—Estimates and verification of maintenance income for Youth Allowance Rate Calculator

123AA  Estimate of maintenance income for Youth Allowance Rate Calculator

 (1) In working out the annualised amount of maintenance income for the parent of a person for the purposes of the maintenance income test in Module GA of the Youth Allowance Rate Calculator in section 1067G of the 1991 Act, the Secretary may have regard to an estimate of the amount of maintenance income for a period made by, or given to, the Secretary, if the Secretary is satisfied that the estimate is reasonable.

 (2) If the Secretary has no reason to believe that there is any amount of maintenance income for the parent of the person for the period, the Secretary is taken to have had regard to an estimate of nil.

123AB  Verification of maintenance income for Youth Allowance Rate Calculator

 (1) The method statement in this section applies if the Secretary is required by section 126A to review one or more decisions determining a rate of youth allowance for a person for a period or periods in an income year.

Step 1. Work out the amount of maintenance income for a parent of the person for the income year using the information referred to in paragraph 126A(c). In doing so:

 (a) assume that the person is an FTB child of the parent for the year; and

 (b) only take into account maintenance income received in relation to the person; and

 (c) in working out whether maintenance income is received in relation to the person, have regard to the considerations that would apply under the Family Assistance Act.

 This amount is the parent’s actual maintenance income for the income year.

Step 2. Work out the annualised maintenance income free area for the parent for the income year under section 123AC.

Step 3. Work out the annual amount of estimated maintenance income for the parent under section 123AD.

Step 4. Go to subsection (2) if the actual maintenance income is equal to or more than the annual amount of estimated maintenance income and either:

 (a) the actual maintenance income is less than 125% of the annualised maintenance income free area; or

 (b) the actual maintenance income is equal to or more than 125% of the annualised maintenance income free area and the actual maintenance income is less than 125% of the annual amount of estimated maintenance income.

Step 5. Go to subsection (3) in any other case.

 (2) If the method statement says go to this subsection, the Secretary must affirm the decision or decisions under review.

 (3) If the method statement says go to this subsection, the Secretary must recalculate the person’s rate of youth allowance having regard to the parent’s actual maintenance income for the income year and vary or substitute the decision or decisions under review accordingly.