5.5.1.10 Single Age pensioner, no children
Method used prior to 20 September 2009
This example shows the basic rate calculation using Pension Rate Calculator A. The pensioner has a rate of ordinary income (1.1.O.30) of $4,512.20 a year.
The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 September 2000. Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.
Step | Action | $ |
---|---|---|
1 | Determine the maximum payment rate:
RESULT: MAXIMUM PAYMENT RATE |
10,246.60 145.60 10,392.20 |
2 | Determine the income reduction using Module E:
RESULT: ORDINARY INCOME EXCESS |
4,512.20 2,756.00 1,756.20 |
3 | Determine 40% of the ordinary income excess
RESULT: TOTAL INCOME DEDUCTION |
702.48 |
4 | Subtract the total income deduction from the maximum payment rate:
RESULT: INCOME REDUCED RATE |
10,392.20 702.48 9,689.72 |
5 | Divide the income reduced rate by 26
RESULT: FORTNIGHTLY PAYMENT RATE |
372.68 |
*The figures in Module B are modified by the factors in Module BA - Amount of Pension Supplement.
Act reference: SSAct section 1064(1) Rate of age and disability support pensions and CP (people who are not blind)
SS(Admin)Act section 54 Rounding off instalments of social security payments