4.10.1.20 Historical Calculation of Pension Rate under the Means Test  March 1951 to November 1976
Summary
This topic contains an example of the calculation of pension rate under the means test from 9 March 1951 to 25 November 1976.
This topic covers the following matters:
 calculation of rate, and
 calculation of RA.
Calculation of rate
This example shows how to calculate the rate of pension payable to a married couple under the means test, using rates as at 4 October 1973. Amounts are in dollars. The following table shows the financial circumstances of the couple.
Ownership  Income (SSAct section 8(1)'income')  Property 

Person  2,000  5,280 
Partner  1,000  1,000 
Total  3,000  6,800 
The following table shows the steps in the calculation of the pension rate for single and partnered.
Step  Action  Single  Partnered 

1 
Determine the income reduced for children.  Couple's total income  Less allowable income for 2 children  RESULT: INCOME REDUCED FOR CHILDREN 
3,000.00 624.00 2,376.00 
3,000.00 624.00 2,376.00 
2 
Determine the property component.

6,800.00 800.00 5,480.00 548.00 
6,800.00 800.00 5,480.00 548.00 
3 
Determine the means as assessed.

2,376.00 548.00 2,924.00 
2,376.00 548.00 2,924.00 
4 
Determine the means affecting the rate.

2,924.00 1,794.00 565.00 
2,924.00 1,794.00 565.00 
5 
If there ARE children, go to step 7. If there were NO children, the FINAL step is step 6. 

6 
Determine the deduction from the maximum pension rate.

1,196.00 565.00 631.00 
1,053.00 282.50 770.50 
7 
Determine the excess of means for each partner.

565.00 520.00 45.00 
565.00 520.00 45.00 22.50 (each) 
8 
Determine the fortnightly rate of pension for each partner.

1,196.00 208.00 45.00 1,359.00 52.20 
1,053.00
22.50 1,030,50 39.60 
Explanation: If there were NO children, the rates would be determined as follows:
Single  Partnered  

Maximum pension (as at 4/10/1973)  $1,196.00  $1,053.00 
Less means affecting rate  $565.00  $565.00 
Divide by 2 (if partnered)  $282.50  
Result: ANNUAL RATE ASSESSED  $631.00  $770.50 each 
Calculation of RA
The following table shows the steps in calculating the rate of RA payable, based on the pension rate as at 4 October 1973. Amounts are in dollars.
Step  Action  $ 

1 
Determine the interim amount of RA.

260.00 52.00 312.00 
2 
Determine the actual means as assessed:

Assume 100.00 52.00 100.00 
4 
Determine the annual rate of RA payable.

312.00 100.00 212.00 106.00 
Note: Before 5 September 1985 RA was known as 'supplementary assistance'.