5.5.1 Samples of Pension Rate Calculations
This section contains examples of the method used prior to 20 September 2009 for pension rate calculations under the income test and one example that also deals with RA. Rates were calculated according to the legislative provisions contained in the SSAct.
From 20 September 2009, the rate at which extra income above the threshold affects the pension will change from 40 cents to 50 cents in the dollar for singles. For couples, the rate will change from 20 cents to 25 cents in the dollar for each member of a couple. These changes are part of the Budget 2009-10 (12 May 2009) the Secure and Sustainable Pension Reform Package.
Information about changes to the pension income test in the Budget 2009-10 can be found in 18.104.22.168.
Rate calculations are contained in SSAct Chapter 3. The following table shows which part of the SSAct contains the rate calculation information for particular recipients.
|For recipients of…||The relevant SSAct part is…|
||Part 3.2, if the recipient IS NOT blind.|
||Part 3.3, if the recipient IS blind.|
Act reference: SSAct section 1064(1) Rate of age, disability support, wife pensions and CP (people who are not blind), section 1065 Rate of age and disability support pension (blind people), section 1066 Rate of BVA and WidB, section 1068A Rate of PP-pension PP (single)