The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

5.5.1 Samples of pension rate calculations

Introduction

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 changed from 40c to 50c in the dollar for singles. For couples, the rate changed from 20c to 25c in the dollar for each member of a couple. These changes were part of the Budget 2009-10 (12 May 2009) measure, the Secure and Sustainable Pension Reform Package.

Information about changes to the pension income test in the Budget 2009-10 can be found in 4.2.1.10.

PPS recipients retained the 40c withdrawal rate and the additional free area for dependent children. Samples of rate calculations for PPS can be found in 5.5.4.

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 …
  • age pension
  • disability support pension, and
  • carer payment
 Part 3.2, if the recipient IS NOT blind.
  • age pension
  • disability support pension, and
  • carer payment
 Part 3.3, if the recipient IS blind.
  • parenting payment (single)
 Part 3.6A.

Act reference: SSAct section 1064(1) Rate of age and disability support pensions and CP (people who are not blind), section 1065 Rate of age and disability support pension (blind people), section 1068A Rate of PP—pension PP (single)

Last reviewed: