5.5.1.30 Single Person, 1 Child under 13 Years

Method used prior to 20 September 2009

This example shows the basic rate calculation using Pension Rate Calculator A. The person has a rate of ordinary income (1.1.O.30) of $4,500.00 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 obtained from the A guide to Australian Government payments booklet on the DHS website.

Step Action $
1

Determine the maximum payment rate:

  • Locate the MBR in Module B*
  • Add any PhA

RESULT: MAXIMUM BASIC RATE

10,246.60

145.60

10,392.20

2

Determine the income reduction using Module E:

  • Annual ordinary income
  • Less child free area
  • Less ordinary income free area limit

RESULT: ORDINARY INCOME EXCESS

4,500.00

639.60

2,756.00

1,104.40

3

Determine 40% of the ordinary income excess

RESULT: TOTAL INCOME DEDUCTION

441.76

4

Subtract the total income deduction from the maximum payment rate:

  • Maximum payment rate
  • Less total income deduction

RESULT: INCOME REDUCED RATE

10,392.20

441.76

9,950.44

5

Divide the income reduced rate by 26:

RESULT: FORTNIGHTLY PAYMENT RATE

382.71

*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, disability support, wife pensions and CP (people who are not blind)

SS(Admin)Act section 54 Rounding off instalments of social security payments

Last reviewed: 15 August 2016