5.5.1.60 Couple, 1 Child under 13 Years, Separated Due to Ill Health

Method used prior to 20 September 2009

This example shows the basic rate calculation using Pension Rate Calculator A. The couple has a combined rate of ordinary income (1.1.O.30) of $11,000.00 a year. For pension assessment purposes, income is split equally between each member of a couple.

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 Partner 1 $ Partner 2 $
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

10,246.60

145.60

10,392.20

2

Determine the income reduction using Module E:

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

RESULT: ORDINARY INCOME EXCESS

5,500.00

319.80

2,444.00

2,736.20

5,500.00

319.80

2,444.00

2,736.20

3

Determine 40% of the ordinary income excess

RESULT: TOTAL INCOME DEDUCTION

1,094.48

1,094.48

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

1,094.48

9,297.72

10,392.20

1,094.48

9,297.72

5

Divide the income reduced rate by 26

RESULT: FORTNIGHTLY PAYMENT RATE

357.60

357.60

*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: 6 November 2017