5.5.1.80 Partnered pensioner couple - compensation effect on partner

Method used prior to 20 September 2009

This example shows the basic rate calculation using Pension Rate Calculator A. A member of a pensioner couple receives compensation of $15,600 ($300 per week), and was in receipt of a CAP DSP and the date of their compensable injury was before the date of grant of the CAP. Their partner has other income of $5,200 ($100 per week).

The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 September 2005. Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.

Step Action Compensation recipient $ Partner $
1

Determine the maximum qualified rate of compensation recipient less PhA

and for partner:

  • Locate the MBR in Module B
  • Add any PhA

RESULT: MAXIMUM BASIC RATE

Note: The figures in Module B are modified by the factors in Module BA-Pension supplement.

10,613.20

10,613.20

75.40

10,688.60

2

Deduct compensation recipient's maximum qualified rate, from period compensation rate

15,600.00

 
3

Excess to be added to partner's share of joint ordinary income

 

4,986.80

4

Partner's share of joint ordinary income, i.e. $5,200 × 0.5

 

2,600.00

5

TOTAL

 

7,586.80

6

Determine the income reduction using Module E:

  • Annual ordinary income
  • Less ordinary income free area limit

RESULT: ORDINARY INCOME EXCESS

 

7,586.80

2,860.00

4,726.80

7

Determine 40% of the ordinary income excess

RESULT: TOTAL INCOME DEDUCTION

  1,890.72
8

Subtract the total income deduction from the maximum payment rate:

  • Maximum payment rate
  • Less total income deduction

RESULT: INCOME REDUCED RATE

 

10,688.60

1,890.72

8,797.88

9

Divide the income reduced rate by 26

RESULT: FORTNIGHTLY PAYMENT RATE PER RECIPIENT

Nil 338.38

Act reference: SSAct section 9(1)-'pensioner couple', section 17 Compensation recovery definitions, Part 3.14 Compensation recovery

Policy reference: SS Guide 1.1.C.250 Compensation affected payment, 4.13.3.20 Effect of Periodic Compensation on a Compensation Recipient, 4.13.3.30 Effect of periodic compensation on the partner of a compensation recipient

Last reviewed: 21 September 2020