5.5.2.10 Single person 22 years & over, no dependents, income over $254 per fortnight

Summary

This topic shows the basic rate calculation using Benefit Rate Calculator B. The recipient has income of $300.00 per fortnight from investments and is in private rental accommodation (not shared).

The following table shows the steps involved in the basic rate calculation. The rates and income test parameters used applied at 20 September 2019 and are shown in dollars per fortnight. Current rates can be obtained from the A guide to Australian Government payments booklet on the DHS website.

Step Action $
1 Determine recipient's ordinary income (1.1.O.30) 300.00
2

Apply the personal income test to this amount:

  1. For income between $104.00 and $254.00, multiply by 0.5
    = ($254.00 − $104.00) × 0.5
    = $150.00 × 0.5
    = $75.00
  2. For income above $254.00, multiply by 0.6
    = ($300.00 − $254.00) × 0.6
    = $46.00 × 0.6
    = $27.60
  3. Add a and b
    = $75.00 + $27.60
    = $102.60

RESULT: INCOME REDUCTION

 

 

75.00

 

27.60

 

102.60

3

Determine the maximum payment rate:

  • Locate the maximum single rate
  • Add the applicable rate of RA
  • Add the applicable rate of ES

RESULT: MAXIMUM PAYMENT RATE

559.00
138.00
8.80
705.80

4

Subtract the income reduction from the maximum payment rate:

  • Maximum payment rate
  • Income reduction

RESULT: RATE OF ALLOWANCE

705.80
102.60
603.20

Note 1: For recipients of age pension age, the pension supplement will be added to the maximum payment rate determined at step 3.

Note 2: If the recipient is eligible for any other rate add-ons, e.g. PhA, APWS, these amounts will be added to the maximum payment rate determined at step 3.

Policy reference: SS Guide 3.15.2 ES Qualification & Payability

Last reviewed: 20 September 2019