5.5.2.30 Single person 22 years & over, no dependents, paying no rent

Summary

This topic shows the basic rate calculation using Benefit Rate Calculator B. The recipient is under age pension age, is not eligible for RA and has income per fortnight of:

  • $140.00, from employment, in the first week
  • $180.00, from employment, in the second week, and
  • $10.00 from investments.

The following table shows the steps involved in the basic rate calculation. The rates and income test parameters used applied at 20 September 2021 and are shown in dollars per fortnight. Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.

Step Action $
1 Determine recipient's ordinary income (1.1.O.30):
  • Assessable employment income
  • Add any other income

RESULT: RECIPIENT'S ORDINARY INCOME

320.00

10.00

330.00

2

Apply the personal income test to this amount:

  1. For income between $150.00 and $256.00, multiply by 0.5
    = ($256.00 − $150.00) × 0.5
    = $106.00 × 0.5
    = $53.00
  2. For income above $256.00, multiply by 0.6
    = ($330.00 − $256.00) × 0.6
    = $74.00 × 0.6
    = $44.40
  3. Add a and b
    = $53.00 + $44.40
    = $97.40

RESULT: INCOME REDUCTION

 

 

 

53.00

 

 

44.40

 

 

97.40

3 Determine the maximum payment rate:
  • Locate the maximum single rate of ES
  • Add the applicable rate of ES

RESULT: MAXIMUM PAYMENT RATE

629.50

8.80

638.30

4 Subtract the income reduction from the maximum payment rate:
  • Maximum payment rate
  • Income reduction

RESULT: RATE OF ALLOWANCE

638.30

97.40

540.90

Note 1: For recipients who are 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 3.12.1 Pension supplement - qualification & payability, 5.1.9.10 Pension supplement - current rates, 3.15.2 ES - qualification & payability

Last reviewed: 20 September 2021