5.5.3.10 Partnered allowance recipient, partner also receives an allowance, income above free areas

Summary

This topic shows the basic rate calculation when both partners receive an allowance, using Benefit Rate Calculator B.

Note: The method described below will apply to any combination of payments in Benefit Rate Calculator B (e.g. NSA with a PA partner).

The couple, both 22 years and over, receive the income listed in the following table.

Partner Employment income Other continuing income
1 230.00 60.00
2 120.00 40.00

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 Partner 1 Partner 2
1 Determine each partner's ordinary income (1.1.O.30):
  • Assessable earned income
  • Add any other income

RESULT: PARTNER'S ORDINARY INCOME

230.00

60.00

290.00

120.00

40.00

160.00

2 Apply the personal income test to these amounts:
  1. For income between $104.00 and $254.00, multiply by 0.5
    • Partner 1:
      ($254.00 − $104.00) × 0.5
      = $150.00 × 0.5
      = $75.00
    • Partner 2:
      ($160.00 − $104.00) × 0.5
      =$56.00 × 0.5
      =$28.00
  2. For income above $254.00, multiply by 0.6
    • Partner 1:
      ($290.00 − $254.00) × 0.6
      = $36.00 × 0.6
      = $21.60
    • Partner 2: nil.
  3. Add a and b
    • Partner 1: $75.00 + $21.60 = $96.60
    • Partner 2: $28.00 + $0.00 = $28.00

RESULT: INCOME REDUCTION

 

 

 

 

75.00

 

 

 

 

 

21.60

 

 

96.60

 

 

 

 

 

 

 

28.00

 

 

 

0.00

 

 

28.00

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

RESULT: MAXIMUM PAYMENT RATE

504.70

7.90

512.60

504.70

7.90

512.60

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

RESULT: RATE OF ALLOWANCE

512.60
96.60
416.00

512.60
28.00
484.60

Note: 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 4.2.2 Benefits Income Test & Limits, 3.15.2 ES - Qualification & Payability

Last reviewed: 20 September 2019