5.5.3.50 Partnered allowance recipient, partner receiving pension

Summary

This topic shows the basic rate calculation for a partnered allowance recipient where the recipient's partner is receiving a pension, using Benefit Rate Calculator B. Partner 1, on an allowance 22 years and over but under age pension age, and partner 2, on a pension, receive the fortnightly income listed in the following table.

Partner Continuing employment income Casual income Other continuing income
1 - - -
2 550.00 - 20.00

The following 2 tables show the steps involved in the basic rate calculation for partner 1 who is receiving an allowance. 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.

The first table shows how to determine both partners' ordinary income (1.1.O.30).

Step Action Partner 1

$

Partner 2

$

1

Determine each partner's ordinary income

  • Assessable earned income
  • Add any other income

RESULT: TOTAL ORDINARY INCOME

 

-

-

-

 

550.00

20.00

570.00

The next table shows how to determine the rate payable for partner 1.

Step Action Partner 1
$
1

Apply the allowance income test to half the couple's combined ordinary income: $570.00 ÷ 2 = $285.00

  • a) For income between $104.00 and $254.00, multiply by 0.5
    =($254.00 − $104.00) × 0.5
    = $150.00 × 0.5
    = $75.00
  • b) For income above $254.00, multiply by 0.6
    =($285.00 − $254.00) × 0.6
    = $31.00 × 0.6
    = $18.60
  • Add a) and b)
    = $75.00 + $18.60
    = $93.60

RESULT: INCOME REDUCTION

285.00

 

 

75.00

 

 

18.60

 

 

93.60

2

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

3

Subtract the income reduction from the maximum payment rate:

  • Maximum payment rate
  • Less income reduction

RESULT: RATE OF ALLOWANCE

512.60

93.60

419.00

Note: For recipients of age pension age, the pension supplement will be added to the maximum payment rate determined at step 2.

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

Calculation for partner 2

The pension rate payable to partner 2 is determined using Pension Rate Calculator A. See 5.5.1 for examples of pension rate calculations.

Policy reference: SS Guide 5.5.1.20 Pensioner Couple, No Children

Last reviewed: 20 September 2019