The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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 - - -
2 650.00 - 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 March 2024 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.

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

  

-

-

-

  

650.00

20.00

670.00

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:

$670.00 ÷ 2 = $335.00

  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
    = ($335.00 − $256.00) × 0.6
    = $79.00 × 0.6
    = $47.40
  3. Add a and b
    = $53.00 + $47.40
    = $100.40

RESULT: INCOME REDUCTION

 

335.00

 

 

53.00

 

47.40

 

100.40
2

Determine the maximum payment rate:

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

RESULT: MAXIMUM PAYMENT RATE

 

698.30

7.90

706.20
3

Subtract the income reduction from the maximum payment rate:

  • Maximum payment rate
  • Less income reduction

RESULT: RATE OF ALLOWANCE

 

706.20

100.40

605.80

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: