5.5.3.60 Partnered allowance recipient - compensation effect on partner

Summary

This topic shows the basic rate calculation when an NSA recipient's partner is receiving periodic compensation, using Benefit Rate Calculator B. Both compensation recipient and NSA recipient are aged 22 years and over. Compensation recipient is qualified for an allowance which is a CAP but is not receiving that payment due to their compensation. The compensation recipient receives $300 per week and was not receiving income support when they suffered the compensable injury. NSA recipient has income of $85 per week.

Note: If the partner was in receipt of non-independent YA, the partner's excess periodic compensation does not affect their rate of payment.

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 Compensation recipient NSA recipient

1

Determine the maximum rate of allowance for the compensation recipient

504.70

 

2

Work out excess periodic compensation

Periodic compensation per fortnight

Deduct maximum allowance rate from periodic compensation, i.e. $600.00 - $504.70 = $95.30 excess compensation

600.00

 

3

Excess to be added to NSA recipient's own ordinary income

 

95.30

4

Determine NSA recipient's ordinary income (1.1.O.30):

  • Assessable earned income per fortnight
  • Add any other income (excess compensation)

RESULT: NSA RECIPIENT'S ORDINARY INCOME

  170.00
95.30
265.30

5

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
    = ($265.30 − $254.00) × 0.6
    = $11.30 × 0.6
    = $6.78
  3. Add a and b
    =$75.00 + $6.78
    =$81.78

RESULT: INCOME REDUCTION

 

 

 

 

75.00

 

 

6.78

 

 

81.78

6

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

7

Subtract the income reduction from the maximum payment rate:

  • Maximum payment rate
  • Less income reduction

RESULT: RATE OF NSA

Nil

512.60

81.78
430.82

Act reference: SSAct section 17 Compensation recovery definitions, Part 3.14 Compensation recovery

Policy reference: SS Guide 4.13.3.20 Effect of Periodic Compensation on a Compensation Recipient, 4.13.3.30 Effect of periodic compensation on the partner of a compensation recipient, 1.1.C.250 Compensation affected payment, 3.15.2 ES - Qualification & Payability

Last reviewed: 20 September 2019