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.

5.5.3.60 Partnered allowance recipient - compensation effect on partner

Summary

This topic shows the basic rate calculation when a JSP recipient's partner is receiving periodic compensation, using Benefit Rate Calculator B. Both compensation recipient and JSP 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 $1,200 per fortnight and was not receiving income support when they suffered the compensable injury. JSP recipient has income of $370.00 per fortnight.

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 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.

Step Action Compensation recipient ($) JSP recipient ($)

1

Determine the maximum rate of allowance for the compensation recipient

698.30

  

2

Work out excess periodic compensation

Periodic compensation per fortnight

Deduct maximum allowance rate from periodic compensation, that is, $1,200.00 - $698.30 = $501.70 excess compensation

1,200.00

 

501.70

  

3

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

  

501.70

4

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

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

RESULT: JSP RECIPIENT'S ORDINARY INCOME

  

 

370.00
501.70
871.70

5

 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
    = ($871.70 − $256.00) × 0.6
    = $615.70 × 0.6
    = $369.42
  3. Add a and b
    = $53.00 + $369.42
    = $422.42

RESULT: INCOME REDUCTION

  

 

53.00

 

 

 

369.42

 

 

422.42

6

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

7

Subtract the income reduction from the maximum payment rate:

  • Maximum payment rate
  • Less income reduction

RESULT: RATE OF JSP

 

 

706.20
422.42

283.78

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

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