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 $300 per week and was not receiving income support when they suffered the compensable injury. JSP 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 March 2020 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

510.80

 

2

Work out excess periodic compensation

Periodic compensation per fortnight

Deduct maximum allowance rate from periodic compensation, i.e. $600.00 - $510.80 = $89.20 excess compensation

600.00

 

3

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

 

89.20

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

  170.00
89.20
259.20

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

 

 

510.80
7.90
518.70

7

Subtract the income reduction from the maximum payment rate:

  • Maximum payment rate
  • Less income reduction

RESULT: RATE OF JSP

Nil

518.70

81.78
436.92

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 March 2020