5.5.4.10 PPP, partner not a pensioner

Summary

This topic shows the rate calculation for a PPP (1.1.P.50) recipient, whose partner is not a pensioner, using the PPP Rate Calculator. The recipient's income is $162.00 per fortnight and the partner's income is $1,180.00 per fortnight.

The following table shows the steps involved in the rate calculation. The rates and income test parameters are current as at 20 September 2021 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 Rate ($)
1

Determine the MBR, without add-ons, using Module C

RESULT: MAXIMUM BASIC RATE

 

573.30

2

Determine the amount of ES using Module DB

RESULT

7.90
3
  • Determine the maximum payment rate by adding together the previous 2 amounts
    = $573.30 + $7.90
    = $581.20
581.20
4 Apply the personal income test using Module D:
  • Recipient's income
  • Less ordinary income (1.1.O.30) free area
  • Multiply by 0.5
    = ($162.00 − $150.00) × 0.5
    = $12.00 × 0.5
    = $6.00

RESULT: RECIPIENT INCOME REDUCTION

162.00

150.00

 

 

6.00

5 Determine any partner income excess:
  • Partner's income
  • Less partner income free area (1.1.P.80)
    = $1,180.00 − $1,124.00
    = $56.00

RESULT: PARTNER INCOME EXCESS

1,180.00

1,124.00

 

56.00

6 Determine partner income reduction:
  • Partner income excess, multiplied by 0.6
    = $56.00 × 0.6
    = $33.60

RESULT: PARTNER INCOME REDUCTION

33.60

7
  • Add recipient's and partner's income reductions
    = $6.00 + $33.60
    = $39.60

RESULT: TOTAL INCOME REDUCTION

39.60

8

Determine rate payable:

  • Maximum payment rate
  • Subtract total income reduction
    = $581.20 − $39.60
    = $541.60

RESULT: RATE PAYABLE

 

541.60

Note: For recipients of age pension age, the pension supplement will be added to the maximum payment rate determined at step 3.

Policy reference: SS Guide 3.12.1 Pension supplement - qualification & payability, 5.1.9.10 Pension supplement - current rates, 4.2.2 Benefits income test & limits, 3.15.2 ES - qualification & payability

Last reviewed: 20 September 2021