5.5.4.30 PPP, partner a pensioner, recipient qualifies for PhA

Summary

This topic shows the rate calculation for a PPP (1.1.P.50) recipient, whose partner is a pensioner, using the PPP Rate Calculator. The recipient qualifies for PhA of $3.10 per fortnight. The recipient has income of $223.00 per fortnight. The partner has income of $1,734.00 per fortnight.

The following table shows the steps involved in the 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 Rate $
1

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

RESULT: MAXIMUM BASIC RATE

504.70

2

Determine the amount of PhA using Module E

RESULT

3.10
3

Determine the amount of ES using Module DB

RESULT

7.90
4

Determine the maximum payment rate by adding together the previous 3 amounts

  • = $504.70 + $3.10 + $7.90
    = $515.70

RESULT: MAXIMUM PAYMENT RATE

 

 

515.70

5

Determine the amount of income for the personal income test.

  • personal income is half the couple's combined income
    = ($223.00 + $1,734.00)/2 = $978.50

 

978.50

6

Determine the amount of income reduction:

  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
    = ($978.50 − $254.00) × 0.6
    = $724.50 × 0.6
    = $434.70
  3. Add a and b
    = $75.00 + $434.70
    = $509.70

RESULT: INCOME REDUCTION

 

 

75.00

 

 

434.70

 

 

 

509.70

7

Subtract income reduction from maximum payment rate:

  • Maximum rate of payment
  • Less income reduction

RESULT: FIRST AMOUNT

515.70

509.70

6.00

8

If the result in Step 7 is greater than $0 but less than the maximum rate of PhA ($3.10), then pay the PhA rate.

TOTAL RATE PAYABLE

3.10

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 2019