5.5.4.40 PPP, compensation effect on partner

Summary

This topic shows the rate calculation for a PPP (1.1.P.50) recipient under age pension age, whose partner is not a pensioner, receiving NSA, using the PPP Rate Calculator. The partner receives compensation of $15,600 per annum ($600.00 per fortnight) and was not receiving income support when they suffered the compensable injury. Compensation recipient is qualified for an allowance which is a CAP but is not receiving that payment due to their compensation. The PPP recipient also has other income of $200.00 per fortnight.

The following table shows the steps involved in the basic rate calculation. The rates 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, using Module C

RESULT: MAXIMUM BASIC RATE

504.70

2

Determine the amount of ES using Module DB

7.90
3

Determine the maximum payment rate by adding together the previous 2 amounts

  • = $504.70 + $7.90
    = $512.60
512.60
4

Work out excess periodic compensation

  • Deduct NSA partner's maximum qualified rate, from periodic compensation rate
    = $600.00 − $512.60
    = $87.40 excess compensation

 

87.40

5

Excess to be added to PPP's own ordinary income

  • = $200.00 + $87.40
  • = $287.40
287.40
6

Apply the personal income test using Module D:

Recipient's income = $287.40

  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
    = ($287.40 − $254.00) × 0.6
    = $33.40 × 0.6
    = $20.04
  3. Add a and b
    = $75.00 + $20.04
    = $95.04

RESULT: INCOME REDUCTION

 

 

75.00

 

 

20.04

 

 

95.04

7

Determine rate payable:

  • Maximum payment rate
  • Subtract total income reduction

RESULT: RATE PAYABLE

512.60
95.04
417.56

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