5.5.4.60 PPS, over age pension age, 1 child

Summary

This topic shows the rate calculation for a PPS (1.1.P.51) recipient using the PPS Rate Calculator. The recipient has one dependent child under the age of 8 and has income of $500 per fortnight. The recipient has reached age pension age and so receives the higher rate of pension supplement (3.12.1).

The following table shows the steps involved in the 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, without add-ons, using Module B.

RESULT: MAXIMUM BASIC RATE

756.80

2 Determine the amount of pension supplement using Module BA.

RESULT

68.90

3 Determine the amount of ES using Module BB.

RESULT

14.10

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

= $756.80 + $68.90 + $14.10
= $839.80

RESULT: MAXIMUM PAYMENT RATE

839.80

5 Determine the ordinary income (1.1.O.30) free area

= $164.00 + ($24.60 × number of eligible children)
= $164.00 + ($24.60 × 1)
= $164.00 + $24.60
= $188.60

188.60

6 Apply the personal income test using Module D:

Recipient's income

Less ordinary income (1.1.O.30) free area

Multiply by 0.4

= ($500.00 − $188.60) × 0.4
= $311.40 × 0.4
= $124.56

RESULT: RECIPIENT INCOME REDUCTION

500.00

188.60

 

 

 

124.56

7 Determine rate payable:
  • Maximum payment rate
  • Subtract total income reduction

RESULT: RATE PAYABLE

839.80

124.56

715.24

Policy reference: SS Guide 3.12.1 Pension Supplement - Qualification & Payability, 5.1.9.10 Pension supplement - current rates, 3.15.2 ES - Qualification & Payability

Last reviewed: 20 September 2019