5.5.5.10 DRA, Eligible for YA, Income Cut-off Does Not Apply

Summary

This topic shows the rate calculation, using the DRA Rate Calculator, for a DRA claimant who is single, 19 years old and living at home. The claimant is not a parent. The claimant's projected income is $450 per fortnight and their disaster affected income is $200 per fortnight.

The following table shows the steps involved in the rate calculation. The rates and income test parameters used applied at 1 January 2019 and are shown in dollars per fortnight.

Step Action Rate
1

Determine the claimant's maximum rate:

  • If the claimant is eligible for YA then their maximum rate is equivalent to the MBR of YA that would be payable to the claimant if they qualified for YA and it was payable to them.
  • Given the claimant's characteristics, the claimant's MBR of YA is $299.80.

RESULT: CLAIMANT'S MAXIMUM RATE

$299.80
2

Determine the claimant's income cut-off rate using Module A:

  • If the claimant is eligible for YA then the appropriate formula to use is:
    • income cut-off rate = [maximum rate − (D × X)] ÷ W + (C + D)
  • Using the current rates, this formula becomes:
    • [$299.80 − ($107.00 × 0.5)] ÷ 0.6 + ($143.00 + $107.00)
    • = $660.50

RESULT: INCOME CUT-OFF RATE

$660.50
3

Apply the income cut-off test:

  • The claimant's income cut-off rate ($660.50) is greater than their disaster affected income ($200.00).

RESULT: THE INCOME CUT-OFF DOES NOT APPLY

 
4

Determine the claimant's rate of payment using Module B:

  • The claimant's projected income is $450.00
  • The claimant's disaster affected income is $200.00
  • The difference between the 2 amounts is:
    • = $450.00 − $200.00
    • = $250.00
  • The difference between the 2 amounts is less than the claimant's maximum rate. The claimant's rate of payment is therefore the difference between the 2 amounts ($250.00).

RESULT: RATE OF PAYMENT

$250.00
Last reviewed: 2 January 2019