5.5.5.10 DRA, eligible for YA, income cutoff 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 $200 per fortnight.
The following table shows the steps involved in the rate calculation. The rates and income test parameters used applied at 1 January 2020 and are shown in dollars per fortnight.
Step 
Action 
Rate ($) 

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 $304.60.
RESULT: CLAIMANT'S MAXIMUM RATE

304.60 
2 
Determine the claimant's income cutoff rate using Module A:
 If the claimant is eligible for YA then the appropriate formula to use is:
 income cutoff rate = [maximum rate − (D × X)] ÷ W + (C + D)
 Using the current rates, this formula becomes:
 [$304.60 − ($107.00 × 0.5)] ÷ 0.6 + ($143.00 + $107.00)
 = $668.50
RESULT: INCOME CUTOFF RATE

668.50 
3 
Apply the income cutoff test:
 The claimant's income cutoff rate ($668.50) is greater than their disaster affected income ($200.00).
RESULT: THE INCOME CUTOFF 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 2020