220.127.116.11 DRA, eligible for NSA, income cut-off does not apply
This topic shows the rate calculation, using the DRA Rate Calculator, for a DRA claimant who is 33 years old, single with a dependent child, but is not the principal carer. The claimant's projected income is $800 per fortnight and their disaster affected income is $100 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.
Determine the claimant's maximum rate:
- If the claimant is eligible for NSA then their maximum rate is equivalent to the MBR of NSA that would be payable to the claimant if they qualified for NSA and it was payable to them.
- Given the claimant's characteristics, the claimant's MBR of NSA is $604.70.
RESULT: CLAIMANT'S MAXIMUM RATE
Determine the claimant's income cut-off rate using Module A:
- If the claimant is eligible for NSA then the appropriate formula to use is
- income cut-off rate = [maximum rate − (B × Z)] ÷ Y + (A + B)
- Using the current rates, this formula becomes
- [$604.70 − ($150.00 × 0.5 )] ÷ 0.6 + ($104.00 + $150.00)
- = $1,136.83
RESULT: INCOME CUT-OFF RATE
Apply the income cut-off test:
- The claimant's income cut-off rate ($1,136.83) is greater than or equal to their disaster affected income ($100.00).
RESULT: THE INCOME CUT-OFF DOES NOT APPLY
Determine the claimant's rate of payment using Module B:
- The claimant's projected income is $800.00
- The claimant's disaster affected income is $100.00
- The difference between the 2 amounts is
- = $800.00 − $100.00
- = $700.00
- The difference between the 2 amounts is more than the claimant's maximum rate ($604.70). The claimant's rate of payment is therefore their maximum rate.
RESULT: RATE OF PAYMENT
Last reviewed: 20 September 2019