3.4.7.90 PBS - how to determine a part year bonus period
Determining the period the work test was satisfied for a part bonus period
The delegate should first establish the part bonus period according to the date specified on the member's claim form, then work backwards from this date and establish when the member stopped passing the work test on a pro-rata basis. If the date when they stopped passing the work test is within 13 weeks of the claim, then payment is made for the period when the work test was met. The hours required each week to meet the work test, can be calculated using the following formula:
- 960 divided by 365, multiplied by 7
The EXACT date must be established, as payment is made on the basis of all the days for which the work test is met.
Two-thirds of gainful work performed in Australia
In order to satisfy the work test, two-thirds of the pro-rated gainful work must be undertaken in Australia. The Secretary's discretion to treat work performed overseas as work undertaken in Australia may be exercised (3.4.7.60).
Example: This example uses a 1998 calendar for illustrative purposes only - this particular situation would not be possible before March 2002. Kim accrued 3 full year bonus periods on 6 March 1998. Kim continues to work as follows:
- 10 weeks worked at 24 hours each week - until 15 May 1998, and
- 3 weeks worked at 18.5 hours per week - until 5 June, and
- 2 weeks worked at 10 hours per week - until 19 June, and
- 5 hours each Monday after this.
Working backwards from 9 September when Kim claimed Age and the pension bonus, it is determined that he stopped passing the work test on 9 July 1998. He therefore is paid for 3 years and 125 days, as his claim for bonus was made within 13 weeks of the date the work test was last met. In fact, Kim had until 7 October to claim Age and the bonus, and still receive the final part year period.
The following table demonstrates how Kim's part year bonus period was worked out. It may be easier to print this table rather than view it online.
Week Ending | Weeks Completed | Hours Worked | Hours Required | Pass/Fail |
---|---|---|---|---|
13 Mar | 1 | 24 | 18.4 | Pass |
20 Mar | 2 | 48 | 36.8 | Pass |
27 Mar | 3 | 72 | 55.2 | Pass |
3 Apr | 4 | 96 | 73.6 | Pass |
10 Apr | 5 | 120 | 92.1 | Pass |
17 Apr | 6 | 144 | 110.5 | Pass |
24 Apr | 7 | 168 | 128.9 | Pass |
1 May | 8 | 192 | 147.3 | Pass |
8 May | 9 | 216 | 165.7 | Pass |
15 May | 10 | 240 | 184.1 | Pass |
22 May | 11 | 258.5 | 202.5 | Pass |
29 May | 12 | 277 | 220.9 | Pass |
5 Jun | 13 | 295.5 | 239.3 | Pass |
12 Jun | 14 | 305.5 | 257.8 | Pass |
19 Jun | 15 | 315.5 | 276.2 | Pass |
26 Jun | 16 | 320.5 | 294.6 | Pass |
3 Jul | 17 | 325.5 | 313 | Pass |
10 Jul | 18 | 330.5 | 331.4 | Fail |
17 Jul | 19 | 335.5 | 349.8 | Fail |
24 Jul | 20 | 340.5 | 368.2 | Fail |
31 Jul | 21 | 345.5 | 386.6 | Fail |
7 Aug | 22 | 350.0 | 405 | Fail |
14 Aug | 23 | 355.5 | 423.5 | Fail |
21 Aug | 24 | 360.5 | 441.9 | Fail |
28 Aug | 25 | 365.5 | 460.3 | Fail |
4 Sep | 26 | 370.5 | 478.7 | Fail |
11 Sep | 27 | 375.5 | 497.1 | Fail |
Act reference: SSAct section 92V(2) For the purposes of this section, the pro-rated number of hours applicable …