4.3.1.30 Rate of income - couples, blind pensioners & children

Summary

This topic provides information on the assessment of rate of income for:

• ordinary income
• couples
• blind pensioners, and
• children.

Rate of ordinary income

The rate of ordinary income (1.1.O.30) is a required input to the rate calculation process for social security payments (except for blind people - see below). This rate of ordinary income is the sum of the rates of the components of ordinary income. Employment income (1.1.E.102) is a component of ordinary income, as are financial investment income, deemed income and various other types of income. The method of determining a rate of employment income depends on whether the person is under age pension age or not.

Couples

Membership of a couple (1.1.M.120) affects treatment of income. It is important to verify a person's status as a member of a couple before determining their rate.

Blind pensioners

Rates of Age, DSP and Disability Wage Supplement paid to blind people are not subject to the income or assets test unless the person claims RA. If a blind person wishes to test their eligibility for RA their rate must be calculated in accordance with the income and assets tests. The amount payable under the normal income and assets tests and RA is compared to the means test free rate and the higher amount is paid.

Rates for Age, DSP and Disability Wage Supplement paid to blind people are affected by the payment of compensation.

A pension paid to the partner (1.1.P.85) of a blind person, who is not also permanently blind, is subject to the income and assets tests.

Children

The effect of dependent children (1.1.D.70) on their parent's pension rate/s is covered in another topic.