The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication intended only as a guide to social security payments. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

5.5.1.30 Single person, 1 child under 13 years

Method used prior to 20 September 2009

This example shows the basic rate calculation using Pension Rate Calculator A. The person has a rate of ordinary income (1.1.O.30) of $4,500.00 a year.

The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 September 2000. Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.

Step Action $
1

Determine the maximum payment rate:

  • Locate the MBR in Module B*
  • Add any PhA

RESULT: MAXIMUM BASIC RATE

10,246.60

145.60

10,392.20

2

Determine the income reduction using Module E:

  • Annual ordinary income
  • Less child free area
  • Less ordinary income free area limit

RESULT: ORDINARY INCOME EXCESS

4,500.00

639.60

2,756.00

1,104.40

3

Determine 40% of the ordinary income excess

RESULT: TOTAL INCOME DEDUCTION

441.76

4

Subtract the total income deduction from the maximum payment rate:

  • Maximum payment rate
  • Less total income deduction

RESULT: INCOME REDUCED RATE

10,392.20

441.76

9,950.44

5

Divide the income reduced rate by 26:

RESULT: FORTNIGHTLY PAYMENT RATE

382.71

*The figures in Module B are modified by the factors in Module BA - Amount of Pension Supplement.

Act reference: SSAct section 1064(1) Rate of age and disability support pensions and CP (people who are not blind)

SS(Admin)Act section 54 Rounding off instalments of social security payments

Last reviewed: