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 is intended only as a guide to relevant legislation/policy. 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.

5.5.1.80 Partnered pensioner couple - compensation effect on partner

Method used prior to 20 September 2009

This example shows the basic rate calculation using Pension Rate Calculator A. A member of a pensioner couple receives compensation of $15,600 ($300 per week), and was in receipt of a CAP DSP and the date of their compensable injury was before the date of grant of the CAP. Their partner has other income of $5,200 ($100 per week).

The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 September 2005. Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.

Step Action Compensation recipient $ Partner $
1

Determine the maximum qualified rate of compensation recipient less PhA

and for partner:

  • Locate the MBR in Module B
  • Add any PhA

RESULT: MAXIMUM BASIC RATE

Note: The figures in Module B are modified by the factors in Module BA-Pension supplement.

10,613.20

10,613.20

75.40

10,688.60
2

Deduct compensation recipient's maximum qualified rate, from period compensation rate

15,600.00

  
3

Excess to be added to partner's share of joint ordinary income

  

4,986.80
4

Partner's share of joint ordinary income, i.e. $5,200 × 0.5

  

2,600.00
5

TOTAL

  

7,586.80
6

Determine the income reduction using Module E:

  • Annual ordinary income
  • Less ordinary income free area limit

RESULT: ORDINARY INCOME EXCESS

  

7,586.80

2,860.00

4,726.80
7

Determine 40% of the ordinary income excess

RESULT: TOTAL INCOME DEDUCTION

   1,890.72
8

Subtract the total income deduction from the maximum payment rate:

  • Maximum payment rate
  • Less total income deduction

RESULT: INCOME REDUCED RATE

  

10,688.60

1,890.72

8,797.88
9

Divide the income reduced rate by 26

RESULT: FORTNIGHTLY PAYMENT RATE PER RECIPIENT

 Nil 338.38

Act reference: SSAct section 9(1)-'pensioner couple', section 17 Compensation recovery definitions, Part 3.14 Compensation recovery

Policy reference: SS Guide 1.1.C.250 Compensation affected payment, 4.13.3.20 Effect of Periodic Compensation on a Compensation Recipient, 4.13.3.30 Effect of periodic compensation on the partner of a compensation recipient

Last reviewed: