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.

# 5.5.3.10 Partnered allowance recipient, partner also receives an allowance, income above free areas

## Summary

This topic shows the basic rate calculation when both partners receive an allowance, using Benefit Rate Calculator B.

The couple, both 22 years and over, receive the income listed in the following table.

Partner Employment income (\$) Other continuing income (\$)
1 350.00 60.00
2 170.00 40.00

The following table shows the steps involved in the basic rate calculation. The rates and income test parameters used applied at 20 March 2024 and are shown in dollars per fortnight. Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.

Step Action Partner 1 (\$) Partner 2 (\$)
1 Determine each partner's ordinary income (1.1.O.30):
• Assessable employment income

RESULT: PARTNER'S ORDINARY INCOME

350.00

60.00

410.00

170.00

40.00

210.00

2 Apply the personal income test to these amounts:
1. For income between \$150.00 and \$256.00, multiply by 0.5
• Partner 1:
(\$256.00 − \$150.00) × 0.5
= \$106.00 × 0.5
= \$53.00
• Partner 2:
(\$210.00 − \$150.00) × 0.5
=\$60.00 × 0.5
=\$30.00
2. For income above \$256.00, multiply by 0.6
• Partner 1:
(\$410.00 − \$256.00) × 0.6
= \$154.00 × 0.6
= \$92.40
• Partner 2: nil
• Partner 1: \$53.00 + \$92.40 = \$145.40
• Partner 2: \$30.00 + \$0.00 = \$30.00

RESULT: INCOME REDUCTION

53.00

92.40

145.40

30.00

0.00

30.00

3 Determine the maximum payment rate:
• Locate the maximum rate
• Add the applicable rate of ES

RESULT: MAXIMUM PAYMENT RATE

698.30
7.90

706.20

698.30
7.90

706.20

4 Subtract the income reduction from the maximum payment rate:
• Maximum payment rate
• Less income reduction

RESULT: RATE OF ALLOWANCE

706.20
145.40

560.80

706.20
30.00

676.20

Note: If the recipient is eligible for any other rate add-ons, for example, PhA, APWS, these amounts will be added to the maximum payment rate determined at step 3.

Policy reference: SS Guide 4.2.2 Benefits income test & limits, 3.15.2 ES - qualification & payability

Last reviewed: