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.

5.5.4.10 PPP, partner not a pensioner

Summary

This topic shows the rate calculation for a PPP (1.1.P.50) recipient, whose partner is not a pensioner, using the PPP Rate Calculator. The recipient's income is $162.00 per fortnight and the partner's income is $1,400.00 per fortnight.

The following table shows the steps involved in the rate calculation. The rates and income test parameters are current as at 20 September 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 Rate ($)
1

Determine the MBR, without add-ons, using Module C

RESULT: MAXIMUM BASIC RATE

 

712.30
2

Determine the amount of ES using Module DB

RESULT

 7.90
3
  • Determine the maximum payment rate by adding together the previous 2 amounts
    = $712.30 + $7.90
    = $720.20
 720.20
4 Apply the personal income test using Module D:
  • Recipient's income
  • Less ordinary income (1.1.O.30) free area
  • Multiply by 0.5
    = ($162.00 − $150.00) × 0.5
    = $12.00 × 0.5
    = $6.00

RESULT: RECIPIENT INCOME REDUCTION

 162.00

150.00

 

 

6.00
5 Determine any partner income excess:
  • Partner's income
  • Less partner income free area (1.1.P.80)
    = $1,400.00 − $1,368.00
    = $32.00

RESULT: PARTNER INCOME EXCESS

 1,400.00

1,368.00

 

32.00
6 Determine partner income reduction:
  • Partner income excess, multiplied by 0.6
    = $32.00 × 0.6
    = $19.20

RESULT: PARTNER INCOME REDUCTION

19.20
7
  • Add recipient's and partner's income reductions
    = $6.00 + $19.20
    = $25.20

RESULT: TOTAL INCOME REDUCTION

25.20
8

Determine rate payable:

  • Maximum payment rate
  • Subtract total income reduction
    = $720.20 − $25.20
    = $695.00

RESULT: RATE PAYABLE

 


695.00

Note: For recipients of age pension age, the pension supplement will be added to the maximum payment rate determined at step 3.

Policy reference: SS Guide 3.12.1 Pension supplement - qualification & payability, 5.1.9.10 Pension supplement - current rates, 4.2.2 Benefits income test & limits, 3.15.2 ES - qualification & payability

Last reviewed: