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.

5.5.4.30 PPP, partner a pensioner, recipient qualifies for PhA

Summary

This topic shows the rate calculation for a PPP (1.1.P.50) recipient, whose partner is a pensioner, using the PPP Rate Calculator. The recipient qualifies for PhA of $3.10 per fortnight. The recipient has income of $223.00 per fortnight. The partner has income of $1,734.00 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 2022 and are shown in dollars per fortnight (pf). Current rates can be found in the A guide to Australian Government payments booklet on the Services Australia website.

Step Action Rate ($ pf)
1

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

RESULT: MAXIMUM BASIC RATE

608.70

2

Determine the amount of PhA using Module E

RESULT

3.10
3

Determine the amount of ES using Module DB

RESULT

7.90
4

Determine the maximum payment rate by adding together the previous 3 amounts

  • = $608.70 + $3.10 + $7.90
    = $619.70

RESULT: MAXIMUM PAYMENT RATE

 

 

619.70

5

Determine the amount of income for the personal income test.

  • personal income is half the couple's combined income
    = ($223.00 + $1,734.00)/2 = $978.50

 

978.50

6

Determine the amount of income reduction:

  1. For income between $150.00 and $256.00, multiply by 0.5
    = ($256.00 − $150.00) × 0.5
    = $106.00 × 0.5
    = $53.00
  2. For income above $256.00, multiply by 0.6
    = ($978.50 − $256.00) × 0.6
    = $722.50 × 0.6
    = $433.50
  3. Add a and b
    = $53.00 + $433.50
    = $486.50

RESULT: INCOME REDUCTION

 

 

53.00

 

 

433.50

 

 

 

486.50

7

Subtract income reduction from maximum payment rate:

  • Maximum rate of payment
  • Less income reduction

RESULT: TOTAL RATE PAYABLE

619.70

486.50

133.20

8

If the TOTAL RATE PAYABLE in Step 7 is greater than $0 but less than the maximum rate of PhA ($3.10), then only the PhA rate of $3.10 is payable.

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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

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