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.

5.5.4.50 PPS, under age pension age, 2 children

Summary

This topic shows the rate calculation for a PPS (1.1.P.51) recipient using the PPS rate calculator. The recipient has 2 dependent children under the age of 8 and has income of $350 per fortnight. The recipient is under age pension age.

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 B.

RESULT: MAXIMUM BASIC RATE

889.20

2

Determine the amount of pension supplement using Module BA.

RESULT

26.20

3

Determine the amount of PhA using Module E

RESULT

6.20

4

Determine the amount of ES using Module BB

RESULT

12.00

5

Determine the maximum payment rate by adding together the previous 4 amounts.

  • = $889.20 + $26.20 + $6.20 + $12.00
    = $933.60

RESULT: MAXIMUM PAYMENT RATE

933.60

6

Determine the ordinary income (1.1.O.30) free area

  • = $202.60 + ($24.60 × number of eligible children)
    = $202.60 + ($24.60 × 2)
    = $202.60 + $49.20
    = $251.80

251.80

7

Apply the personal income test using Module D:

  • Recipient's income
  • Less ordinary income free area
    = $350.00 − $251.80
    = $98.20
  • Multiply by 0.4
    = $98.20 × 0.4
    = $39.28

RESULT: RECIPIENT INCOME REDUCTION

98.20

 

 

39.28

8

Determine rate payable:

  • Maximum payment rate
  • Subtract recipient income reduction

RESULT: RATE PAYABLE

 

933.60

39.28

894.32

Policy reference: SS Guide 3.12.1 Pension supplement - qualification & payability, 5.1.9.10 Pension supplement - current rates, 3.15.2 ES - qualification & payability

Last reviewed: