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.

# 5.5.4.50 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 14 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 1 July 2024 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

959.40

2

Determine the amount of pension supplement using Module BA.

RESULT

28.30

3

Determine the amount of PhA using Module E

RESULT

6.80

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.

= \$959.40 + \$28.30 + \$6.80 + \$12.00
= \$1,006.50

RESULT: MAXIMUM PAYMENT RATE

1,006.50

6

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

= \$220.60 (income free area for a single parent with one eligible child) + (\$24.60 × number of additional eligible children)
= \$220.60 + (\$24.60 × 1)
= \$220.60 + \$24.60
= \$245.20

245.20

7

Apply the personal income test using Module D:

• Recipient's income
• Less ordinary income free area
= \$350.00 − \$245.20
= \$104.80

104.80

8

Apply the relevant taper rate:

• Multiply by 0.4
= \$104.80 × 0.4
= \$41.92

RESULT: RECIPIENT RATE REDUCTION

41.92

9

Determine rate payable:

• Maximum payment rate
• Subtract recipient rate reduction
= \$1,006.50 − \$41.92
= \$964.58

RESULT: RATE PAYABLE

964.58

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

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