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.

5.5.4.60 PPS, over age pension age, 1 child

Summary

This topic shows the rate calculation for a PPS (1.1.P.51) recipient using the PPS Rate Calculator. The recipient has one dependent child under the age of 14 and has income of $500 per fortnight. The recipient has reached age pension age and so receives the higher rate of pension supplement (3.12.1).

The following table shows the steps involved in the rate calculation. The rates used applied at 20 September 2023 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

942.40

2 Determine the amount of pension supplement using Module BA.

RESULT

80.10

3 Determine the amount of ES using Module BB.

RESULT

14.10

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

= $942.40 + $80.10 + $14.10
= $1,036.60

RESULT: MAXIMUM PAYMENT RATE

1,036.60

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

= $214.60 + ($24.60 × number of eligible children)
= $214.60 + ($24.60 × 1)
= $214.60 + $24.60
= $239.20

239.20

6 Apply the personal income test using Module D:

Recipient's income

Less ordinary income free area

Multiply by 0.4

= ($500.00 − $239.20) × 0.4
= $260.80 × 0.4
= $104.32

RESULT: RECIPIENT INCOME REDUCTION

500.00

239.20

 

 

 

104.32

7 Determine rate payable:

  • Maximum payment rate
  • Subtract total income reduction

RESULT: RATE PAYABLE

1,036.60

104.32

932.28

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: