5.5.1 Samples of Pension Rate Calculations

Introduction

This section contains examples of the method used prior to 20 September 2009 for pension rate calculations under the income test and one example that also deals with RA. Rates were calculated according to the legislative provisions contained in the SSAct.

From 20 September 2009, the rate at which extra income above the threshold affects the pension will change from 40 cents to 50 cents in the dollar for singles. For couples, the rate will change from 20 cents to 25 cents in the dollar for each member of a couple. These changes are part of the Budget 2009-10 (12 May 2009) the Secure and Sustainable Pension Reform Package.

Information about changes to the pension income test in the Budget 2009-10 can be found in 4.2.1.10.

PPS recipients retain the 40 cent withdrawal rate and the additional free area for dependent children. Samples of rate calculations for PPS can be found in 5.5.4.

Rate calculations are contained in SSAct Chapter 3. The following table shows which part of the SSAct contains the rate calculation information for particular recipients.

Act reference: SSAct section 1064(1) Rate of Age, DSP, WP and CP (people who are not blind), section 1065 Rate of Age and DSP (blind people), section 1066 BVA and WidB, section 1068A Rate of pension PP (single)

In this section

This section contains the following examples:

5.5.1.10 Single Age Pensioner, No Children

5.5.1.20 Pensioner Couple, No Children

5.5.1.30 Single Person, 1 Child under 13 Years

5.5.1.40 Pensioner Couple, 3 Children

5.5.1.50 Partnered Pensioner, 1 Child, Partner Not a Recipient

5.5.1.60 Couple, 1 Child under 13 Years, Separated Due to Ill Health

5.5.1.70 Single Person, No Children, Receiving RA

5.5.1.80 Partnered Pensioner Couple - Compensation Effect on Partner

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Last reviewed: 19 March 2010