Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1061ED

Application

             (1)  The amount of an advance payment of a social security pension is calculated according to this section.

Amount of advance

             (2)  Subject to section 1061EH, the amount of the advance payment is the smallest of the following amounts:

                     (a)  the amount of advance payment sought;

                     (b)  the maximum amount of advance payment payable to the person as worked out under subsection (3);

                     (c)  $500.

Formula for maximum amount of advance under paragraph (2)(b)

             (3)  For the purposes of paragraph (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:

where:

"annual payment rate" is:

                     (a)  if the person was receiving a social security pension on the last payday before the application for the advance payment was made--the rate at which the pension was payable under the relevant Pension Rate Calculator or Pension PP (Single) Rate Calculator (as the case requires) to the person on that payday, excluding any amount payable by way of remote area allowance; or

                     (b)  if the person was receiving a benefit PP (partnered) on the last payday before the application for the advance payment was made--the rate at which pension PP (single) is payable to the person under the Pension PP (Single) Rate Calculator on the person's first pension PP (single) payday after the application for the advance payment was made, excluding any amount payable by way of remote area allowance.

Rounding

             (4)  Amounts worked out under subsection (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Example:   

Facts:               Geoff has, at all times during the past 5 months, been receiving age pension. His annual payment rate is $4,680. He applies for an advance payment of $290.

Application:     The maximum amount of advance payment payable to Geoff is worked out under subsection (3) as follows: 6% x $4680 = $280.80. This is the smallest of the 3 amounts referred to in subsection (2). Geoff can therefore be paid an advance payment of $280.80.