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SOCIAL SECURITY ACT 1991 - SECT 1064

Rate of age, disability support, wife pensions and carer payment and of disability wage supplement (people who are not blind)

             (1)  The rate of:

                     (a)  age pension; and

                     (b)  disability support pension or disability wage supplement of a person who has turned 21; and

                     (c)  wife pension; and

                     (d)  carer payment; and

                      (f)  mature age allowance under Part 2.12A; and

                     (g)  mature age partner allowance;

is, subject to subsection (2), to be calculated in accordance with the Rate Calculator at the end of this section.

Note 1:       Module A of the Rate Calculator establishes the overall rate calculation process and the remaining Modules provide for the calculation of the component amounts used in the overall rate calculation.

Note 2:       the rate obtained by applying the Rate Calculator may be reduced because of:

*          the receipt of compensation (see Part 3.14); or

*          overseas portability (see Part 4.2--Division 3); or

*          the receipt of payments under the New Enterprise Incentive Scheme (see Part 3.15).

             (2)  Subsection (1) does not apply to a person's age or disability support pension or to a person's disability wage supplement if the person is permanently blind.

Note:          the rate for an age pension or disability support pension payable to a person who is permanently blind is dealt with in section 1065.

             (4)  If:

                     (a)  a person has a relationship with a person of the opposite sex ( other person ); and

                     (b)  the relationship between them is a marriage‑like relationship in the Secretary's opinion (formed after the Secretary has had regard to all the circumstances of the relationship, including, in particular, the matters referred to in paragraphs 4(3)(a) to (e) and subsection 4(3A));

                     (c)  either or both of them are under the age of consent applicable in the State or Territory in which they are living;

the person's pension rate is not to exceed the rate at which it would be payable to the person if the other person were the person's partner.

Note:          this provision has the effect of taking into account the ordinary income, maintenance income and assets of the partner in applying the ordinary income test, maintenance income test and assets test respectively.

Rate limited for armed service widow

             (5)  If:

                     (a)  an armed services widow is receiving a pension under Part II or IV of the Veterans' Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

                     (b)  one of the following is payable to the widow:

                              (i)  an age pension;

                             (ii)  a disability support pension;

                            (iii)  a wife pension;

                            (iv)  a carer payment;

                             (v)  a mature age allowance under Part 2.12A;

                            (vi)  disability wage supplement;

the widow's pension rate is not to exceed:

                     (c)  if:

                              (i)  the widow has been receiving the payment referred to in paragraph (a) continuously since before 1 November 1986; and

                             (ii)  immediately before 1 November 1986, the widow was receiving a payment referred to in paragraph (b) at a rate exceeding $3,247.40; and

                            (iii)  the pension referred to in paragraph (b) is of the same type as the one which was payable to the person before 1 November 1986;

                            the rate of pension received by the widow immediately before 1 November 1986; and

                     (d)  in any other case--$3,247.40.

Note:          for armed services widow see subsection 4(1).

Rate limited for armed services widower

             (6)  If:

                     (a)  an armed services widower is receiving a pension under Part II or IV of the Veterans' Entitlements Act at a rate determined under or by reference to subsection 30(1) of that Act; and

                     (b)  one of the following is payable to the widower:

                              (i)  an age pension;

                             (ii)  a disability support pension;

                            (iii)  a carer payment;

                            (iv)  disability wage supplement;

the rate of pension payable to the widower is not to exceed $3,247.40.

Note:          for armed services widower see subsection 4(1).

             (7)  If:

                     (a)  an armed services widow or an armed services widower has received a lump sum, or is receiving a weekly amount, mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act; and

                     (b)  one of the following is payable to the widow or widower:

                              (i)  an age pension;

                             (ii)  a disability support pension;

                            (iii)  a wife pension;

                            (iv)  a carer payment;

                             (v)  a mature age allowance under Part 2.12B;

                            (vi)  disability wage supplement;

the rate of pension payable to the widow or widower is not to exceed $3,247.40.

Note:          For armed services widow and armed services widower see subsection 4(1).

Pension Rate Calculator A

Module A -- Overall rate calculation process

Method of calculating rate

    1064‑A1  The rate of pension is a daily rate. That rate is worked out by dividing the annual rate calculated according to this Rate Calculator by 364 (fortnightly rates are provided for information only).

Method statement

Step 1.     Work out the person's maximum basic rate using MODULE B below.

Step 1A. Work out the amount of pension supplement using Module BA below.

Step 2.     Work out the amount per year (if any) of pharmaceutical allowance using MODULE C below.

Step 3.     Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).

Step 4.     Add up the amounts obtained in Steps 1, 1A, 2 and 3: the result is called the maximum payment rate .

Step 5.     Apply the ordinary income test using MODULE E below to work out the income reduction.

                   Note:             Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 8.     Take the income reduction away from the maximum payment rate: the result is called the income reduced rate .

Step 9.     Apply the assets test using MODULE G below to work out the reduction for assets.

Step 10.   Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate .

Step 11.   Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate .

Step 12.  The rate of pension is the amount obtained by:

               (a)     subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and

               (b)     if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and

               (c)     adding any amount payable by way of remote area allowance (see Module H).

Note 1:       if a person's assets reduced rate is less than the person's income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).

Note 1A:    If a person's rate is, or is to be, an income reduced rate or an assets reduced rate, and at least one of those reduced rates is not a nil rate, the person may be able to take advantage of provisions dealing with the pension loans scheme (sections 1133AA to 1144).

Note 2:       if a person's rate is reduced under Step 11 the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 1210 (maximum basic rate first, then rent assistance).

Note 3:       the rate calculation for a member of a couple is affected by the operation of points 1064‑A2 and 1064‑A3.

Note 4:       in some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.

Note 5:       a person's rate may also be reduced because the person or the person's partner receives compensation (see section 1168) or because the person or the person's partner is receiving a foreign pension (see scheduled international social security agreements at section 1208).

Note 6:       An amount of remote area allowance is to be added under Step 11 only if the person's rate of pension after Step 10 is greater than nil.

Members of a couple

    1064‑A2  Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1064‑E2 and 1064‑G2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).

Module B -- Maximum basic rate
[ see Appendix for CPI adjusted figures]

Maximum basic rate

     1064‑B1  A person's maximum basic rate depends on the person's family situation. Work out which family situation in Table B applies to the person. The maximum basic rate is the corresponding amount in column 3.

 

Table B--Maximum basic rates

Column 1

Item

Column 2

Person's family situation

Column 3

Rate per year

Column 4

Rate per fortnight

1.

Not member of couple

$8,114.60

$312.10

2.

Partnered

$6,767.80

$260.30

3.

Member of illness separated couple

$8,114.60

$312.10

4.

Member of respite care couple

$8,114.60

$312.10

5.

Partnered (partner in gaol)

$8,114.60

$312.10

Note 1:       For member of couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2:       the maximum basic rates are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

Module BA -- Pension supplement

Pension supplement

  1064‑BA1  The amount of a person's pension supplement depends on the person's maximum basic rate. There is a pension supplement amount for each maximum basic rate listed in the table in point 1064‑B1.

Amount of pension supplement

  1064‑BA2  The amount of a person's pension supplement is worked out by:

                     (a)  calculating the amount (the provisional supplement amount ) that is 4% of the person's 1 July 2000 maximum basic rate; and

                     (b)  rounding off the provisional supplement amount in accordance with points 1064‑BA4 to 1064‑BA6.

Note:          The pension supplement amounts are indexed 6 monthly in line with CPI increases (see sections 1191 to 1194).

  1064‑BA3  A person's 1 July 2000 maximum basic rate is the maximum basic rate that would have been the person's maximum basic rate if the rate had not changed since 1 July 2000.

Rounding off of provisional supplement amount

  1064‑BA4  If a provisional supplement amount is a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount.

  1064‑BA5  If a provisional supplement amount is not a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount rounded up or down to the nearest multiple of $2.60.

  1064‑BA6  If a provisional supplement amount is not a multiple of $2.60, but is a multiple of $1.30, the amount of the pension supplement is the provisional supplement amount rounded up to the nearest multiple of $2.60.

Module C -- Pharmaceutical allowance
[ see Appendix for CPI adjusted figures]

Qualification for pharmaceutical allowance

     1064‑C1  Subject to points 1064‑C2, 1064‑C3, 1064‑C4 and 1064‑C6, an additional amount by way of pharmaceutical allowance is to be added to a person's maximum basic rate if the person is an Australian resident.

No pharmaceutical allowance if person receiving pharmaceutical allowance under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act

     1064‑C2  Pharmaceutical allowance is not to be added to a person's maximum basic rate if the person is receiving pharmaceutical allowance under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act.

No pharmaceutical allowance if partner receiving pharmaceutical allowance under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act and not a service pensioner

     1064‑C3  Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

                     (a)  the person is a member of a couple; and

                     (b)  the person's partner is receiving pharmaceutical allowance under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act; and

                     (c)  the person's partner is not receiving a service pension.

Note:          if paragraphs (a), (b) and (c) apply to the person's partner, the partner is receiving pharmaceutical allowance under the VEA at the higher rate (rather than the person and the person's partner each receiving pharmaceutical allowance at the lower rate) or is receiving pharmaceutical allowance under the MRCA.

No pharmaceutical allowance before advance payment period ends

     1064‑C4  Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

                     (a)  the person has received an advance pharmaceutical allowance under:

                              (i)  Part 2.23 of this Act; or

                             (ii)  Division 2 of Part VIIA of the Veterans' Entitlements Act; and

                     (b)  the person's advance payment period has not ended.

Note:          advance payment period see point 1064‑C5.

Advance payment period

     1064‑C5  A person's advance payment period:

                     (a)  starts on the day on which the advance pharmaceutical allowance is paid to the person; and

                     (b)  ends after the number of paydays worked out using the following formula have passed:

where:

"amount of advance" is the amount of the advance paid to the person.

"pharmaceutical allowance rate" is the yearly amount of pharmaceutical allowance which would be added to the person's maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person's maximum basic rate on that day.

No pharmaceutical allowance if annual limit reached

     1064‑C6  Pharmaceutical allowance is not to be added to a person's maximum basic rate if:

                     (a)  the person has received an advance pharmaceutical allowance during the current calendar year; and

                     (b)  the total amount paid to the person for that year by way of:

                              (i)  pharmaceutical allowance; and

                             (ii)  advance pharmaceutical allowance;

equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.

Note 1:       for the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).

Note 2:       the annual limit is affected by:

*          how long during the calendar year the person was on pension or benefit;

*          the rate of pharmaceutical allowance the person attracts at various times depending on the person's family situation.

VEA and MRCA payments taken into account

     1064‑C7  In points 1064‑C5 and 1064‑C6:

"advance pharmaceutical allowance" includes advance pharmaceutical allowance under the Veterans' Entitlements Act; and

"pharmaceutical allowance" includes pharmaceutical allowance under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act.

Amount of pharmaceutical allowance

     1064‑C8  The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

 

Pharmaceutical allowance amount table

Column 1

Item

Column 2

Person's family situation

Column 3

Rate per year

Column 4

rate per fortnight

1.

Not member of couple

$135.20

$5.20

2.

Partnered

$67.60

$2.60

3.

Member of illness separated couple

$135.20

$5.20

4.

Member of respite care couple

$135.20

$5.20

5.

Partnered (partner getting service pension)

$67.60

$2.60

6.

Partnered (partner in gaol)

$135.20

$5.20

Note 1:       For member of couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2:       The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).

Module E -- Ordinary income test
[ see Appendix for CPI adjusted figures]

Effect of income on maximum payment rate

     1064‑E1  This is how to work out the effect of a person's ordinary income on the person's maximum payment rate:

Method statement

Step 1.     Work out the amount of the person's ordinary income on a yearly basis.

                   Note 1:          For the treatment of the ordinary income of members of a couple see point 1064‑E2.

                   Note 2:          Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.

Step 2.     Work out the person's ordinary income free area (see points 1064‑E4 to 1064‑E9 below).

                   Note:             a person's ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person's maximum payment rate.

Step 3.     Work out whether the person's ordinary income exceeds the person's ordinary income free area.

Step 4.     If the person's ordinary income does not exceed the person's ordinary income free area, the person's ordinary income excess is nil.

Step 5.     If the person's ordinary income exceeds the person's ordinary income free area, the person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.

Step 6.     Use the person's ordinary income excess to work out the person's reduction for ordinary income using points 1064‑E10 to 1064‑E12 below.

Note 1:       see point 1064‑A1 (Steps 5 to 8) for the significance of the person's reduction for ordinary income.

Note 2:       the application of the ordinary income test is affected by provisions concerning:

*          the general concept of ordinary income (sections 1072 and 1073);

*          business income (sections 1074 and 1075);

*          deemed income from financial assets (sections 1076 to 1084);

*          income from income streams (sections 1095 to 1099DAA);

*          disposal of income (sections 1106 to 1112);

Ordinary incomes of members of couples

     1064‑E2  If a person is a member of a couple, add the couple's ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person's ordinary income for the purposes of this Module.

Note:          For the purposes of working out a person's disability support pension rate under this Rate Calculator, Module F applies to working out the ordinary incomes of both members of the couple.

Payment of arrears of periodic compensation payments

     1064‑E3  If:

                     (a)  at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving age pension, disability support pension, wife pension, carer pension, mature age allowance under Part 2.12A or mature age partner allowance; and

                     (b)  in relation to that entitlement, the person receives a payment of arrears of periodic compensation;

the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.

Note:          for periodic payments period see section 17.

How to calculate a person's ordinary income free area

     1064‑E4  A person's ordinary income free area is worked out using Table E‑1. Work out which family situation in Table E‑1 applies to the person. The ordinary income free area is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each dependent child of the person.

 

Table E‑1--Ordinary free area limits

Column 1

Item

Column 2

Category of person

Column 3

Basic free area per year

Column 4

Basic free area per fortnight

Column 5

Additional free area per year

Column 6

Additional free area per fortnight

1.

Not member of a couple

$2,080

$80

$639.60

$24.60

2.

Partnered (partner getting neither pension nor benefit)

$1,820

$70

$639.60

$24.60

3.

Partnered (partner getting benefit)

$1,820

$70

$639.60

$24.60

4.

Partnered (partner getting pension)

$1,820

$70

$319.80

$12.30

Note 1:       for member of a couple , partnered (partner getting neither pension nor benefit) , partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 2:       for dependent child see section 5 and point 1064‑E12.

Note 3:       items 2, 3 and 4 of Table E‑1 apply to members of illness separated and respite care couples.

Note 4:       the basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).

No additional free area for certain prescribed student children

     1064‑E5  No additional free area is to be added for a dependent child who:

                     (a)  has turned 18; and

                     (b)  is a prescribed student child;

unless the person whose rate is being calculated, or the person's partner, receives carer allowance for the child.

Note:          this point may not apply to a person who has been receiving additional free area since 1 January 1990: see clause 29 in Schedule 1A.

Reduction of additional free area for dependent children

     1064‑E6  The additional free area for a dependent child of a person to whom item 1, 2 or 3 of Table E‑1 applies is reduced by the annual amount of any payment received by the person or the person's partner for or in respect of that particular child. The payments referred to in point 1064‑E8 do not result in a reduction.

     1064‑E7  The additional free area for a dependent child of a person to whom item 4 of Table E‑1 applies is reduced by 50% of the annual amount of any payment received by the person or the person's partner for or in respect of that particular child. The payments referred to in point 1064‑E8 do not result in a reduction.

     1064‑E8  No reduction is to be made under point 1064‑E6 or 1064‑E7 for a payment:

                     (a)  under this Act; or

                     (b)  of maintenance income; or

                     (c)  under the VEA; or

                     (d)  under an Aboriginal study assistance scheme; or

                     (e)  under the Assistance for Isolated Children Scheme.

Note:          for Aboriginal study assistance scheme see subsection 23(1).

     1064‑E9  Examples of the kinds of payments that result in a reduction under points 1064‑E6 and 1064‑E7 are:

                     (a)  amounts received from State authorities or benevolent societies in respect of the boarding out of the child; or

                     (b)  amounts of superannuation or compensation paid in respect of the child; or

                     (c)  amounts (other than amounts covered by point 1064‑E8 above) paid in respect of the child under educational schemes; or

                     (e)  foster care allowance payments made by a State welfare authority.

ORDINARY INCOME FREE AREA EXAMPLES (using rates to 30.6.91)            

Example 1: 

Facts             Wayne and Mary are members of a couple. They both receive pensions. They have 2 dependent children--Max and Angela. Angela is being fostered by Wayne and Mary and they receive $15 per week from the NSW Government by way of a foster care payment in respect of Angela.

Application    The foster care payment calculated on a yearly basis is
$15 x 52 = $780. As point 1064‑E7 applies to Wayne and Mary (they are covered by item 4 of Table E‑1 in point 1064‑E4), the reduction is at the 50% rate (i.e. $390 per year). The possible additional amount for Angela ($312) is therefore reduced to nil.

                      The amount that Wayne gets for Max is not subject to reduction and is $312 per year. Mary gets $312 for Max as well.

                      Wayne's ordinary income free area is $1,820 + $312 = $2,132. Mary's ordinary income free area is the same.

Example 2: 

Facts             The same facts as in example 1 except that Wayne and Mary receive only $10 a week ($520 a year) foster care payment for Angela.

Application    The amount that each person would be allowed for Angela is:

                      Then each would have an ordinary income free area of
$1,820 + $312 + $52 = $2,184

Pension reduction for ordinary income in excess of ordinary income free area

   1064‑E10  A person's reduction for ordinary income is:

Ordinary income excess

   1064‑E11  A person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.

   1064‑E12  In this Module:

"dependent child" , in relation to a person, includes any child of the person who is under 18 and is receiving a youth allowance.

Module F -- Ordinary income for the purposes of disability support pension
[ see Appendix for CPI adjusted figures]

Application of this Module

     1064‑F1  This Module applies only for the purposes of working out the rate of disability support pension payable to a person. It so applies to that person and, if the person is a member of a couple, to the person's partner.

Lump sum payments arising from termination of employment

     1064‑F2  Subject to points 1064‑F3 to 1064‑F14 (inclusive), if:

                     (a)  a person's employment has been terminated; and

                     (b)  as a result the person is entitled to a lump sum payment from the person's former employer;

the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.

Directed termination payments excluded

     1064‑F3  If:

                     (a)  a person's employment has been terminated; and

                     (b)  as a result the person is entitled to a lump sum payment from the person's former employer; and

                     (c)  the payment, or part of the payment, is a directed termination payment within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997 ;

the payment, or that part, is to be disregarded in working out the ordinary income of the person for the purposes of Module E.

Certain leave payments taken to be ordinary income--employment continuing

     1064‑F4  If:

                     (a)  a person is employed; and

                     (b)  the person is on leave for a period; and

                     (c)  the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;

the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the leave period to which the leave payment entitlement relates.

Certain payments taken to be ordinary income--employment terminated

     1064‑F5  If:

                     (a)  a person's employment has been terminated; and

                     (b)  the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);

the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the period to which the payment relates.

More than one termination payment on a day

     1064‑F6  If:

                     (a)  a person is covered by point 1064‑F5; and

                     (b)  the person receives more than one termination payment on a day;

the income maintenance period is worked out by adding the periods to which the payments relate.

Start of income maintenance period--employment continuing

     1064‑F7  If a person is covered by point 1064‑F4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.

Start of income maintenance period--employment terminated

     1064‑F8  If a person is covered by point 1064‑F5, the income maintenance period starts, subject to point 1064‑F9, on the day on which the person is paid the termination payment.

Commencement of income maintenance period where there is a second termination payment

     1064‑F9  If:

                     (a)  a person who is covered by point 1064‑F5 is subject to an income maintenance period (the first period ); and

                     (b)  the person is paid another termination payment during that period (the second termination payment );

the income maintenance period for the second termination payment starts on the day after the end of the first period.

Leave payments or termination payments in respect of periods longer than a fortnight

   1064‑F10  If:

                     (a)  a person receives a leave payment or termination payment; and

                     (b)  the payment is in respect of a period longer than a fortnight;

the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:

                     (c)  dividing the amount received by the number of days in the period to which the payment relates (the daily rate ); and

                     (d)  multiplying the daily rate by the number of days in the payment fortnight that are also in the period.

   1064‑F11  If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.

Note 1:       For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).

Note 2:       For unavoidable or reasonable expenditure see subsection 19C(4).

Note 3:       If an income maintenance period applies to a person, then, during that period:

(a)           the pension claimed may not be payable to the person; or

(b)           the amount of the pension payable to the person may be reduced.

When a person receives a leave payment or a termination payment

   1064‑F12  For the purposes of points 1064‑F3 to 1064‑F11 (inclusive), a person (the first person ) is taken to receive a leave payment or termination payment if:

                     (a)  the payment is made to another person:

                              (i)  at the direction of the first person or a court; or

                             (ii)  on behalf of the first person; or

                            (iii)  for the benefit of the first person; or

                     (b)  the first person waives or assigns his or her right to receive the payment.

Single payment in respect of different kinds of termination payments

   1064‑F13  If a person who is covered by point 1064‑F5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1064‑F4 to 1064‑F12 (inclusive):

                     (a)  each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and

                     (b)  the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.

Definitions

   1064‑F14  In this Module:

"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave.

"payment fortnight" means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.

"period to which the payment relates" means:

                     (a)  if the payment is a leave payment--the leave period to which the payment relates; or

                     (b)  if the payment is a redundancy payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the redundancy) have received from the employment that was terminated--the period for which the person would have received that amount of ordinary income; or

                     (c)  if the payment is a redundancy payment and paragraph (b) does not apply--the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the redundancy payment if:

                              (i)  the person's employment had continued; and

                             (ii)  the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.

"redundancy payment" does not include a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997 .

"termination payment" means:

                     (a)  a leave payment relating to a person's employment that has been terminated; or

                     (b)  a redundancy payment.

Module G -- Assets test
[ see Appendix for CPI adjusted figures]

Effect of assets on maximum payment rate

     1064‑G1  This is how to work out the effect of a person's assets on the person's maximum payment rate:

Method statement

Step 1.     Work out the value of the person's assets.

                   Note 1:          for the treatment of the assets of members of a couple see point 1064‑G2.

                   Note 2:          for the assets that are to be disregarded in valuing a person's assets see section 1118.

                   Note 3:          for the valuation of an asset that is subject to a charge or encumbrance see section 1121.

Step 2.     Work out the person's assets value limit (see point 1064‑G3 below).

                   Note:             a person's assets value limit is the maximum value of assets the person can have without affecting the person's pension rate.

Step 3.     Work out whether the value of the person's assets exceeds the person's assets value limit.

Step 4.     If the value of the person's assets does not exceed the person's assets value limit, the person's assets excess is nil.

Step 5.     If the value of the person's assets exceeds the person's assets value limit, the person's assets excess is the value of the person's assets less the person's assets value limit.

Step 6.     Use the person's assets excess to work out the person's reduction for assets using points 1064‑G4 to 1064‑G7 below.

Note 1:       see point 1064‑A1 (steps 9 and 10) for the significance of the person's reduction for assets.

Note 2:       the application of the assets test is affected by provisions concerning:

*          disposal of assets (sections 1123 to 1128);

*          retirement villages (sections 1145 to 1157);

*          financial hardship (sections 1129 and 1130);

*          the pensions loans scheme (sections 1133 to 1144).

Value of assets of members of couples

     1064‑G2  For the purposes of this Module:

                     (a)  the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

                              (i)  the value of the person's assets; and

                             (ii)  the value of the person's partner's assets; and

                     (b)  the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

                              (i)  the value of the person's assets of that kind; and

                             (ii)  the value of the person's partner's assets of that kind.

Assets value limit

     1064‑G3  A person's assets value limit is worked out using Table G‑1. Work out the person's family situation and home ownership situation. The assets value limit is the corresponding amount in column 3.

 

Table G‑1--Assets value limit

Column 1

Column 2

Column 3

Assets value limit

Item

Person's family situation

Column 3A

Either person or partner homeowner

column 3B

Neither person nor partner homeowner

1.

Not member of a couple

$110,750

$190,250

2.

Partnered (partner getting neither pension nor benefit)

$78,750

$118,500

3.

Partnered (partner getting pension or benefit)

$78,750

$118,500

Note 1:       for member of a couple , partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.

Note 2:       for homeowner see section 11.

Note 3:       items 2 and 3 apply to members of illness separated and respite care couples.

Note 4:       the assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).

Pension reduction for assets in excess of assets value limit

     1064‑G4  A person's reduction for assets is worked out using Table G‑2. Work out which family situation applies to the person. The reduction for assets is the amount per year worked out using the corresponding calculation in column 3.

 

Table G‑2--Reduction for assets

Column 1

Item

Column 2

Person's family situation

Column 3

Reduction

1.

Not member of a couple

2.

Partnered (partner getting neither pension nor benefit)

3.

Partner (partner getting pension or benefit)

Note 1:       for member of a couple , partnered (partner getting neither pension nor benefit) , partnered (partner getting benefit) and partnered (partner getting pension) see section 4.

Note 4:       for assets excess see point 1064‑G5 below.

Assets excess

     1064‑G5  A person's assets excess is the value of the person's assets less the person's assets value limit.

     1064‑G7  In calculating a person's assets excess under point 1064‑G5 disregard any part of the excess that is not a multiple of $250.

Module H -- Remote area allowance

Remote area allowance

    1064‑H1  An amount by way of remote area allowance is to be added to a person's rate of pension if:

                    (aa)  either:

                              (i)  the person's rate of pension apart from this point is greater than nil; or

                             (ii)  apart from this point the person's rate of pension would be nil merely because an advance pharmaceutical allowance has been paid to the person under:

                                        (A)  Part 2.23 of this Act; or

                                        (B)  Division 2 of Part VIIA of the Veterans' Entitlements Act; and

                     (a)  the person's usual place of residence is situated in the remote area; and

                     (b)  the person is physically present in the remote area.

Note:          for remote area and physically present in the remote area see section 14.

Rate of remote area allowance

    1064‑H2  The rate of remote area allowance payable to a person is worked out using Table H. Work out which family situation in the Table applies to the person. The rate of remote area allowance is the corresponding amount in column 3 plus an additional corresponding amount in column 5 for each FTB child, and each regular care child, of the person.

 

Table H--Remote area allowance

Column 1

Item

Column 2

Person's family situation

Column 3

Basic allowance per year

Column 4

Basic allowance per fortnight

Column 5

Additional allowance per year

Column 6

Additional allowance per fortnight

1.

Not member of couple