Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1065

             (1)  The rate of:

                     (a)  age pension payable to a person who is permanently blind; and

                     (b)  disability support pension payable to a person who:

                              (i)  is permanently blind; and

                             (ii)  has turned 21;

is to be calculated in accordance with the Rate Calculator at the end of this section.

Note:          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.

             (3)  Where:

                     (a)  a person who is permanently blind 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 rate of pension payable to the person who is permanently blind 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 certain armed services widows

             (4)  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)  an age or disability support pension is payable to the widow;

the rate of pension payable to the widow 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 certain armed services widowers

             (5)  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)  an age or disability support pension is payable to the widower;

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

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

Rate limited for certain armed services widows and widowers

             (6)  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)  an age or disability support pension is payable to the widow or widower;

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 B

Module A -- Overall rate calculation process

Method of calculating rate

    1065‑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).

Note 1:       the person will also be qualified for a pharmaceutical allowance under Part 2.22.

Note 2:       an amount of remote area allowance is to be added under Step 5 only if the person's rate of pension after Step 4 is greater than nil.

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

Maximum basic rate

     1065‑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 of the Table.

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

  1065‑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 1065‑B1.

Amount of pension supplement

  1065‑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 1065‑BA4 to 1065‑BA6.

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

  1065‑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

  1065‑BA4  If a provisional supplement amount is a multiple of $2.60, the amount of the pension supplement is the provisional supplement amount.

  1065‑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.

  1065‑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

     1065‑C1  Subject to points 1065‑C2, 1065‑C3, 1065‑C4 and 1065‑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

     1065‑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

     1065‑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

     1065‑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:          for advance payment period see point 1065‑C5.

Advance payment period

     1065‑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

     1065‑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

     1065‑C7  In points 1065‑C5 and 1065‑C6:

"advance pharmaceutical allowance" includes advance pharmaceutical allowance under the Veterans' Entitlements Act.

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

Amount of pharmaceutical allowance

     1065‑C8  The amount of pharmaceutical allowance is the amount per year worked out using the following Table:

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 -- Remote area allowance

Remote area allowance

     1065‑E1  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

     1065‑E2  The rate of remote area allowance payable to a person is worked out using Table E. 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.

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

Special rule where partner has an FTB or regular care child but is not receiving a pension

     1065‑E4  If:

                     (a)  a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

                     (b)  the person's partner is not receiving a pension or benefit; and

                     (c)  the person's partner has an FTB child or a regular care child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule where partner has an FTB or regular care child but is not receiving additional allowance for the child

     1065‑E5  If:

                     (a)  a person who is a member of a couple is qualified for an amount by way of remote area allowance; and

                     (b)  the person's partner has an FTB child or a regular care child; and

                     (c)  the person's partner is not receiving additional allowance for the child;

the child is taken, for the purposes of this Module, to be an FTB child, or a regular care child, (as the case requires) of the person.

Special rule dealing with the death of an FTB or regular care child

     1065‑E6  If an FTB child, or a regular care child, of a person dies, this Module has effect, for a period of 14 weeks after the death of the child, as if the child had not died.

Note:          This point does not prevent this Module having the effect it would have had if the child would otherwise have ceased to be an FTB child, or a regular care child, during that 14 weeks.