Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1066

             (1)  The rate of:

                     (b)  bereavement allowance; and

                     (c)  widow B pension;

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)  If:

                     (a)  a person has a relationship with another person, whether of the same sex or a different sex ( other person ); and

                     (b)  the relationship between them is a de facto 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 1:       although there is only 1 maximum basic rate specified in point 1066-B1 of Pension Rate Calculator C, the ordinary income test (Module E) and assets test (Module G) do depend on whether the recipient is a member of a couple or not.

Pension Rate Calculator C

Module A -- Overall rate calculation process

Method of calculating rate

   1066-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:       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:       Section 1210 deals with the application of income and assets test reductions.

Note 3:       although most of the categories of person whose rate is to be worked out using this Rate Calculator will not be members of a couple, some categories are persons who are members of a couple (see subparagraphs 249(1)(a)(ii) and (iii)).

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

Note 6:       Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.

Members of a couple

   1066-A2  If 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 1066-E2, 1066-F2 and 1066-G2).

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

Maximum basic rate

   1066-B1  A person's maximum basic rate is $8,114.60 per year ($312.10 per fortnight).

Note:          The maximum basic rate is adjusted 6 monthly: see section 1198A.

Module BA -- Pension supplement

Pension supplement

1066-BA1  A pension supplement amount is to be added to the person's maximum basic rate.

Residents in Australia etc.

1066-BA2  If the person is residing in Australia and:

                     (a)  is in Australia; or

                     (b)  is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks;

the person's pension supplement amount is:

                     (c)  if an election by the person under subsection 1061VA(1) is in force--the amount worked out under point 1066-BA4; and

                     (d)  otherwise--the amount worked out under point 1066-BA3.

Residents in Australia etc.--no election in force

1066-BA3  The person's pension supplement amount is the amount worked out by:

                     (a)  applying the applicable percentage in the following table to the combined couple rate of pension supplement; and

                     (b)  if:

                              (i)  the person is not partnered; and

                             (ii)  the amount resulting from paragraph (a) is not a multiple of $2.60;

                            rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).

Note:          For combined couple rate of pension supplement , see subsection 20A(1).

Residents in Australia etc.--election in force

1066-BA4  The person's pension supplement amount is the amount worked out as follows:

                     (a)  work out the amount for the person under point 1066-BA3 as if the election were not in force;

                     (b)  from that amount, subtract the person's minimum pension supplement amount.

Persons absent from Australia for more than 13 weeks

1066-BA5   If the person is not covered by point 1066-BA2, the person's pension supplement amount is the person's pension supplement basic amount.

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

Effect of income on maximum payment rate

    1066-E1  This is how to work out the effect of a person's ordinary income on the person's maximum payment rate:

Note 1:       see point 1066-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);

*          the work bonus (section 1073AA);

*          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

    1066-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.

How to calculate a person's ordinary income free area

    1066-E4  A person's ordinary income free area is worked out using Table E. The ordinary income free area is the amount in column 1.

Note:          the basic free area per year is indexed annually in line with CPI increases (see sections 1191 to 1194).

Reduction for ordinary income

    1066-E8  A person's reduction for ordinary income is:

Ordinary income excess

    1066-E9  A person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.

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

Effect of assets on maximum payment rate

   1066-G1  This is how to work out the effect of a person's assets on the person's maximum payment rate:

Note 1:       see point 1066-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 pension loans scheme (sections 1133 to 1144).

Value of assets of members of couples

   1066-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

   1066-G3  A person's assets value limit is worked out using Table G. Work out which family situation applies to the person. The assets value limit is the corresponding amount in column 3.

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:       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

   1066-G4  A person's reduction for assets is:

Assets excess

   1066-G5  A person's assets excess is the value of the person's assets less the person's assets value limit.

   1066-G6  In calculating a person's assets excess under points 1066-G4 and 1066-G5 disregard any part of that excess which is not a multiple of $250.

Module H -- Remote Area Allowance

Remote area allowance

   1066-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 election by the person under subsection 1061VA(1) is in force; 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

   1066-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.

Note:          For member of couple , partnered 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

   1066-H4  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

   1066-H5  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

   1066-H6  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.