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This example shows the basic rate calculation using Pension Rate Calculator A. A member of a pensioner couple (section 9(1)-'pensioner couple') receives compensation of $15,600 ($300 per week), and was in receipt of a CAP DSP and the date of their compensable injury was before the date of grant of the CAP. Their partner has other income of $5,200 ($100 per week).
The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 September 2005. Current rates can be obtained from the Payment rates and information page on the Centrelink website.
|
Step |
Action |
Compensation Recipient $ |
Partner $ |
|
1 |
Determine the maximum qualified rate of compensation recipient less PhA
and for partner
Note: The figures in Module B are modified by the factors in Module BA - Amount of Pension Supplement. |
10,613.20
|
10,613.20 75.40 10,688.60 |
|
2 |
Deduct compensation recipient's maximum qualified rate, from period compensation rate |
15,600.00 |
|
|
3 |
Excess to be added to partner's share of joint ordinary income |
4,986.80 | |
|
4 |
Partner's share of joint ordinary income i.e. $5,200 x 0.5 |
2,600.00 | |
|
5 |
TOTAL |
7,586.80 | |
|
6 |
Determine the income reduction using Module E:
|
7,586.80 2,860.00 4,726.80 | |
|
7 |
Determine 40% of the ordinary income excess
|
1,890.72 | |
|
8 |
Subtract the total income deduction from the maximum payment rate:
|
10,688.60 1,890.72 8,797.88 | |
|
9 |
Divide the income reduced rate by 26:
|
Nil |
338.38 |
Act reference: SSAct section 9(1)-'pensioner couple', section 17 Compensation recovery definitions, Part 3.14 Compensation recovery
Policy reference: SS Guide 4.13.3.20 Effect of Periodic Compensation on a Compensation Recipient, 4.13.3.30 Effect of Periodic Compensation on the Partner of a Compensation Recipient, 1.1.C.250 Compensation affected payment
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Last reviewed: 4 January 2010
