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This example shows the basic rate calculation using Pension Rate Calculator A. The person has a rate of ordinary income (1.1.O.30) of $6,500.00 a year and pays annual rent (section 13(1)-'rent') of $3,900.
The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 September 2000. Current rates can be obtained from the Payment rates and information page on the Centrelink website.
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Step |
Action |
$ |
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1 |
Determine the maximum payment rate: |
10,246.60 1,462.50 145.60 11,854.70 |
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2 |
Determine the income reduction using Module E:
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6,500.00 2,756.00 3,744.00 |
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3 |
Determine 40% of the ordinary income excess
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1,497.60 |
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4 |
Subtract the total income deduction from the maximum payment rate:
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11,854.70 1,497.60 10,357.10 |
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5 |
Divide the income reduced rate by 26:
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398.35 |
*The figures in Module B are modified by the factors in Module BA - Amount of Pension Supplement.
Act reference: SSAct section 13(1)-'rent', section 1064(1) Rate of Age, DSP, WP and CP (people who are not blind)
SS(Admin)Act section 54 Rounding off instalments of social security payments
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Last reviewed: 21 September 2009
