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SOCIAL SECURITY ACT 1991 - SECT 1065

Rate of age and disability support pension (blind people)

             (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; and

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

                              (i)  is permanently blind; and

                             (ii)  has not turned 21; and

                            (iii)  has one or more dependent children;

is 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:       For dependent child see section 5.

             (3)  Where:

                     (a)  a person who is permanently blind 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 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 is receiving the weekly amount mentioned in paragraph 234(1)(b) of the MRCA (including a reduced weekly amount because of a choice under section 236 of the MRCA) or has received a lump sum mentioned in subsection 236(5) of the MRCA; 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).

Method statement

Step 1.   Work out what would be the person's rate of pension if Pension Rate Calculator A applied to the person: the result is called the notional income/assets tested rate .

Step 2.   Work out the person's maximum basic rate using MODULE B below.

Step 2A. Work out the amount of pension supplement using Module BA below.

Step 3.   Work out the energy supplement (if any) using Module C below.

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

Step 5.   Work out the non-income/assets tested rate by:

               (a)     subtracting from the maximum 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 E).

Step 6.   Compare the notional income/assets tested rate and the non-income/assets tested rate: whichever is the greater is the person's rate of pension .

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

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.

 

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 adjusted 6 monthly: see sections 1191 to 1198A.

Module BA -- Pension supplement

Pension supplement

1065-BA1  A pension supplement amount is to be added to the person's maximum basic rate.

Residents in Australia etc.

1065-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 6 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 1065-BA4; and

                     (d)  otherwise--the amount worked out under point 1065-BA3.

Residents in Australia etc.--no election in force

1065-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).

 

Item

Person's family situation

Use this %

1

Not member of couple

66.33%

2

Partnered

50%

3

Member of illness separated couple

66.33%

4

Member of respite care couple

66.33%

5

Partnered (partner in gaol)

66.33%

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

Residents in Australia etc.--election in force

1065-BA4  The person's pension supplement amount is the amount worked out as follows:

                     (a)  work out the amount for the person under point 1065-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 6 weeks

1065-BA5   If the person is not covered by point 1065-BA2, the person's pension supplement amount is the person's pension supplement basic amount.

Module C -- Energy supplement

   1065-C1  An energy supplement is to be added to the person's maximum basic rate 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 6 weeks.

Note:          Section 918 may affect the addition of the energy supplement.

   1065-C2  However, this Module does not apply if quarterly energy supplement is payable to the person.

   1065-C3  The person's energy supplement is the amount worked out using the following table:

 

Energy supplement

Item

Person's family situation

Amount of energy supplement

1

Not a member of a couple

$366.60

2

Partnered

$275.60

3

Member of an illness separated couple

$366.60

4

Member of a respite care couple

$366.60

5

Partnered (partner in gaol)

$366.60

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 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

    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.

 

Table E--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

$473.20

$18.20

$189.80

$7.30

2.

Partnered

$405.60

$15.60

$189.80

$7.30

3.

Member of illness separated couple

$473.20

$18.20

$189.80

$7.30

4.

Member of respite care couple

$473.20

$18.20

$189.80

$7.30

5.

Partnered (partner in gaol)

$473.20

$18.20

$189.80

$7.30

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.

   



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