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Barry receives NSA and his partner Ann receives PP. Barry has $5,000 in a bank account and a further $20,000 in a joint account, making his share $10,000. Ann has $2,500 in another account, shares valued at $30,000 and her share of the joint account ($10,000). Deemed income is calculated separately for Barry and Ann because separate allowance income tests apply.
The following table shows the deemed income calculation.
|
Step |
Action |
Barry $ |
Ann $ |
|
1 |
Determine the value of the recipient's total financial assets. - Add financial investments & deprived assets. - RESULT: value of total financial assets. |
15,000 |
42,500 |
|
2 |
Is the value of total financial assets less than the threshold? - If YES, multiply the value by 2.5% to obtain the total deemed income. - If NO, multiply the threshold by 2.5%. - RESULT FOR BARRY: total deemed income = ($15,000 x 2.5%). - RESULT FOR ANN: below threshold amount = ($37,800 x 2.5%). |
375
|
945 |
|
3 |
Determine the unused value amount. - Value of total financial assets - Less threshold - RESULT FOR ANN: unused value amount. |
N/A |
42,500 37,800 4,700 |
|
4 |
Multiply the unused value amount by 4%. - RESULT FOR ANN: above threshold amount. |
N/A |
188 |
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5 |
Determine the total deemed income. - Add the below threshold amount and the above threshold amount = $375 for Barry, $945 + $188 for Ann. - RESULT FOR ANN: total deemed income. |
375 |
1,133 |
The total deemed income for each of them is added to other income they each may have from other sources. The total income for each of them is then used to calculate how much they can be paid under the allowance income test.
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Last reviewed: 20 March 2013
