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This topic shows the rate calculation for a PPP (1.1.P.52) recipient under age pension age, whose partner is not a pensioner, using the PPP Rate Calculator. The partner receives compensation of $15,600 per annum ($600 per fortnight) and was in receipt of NSA, a CAP. The date of their compensable injury was before the date of grant of the CAP. The PPP recipient also has other income of $100 per fortnight.
The following table shows the steps involved in the basic rate calculation. The rates used applied at 20 March 2010 and are shown in dollars per fortnight. These rates are valid until 19 September 2010. Current rates can be obtained from the A guide to Australian Government payments booklet on the DHS website.
|
Step |
Action |
Rate |
|
1 |
Determine the MBR, using Module C - RESULT: MAXIMUM BASIC RATE |
417.70 |
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2 |
Work out excess periodic compensation Deduct NSA partner's maximum qualified rate, from periodic compensation rate, i.e. $600 - $417.70 = $182.30 excess compensation |
182.30 |
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3 |
Excess to be added to PPP's own ordinary income $100 + $182.30 |
282.30 |
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4 |
Apply the personal income test using Module D: - Recipient's income = $282.30 a) For income between $62.00 and $250, multiply by 0.5 b) For income above $250, multiply by 0.6 = 32.30 x 0.6 - Add a) and b) - RESULT: AFFECTING INCOME |
94.00 19.38
113.38 |
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5 |
Determine rate payable: - Maximum payment rate - Subtract total income reduction - RESULT: RATE PAYABLE |
417.70 113.38 304.32 |
Note: For recipients of age pension age, the pension supplement will be added to the maximum payment rate determined at step 1.
Act reference: SSAct 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, 3.12.1 Pension Supplement - Qualification & Payability, 5.1.9.10 Pension Supplement - Current Rates
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Last reviewed: 19 March 2010
