Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1061ED

Application

  (1)   The amount of an advance payment of pension PP (single) is worked out according to this section.

Amount of advance

  (2)   The amount of the advance payment is the smallest of the following amounts:

  (a)   the amount of advance payment sought;

  (b)   the maximum amount of advance payment payable to the person as worked out under subsection   (3);

  (c)   $500.

Note:   The amount of the advance payment will be at least $250 (see paragraph   1061A(4)(a)).

Formula for maximum amount of advance under paragraph   (2)(b)

  (3)   For the purposes of paragraph   (2)(b), the maximum amount of advance payment payable to the person is the amount worked out using the following formula:

where:

"annual payment rate" means:

  (a)   if the person was receiving pension PP (single) on the last payday before the application for the advance payment was lodged--the rate at which the pension was payable under the Pension PP (Single) Rate Calculator to the person on that payday, disregarding any amount payable by way of remote area allowance; or

  (b)   if the person was receiving benefit PP (partnered) on the last payday before the application for the advance payment was lodged--the rate at which pension PP (single) is payable to the person under the Pension PP (Single) Rate Calculator on the person's first pension PP (single) payday after the application for the advance payment was lodged, disregarding any amount payable by way of remote area allowance.

Rounding

  (4)   Amounts worked out under subsection   (3) must be rounded to the nearest cent (rounding 0.5 cents upwards).

Example:  

Facts:   Geoff has, at all times during the past 5 months, been receiving pension PP (single). His annual payment rate is $4,680. He applies for an advance payment of $290.

Application:   The maximum amount of advance payment payable to Geoff is worked out under subsection   (3) as follows: 6% ï‚´ $4680 = $280.80. This is the smallest of the 3 amounts referred to in subsection   (2). Geoff can therefore be paid an advance payment of $280.80.