Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The rate of disability support pension of a person who has not turned 21 is, subject to subsection (2), to be calculated in accordance with the Rate Calculator at the end of this section.
Note: 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.
(2) Subsection (1) does not apply if:
(a) the person is permanently blind; or
(b) the person has one or more dependent children.
Note 1: The rate for a disability support pension payable to a person under 21 who is permanently blind is dealt with in section 1066B.
Note 2: For dependent child see section 5.
Note 3: The rate for a disability support pension payable to a person under 21 who has one or more dependent children is dealt with in section 1064 or 1065.
(3) A person's disability support pension rate is not to exceed the rate at which a disability support pension would be payable to that person if the person's rate were calculated using Pension Rate Calculator A at the end of section 1064.
(5) If:
(a) a person 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 person's disability support pension rate 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.
Method of calculating rate
1066A - 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 the person's maximum basic rate using MODULE B below.
Step 1A. Work out the energy supplement (if any) using Module BA below.
Step 2. Work out the amount per year for youth disability, Supplement using MODULE C below.
Step 3. Work out the amount per year (if any) of pharmaceutical allowance using MODULE D below.
Step 4. Work out the amount per year (if any) for rent assistance in accordance with paragraph 1070A(b).
Step 5. Add up the amounts obtained in Steps 1, 1A, 2, 3 and 4: the result is called the maximum payment rate .
Note: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.
Step 6. Apply the ordinary income test using MODULE F below to work out the income reduction.
Step 9. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate .
Step 10. Apply the assets test using MODULE H below to work out the reduction for assets.
Step 11. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate .
Step 12. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional annual payment rate .
Step 13. The rate of pension is the amount obtained by:
(a) subtracting from the provisional annual 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 I).
Note 1: If a person's assets reduced rate is less than the person's income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).
Note 2: Section 1210 deals with the application of income and assets test reductions.
Note 3: The rate calculation for a member of a couple is affected by the operation of point 1066A - A2.
Members of a couple
1066A - A2 Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1066A - F2, and 1066A - H2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).
1066A - B1 A person's maximum basic rate is to be worked out using Table B. Work out the family situation. The maximum basic rate is the corresponding amount in column 3.
Table B--Maximum basic rates | |||
Column 1 | Column 2 | Column 3 | Column 4 |
1 | Not a member of a couple and person: (a) is under 18 years of age; and (b) is not independent; and (c) is not living away from the person's parental home because of a medical condition of the person | $9,695.40 | $372.90 |
2 | Not a member of a couple and person: (a) is under 18 years of age; and (b) either: (i) is independent; or (ii) is living away from the person's parental home because of a medical condition of the person | $15,672.80 | $602.80 |
3 | Not a member of a couple and person: (a) has reached 18 years of age; and (b) is living at home of parent or parents; and (c) is not independent | $11,164.40 | $429.40 |
4 | Not a member of a couple and person: (a) has reached 18 years of age; and (b) either: (i) is not living at a home of parent or parents; or (ii) is living at a home of parent or parents, but is independent | $15,672.80 | $602.80 |
5 | $15,672.80 | $602.80 | |
6 | Member of illness separated couple, member of respite care couple or partnered (partner in gaol) | $15,672.80 | $602.80 |
Note 1: For member of a couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.
Note 2: For independent see section 5.
Note 3: For living away from the person's parental home see subsection 23(4D).
Note 4: The rates in column 3 are adjusted annually in line with CPI changes (see section 1198B).
1066A - BA1 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.
However, this Module does not apply if quarterly energy supplement is payable to the person.
Note: Section 918 may affect the addition of the energy supplement.
1066A - BA2 The person's energy supplement is the amount worked out using the following table:
Energy supplement | ||
Item | Person's family situation for maximum basic rate | Amount of energy supplement |
1 | If the person's maximum basic rate is worked out under item 1 of the table in point 1066A - B1 | $153.40 |
2 | If the person's maximum basic rate is worked out under item 2, 4, 5 or 6 of the table in point 1066A - B1 | $236.60 |
3 | If the person's maximum basic rate is worked out under item 3 of the table in point 1066A - B1 | $171.60 |
Youth disability supplement
1066A - C1 An amount by way of youth disability supplement is to be added to a person's rate. The rate of youth disability supplement is $1,557.40 per year ($59.90 per fortnight).
Note: The rate of youth disability supplement is adjusted annually in line with CPI increases (see section 1198C).
Qualification for pharmaceutical allowance
1066A - D1 Subject to points 1066A - D2, 1066A - D3,1066A - D4 and 1066A - D6, an additional amount by way of pharmaceutical allowance is to be added to a person's maximum basic rate if the person is an Australian resident.
No pharmaceutical allowance if person receiving certain supplements under other Acts
1066A - D2 Pharmaceutical allowance is not to be added to a person's maximum basic rate if the person is receiving:
(a) veterans supplement under section 118A of the Veterans' Entitlements Act; or
(b) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or
(c) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 ; or
(d) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019 .
No pharmaceutical allowance if partner receiving certain supplements under other Acts
1066A - D3 Pharmaceutical allowance is not to be added to a person's maximum basic rate if:
(a) the person is a member of a couple; and
(b) the person's partner is receiving:
(i) veterans supplement under section 118A of the Veterans' Entitlements Act; or
(ii) MRCA supplement under section 300 of the Military Rehabilitation and Compensation Act; or
(iii) pharmaceutical supplement under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 ; or
(iv) pharmaceutical supplement under Part 4 of the Treatment Benefits (Special Access) Act 2019 ; and
(c) the person's partner is not receiving a service pension or a veteran payment.
No pharmaceutical allowance before advance payment period ends
1066A - D4 Pharmaceutical allowance is not to be added to a person's maximum basic rate if:
(a) the person has received an advance pharmaceutical allowance under Part 2.23 of this Act; and
(b) the person's advance payment period has not ended.
Note: For advance payment period see point 1066A - D5.
1066A - D5 A person's advance payment period:
(a) starts on the day on which the advance pharmaceutical allowance is paid to the person; and
(b) ends after the number of paydays worked out using the following formula have passed:
where:
"amount of advance" is the amount of the advance paid to the person.
"pharmaceutical allowance rate" is the yearly amount of pharmaceutical allowance which would be added to the person's maximum basic rate in working out the instalment for the day on which the advance is paid if pharmaceutical allowance were to be added to the person's maximum basic rate on that day.
No pharmaceutical allowance if annual limit reached
1066A - D6 Pharmaceutical allowance is not to be added to a person's maximum basic rate if:
(a) the person has received an advance pharmaceutical allowance during the current calendar year; and
(b) the total amount paid to the person for that year by way of:
(i) pharmaceutical allowance; and
(ii) advance pharmaceutical allowance;
equals the total amount of pharmaceutical allowance that would have been paid to the person during that year if the person had not received any advance pharmaceutical allowance.
Note 1: For the amount paid to a person by way of pharmaceutical allowance see subsections 19A(2) to (6).
Note 2: The annual limit is affected by:
Amount of pharmaceutical allowance
1066A - D8 The amount of pharmaceutical allowance is the amount per year worked out using the following Table:
Pharmaceutical allowance amount table | |||
Column 1 Item | Column 2 Person's family situation | Column 3 Amount per year | Column 4 Amount per fortnight |
1. | Not member of couple | $135.20 | $5.20 |
2. | $67.60 | $2.60 | |
3. | Member of illness separated couple | $135.20 | $5.20 |
4. | Member of respite care couple | $135.20 | $5.20 |
5. | Partnered (partner getting service pension) | $67.60 | $2.60 |
6. | Partnered (partner in gaol) | $135.20 | $5.20 |
Note 1: For member of couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.
Note 2: The amounts in column 3 are adjusted annually in line with CPI increases (see section 1206A).
Effect of income on maximum payment rate
1066A - F1 This is how to work out the effect of a person's ordinary income on the person's maximum payment rate:
Method statement
Step 1. Work out the amount of the person's ordinary income on a yearly basis.
Note 1: For the treatment of the ordinary income of members of a couple see point 1066A - F2.
Note 2: Module G contains provisions that may apply to working out, under this Rate Calculator, the ordinary income of a person, and the ordinary income of a partner of the person.
Step 2. Work out the person's ordinary income free area (see point 1066A - F3 below).
Note: A person's ordinary income free area is the amount of ordinary income that the person can have without any deduction being made from the person's maximum payment.
Step 3. Work out whether the person's ordinary income exceeds the person's ordinary income free area.
Step 4. If the person's ordinary income does not exceed the person's ordinary income free area, the person's ordinary income excess is nil.
Step 5. If the person's ordinary income exceeds the person's ordinary income free area, the person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.
Step 6. Use the person's ordinary income excess to work out the person's reduction for ordinary income using points 1066A - F9 to 1066A - F11 below.
Note 1: See point 1066A - A1 (Steps 6 to 9) for the significance of the person's reduction for ordinary income.
Note 2: The application of the ordinary income test is affected by provisions concerning:
Ordinary incomes of members of couples
1066A - F2 If a person is a member of a couple, add the couple's ordinary incomes (on a yearly basis) and divide by 2 to work out the amount of the person's ordinary income for the purposes of this Module.
Payment of arrears of periodic compensation payments
1066A - F2A If:
(a) at the time of an event that gives rise to an entitlement of a person to compensation, the person is receiving disability support pension; and
(b) in relation to that entitlement, the person receives a payment of arrears of periodic compensation;
the person is taken to receive on each day in the periodic payments period an amount calculated by dividing the amount received by the number of days in the periodic payments period.
Note: For periodic payments period see section 17.
How to calculate a person's ordinary income free area
1066A - F3 A person's ordinary income free area is worked out using Table F - 1. Work out which family situation in Table F - 1 applies to the person. The ordinary income free area is the corresponding amount in column 3.
Table F - 1--Ordinary income free area | |||
Column 1 Item | Column 2 Category of person | Column 3 Basic free area per year | Column 4 Basic free area per fortnight |
1. | $2,184 | $80 | |
2. | Partnered (partner getting neither pension nor benefit) | $1,924 | $70 |
3. | Partnered--(partner getting benefit) | $1,924 | $70 |
4. | Partnered--(partner getting pension) | $1,924 | $70 |
Note 1: For member of a couple , partnered (partner getting neither pension nor benefit) , partnered (partner getting benefit) and partnered (partner getting pension) see section 4.
Note 3: Items 2, 3 and 4 of Table F - 1 apply to members of illness separated couples.
Note 4: The basic free area limits are indexed annually in line with CPI increases (see sections 1191 to 1194).
Pension reduction for ordinary income in excess of ordinary income free area
1066A - F9 A person's reduction for ordinary income is:
Ordinary income excess
1066A - F10 A person's ordinary income excess is the person's ordinary income less the person's ordinary income free area.
Application of this Module
1066A - G1 This Module applies to a person and, if the person is a member of a couple, the person's partner.
Lump sum payments arising from termination of employment
1066A - G2 Subject to points 1066A - G4 to 1066A - G14 (inclusive), if:
(a) a person's employment has been terminated; and
(b) as a result the person is entitled to a lump sum payment from the person's former employer;
the person is taken to have received the lump sum payment on the day on which the person's employment was terminated.
Certain leave payments taken to be ordinary income--employment continuing
1066A - G4 If:
(a) a person is employed; and
(b) the person is on leave for a period; and
(c) the person is or was entitled to receive a leave payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise) in respect of a part or all of a leave period;
the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the leave period to which the leave payment entitlement relates.
Certain payments taken to be ordinary income--employment terminated
1066A - G5 If:
(a) a person's employment has been terminated; and
(b) the person receives a termination payment (whether as a lump sum payment, as a payment that is one of a series of regular payments or otherwise);
the person is taken to have received ordinary income for a period (the income maintenance period ) equal to the period to which the payment relates.
More than one termination payment on a day
1066A - G6 If:
(a) a person is covered by point 1066A - G5; and
(b) the person receives more than one termination payment on a day;
the income maintenance period is worked out by adding the periods to which the payments relate.
Start of income maintenance period--employment continuing
1066A - G7 If a person is covered by point 1066A - G4, the income maintenance period starts on the first day of the leave period to which the leave payment entitlement relates.
Start of income maintenance period--employment terminated
1066A - G8 If a person is covered by point 1066A - G5, the income maintenance period starts, subject to point 1066A - G9, on the day on which the person is paid the termination payment.
Commencement of income maintenance period where there is a second termination payment
1066A - G9 If:
(a) a person who is covered by point 1066A - G5 is subject to an income maintenance period (the first period ); and
(b) the person is paid another termination payment during that period (the second termination payment );
the income maintenance period for the second termination payment starts on the day after the end of the first period.
Leave payments or termination payments in respect of periods longer than a fortnight
1066A - G10 If:
(a) a person receives a leave payment or termination payment; and
(b) the payment is in respect of a period longer than a fortnight;
the person is taken to receive in a payment fortnight or part of a payment fortnight an amount calculated by:
(c) dividing the amount received by the number of days in the period to which the payment relates (the daily rate ); and
(d) multiplying the daily rate by the number of days in the payment fortnight that are also in the period.
1066A - G11 If the Secretary is satisfied that a person is in severe financial hardship because the person has incurred unavoidable or reasonable expenditure while an income maintenance period applies to the person, the Secretary may determine that the whole, or any part, of the period does not apply to the person.
Note 1: For in severe financial hardship see subsection 19C(2) (person who is not a member of a couple) and subsection 19C(3) (person who is a member of a couple).
Note 2: For unavoidable or reasonable expenditure see subsection 19C(4).
Note 3: If an income maintenance period applies to a person, then, during that period:
(a) the pension claimed may not be payable to the person; or
(b) the amount of the pension payable to the person may be reduced.
When a person receives a leave payment or a termination payment
1066A - G12 For the purposes of points 1066A - G4 to 1066A - G11 (inclusive), a person (the first person ) is taken to receive a leave payment or termination payment if:
(a) the payment is made to another person:
(i) at the direction of the first person or a court; or
(ii) on behalf of the first person; or
(iii) for the benefit of the first person; or
(b) the first person waives or assigns his or her right to receive the payment.
Single payment in respect of different kinds of termination payments
1066A - G13 If a person who is covered by point 1066A - G5 receives a single payment in respect of different kinds of termination payments, then, for the purposes of the application of points 1066A - G4 to 1066A - G12 (inclusive):
(a) each part of the payment that is in respect of a different kind of termination payment is taken to be a separate payment; and
(b) the income maintenance period in respect of the single payment is worked out by adding the periods to which the separate payments relate.
1066A - G14 In this Module:
"leave payment" includes a payment in respect of sick leave, annual leave, maternity leave and long service leave, but does not include an instalment of parental leave pay.
"payment fortnight" means a fortnight in respect of which a disability support pension is paid, or would be paid apart from the application of an income maintenance period, to a person.
"period to which the payment relates" means:
(a) if the payment is a leave payment--the leave period to which the payment relates; or
(b) if the payment is a termination payment and is calculated as an amount equivalent to an amount of ordinary income that the person would (but for the termination) have received from the employment that was terminated--the period for which the person would have received that amount of ordinary income; or
(c) if the payment is a termination payment and paragraph (b) does not apply--the period of weeks (rounded down to the nearest whole number) in respect of which the person would have received ordinary income, from the employment that was terminated, of an amount equal to the amount of the termination payment if:
(i) the person's employment had continued; and
(ii) the person received ordinary income from the employment at the rate per week at which the person usually received ordinary income from the employment prior to the termination.
"redundancy payment" includes a payment in lieu of notice.
"termination payment" includes:
(a) a redundancy payment; and
(b) a leave payment relating to a person's employment that has been terminated; and
(c) any other payment that is connected with the termination of a person's employment.
Effect of assets on maximum payment rate
1066A - H1 This is how to work out the effect of a person's assets on the person's maximum payment rate:
Method statement
Step 1. Work out the value of the person's assets.
Note 1: For the treatment of the assets of members of a couple see point 1066A - H2.
Note 2: For the assets that are to be disregarded in valuing a person's assets see section 1118.
Note 3: For the valuation of an asset that is subject to a charge or encumbrance see section 1121.
Step 2. Work out the person's assets value limit (see point 1066A - H3 below).
Note: A person's assets value limit is the maximum value of assets the person can have without affecting the person's pension rate.
Step 3. Work out whether the value of the person's assets exceeds the person's assets value limit.
Step 4. If the value of the person's assets does not exceed the person's assets value limit, the person's assets excess is nil.
Step 5. If the value of the person's assets exceeds the person's assets value limit, the person's assets excess is the value of the person's assets less the person's assets value limit.
Step 6. Use the person's assets excess to work out the person's reduction for assets using points 1066A - H4 to 1066A - H7 below.
Note 1: See point 1066A - A1 Steps 10 and 11 for the significance of the person's reduction for assets.
Note 2: The application of the assets test is affected by provisions concerning disposal of assets (sections 1123 to 1128), retirement villages (sections 1145 to 1157) and financial hardship (sections 1129 and 1130).
Value of assets of members of couples
1066A - H2 For the purposes of this Module:
(a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:
(i) the value of the person's assets; and
(ii) the value of the person's partner's assets; and
(b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:
(i) the value of the person's assets of that kind; and
(ii) the value of the person's partner's assets of that kind.
Assets value limit
1066A - H3 A person's assets value limit is worked out using Table H - 1. Work out the person's family situation and home ownership situation. The assets value limit is the corresponding amount in column 3.
Table H - 1--Assets value limit | |||
Column 1 | Column 2 | Column 3 Assets value limit | |
Item | Person's family situation | Column 3A | Column 3B |
1. | $250,000 | $450,000 | |
2. | Partnered (partner getting neither pension nor benefit) | $187,500 | $287,500 |
3. | Partnered (partner getting pension or benefit) | $187,500 | $287,500 |
Note 1: For member of a couple , partnered (partner getting neither pension nor benefit) and partnered (partner getting pension or benefit) see section 4.
Note 2: For homeowner see section 11.
Note 3: Items 2 and 3 apply to members of illness separated couples.
Note 4: The assets value limits are indexed or adjusted annually in line with CPI increases (see sections 1191 to 1194 and 1203).
Pension reduction for assets in excess of assets value limit
1066A - H4 A person's reduction for assets is worked out using Table H - 2. Work out which family situation applies to the person. The reduction for assets is the amount per year worked out using the corresponding calculation in column 3.
Table H - 2--Reduction for assets | |||
Column 1 Item | Column 2 Person's family situation | Column 3 Reduction | |
1. | Not member of couple |
| |
2. | Partnered (partner getting neither pension nor benefit) |
| |
3. | Partner (partner getting pension or benefit) |
| |
Note 1: For member of a couple , partnered (partner getting neither pension nor benefit) , partnered (partner getting benefit) and partnered (partner getting pension) see section 4.
Note 3: For assets excess see point 1066A - H5 below.
Assets excess
1066A - H5 A person's assets excess is the value of the person's assets less the person's assets value limit.
1066A - H7 In calculating a person's assets excess under point 1066A - H5 disregard any part of the excess that is not a multiple of $250.
Remote area allowance
1066A - I1 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 advance pharmaceutical allowance has been paid to the person under Part 2.23 of this Act; 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
1066A - I2 The rate of remote area allowance payable to a person is worked out using Table I. 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 I--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. | $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
1066A - I4 If:
(a) a person who is a member of a couple is qualified for an amount by way of additional 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
1066A - I5 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
1066A - I6 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.
