(1) If:
(a) the rate of a person's social security payment is increased under Part 3.7 (rent assistance) and/or one or more of the following Modules of the Rate Calculator:
(i) the pension supplement Module (the PS Module ) (if any);
(ia) the energy supplement Module (the ES Module );
(ii) the pharmaceutical allowance Module (the PA Module ) (if any); and
(b) that rate is to be reduced under:
(i) the income test Module or the assets test Module of the Rate Calculator; or
(ii) section 1173 (compensation reductions);
the reduction is to be applied as follows (in descending order):
Item | Component of the rate |
1 | all of the rate apart from any increase mentioned in paragraph (a) |
2 | the portion of the person's pension supplement amount (if any) equal to: (a) if the Rate Calculator produces an annual rate--the person's pension supplement basic amount; and (b) if the Rate Calculator produces a fortnightly rate-- 1 / 26 of the person's pension supplement basic amount |
3 | (a) if an election by the person under subsection 1061VA(1) is in force--any remaining portion of the person's pension supplement amount; or (b) otherwise--any remaining portion of the person's pension supplement amount to the extent to which it exceeds the person's minimum pension supplement amount |
4 | the amount of any increase under Part 3.7 |
4A | the amount of any increase under the ES Module |
5 | the person's minimum pension supplement amount |
6 | the amount of any increase under the PA Module |
Note 1: For table item 4A, the amount will be nil if quarterly energy supplement is payable to the person (for example, see point 1064 - C2). See also subsection (2A).
Note 2: Table item 5 will not apply if an election by the person under subsection 1061VA(1) is in force, as the rate would have already been reduced to nil.
(2) For the purposes of subsection (1):
(a) disregard table items 2, 3 and 5 if the person's rate is increased under the PA Module (if any) of the Rate Calculator; and
(b) disregard table item 6 if the person's rate is increased under the PS Module (if any) of the Rate Calculator.
(2A) If:
(a) quarterly energy supplement is payable to a person; and
(b) if quarterly energy supplement were not payable to the person:
(i) the rate (the main rate ) of the person's social security payment would be increased under the ES Module of the Rate Calculator; and
(ii) the main rate would be reduced as described in paragraph (1)(b); and
(c) the social security payment:
(i) is not a social security pension; or
(ii) is a disability support pension to which subsection 1066A(1) or 1066B(1) applies; or
(iii) if the person has not reached pension age--is a pension PP (single);
the reduction is to be applied to the components mentioned in items 5 and 6 of the table in subsection (1) only to the extent that the amount of the reduction (after it is applied to the components mentioned in items 1 to 4) exceeds the amount of the increase mentioned in subparagraph (b)(i) of this subsection.
(3) If:
(a) the rate (the main rate ) of a person's social security payment is increased under the PS Module of the Rate Calculator; and
(b) that rate is to be reduced as described in paragraph (1)(b); and
(c) an election by the person under subsection 1061VA(1) is in force;
the person's quarterly pension supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person's minimum pension supplement amount would be reduced under subsection (1) were the election not in force.
Note: The reduction will be disregarded unless the person's quarterly pension supplement is reduced to nil (see subsection 43(5A) of the Administration Act).
(3A) If:
(a) quarterly energy supplement is payable to a person; and
(b) if quarterly energy supplement were not payable to the person:
(i) the rate (the main rate ) of the person's social security payment would be increased under the ES Module of the Rate Calculator; and
(ii) the main rate would be reduced as described in paragraph (1)(b);
the person's quarterly energy supplement is reduced to the same extent (if any) that the component of the main rate that would correspond to the person's energy supplement would be reduced under subsection (1) were quarterly energy supplement not payable to the person.
Note: The reduction may be disregarded unless the main rate would be reduced to nil (see subsection 43(5B) of the Administration Act).
(4) The following table sets out details of the Modules relevant to subsection (1):
Relevant Modules | ||||||
| Pension Rate Calculator | PS Module | PA Module | ES Module | Income test Module | Assets test Module |
1 | Pension Rate Calculator A, section 1064 | BA | none | C | E | G |
3 | Pension Rate Calculator D, section 1066A | none | D | BA | F | H |
4 | Youth Allowance Rate Calculator, section 1067G | none | C | BA | H | none |
5 | Austudy Payment Rate Calculator, section 1067L | BA | C | BB | D | none |
6 | Benefit Rate Calculator B, section 1068 | BA | D | C | G | none |
7 | Pension PP (Single) Rate Calculator, section 1068A | BA | C | BB | E | none |
8 | Benefit PP (partnered) Rate Calculator, section 1068B | DA | E | DB | D | none |