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No change of Marital Status - Standard Formula Not Applicable

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Reasons the standard calculation formula may not apply

It is possible for a person whose marital status has remained the same throughout the overall qualifying period to either:

  • defer more than one pension during that period, or
  • defer the same pension throughout the whole period but claim a different pension from that deferred.

Note: In these cases the standard formula will not apply.

Person changes pension being deferred during overall qualifying period

    

This may occur where a person who has been deferring age pension or service pension becomes a war widow/widower during the overall qualifying period, but without changing their marital status. That is, a person who was already widowed, but had not claimed war widow's/widower's pension at the time.

Person claims different pension from the one deferred

It is possible for a person who has not changed their marital status throughout the overall qualifying period, to claim a different pension from the one deferred. For example, a person is deferring age pension, becomes a war widow/widower and immediately claims income support supplement (ISS).

In either case, apply the following formula to calculate the total pension bonus:

apportioned amount X pension multiple X no. of years in overall qualifying period

The resulting figure is to be rounded to the nearest 10 cents (with 5 cents being rounded up).

Apportioned amount

    

The apportioned amount is:

period not a war widow/widower / no. of days in overall qualifying period X provisional payment rate

+

period a war widow/widower / no. of days in overall qualifying period X annual pension rate

Provisional payment rate

For the purpose of calculating the apportioned amount, the provisional payment rate is:

If the person has for some or all of the overall qualifying period...

Then the provisional payment rate is...

deferred age service pension (not subject to a ceiling) or partner service pension and the person is not permanently blind

the person's provisional payment rate under method statement 1 in SCH6-A1(2) as at the date of grant, if it were assumed that the person's maximum payment rate (Step 4) were their maximum basic rate (MBR) + pension supplement basic amount.    

deferred age service pension (not subject to a ceiling) or partner service pension and the person is permanently blind

MBR + pension supplement basic amount as at the date of grant.

deferred age pension and the person is not permanently blind

the person's provisional annual payment rate under the method statement in point 1064-A1 of the SSA as at the date of grant, if it were assumed that the person's maximum payment rate (Step 4) were their MBR + pension supplement basic amount     

deferred age pension and the person is permanently blind

MBR + pension supplement basic amount under the SSA as at the date of grant.

Example of pension bonus calculation – change in pension deferred

Mrs Glover has been deferring age pension since 3 December 2004. Her husband, who was a veteran, died in 1996 but she did not claim war widow's pension until October 2009. She became a war widow from 3 October 2009.

Initially Mrs Glover thought she would continue working and deferring pension, so she registered for the DVA pension bonus scheme. Her registration was dated from 3 October 2009. However, she soon realised that because of the war widow's pension she could afford to stop working and claim ISS. She was granted ISS from 14 November 2009. At the time of grant Mrs Glover has in her assessment $75,000 in assets, $200.00 per fortnight in ordinary income (including deemed income) and a total of $724.70 adjusted income (including war widow/widowers pension (WWP) of $524.70) per fortnight. She also owned her own home.

The following steps are required to calculate her bonus:

(All rates are as at 20 September 2009).

Step

Action

1

her provisional payment rate in respect of the deferred age pension is:

MBR (annual rate) $635.40 x 26 = `$16,520.40

less income test reduction

($724.70 income less income free area (IFA) of $142

X 50% x 26)$7,575.19

$8,945.30

2

her annual pension rate at date of grant of designated pension (ISS) is:

$5,265.00 (ISS ceiling rate of $202.50 x 26)

3

her periods of accrual were:

  • 4 years and 305 days (1765 days) deferring age pension, and
  • 42 days deferring ISS.

Her overall qualifying period is 1807 days.

4

the apportioned amount is:

period not a war widow/widower / overall qualifying period X provisional payment rate

+

period a war widow/widower / overall qualifying period X annual pension rate

= 1765 ? 1807 X $8,945.30 + 42 ? 1807 X $5,265.00

= $8,737.38+ $122.37

= $8,859.76

5

pension bonus is:

$8,859.76 X 0.094 X 4.951 X 4.951

= $20,411.80 (rounded)


An age pension is a means tested income support payment paid by Centrelink  or DVA on behalf of the Department of Families, Housing, Community Services and Indigenous Affairs. The majority of age pensions are paid through Centrelink. However, eligible veterans  who have an accepted disability or receive a disability pension from DVA, but do not have qualifying service, may be paid their age pension by DVA. Their partner may also receive their age pension from DVA, if eligible.