You are here

Calculation of Clean Energy Advance

Document

Last amended: 4 June 2012

Formula

The amount of clean energy advance (CEA) is determined through the following formula rounded up to the nearest $10:

clean energy advance daily rate (CEA daily rate) x days eligible

where days eligible means the number of days from the person's CEA start date to the end of the clean energy advance period.    

Clean energy advance daily rate

CEA daily rates are calculated differently depending on a person's clean energy underlying payment (CEUP).    

Clean energy advance daily rate for disability pension

The following calculation method applies to disability pension.

Step

Action

1

Work out the total rate of disability pension and any increase under section 27, disregarding any reduction for other compensation received.    

More ?

Special rules for some clean energy underlying payments

7.4.1/Special rules applying to some clean energy underlying payments

Compensation Offsetting

Chapter 9.10

More ? (go back)

2

If the total at step 1 is less than or equal to 100% of the general rate, multiply the 100% general rate for 1 July 2012 by 1.7%.

If the total at step 1 is greater than 100% of the general rate but less than or equal to the EDA rate, multiply the EDA rate for 1 July 2012 by 1.7%.

If the total at step 1 is greater than the EDA rate but less than or equal to the intermediate rate, multiply the intermediate rate for 1 July 2012 by 1.7%.

If the total at step 1 is greater than the intermediate rate, multiply the special rate for 1 July 2012 by 1.7%.

3

Add 20 cents to the relevant result of step 2.

4

Round result of step 3 up or down to the nearest multiple of 10 cents (rounding up if the result is a multiple of 5 cents and not 10 cents).

5

Divide step 4 by 14.

Clean energy advance daily rate for MRCA permanent impairment payment

The CEA daily rate for MRCA permanent impairment payment is equal to that for a person receiving 100% general rate of disability pension.

Step

Action

1

Multiply 100% of the general rate of disability pension for 1 July 2012 by 1.7%.

2

Add 20 cents to the result of step 1.

3

Round result of step 2 up or down to the nearest multiple of 10 cents (rounding up if the result is a multiple of 5 cents and not 10 cents).

4

Divide step 3 by 14.

Clean energy advance daily rate for service pension, age pension and seniors supplement

The following calculation method applies to service pension, age pension and seniors supplement.

Step

Action

1

Work out the sum of the fortnightly maximum basic rate of service pension and the pension supplement for a couple combined as at 1 July 2012.

2

Multiply the result of step 1 by 26.

3

Multiply result of step 2 by 1.7%.

4

Round result of step 3 up or down to the nearest multiple of $5.20 (rounding up if the result is a multiple of $5.20 and not $2.60).

5

Add $5.20 to the result of step 4.

6

Multiply the result of step 5 by 50% if the person is a member of a couple or by 66.33% if the person is single or is a member of an illness separated or respite care couple.    

7

Round the result of step 6 up or down to the nearest multiple of $2.60 (rounding up if the result is a multiple of $1.30 and not $2.60).

8

Divide result of step 7 by 364.

Clean energy advance daily rate for all other CEUPs

The following calculation method applies to war widows/widowers pension, VCES & MRCAETS fortnightly education allowances, MRCA special rate disability pension and MRCA wholly dependent partner payment:

Step

Action

1

Multiply the fortnightly rate, disregarding any reduction for other compensation received, of the CEUP for 1 July 2012 by 1.7%.    

More ?

Special rules for some clean energy underlying payments

7.4.1/Special rules applying to some clean energy underlying payments

Compensation Offsetting

Chapter 9.10

More ? (go back)

2

Add 20 cents to the result of step 1.

3

Round result of step 2 up or down to the nearest multiple of 10 cents (rounding up if the result is a multiple of 5 cents and not 10 cents).

4

Divide step 3 by 14.


The clean energy advance is an upfront lump sum payment, paid in respect of a clean energy advance period. It is designed to help recipients meet the cost of living impact of the carbon price.

 

 

The clean energy advance daily rate is the daily rate used to calculate a clean energy advance and is calculated under section 61D of the VEA, section 424F of the MRCA, section 3A.3.1 of the VCES and section 3A.3.1 of the MRCAETS.

 

 

The CEA start date is the first day from which a person is entitled to receive a clean energy advance.

 

The following table outlines the clean energy advance period for each clean energy underlying payment:

Clean energy underlying payment

Clean Energy Advance Period

Service pension

Age pension

War widows/widower's pension

Disability pension

Seniors supplement

MRCA wholly dependant partner payment

MRCA special rate disability pension

1 July 2012 to 19 March 2013

MRCA permanent impairment payment

1 July 2012 to 30 June 2013

VCES fortnightly education allowance

MRCAETS fortnightly education allowance

First advance - 1 July 2012 to 30 June 2013

Second advance - 1 July 2013 to 31 December 2013

 

 

A clean energy underlying payment means any pension, payment, supplement or allowance under the VEA or MRCA that attracts a clean energy advance and energy supplement .

 

Military Rehabilitation and Compensation Act 2004

A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.

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.

 

 

Seniors supplement was paid to Commonwealth Seniors Health Card (CSHC) and eligible Gold Card holders until it ceased on 26 June 2015. It was paid quarterly and commenced on 20 September 2009, replacing the seniors concession allowance and telephone allowance.

 

 

The pension supplement is added to a person's maximum basic rate. The pension supplement is calculated as a 'combined couple' rate. The 'not a member of a couple' rate is 66.33% of the 'combined couple' rate. The member of a couple rate is 50% of the combined couple rate. From 1 July 2010, the minimum pension supplement amount will be able to be claimed on a quarterly basis rather than on a fortnightly basis.

 

 

A form of pension that is paid to the partner of a veteran where the veteran has died as a result of war service or eligible Defence ServiceWar widow's/widower's pension is also paid to the partner of a veteran whose death was not war caused if the veteran was a ex-prisoner of war or if the veteran was receiving Extreme Disablement Adjustment Rate, Special Rate (T&PI) or a rate increased in respect of certain war-caused injury or disease.

 

Veterans' Children Education Scheme provides financial assistance and guidance in the education and training of eligible children as defined under section 116 of the VEA.  Eligible children must be full-time students and be under 25 years of age at the time of application.

The VCES aims to encourage and assist eligible children to achieve their educational potential and prepare for suitable careers.  The education allowance is not means tested, however, benefits cannot be paid to a student who is receiving other Commonwealth education assistance (including Youth Allowance), income support or assistance from any other similar scheme.