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Example - partnered war widow in aged care


A war widow is a member of a couple and her partner receives age pension.  She receives war widows pension of $371.80 per fortnight and the couple have some managed investments from which an income of $80.00 per fortnight is deemed.

As war widow/ers pension is counted as income for both partner's pensions, their combined income for pension purposes is assessed as $451.80 (the war widows pension plus the deemed income).

The amount of income held in the war widows ISS assessment will be half that amount that is $225.90 per fortnight.

With this amount of income, her assessed rate of ISS ($278.90) is above the ceiling rate and so she is paid ISS at the ceiling rate of $120.10.

As her ISS is limited to the ceiling, it is necessary to apply a deduction to the income figure held in her ISS assessment to determine the amount that is assessable by DH&FS.  The deduction is calculated as follows:

Deduction               =  (assessed rate of ISS  -  ceiling rate)

               =  ($278.90  -  $120.10)

               =  $158.80

Thus the amount of income assessable by DH&FS in this case would be:

Income assessed=  income in ISS assessment  -  deduction

=  $225.90  -  $158.80

=  $67.10

In practice, the figure actually sent to DH&FS on the data file would be the amount assessable by DH&FS, less the income free area applicable to the person.  The excess income of the person rather than the couple is sent.

As the amount assessable by DH&FS is below the income free area applicable to this war widow, a nil figure would be included on the file and she would pay no income tested fees.