Purpose of the deduction | Compensation and Support Reference Library, Departmental Instructions, 1998, C12/1998 AGED CARE REFORMS , ASSESSMENT OF WAR WIDOW/ERS

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Purpose of the deduction

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The deduction is necessary to ensure equity with other income support pensioners with equivalent means.

The deduction counters the fact that application of the $120.10 per fortnight ceiling to a rate of income support pension prevents the rate of that pension increasing even with decreasing income of the pensioner.