Example - single war widow in aged care

A single war widow receives a superannuation pension of $140.00 per fortnight plus war widows pension of $371.80 per fortnight.

As war widows pension is counted as income in assessing the rate of ISS, the total income held in her ISS assessment is $511.80 per fortnight.

With this amount of income, her assessed rate of ISS ($141.90) 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              =  2  ×  (assessed rate of ISS  -  ceiling rate)

              =  2  ×  ($141.90  -  $120.10)

              =  2  ×  $21.80

              =  $43.60

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

Income assessed=  income in ISS assessment  -  deduction

=  $511.80  -  $43.60

=  $468.20

In practice, the figure actually transmitted to DH&FS is the amount assessable by DH&FS, less the income free area applicable to the person which in this case would be $100.00 per fortnight.  Therefore the amount included on the file for this war widow would be $368.20.