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Determining the Rate of Income for Pensions
Methods of determining the rate
The following methods are used in determining the rate of income to be assessed for DVA pension purposes:
- fortnightly income which reflects the current annual rate of income,
- variable income, and
- apportioning lump sums over 12 months.
Fortnightly income assessment
If income is earned, derived or received at a regular constant rate, the current rate, whether weekly, monthly or an annual amount, is annualised to reflect the current annual rate of income and is then converted into an assessable fortnightly income figure.
To produce a fortnightly rate of income:
- weekly income is multiplied by 2,
- four weekly income is divided by 2,
- calender month income is multiplied by 12 then divided by 26,
- 13 weeks income divided by 6.5, and
- annual income is divided by 26.