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3.10.6 Rate Calculation under the Hardship Provisions
VEA ?
Rate calculation when hardship provisions apply
To calculate the rate of service pension or income support supplement payable under the hardship provisions, the person's adjusted annual rate of ordinary income is deducted from the maximum payment rate of service pension or income support supplement
Unrealisable financial asset is exempt from the deeming provisions
VEA ?
If a financial asset is determined to be unrealisable under s.52Y for the purposes of the hardship provisions, it must be exempted from the deeming provisions.
According to Section 52Z(3) of the VEA a person's adjusted annual rate of ordinary income is an amount per year equal to the sum of:
- the person's annual rate of ordinary income (other than income from assets), and
- the person's annual rate of ordinary income from assets that are not assets tested, and
- either:
- the person's annual rate of ordinary income from unrealisable assets, or
- the person's notional rate of ordinary income from unrealisable assets, whichever is the greater, and
- an amount per year equal to $9.75 for each $250 of the value of the person's assets (other than disregarded assets)