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.